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30% increase in gross production this year? Help!

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Jan 8, 2011 12:15 am

My business runs at 48 bp  ; very low by most standards.

I have 40/350 households with fee based accounts and I do 5 - 10 annuity tickets a year.

It seems like the fee based accounts along with the occasional annuity provide my income while the 310 accounts have mostly munis or preferreds or cat and dog stocks and I make very little there.

Some of my buddies take all accounts that not fee based and try to have something c-shared or unit trusted etc. to at least create some income; because I seem to charge very little for stock trades perhaps $75.

I have quite a few clients that are not fee based, don't trade much but may have $500,000 or more invested.

I was toying with the idea of requiring at least $100,000 of  a fee based account for all to meet at least a minimum $1,000 "retainer".  This would add at least $50,000 gross per year ....

I try to do the best job possible for my clients (assets about 75mm, indy 70 % payout net)  but I'm trying to raise my production and it seems stagnant.


My top 25 all have over 1.5mm and maybe I should spend all of my time prospecting for 2mm accounts?

Any ideas?


Jan 8, 2011 2:10 am

Why not set the minimum $1000 retainer for all clients, and reduce it $ for $ by the amount of gross they pay you in fees. That way your clients who are stagnant and just parking assets, maybe getting some advice from you once in a while, at your expense, will have to decide - they either pay you a thou a year in retainer fees for the advice, or convert there account to fee based, or move out, which if they don't want to do either of the first two choices, you might as well get rid of them.

I'm assuming that your indy B/D allows you to charge advisory fees. The thing is, if they pay you the thousand $ retainer, you will have to show deliverables - show that you are actually giving them some sort of advice.

Jan 10, 2011 4:31 pm

Dash, I do virtually no annuity biz, and zero fee based. My accounts are like the ones you describe, generating low margins. I however generate 75-80 bps per year, on a go forward basis per assets.

The key is face to face meetings, with a substantial/formal review process. 2-4 times per year, we meet clients like that, and generate a 20 page binder that includes goals, profiling, current assets, a check list, and a variety of other items like realized gain/loss, and income projections. My check list uncovers opportunities, and it's not a tough sell.

Jan 10, 2011 8:01 pm

Sorry if I missed it, you don't charge a separate planning fee, right BFP?

Jan 11, 2011 5:45 pm

No, we're just good old fashioned old school reps. We have to kilt each month, wat we'z eat. Keeps us lean and mean, focus is sharp. Last year, we only had one bad month.

Jan 11, 2011 8:15 pm

That's good, you must be the rainmaker. Guy who goes out and wrestles alligators from the swamp 'an brings 'em in to make boot out of 'em.

Jan 11, 2011 8:41 pm

 I see I'm generating about 67 bips on AUM, after admin before haircut.  New or insurance money could help raise that # in 2011.