Ameriprise P2 payouts - need info please

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Jun 23, 2010 10:23 pm

 I hope this group can help me with the following...  I'm trying to learn the details of the payout %'s for P2 advisors ( franchise owning advisors ) I'm considering joining a practice and need to get a better handle on the payouts.
 Any help is greatly appreciated in advance.
 Specifically, my understanding is that the top, or average payout % for a P2 advisor is 85-90%.  
 However, when using the 'fee-based' platform, there's an auto-haircut right off the top ( of 10% of gross rev before it gets  run through the 85% payout...? ) ?
 Also, financial planning fees, let's say $1K per year for writing a plan, how does that get run through a grid ? @ 85-90% payout ? or is it something different.
 My biggest question relates to reoccurring 'fee-based' revenue ( ex. 1% ) on investment AUM... If anyone can post or share  the grid for fee-based production by account $$ size, that would be outstanding, please.  Any and all help & info is appreciated.

Jun 24, 2010 2:55 pm

Nice job NEW FORUM sending posts to my email. I'm gone.

Jun 24, 2010 1:38 pm

Most on here speak very poorly about AMP and with just cause. It has a rough track record but I think it is an ideal place to be if you like a "hybrid" shop that’s tied to a brand name. I am P2 (Franchise of Ameriprise) so I cannot speak of the P1 (Employee of Ameriprise) route. I have heard horror stories about the P1 route but I guess it would all depend on the particular situation.

As for your question, It all depends on you BOB, GDC, Plans sold and HVCs acquired. We are at the maximum which is 92% and then you pay for e&o, tech, franchise fee etc which is not bad at all. I do not know anything about p1 but if you want to team with a brand name and do planning, P2 franchise owner is a great place to be.

Where are you located? We are looking for another P2 advisor to join the team practice and we're very negotiable in setting up arrangements.

You may want to speak with another P2 advisor and join their practice first then break away to your own franchise. Just make sure to have a securities lawyer look at all your contracts. As you should no matter where you go.

Feel free to send a private message if you have more specific questions.

Jun 24, 2010 2:56 pm


Jun 24, 2010 3:44 pm


Nice job NEW FORUM sending posts to my email. I'm gone.

[/quote] I am guessing that you used your work email to create a login. hmmm good job there piker

Jun 24, 2010 4:19 pm

Yep. Pretty slick, huh?

Jun 25, 2010 4:42 pm


Jul 19, 2010 6:35 pm

Ameriprise does a great job of training their advisors on how to become planners but they're still a "captive independent."  Riversource is a big cause of their headaches and even their recent additions to the platform are full of smoke and mirrors.  Products like Lincoln have somehow become proprietary and can't be taken with the rep if he/she decide to leave the firm. 

I have a few p2 advisors that you can talk to... they'll tell you why they left.

A few of reasons were the haircuts on the advisory business,  lack of product selection(riversource) and the inability of allowing reps to have outside business activities. 

In terms of strength on a broker dealer level though... they are unmatched right now.  They flew to the top of the broker dealer charts this year.  They cut big checks sometimes - even through there is always a price, a tax and a handcuff for depositing those checks in your account.

Jul 21, 2010 4:51 pm

My biggest advice to you in understanding the economics of affiliating with Ameriprise, or any BD for that matter.  Gross Dealer Concession means nothing.  What you should obtain is your NET payout after expenses.  Our business is sometimes so diluted with gross payout figures (i.e. 90%; 95%) but thats a hill of beans if your expenses are so high your only really netting 70% or less.  Take your time, understand the mandatory fees, get things in writing and do your homework.  A good strategy might be to compare two or three other firms so you can properly evaluate the offer.

Your choices to me seem to be:

1. Join an Existing Branch with a Broker Dealer

2. Form your own Branch with a Broker Dealer

3. Join an Existing RIA Firm as an Investment Advisor Representative (IAR)

4. Form your own RIA

Find which model to you has the most appeal and long-term value.  Best wishes in your search.

Jul 21, 2010 5:16 pm

I have been looking around in regards to the "pay-outs" and I can tell you some of these places will appear to have great payouts until you find out the total cost of doing business with them. It is a very time consuming process.

Does anyone know of a place that lists the various B/Ds and their "TRUE" expenses?

Jul 23, 2010 10:54 pm

When I left AMP in 2006, my bottom line increased significantly because my Franchise Fee was not a drain, nor was the high cost of sometimes technology.  Fixed insurance doesn't pay thru payout percentage, it pays 100% at my Indy b/d.  So for me, leaving AMP increased my net, and the haircut for fee based was lower, easier break points on an aggregate basis of AUM, and higher payout on AUM in fee based business.  Worked for me to leave, now looking back as I am into the start of year 5 as an indy, very satisfied with my decision to leave AMP.