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Why not become a bank rep?

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Aug 7, 2008 8:55 pm

You will not enjoy being a bankrep. It is KMart investing. You are SO limited in what you can sell and the bank SHAVES your commissions on annuities and then pays them out a percentage per quarter. They are making interest on YOUR money. For example: an annuity pays 7% to the bank. The bank then will pay you .285 of 4%. This commission is paid out 1% per quarter. AMAZING!



You will be doing alot of work for bankers who are on salary. You will be on commission. You will train them, make joint calls with them. Nothing like two people doing the work one person can do. You are doing their work for them. They get paid a commission on top of the salary they are making. Bankers can work the straight 7-8 hour day and take days off, weekends, and vacations. You will not be doing this. You will be busting your A from 7am to 8pm when the last teller leaves- 6 days a week and with NO time off and with no vacation. Because you will STARVE if you do!



You may be given multiple banks with NO books of business. Lots of pages in the old database of deposits under $3000. I could count deposits over $75,000 on my 20 digits. Not too many people to call. Unless you call from the list of the branches located 2 miles east, west, south, or north of you which you are discouraged from doing. I think this bank and McDonalds have an affair going on. And if you do find a client with money then the boys upstairs in private client services will eventually get wind of it… so long.



Also, FAs are treated like DIRT in a bank. So, do not think that being a VP means anything. EVERYONE is a VP. You have NO authority.



There is NO getting around it. This is a tough career. There is NO way to make it unless you inherit books of business. You have to be in the right place at the right time and be CONNECTED! Otherwise you are toast! Or you can just kiss years of your life away trying to make it in this increasingly tough regulatory environment.



I could go on. As you can see. I do not like the bank! WARNING!!



I am not sure I like the business. The regulations, compliance, and paperwork will eventually snuff the last spark of joy out of you.



I HIGHLY RECOMMEND YOU FIND ANOTHER CAREER.



If you WRITE me I will be glad to share which bank I will be leaving shortly. I did start off a a brokerage it does not seem so bad anymore.



Thank you - I feel better now…







Aug 7, 2008 9:17 pm

I am pretty sure there are good bank programs out there. Does the bank make you pay $500+ for insurance each month and also make you buy toilet paper and knock on doors?

  It could be worse.
Aug 7, 2008 9:27 pm

Geez Crystal …some vent. Your right this is NOT a career for you. Please find yourself a good career advisor and move

Aug 7, 2008 9:34 pm

[quote=Ron 14]I am pretty sure there are good bank programs out there. Does the bank make you pay $500+ for insurance each month and also make you buy toilet paper and knock on doors?

  It could be worse. [/quote]   Yeah, LPL's insurance is expensive.  TP can be a pain to have to remember when you're at Sam's.  You only have to doorknock if you like getting new clients.  If you don't want to, it's OK. 
Aug 7, 2008 9:40 pm

Say Norway,



How did you start? Did you start with zero? Were you connected ie. Captain of your sports team in your local community in which you now reside? I am saying unless someone is CONNECTED this is ROUGH. Were you connected?



Have your arrived? Can you balance your life yet? How long have you been doing this?



And the bank is not any easier than door knocking. There are trade offs but I do not believe they add up to make the bank more attractive. Especially if you enjoy REALLY helping the client, financial planning, and NOT having a 1000 clients plus with $5000 or less to invest.



Where are you today? How many clients do you have? What is your payout?

Aug 7, 2008 9:45 pm

PM me and I will discuss. BTW , I still work long hours and meet clients on Saturdays or even Sundays if required. And to your question…yes started out a ZERO.

 
Aug 7, 2008 10:32 pm

Is that what bank life is about? You run around basically filling investment transactions with no real control over your schedule and such?

  Right now I am seriously considering a move to JPM/Chase from EJ. Input please?
Aug 7, 2008 10:46 pm

I disagree to a certain extent. If you are providing practically all load funds and front-end load VA’s without much of a breakpoint, I’d probably agree one might average close to a 40% payout.  Also, considering the bonus payout, that’s only if the firm is in a bonus bracket. I’ve seen some pretty long dry spells where there was  no bonus bracket. So, by the time one generates peanuts for providing cds, jockying some stock (low payout too), and providing bonds netting a low payout, I’d say the average payout is closer to 32-35%. If you have a pretty diversified book of business, your gonna have those low or no-payout positions. If your averaging 40%, keep doing what your doing , as long as it is appropriate for the client.

Aug 8, 2008 12:53 am

What the hell are you talking about?

Aug 8, 2008 2:53 am

I have a cousin who started at JP Morgan; he was there for probably 6 months and was starving to death.

  He left a couple weeks ago for Merrill.
Aug 8, 2008 6:47 am

I highly recommend avoiding Chase and teaming up with FAs you have an affinity with, that you share like values, and respect. Join one of the independent firms. I would team up and share expenses under the umbrella of Raymond James or LPL. Find some reps with these firms and interview them. Being part of a team will be stimulating, good company, and you can share expenses. Once your overhead is covered you will have shear profit and good payouts. Forget about the bank!



You will own your book of business. Your payouts will be greater and you will not have to build a book of thousands.



Build on your current base of business with client appreciation events. Thank you clients and have them bring two friends each to your event. Have your vendors help you.



You will keep control of your time. You lose control at Chase. Your time will be managed by everyone else. The more banks brnaches you have the worse it is.



Aug 8, 2008 12:56 pm

I met a guy the other day who is independent with LPL but has offices in about six different branches of the same credit union.

  He and a partner cover the branches, and he said compared to brokerage life, this is cake.   Is anyone familiar with this setup?
Aug 8, 2008 1:31 pm

Crystal …are you looking for a Friendship Club or a Career? Review your original post and I will quote you:

1) " Also , FAs are treated like dirt". 2) " I am not sure I like the business". 3) " There is NO way to make it unless you inherit books of business". 4) " You have to be in the right place at the right time and be CONNECTED ". Or you can simply work harder and smarter. In conclusion , I will quote my friend ICE - " Or you can be bitter".
Aug 8, 2008 1:49 pm

I think what she is saying is leaving a brokerage firm to go to a bank is not the golden path.

Whats wrong with being bitter? I love it!
Aug 8, 2008 1:54 pm

[quote=Crystal]You will not enjoy being a bankrep. It is KMart investing. You are SO limited in what you can sell and the bank SHAVES your commissions on annuities and then pays them out a percentage per quarter. They are making interest on YOUR money. For example: an annuity pays 7% to the bank. The bank then will pay you .285 of 4%. This commission is paid out 1% per quarter. AMAZING!

  We can sell anything you can sell at a brokerage firm and with lower expenses. Our IRA annual fees for example are $25 dollars. Our list of what we have available to sell is endless.

You will be doing alot of work for bankers who are on salary. You will be on commission. You will train them, make joint calls with them. Nothing like two people doing the work one person can do. You are doing their work for them. They get paid a commission on top of the salary they are making. Bankers can work the straight 7-8 hour day and take days off, weekends, and vacations. You will not be doing this. You will be busting your A from 7am to 8pm when the last teller leaves- 6 days a week and with NO time off and with no vacation. Because you will STARVE if you do!   Maybe you dont understand. A "joint call" is a free referral. When you make that "joint call", you are tapping into a new client that never would have existed if you had not participated. 

You may be given multiple banks with NO books of business. Lots of pages in the old database of deposits under $3000. I could count deposits over $75,000 on my 20 digits. Not too many people to call. Unless you call from the list of the branches located 2 miles east, west, south, or north of you which you are discouraged from doing. I think this bank and McDonalds have an affair going on. And if you do find a client with money then the boys upstairs in private client services will eventually get wind of it.... so long.   My CD call list for this month is over $5,000,000 in untapped assets. Most of these members are very loyal to the credit union and want to work with you. I have 6 branches and look forward to every visit at every branch to build a relationship with those folks that give me 40 - 60 referrals per month and I never have to door knock to build my book of business. 

Also, FAs are treated like DIRT in a bank. So, do not think that being a VP means anything. EVERYONE is a VP. You have NO authority.   We are treated like gold. I just spent 5 days in San Diego with the credit union's senior management and they respect us and treat us like an asset that is a credible way to build positive relationships for our members. 

There is NO getting around it. This is a tough career. There is NO way to make it unless you inherit books of business. You have to be in the right place at the right time and be CONNECTED! Otherwise you are toast! Or you can just kiss years of your life away trying to make it in this increasingly tough regulatory environment.   Actually, this business gets much easier once you get into a good bank environment. I had wasted 3 years at EJ working the same book of prospects and clients. Now I work with an endless supply of prospects and they treat me with the respect I deserve and want to hear my opinion.

I could go on. As you can see. I do not like the bank! WARNING!!

I am not sure I like the business. The regulations, compliance, and paperwork will eventually snuff the last spark of joy out of you.   You are going to find compliance issues everywhere you go. If you run an ethical business, it is not a problem. maybe you should review what your goals are and make sure your clients are treated the way you would want to be treated. It makes compliance much easier.

I HIGHLY RECOMMEND YOU FIND ANOTHER CAREER.

If you WRITE me I will be glad to share which bank I will be leaving shortly. I did start off a a brokerage it does not seem so bad anymore.

Thank you - I feel better now.....



[/quote]
Aug 8, 2008 2:06 pm

RON14 - I would agree that there is no perfect situation. But Crystal plain and simple sounds like an Very Angry , Very Frustrated and perhaps Failing Advisor.

She admits she is or will be leaving the Bank and wants this " Perfect " situation where everything will be just so wonderful And she will be bringing to the table ....what Her Book of Business , Her Connections or perhaps she thinks that another situation will be the cure all to her perceived injustices of the real world.
Aug 8, 2008 2:15 pm

I hear ya. In her defense those are the exact feelings I have. It seems that sometimes  struggles in this business force people (myself included) to look elsewhere because your number one priority is self preservation.

Aug 8, 2008 2:20 pm
Defector:

I disagree to a certain extent. If you are providing practically all load funds and front-end load VA’s without much of a breakpoint, I’d probably agree one might average close to a 40% payout.  Also, considering the bonus payout, that’s only if the firm is in a bonus bracket. I’ve seen some pretty long dry spells where there was  no bonus bracket. So, by the time one generates peanuts for providing cds, jockying some stock (low payout too), and providing bonds netting a low payout, I’d say the average payout is closer to 32-35%. If you have a pretty diversified book of business, your gonna have those low or no-payout positions. If your averaging 40%, keep doing what your doing , as long as it is appropriate for the client.

  Actually, Jones is still well into bonus territory.  It has been many years since Jones did not pay a bonus.  Since 1991, there have only been two trimesters (3rd trimester 2002, and 1st trimester 2003) where Jones did not pay bonuses.  So 49 out of the last 51 trimesters have had bonuses (Considering that most firm's stock is down 50% or more, and many are laying people off, I don't think a "smaller" bonus is much to whine about right now).   As far as "VA's without much of a breakpoint" (not sure what that means) and "providing CD's and jockying stocks (low payout too)", I have no idea where you come up with this stuff (2% of our asset sales are CD's, 14% are stocks, and I am not sure what is wrong with a-share annuities).    You might be using your own poor historical approach to investing as a proxy for the firm as a whole, but I think you must be the exception and no the rule.   I find that a lot fo rookies come on here whining about payout and stupid stuff, but that fact is, the payout for rookies is the same at most firms.  Ask a veteran doing 800K gross, and most of their payouts (just production + bonus) is around 55-60%.  That does not include profit sharing (I never count trips, even though Jones does).  Profit sharing adds another 2% or so (about 4%+ of net).
Aug 8, 2008 2:24 pm

Ron14 - I am not making light of very REAL situations. Understand frustration , struggles and self preservation. Reviewing her two posts several times indicates to me ( my opinion ) that PERHAPS this Industry is straight out not for her. I am being very honest when I say I have not meet any person that has built up their business that has not gone through all of the above emotions.

Aug 8, 2008 2:41 pm

Norway-All very true. Everyone has different situations and personalities to combat any possible struggles. It may not be the business for her.