Anyone A Dave Ramsey LP
I have a friend who has built his whole practice from Dave Ramsey referals over the last 10-13 yrs. Interesting because he's never done any prospecting, doesn't consider himself a sales guy and his business (indy) is about as different as anyone's I have ever seen or talked to. On target to do $100 mil this yr which seems pretty good on an Indy platform. I've known him for a little over a year and the first time I met at his office to learn about his company and what they do I was blown away. I know Jones Guys, other Indy's, some Mutual and Bank guys and his business is completly different.
Anyone else doing this? Thoughts, opinions, etc? Sustanability?
When you say on target to do $100 mil, do you mean that is what he will bring in this year for new assets? Or is that what he will have total asset wise at the end of the year. What do you mean his business is completely different? What makes it so?
We have Dave Ramsay ELPs in my office so let me take a stab at this question. ELPs are assigned exclusive territories and pay a fee for it. The DR enterprise purposely limits those territories too. Every Ma and Pa Kettle who contacts Ramsay - whether through telephone or website - get "referred" to the Endorsed Local Provider. Each referral costs the ELP something like $30. Believe it or not Ramsay has a lot of followers and the queue is always stacked. There is no prospecting. The folks line up at the door. Add up all those Term Insurance premiums and the commission on American Funds A Shares and you can easily do very very well.
Everyone I know that is a FA has had to bust their butt for 3-5 yrs, prospect like crazy, blood tears......you get the point. The ELP program and the way this office has developed their business is strictly like the post from above from Rhett. Yes you have to pay a fee, yes you get crap coming in but 1/3 - 1/4 of it is good solid business. Just curious if anyone else out there is an ELP, has been around this, etc.? Looks to be the ticket HOWEVER how sustainable is a practice like this? I believe that a practice like this if developed well should be fine even after Ramsey is long gone and you have had a chance to farm, referral, dig down, etc.
I'm not an F/A but admire this business and this person's operation.
Would you continue to admire it if you realized it is against FINRA regs?
I am still amazed this is going on. Many firms believe it contradicts FINRA regs and require their people not work with him. FINRA regs require that any "fees" paid for referrals only be given to individuals who are licensed. Dave or his people aren't registered. Banks got in trouble for doing the same thing, how Ramsey is getting away with it I have no idea.