I considered it as an alternative when investigating my alternatives.  Didn't like it.  For all their pretty sales pitches I felt confident that in their platform I would end up being in a channel that was a poor stepchild to the bank and full-service channels, and potentially subject to future coercion, pressure, and control.  Remember-one of the big reasons to go indy is to be independent.

Too, consider that you will be in a channel that is 'paying' them gross margins of 10-30%, while the full service guys are paying gross margins of 55-60% and the bank channel probably as high as 70%.  So who do you think is going to get the resources when push comes to shove?

For the reasons Joe cites (and I assume others, cuz I haven't looked at them), Wachovia has apparently had difficulty growing their indy channel as fast as they'd like.  In great measure that's probably why they offer up-front money (I've heard something like 25% of T12), unlike successful indies like LPL & RJFS. 

Wachovia wouldn't be having to buy reps with up-front $ unless they had a need to do so.  They're not a charity.  At the heart of them they're a bank, and the bean counters at banks certainly aren't known for freely handing out money to reps unless there was a real business need to do so.

[quote=Duke#1]

For the reasons Joe cites (and I assume others, cuz I haven't looked at them), Wachovia has apparently had difficulty growing their indy channel as fast as they'd like.  In great measure that's probably why they offer up-front money (I've heard something like 25% of T12), unlike successful indies like LPL & RJFS. 

Wachovia wouldn't be having to buy reps with up-front $ unless they had a need to do so.  They're not a charity.  At the heart of them they're a bank, and the bean counters at banks certainly aren't known for freely handing out money to reps unless there was a real business need to do so.

[/quote]

Exactly.  They offered significantly more 'transition a$$i$tance than their competition, but in the end I decided it just wasn't worth it.

Indy = B.S.



Thats like trusting a casino operator when they say that their new game is

a real winner. Remember that the HOUSE always wins in the end.



Lets see, the firm keeps X% of your gross, then there’s ticket charges (the

highest on the street or universe), then you have to split your gross with

your principal, then after that, you get clipped for your platform costs,

your E&O insurance.



After all that, then you pay for your own office, phones, faxes, assistant,

health insurance (you can’t participate in the B/D group plan), retirement

plan (no matching), life insurance (you can’t participate in the B/D group

plan), and marketing materials (you have to pay per unit for brochures,

website, business cards, white pages ad, building signage, etc.).



Your LUCKY if you get to keep 39% of gross production.

[quote=skeedaddy]Indy = B.S.

Thats like trusting a casino operator when they say that their new game is
a real winner. Remember that the HOUSE always wins in the end.

Lets see, the firm keeps X% of your gross, then there's ticket charges (the
highest on the street or universe), then you have to split your gross with
your principal, then after that, you get clipped for your platform costs,
your E&O insurance.

After all that, then you pay for your own office, phones, faxes, assistant,
health insurance (you can't participate in the B/D group plan), retirement
plan (no matching), life insurance (you can't participate in the B/D group
plan), and marketing materials (you have to pay per unit for brochures,
website, business cards, white pages ad, building signage, etc.).

Your LUCKY if you get to keep 39% of gross production.


[/quote]

Your comments would be in specific reference to the Wachovia platform, no?

Was my bourbon-induced analysis incorrect, Joe? Wachovia’s cost structure

is even higher, but your office space is Class A.   

I'll jump on the bandwagon and tell you that I have serious doubts that Wachovia doesn't have a plan to recoup that up-front $$$ they're paying out to indies.

...one way or the other, you'll pay for it in the end...

[quote=skeedaddy2]Was my bourbon-induced analysis incorrect, Joe? Wachovia's cost structure
is even higher, but your office space is Class A.    [/quote]

spot on dude.  I too was having a cocktail.  Perhaps that's why you're analysis resonated so well to me....

[quote=Indyone]

I'll jump on the bandwagon and tell you that I have serious doubts that Wachovia doesn't have a plan to recoup that up-front $$$ they're paying out to indies.

...one way or the other, you'll pay for it in the end...

[/quote]

Nothing in life is free, especially in this business.  It's that "in the (rear) end" part that I'd be worried about with Wachovia.....