After a transition from Jones to a major firm such as Merrill or SB, how long should it take to rebuild and get back to where you were as far as revenue? I’m building a fee based biz going forward, my gross sucks. Also, I 'm being a little more selective about who I’m doing business with so I’m not bringing in as much assets as before w/ Jones. What’s everyone’s thoughts on this?
I switched from transaction to fee based when I switched firms and it
took me about 3 1/2 years to get back to the production level I had at
my previous firm.
BPD, don't get too excited. Rightway said he switched his business model to fee-based at the same time he switched firms. Even if someone didn't switch firms and made a significant jump from transaction to fee there'd be a similar effect on gross. Say you brought in a $100,000 account and got 3% commission on that new money. If instead you put it in fee account and got 1% annual fee it'd take you 3 years before you "broke even". Simplistic example, but you get what I mean.
When I changed firms a number of years ago I also wanted to convert more to fees. But, I got good advice to first make the firm change and continue to do business as I always had. Then slowly transition to fee business over a 2-4 yrs. That kept my gross fairly consistent as I was making the change.