Plans to go Indy

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Apr 14, 2008 5:33 pm

Here's the plan, please tell me if it's crazy or a good idea.

I'm just getting into this business and planning on going with EJ.  The main reasons are training and getting experience in a single Advisor office setting.  I'm planning on just busting it (no different than everyone elses plans I know) for about 5 years and then going indy.  I've read about the higher payouts at other companies and pros and cons of EJ, but it seems like a great place to start.  Is that a reasonable and smart plan to get my training and build a book at EJ and then go indy?  My goal is to have a $100m book by then.  About how much should my production be with a $100m book?

Thanks for the help and advice!
Apr 14, 2008 5:44 pm

I want a $200MM book in 5 years but this phone isn’t picking itself up.  I was promised it would.  I was also promised people would walk in my office constantly with their 401(k) rollover check and say, “Here you go”.

  Is this a joke?
Apr 14, 2008 5:47 pm

I don’t know what I said that made you think I was under the impression that business was going to fall into my lap.  Those are my goals, something that is going to inspire me to get out and work very hard to achieve.  Maybe you misread my post. 

Apr 14, 2008 5:53 pm

It’s crazy and a good idea. Work the numbers back on how you plan on getting to the $100M book. How many phone calls(door knocks) to get a prospect. How many contacts to get a meeting. How many people you need to see to get a sale. What the $$ are per sale. Everything begins with a contact & a new prospect. Each person’s growth cycle in this business is different because each person’s network is different. I knew someone at Jones who brought in $30MM in his first year. His father was an estate planning attorney & he was an Olympic swimmer & had the work ethic to match.

As for me I’m hoping to bring $12MM in this year. I’ve been in the business for 10 yrs & I work at a bank where I know where the money is at, and I have a team of 7 PB’s & licensed individuals who help me grab it. When you find a way to bring in 160% of me with no experience in the business & without knowing where the money is let me know. I’d like to come work for you.

Apr 14, 2008 5:58 pm

Old Spice…I would say 25-35mil is reasonable in 5 years, starting from scratch.  At 25mil, you are barely at the minimum to go Indy, 35-50 would be a better number.  I’m not sure if how successful I could have been if I believed from day 1, I was going to jump ship.  If you don’t drink their Koolaid early on, you will be hardpressed to be successful at Jones…which would lead to a very poor jump to the Indy side.  It might be better to find a successful Indy shop to start out with and build a business from day one.  Who knows what the landscape will look like in 5 years…they may handcuff anyone jumping ship from soliciting their old book for 3 years…The green machine may be selling trinkets by then and and and you will love it…and love being a carny.  Heck you might even come on here and defend your 20% payout on the trinket sales and say stuff like…“this place isn’t for everyone”, our trinkets are the best…

Apr 14, 2008 6:06 pm

haha, good advice.  Thanks!  Maybe I should set my goals at 10 years to be more realistic.  I guess I shouldn’t even worry that much about it now and just concentrate on surviving and making it through the first few years.

Apr 14, 2008 6:20 pm

I don’t know what I said that made you think I was under the impression that business was going to fall into my lap.  Those are my goals, something that is going to inspire me to get out and work very hard to achieve.  Maybe you misread my post. 

  Maybe I did, maybe I didn't.  It's not a crazy goal to go independent.  If you like the independent business model, then someday you should do it.  You have to wait until you have the clientele to do so.  Your goal can be 5 years, you may hit it, you may not.  Don't underestimate the difficulty of actually getting someone to move their life savings to you.  Especially being new, wanting a $100MM book in 5 years means you'll have to find $1MM+ clients.  You won't be able to service clients that have $50k.  But I think it's highly unlikely for anyone starting out to immediately stumble upon $1MM clients.  So you have to start small.    Do you have previous sales experience?  Do you associate with multi-million dollar people?  Did you recently graduate from college?
Apr 14, 2008 6:32 pm

Former business owner in another industry, have contacts that are multi-million dollar people (but nothing that is going to make things that much easier), graduated college about 10 years ago. 

I think I did underestimate the realistic speed at which I can reach that $100m point. 
Apr 14, 2008 9:37 pm

It took me almost exactly 10 years to build 100 million from scratch.   Going indy is a great thing for some, not so great for others.  My payout last year was 58% at Jones, around 55% or so net after expenses.  Total turn ratio of around 0.6% on my book.  I hope this helps.

Apr 17, 2008 9:02 pm

What’s a turn ratio?

Apr 17, 2008 9:06 pm

Im guessing his trailers???

Apr 17, 2008 9:13 pm

It’s his gross production as a percentage of his AUM.  So, if rankstocks has a $100 mil book and his ratio is .6% that means he is a $600K producer.  And before anyone says it, if he went independant and fee based he could be a $1 mil producer and take home $750K.  And his IQ would go up, his wife would get prettier, his kids would pay for their own college, he could finally afford that new Ford Focus that he’s always dreamed of.   

  BTW, it's trails not trailers.  I'm pretty confident rank isn't the owner of a mobile home park. 
Apr 18, 2008 8:42 am


  I would recommend picking up a copy of a book called "Million Dollar Financial Services Practice" by David J. Mullen if you want the mechanics on how to build a book of $100MM.