100k minimums-what the heck?

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Jun 25, 2007 1:16 pm

[quote=FreeLunch]

Don't focus on selling product (for example, don't cold call trying to sell $25k of a muni), rather focus on trying to review peoples portfolio and managing most of their assets.

[/quote]

There are many who would disagree strongly with this comment.

Jun 25, 2007 1:53 pm

[quote=Bobby Hull][quote=Dust Bunny][quote=lady_trader]

Kind of a meat/motion thing

[/quote]

Why do you set yourself up like this?

[/quote]

Same reason you do.

Jun 25, 2007 8:09 pm

[quote=lady_trader]

Bobby-

Yeah, I do think a 100k is a lot of money, especially for a new person for a new account. For "investable assets", it definately is. (At least in my book.)

lady T-

Bobby is right.   Most FAs at the big wires like Mer, MS, UBS, etc have minimums of at least $250.  I know Merrill won't even pay on accts less than 100k unless you household them together with others to bump the household over 100k... and I am sure they'll fix that glitch soon.

In order to make it in this biz, you need BIG dollars under management.  Think about it-- A 100k account will only pay you $350 per year (assuming you have them in c shares at 1% and your grid is 35%).  for the amount of time you'll need to give these people, is it worth it for $350?  You going to spend more than and hour or two with them? 

You need to break down just what your time is worth.

[/quote]
Jun 25, 2007 8:16 pm

[quote=pretzelhead][quote=lady_trader]

Bobby-

Yeah, I do think a 100k is a lot of money, especially for a new person for a new account. For "investable assets", it definately is. (At least in my book.)

lady T-

Bobby is right.   Most FAs at the big wires like Mer, MS, UBS, etc have minimums of at least $250.  I know Merrill won't even pay on accts less than 100k unless you household them together with others to bump the household over 100k... and I am sure they'll fix that glitch soon.

In order to make it in this biz, you need BIG dollars under management.  Think about it-- A 100k account will only pay you $350 per year (assuming you have them in c shares at 1% and your grid is 35%).  for the amount of time you'll need to give these people, is it worth it for $350?  You going to spend more than and hour or two with them? 

You need to break down just what your time is worth.

[/quote] [/quote]


Arrrrrrrrrgh sorry folks, I just read San Fran's post and see that I provided a similar, yet less articulate resonse.  My bad.

Jun 25, 2007 8:51 pm

Dust Bunny!

What the Heck was that scam you sent us to?

Planet Wealth!!!

Was the Roadmaster some sort of nudge nudge wink wink to get ust to look at a "Nothing Down, Timeshare Vaction Home" sort of "financial Independence for just pennies a day?

Mean while it DID go to show that there are PLENTY of ways to prospect in a Niche Market that are available out there.

I don't really think that you intended to hype Planet Wealth, it just so happened that way.

Jun 25, 2007 9:03 pm

What the Heck was that scam you sent us to?

Planet Wealth!!!

???? The link takes me to a web site for Buick collectors???

http://www.buickstreet.com/49buickstreet.html

Try it again.  You must see this car.

Jun 25, 2007 9:04 pm

Ah I see what you mean. 

 I never scrolled down past the pictures of the car.

Jun 25, 2007 9:06 pm

[quote=Dust Bunny]

What the Heck was that scam you sent us to?

Planet Wealth!!!

???? The link takes me to a web site for Buick collectors???

http://www.buickstreet.com/49buickstreet.html

Try it again.  You must see this car.

[/quote]

I'm with Babs. I also have a fondness for cars that were built in the year of my birth.

Jun 25, 2007 9:08 pm

See? I didn't think you intended to send us there, but it is apropos to the discussion don't you think?

Actually, when I got down there I was thinking that that would be a great place for an ad... low and behold, synchronicity took a firm grasp of the steering wheel (as it were).

Jun 26, 2007 6:57 pm

You are getting some great advice on this thread. One thing I have to say about networking (actually 2 things)

1. It's someting you should definately be doing from the start, wish I had someone give me that advice when I was new.

2. It takes a year or two to bear fruit, most of the time.

The reason I bring up number two is that if you are in a wirehouse as a new FA, there will be a lot of contradiction thrown at you. Mainly they all want you and expect you to build a fee based business, based on financial planning, relationships, trust, etc. and at the same time, they give you numbers that you need to hit in, like 10 minutes! Hard to do both.

I would take all comers when you first start out, but once you get the small ones in, put them in something that is appropriate for them, but pays you now, and doesnt take a lot of maintenance. Spend you time on the 200k+ households. Thats where you annuitize, help them plan, build relationships, and clone them.

[/quote]

very well said.

wirehouse's get new fa's to build books in fee based accounts, then those guys don't generate enough commission to keep their jobs. those accounts then get handed to top producers in that office.

you should segment your new accounts.

$100k - $500k upfront commish

$500k + wrap/fee based

Jun 26, 2007 9:21 pm

San Fran's post hits the nail on the head. You need to walk before you can run. You need to get immediate traction or it's game over.

Vin's post also speaks a truth about this business. The suits will tell you one thing and expect another. I call this suit disease. Unfortunately it systemic in most large companies, based in the fact that the average suit never had to build a practice.

The truth is anyone just starting out needs to get off the ground quickly. To me that means dialing the phone. Networking, as good as it is, will not build quickly enough. Though networking should be included as a primary prospecting channel, it shouldn't be exclusive.

Other biz building ideas, not to be used as an only marketing channel:

Once a week luncheon meeting with 5 or 6 seats open for guests. Nice restaurant, someplace locals want to go. Your job is to fill the seats and then deliver an informal presentation during lunch. Everyone who eats is a prospect who you will call for an appointment. Over the course of a year you will feed about 300 people, spend about $12,000, and with a 10% close rate open 30 new accounts. Your qualifying should put the minimum account at $250,000 bringing the total new asset count to about $7,500,000 minimum. Get propects to the lunch via cold calling businesses within 5 miles of the restaurant or by mailing invitation to them. Better yet hire someone to get them there for you and free up your time for appointments and closing.

Start an in the office series of classes. Make it a three week series and cover all the bases. You don't even have to feed 'em. It works something like this: Every week there are three classes scheduled. As prospects complete one class they move to the next, the next week. After three weeks the prospect has completed all three classes and is ready for their in depth financial review. They've had a three week look-see and you've had three weeks to sell yourself. Your job is to fill the 5 or 6 seats available in the beginner class every week and then move them thru the process. As above, expected result 7 to 12 mil a year.

Personally, as good as these ideas may be, and I know they're good, nothing beats just calling someone up and pitching a product. I know it's ugly, but it's exactly how all the largest producers became the largest producers. They asked someone to buy something. After that happened they used their seat at the table to build a relationship with the client eventually morphing from product salesman to financial advisor. That's the way the big dogs did it, regardless of what the suits tell you. Nothing beats the good old appeal to greed pitch. Find something with outstanding performance and pitch it to everyone! See what that does to your prospecting numbers.

Jun 26, 2007 11:29 pm

Bond Guy-so are you telling me that I need even more cash saved up to "take the jump" to afford lunch money? Thank you. I have noticed on a few other posts that you have that you recommended First Trust UIT's. I could pitch that. Thank you for the advice.

Vin Diesel, Bluestar, pratoman, brokerman, and anyone else who I thoughtless missed:  I want to make sure that you know that I am grateful for the time that you take to post your thoughts. It really does help me Thanks.