RIA- Unique situation/ question
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Jan 14, 2009 6:02 pm
I happened across this forum today, and thought I'd invite thoughts from seasoned professionals. I was hired by a major wirehouse to develop a market segment that I have connections to. I have a business background and education they believed would give them an insight/ contacts/ eventual business in this segment, and they recruited me because of my background. I had no production requirements, and this was a pilot program that few people knew about I later learned. I was to be the eventual trainer on a regional or national basis. Things have changed and they bought out my contract, and shut down the program. The program was going well, and my superiors were pleased. they said. BUT, the market has changed, and they decided to recruit FAs from other companies instead of moving forward with my situation because of quicker cash flow. The company admits that the program has huge potential, because the group in question has little to no contact with traditional investing methods. The group IS interested in SLOWLY moving forward to work with me. Development on a large ( or any ) scale would be limited to individuals like me, with specific Non-Securities qualifications/relationships. Traditional marketing will not work. What this would eventually look like is a few FAs with narrow client bases but very large AUM. I think the wirehouse decided the relationships they were paying for may cut them out of the long term situation, if I ever left them, and traditional FA swaping is easier to control. Perhaps a few in the financial services business have been successful with this group in the past, but none I am aware of. ( If they were successful, they would almost certainly have similar qualifications as me or actually be a member of the group. ) I am in an excellent position to move forward, but have run into a few snags. I have called several wirehouses, and they are only interested in "producers" because of their own cash flow needs. The program is not fully developed, but well on the way, so it is like mostly baked bread..........almost but not quite there. I have an income stream in place, so do not need a paycheck to pursue this situation. My dilemma is whether to continue with this line of work. I have the 7 and 66 licenses as well as state life licenses. What are the options at this point, if I remain in this industry? I have considered becoming independent, but have no assets to move. This is the sitcking point with other wirehouses. My U-4 or 5 , whichever applies, reflects leaving under good conditions, not for lack of production. I am leaning toward remaining in the industry because this a very close to taking off. I could work with no income for a year. I like the business, and I estimate another 6 months to 1 year prior to the first agreements being signed. But, I have other options also, outside of the FA world. Time is money. Any considered opinions, recommendations, companies I should talk with? What do seasoned professionals think?
I look forward to becoming a seasoned professional so I can understand what you just said.
There is coaching / speaking in the industry.Many B/Ds have programs, mutual funds, etc. Nick Murray is an example. If you haven't neen in production it will be a shocker to get into it.
Understand you are probably hesitant to name your “niche” but without knowing it is simply impossible to offer any guidance.
IF I understand the situation: That you think you have a unique connection to a group of affluent investors of some sort to whom you believe that you may someday be able sell investment products.
Then, either start selling to them or don’t. No matter how unique your connection is, if you choose to “stay” in this industry, then you must eventually sell or be gone.