Comp Payouts- Getting Sliced in 06'

90% on securities and 100% on insurance.

That payout (AmSouth, not Dirk's) is horrible.  My god you should just ask them to put you on the clock like a salary drone and you'd probably do better.

FWIW-you might want to think about how you can "game" the program and clump your production into particular months by delaying some deals and accelerating others.

They're really screwing you with this "old money" idea.  I guess they've never heard of the idea of building a recurring revenue stream and servicing existing clients to keep them on the books and win new assets?

Mine is not as good as Dirk's, but not shabby-

Fee based accounts-90% and goes higher as production gets in the six figure range

Stocks 'n Bonds  76% and goes up after about 50k in production.

Mutual Funds and UIT's 90%

Of course, that's before overhead, but those payouts can cover a lot of overhead!

does "old money" mean funds from your branch/AmSouth deposit base "new money" from outside of the AmSouth system?

If yes then that's pretty close to what most bank brokers get.  When I worked for a bank brokerage almost 2 decades ago, I was able to get most of my prospects to write me a check from their "other" bank, and transfer their "in-house" assets to the "other" bank. This way I was receiving the same as most wire-houses.

Alternatively is get the "rollover" into a Money Market MF and then do the trade next month (or whenever the "old money" turns into "new money").

Finally how much prospecting do you have to do to get the biz you write?

Monthly grid:

0 to 10K -  base salary (not much, but enough to cover my expenses)

10k to 20K - 30.% plus base

20k to 30K - 32.5% plus base

30k to 40K - 35% plus base

40k to 50k - 37.5% plus base

50k plus - 40% plus base

I think it is very fair, especially considering the expense account, laptop, 6% nonmatching into 401K, mileage reimbursement (currently 44.5 cents a mile), cell phone, referral fees paid by bank, christmas bonus, health ins paid for completely, etc etc

Here's my payout if anyone cares:

30% $0-$50,000<?:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

32%  $50,001-$75,000

34%  $75,001-$100,000

36%  $100,001-$125,000

38%  $125,001-$150,000

40%  $150,001 and greater

I assume that is annual right?  Does it retro back when you hit the next plateau?

Ex...when you hit $50,000, do you get the extra 2% back on the first $49,999.00 as a "bonus."

I know of a big regional that does that.

[quote=BankFC]

Monthly grid:

0 to 10K -  base salary (not much, but enough to cover my expenses)

10k to 20K - 30.% plus base

20k to 30K - 32.5% plus base

30k to 40K - 35% plus base

40k to 50k - 37.5% plus base

50k plus - 40% plus base

I think it is very fair, especially considering the expense account, laptop, 6% nonmatching into 401K, mileage reimbursement (currently 44.5 cents a mile), cell phone, referral fees paid by bank, christmas bonus, health ins paid for completely, etc etc

[/quote]

i get reimbursed 25bps on new money. my laptop cost me $600. 6% of nothing is nothing. so...you drive what? 300 miles/year? cell phone is $50/month. referral fees are illegal. Was your bonus a turkey or a ham? Health insurance is $6,000/year, whoopie. Sounds fair to me. Where do I sign up?

Dirk,

Referral fees are not illegal as long as they are not based on selling something.

0-12 Salary

12-18 25%

18-22 28%

22-30 30%

30-35 34%

35-40 38%

40+ 40%

Something like this I'm not at work, monthly + bonus 2-10%.  I also claimed 15,000 miles last year, not 300.

[quote=bankrep1]

Dirk,

Referral fees are not illegal as long as they are not based on selling something.

0-12 Salary

12-18 25%

18-22 28%

22-30 30%

30-35 34%

35-40 38%

40+ 40%

Something like this I'm not at work, monthly + bonus 2-10%.  I also claimed 15,000 miles last year, not 300.

[/quote]

True. How much does the bank pay for referrals. What qualifies someone to get paid? Just giving the name?

Most programs I know of pay between 10 -25 dollars per appt.  To qualify the prospect must meet a given criteria.

[quote=bankrep1]Most programs I know of pay between 10 -25 dollars per appt.  To qualify the prospect must meet a given criteria.[/quote]

I don't know if I'd risk a friendship for 25 bucks.

[quote=bankrep1]

Dirk,

Referral fees are not illegal as long as they are not based on selling something.

0-12 Salary

12-18 25%

18-22 28%

22-30 30%

30-35 34%

35-40 38%

40+ 40%

Something like this I'm not at work, monthly + bonus 2-10%.  I also claimed 15,000 miles last year, not 300.

[/quote]

Interesting.  Sounds like  a better deal than a wire, but worse than indy.

But you avoid some of the headaches of indy life....then again I don't have to go to sales meetings. ;-)

High-end lap-top with docking station - $3,000

First month's office rent - $750

Classy office furniture - $10,000

Part-time assistant - $1,500

Avoiding sales meeings and pipeline/activity reports - priceless...

Luckily I don't have sales meetings or pipeline reports.  However, I do get "Mike, I don't need education.  I've been investing for 25 years.  By the way, those mutual funds you're recommending.... They can't go down because they're covered by FDIC?"

:Bangs head against wall:

I don’t have sales meetings where I am now, but in the past I kind of looked forward to them.  They were only once a month or every 6 weeks and we always went out as a group afterward

90% securities 100% Insurance

[quote=bankrep1]I don't have sales meetings where I am now, but in the past I kind of looked forward to them.  They were only once a month or every 6 weeks and we always went out as a group afterward[/quote]

Ours were nothing but damn pep sessions...a total waste of time...

We usually ended up at the gentleman’s club

[quote=Dirk Diggler][quote=BankFC]

Monthly grid:

0 to 10K -  base salary (not much, but enough to cover my expenses)

10k to 20K - 30.% plus base

20k to 30K - 32.5% plus base

30k to 40K - 35% plus base

40k to 50k - 37.5% plus base

50k plus - 40% plus base

I think it is very fair, especially considering the expense account, laptop, 6% nonmatching into 401K, mileage reimbursement (currently 44.5 cents a mile), cell phone, referral fees paid by bank, christmas bonus, health ins paid for completely, etc etc

[/quote]

i get reimbursed 25bps on new money. my laptop cost me $600. 6% of nothing is nothing. so...you drive what? 300 miles/year? cell phone is $50/month. referral fees are illegal. Was your bonus a turkey or a ham? Health insurance is $6,000/year, whoopie. Sounds fair to me. Where do I sign up?

[quote=Dirk Diggler][quote=BankFC]

Monthly grid:

0 to 10K -  base salary (not much, but enough to cover my expenses)

10k to 20K - 30.% plus base

20k to 30K - 32.5% plus base

30k to 40K - 35% plus base

40k to 50k - 37.5% plus base

50k plus - 40% plus base

I think it is very fair, especially considering the expense account, laptop, 6% nonmatching into 401K, mileage reimbursement (currently 44.5 cents a mile), cell phone, referral fees paid by bank, christmas bonus, health ins paid for completely, etc etc

[/quote]

i get reimbursed 25bps on new money. my laptop cost me $600. 6% of nothing is nothing. so...you drive what? 300 miles/year? cell phone is $50/month. referral fees are illegal. Was your bonus a turkey or a ham? Health insurance is $6,000/year, whoopie. Sounds fair to me. Where do I sign up?

[/quote]

Sorry for my delayed reply...I've actually been working lately...

I drive about 2,100 miles per month (I cover 10 branches, my farthest being nearly 90 miles from my office).  So that's an extra thousand per month reimbursement.

As someone stated, referral fees are not illegal (don't comment on subjects you are ignorant of)...we pay $25 per referral where a customer sits down with me (doesn't have to buy).  I've set a $50,000 minimum with a focus on $100,000 and up.

Christmas bonus was $1,200 and a free turkey, as a matter of fact. 

You give up some payout at a bank in turn for access to the customers and the "team" referral atmosphere (I have both here).

Back to work for me.

[quote=BankFC]As someone stated, referral fees are not illegal (don't comment on subjects you are ignorant of)...we pay $25 per referral where a customer sits down with me (doesn't have to buy).  I've set a $50,000 minimum with a focus on $100,000 and up...[/quote]

I'm with you on the legality of referral fees to unlicensed individuals in general (so long as they are not predicated upon success), but we were always told that we could not pre-qualify individuals by requiring that they had a minimum amount to invest.  If what you are saying is accurate, that would have weeded out 95% of the referrals I got at the bank...and virtually all of the sh*tty ones.

[quote=Indyone]

[quote=BankFC]As someone stated, referral fees are not illegal (don't comment on subjects you are ignorant of)...we pay $25 per referral where a customer sits down with me (doesn't have to buy).  I've set a $50,000 minimum with a focus on $100,000 and up...[/quote]

I'm with you on the legality of referral fees to unlicensed individuals in general (so long as they are not predicated upon success), but we were always told that we could not pre-qualify individuals by requiring that they had a minimum amount to invest.  If what you are saying is accurate, that would have weeded out 95% of the referrals I got at the bank...and virtually all of the sh*tty ones.

[/quote]

It seemed like 95% of the leads were sh*tty when I was at the bank. Tellers just want to fill their quotas to be left alone.

[quote=BankFC][quote=Dirk Diggler][quote=BankFC]

Monthly grid:

0 to 10K -  base salary (not much, but enough to cover my expenses)

10k to 20K - 30.% plus base

20k to 30K - 32.5% plus base

30k to 40K - 35% plus base

40k to 50k - 37.5% plus base

50k plus - 40% plus base

I think it is very fair, especially considering the expense account, laptop, 6% nonmatching into 401K, mileage reimbursement (currently 44.5 cents a mile), cell phone, referral fees paid by bank, christmas bonus, health ins paid for completely, etc etc

[/quote]

i get reimbursed 25bps on new money. my laptop cost me $600. 6% of nothing is nothing. so...you drive what? 300 miles/year? cell phone is $50/month. referral fees are illegal. Was your bonus a turkey or a ham? Health insurance is $6,000/year, whoopie. Sounds fair to me. Where do I sign up?

[/quote]

Sorry for my delayed reply...I've actually been working lately...

I drive about 2,100 miles per month (I cover 10 branches, my farthest being nearly 90 miles from my office).  So that's an extra thousand per month reimbursement.

You're proud of being made whole?

As someone stated, referral fees are not illegal (don't comment on subjects you are ignorant of)...

You're right. I'm ignorant. I'm not used to having bank tellers like Shanaynay Jackson and Alicia Lopez referring people to me.

we pay $25 per referral where a customer sits down with me (doesn't have to buy). 

If I were an $8/hour teller, I'd be excited about getting $25.00. The quality of referrer that I have would not be motivated in the least by that piker amount.  

I've set a $50,000 minimum with a focus on $100,000 and up.

What a big boy! Mine is $500,000. It keeps the riff raff out of my hair.

Christmas bonus was $1,200 and a free turkey, as a matter of fact. 

I thought so.  

You give up some payout at a bank in turn for access to the customers and the "team" referral atmosphere (I have both here).

I'm a little more dynamic and entrepreneurial than that. I'd rather make more money and build MY business, rather than the bank's.

Back to work for me.

Yep. Your manager is watching you. Don't get caught, big boy.

EDWARD JONES INVESTMENTS....PAY OUTS

IR'S.............38% payout (Pay your own postage & 50% phone) Except on Stocks & B & C Shares/MF & Annuities & Insurance reduce by 20% (this goes into general fund)IR'S CAN WIN TWO TRIPS PER YEAR, but IR PAYS TAXES, SO IT ACTUALLY ADDITIONAL INCOME....... 

To run the company...35%  (Salaries for GP's & home Office staff & Branch offices & Profit Sharing/401K etc; & BENEFITS) 

General Partners....keep  15%

Limited Partners... get  4%

Bonus Pool........gets  8% (most goes as insurance to keep top producers)

That's the breakdown............

Dirk,

You are so cool...oh wait, I'm on a message board too, so now I have a $500,000 minimum too now. 

Your "high quality referrers" might not be motivated by $25.00 (I'm humoring you).  If you really were as big a producer as you'd like everyone to think, you'd realize it's not the quality of the referrer, but the quality of the referral that matters.  

The bank pays (for me) to have someone that IS MOTIVATED by $25 AND sees folks cash all day to refer them to me.  Yeah, pretty bad deal for me...

Contempt for others usually denotes jealousy...if you are as big a deal as you want everyone on here to think, great.  I'm happy for you, and I guarantee it has no effect on me.

I work for me...my manager isn't even in the same area code.  BTW, I couldn't ask for a better one.  Just called me yesterday and we were discussing newspaper ads (again, not out of my pocket) and anything else they could do to support me.

Have a great long weekend...hope you pass your 7 soon.

In an effort to actually bring something of value to this forum

As a side note for other bank brokers, as anyone who has been successful in the bank must know...if you rely on tellers to build your business, you are setting yourself up for failure.

Your most frequent and better referrals will (or should) come from lending, both residential (both in-house and secondary lenders) and commercial.  They see their holdings, have a relationship with them, and can be a great asset.

People who think bank brokers just smooze tellers all day either have never been a bank broker, or failed at it.  I made it at the best of the best wirehouse (ML) and I must say I am about twice as happy now, and bringing in more assets.

[quote=BankFC]

Dirk,

You are so cool...oh wait, I'm on a message board too, so now I have a $500,000 minimum too now. 

I just happen to like big tickets and they are easier to close than $50,000 people. If you get into a mindset that you only take large accounts, that is what you will attract and get. This business is more attitude than anything.

Your "high quality referrers" might not be motivated by $25.00 (I'm humoring you).  If you really were as big a producer as you'd like everyone to think, you'd realize it's not the quality of the referrer, but the quality of the referral that matters.  

Birds of a feather flock together.

The bank pays (for me) to have someone that IS MOTIVATED by $25 AND sees folks cash all day to refer them to me.  Yeah, pretty bad deal for me...

I'm insulted when a teller at my bank starts in on me about talking to an investment guy. It is so predictable and cheesy.

Contempt for others usually denotes jealousy...if you are as big a deal as you want everyone on here to think, great.  I'm happy for you, and I guarantee it has no effect on me.

I'm not that great.

I work for me...my manager isn't even in the same area code.  BTW, I couldn't ask for a better one.  Just called me yesterday and we were discussing newspaper ads (again, not out of my pocket) and anything else they could do to support me.

People who work for themselves don't have managers.

Have a great long weekend...hope you pass your 7 soon.

Nevermind...

Thanks for the tips there big timer...fact is $100,000 accounts can be profitable, and I'm not turning those away.

I new 20 year reps at ML who would take on a $100,000 account and put it in MFA (mutual fund wrap managed by ML)...and why not?  So go ahead and try to act "as if"...like I said in another thread, fake it till you make it (just don't try to fake it too much).

[quote=BankFC]

Thanks for the tips there big timer...fact is $100,000 accounts can be profitable, and I'm not turning those away.

I new 20 year reps at ML who would take on a $100,000 account and put it in MFA (mutual fund wrap managed by ML)...and why not?  So go ahead and try to act "as if"...like I said in another thread, fake it till you make it (just don't try to fake it too much).

[/quote]

You won't understand this, but when you raise your minimum, your production goes up.

$100,000 accounts can be financially profitable, but the people that have them are difficult for me to work with and there's an opportunity cost involved. They tend to be more demanding and time consuming. If a good client refers me to someone who is that small and the small guy wants help, is willing to do whatever I say, and can make a quick decision, I'm glad to help. It's certainly not something that I persue, though.

That's great dirk...now go back to your series 7 manual and focus really hard.

[quote=BankFC]

That's great dirk...now go back to your series 7 manual and focus really hard.

[/quote]

I must admit...that was a pretty snappy comeback.