If you’re a Registered Rep you can’t compensate other people who are not securities licensed.  Some RIAs may have some birddogs.

[quote=OldLady]If you’re a Registered Rep you can’t compensate other people who are not securities licensed.  Some RIAs may have some birddogs.[/quote]

I think if an RIA compensates someone they would have to be registered as an IAR, no?

If you don't compensate, do you have an arrangement with a CPA or do you give trinkets to tellers....or provide some sort of reward if someone refers you.

If so, what is your strategy?

I know an indy in town that hires college girls to go to local businesses and get appointments.  He said he pays them $10/hr and $25 per appointment she sets.  She doesn’t have to be licensed because all she does is set the appointments, she doesn’t sell product or “advice”.  He said he should have done it 15 years ago, his “new money %” has gone up 300%.  I don’t think you would be able to do this at a wirehouse or bank setup, only through the indy channel. 

Joe, I'm not sure about the SEC rules for RIAs on this issue.  I would guess an RIA could do it as a business expense -- the birddog wouldn't be receiving compensation for advice.  So it would be more like a marketing expense.

Personally, I send a nice thank letter for a referral. 

[quote=BullBroker]I know an indy in town that hires college girls to go to local businesses and get appointments.  He said he pays them $10/hr and $25 per appointment she sets.  She doesn't have to be licensed because all she does is set the appointments, she doesn't sell product or "advice".  He said he should have done it 15 years ago, his "new money %" has gone up 300%.  I don't think you would be able to do this at a wirehouse or bank setup, only through the indy channel.  [/quote]

is that $25 per prospect appointment set, or per prospect appointment that shows?

[quote=OldLady]

Joe, I’m not sure about the SEC rules for RIAs on
this issue.  I would guess an RIA could do it as a business
expense – the birddog wouldn’t be receiving compensation for
advice.  So it would be more like a marketing expense.

Personally, I send a nice thank letter for a referral. 

[quote=AllREIT] [quote=OldLady]

Joe, I'm not sure about the SEC rules for RIAs on this issue.  I would guess an RIA could do it as a business expense -- the birddog wouldn't be receiving compensation for advice.  So it would be more like a marketing expense.

Personally, I send a nice thank letter for a referral. 

[/quote]

You would want to run that by your compliance officer. AFAIK people who directly promote you must be IAR's.

Joe Girards book is about transactional selling, which is not the RIA business model. Maybe if you were an annuity salesman it could work.
[/quote]

You've lost a lot of business to annuity salesmen, haven't you? It shows.

[quote=Big Taco]

[quote=BullBroker]I know an indy in town that hires college girls to go to local businesses and get appointments.  He said he pays them $10/hr and $25 per appointment she sets.  She doesn't have to be licensed because all she does is set the appointments, she doesn't sell product or "advice".  He said he should have done it 15 years ago, his "new money %" has gone up 300%.  I don't think you would be able to do this at a wirehouse or bank setup, only through the indy channel.  [/quote]

is that $25 per prospect appointment set, or per prospect appointment that shows?

[/quote]

Only the prospects that showup interested in doing business.  I think the key is to hire the right "person" for the job, someone who is good at getting attention, qualifying prospects, and setting appointments.  I have thought strongly about doing this, but I don't think "mother Merrill" would approve, and I question the ethics behind this tactic. 

My bird dog is my husband.  He has a lot of good clients who move into our area and hands out my cards to everyone    Don’t have to worry about NASD rules either.