Banks, Wirehouses, Regionals
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[quote=dude]
C'mon MikeB, I clearly explained what happened. To be completely honest, I was blown away by the quality of referrals I was getting at the time ....[/quote]
If this is meant as a response to my final comment, the one about you leaving the bank, relax. It wasn't intended as an attack. You had your reasons, fine by me, I won't question them.
By the same token, I saw what I saw in a bank program, perhaps the biggest in the country. Brokers there have to take every referral (or risk the rath of management angry that you haven't been a "team player" for ther bank side) while watching the real money go to the PB. Dump in unpaid "bank side" activities (I had to attend a couple of evening "spirit sessions" that made my skin crawl) and the ever changing grid/relationship with the bank junk and I hated it.
[quote=Devil’sAdvocate]
I think it will disappear because clients will come to resent having their pockets picked my middlemen who are performing little or no service worth paying for.[/quote]
Blah, blah, blah....there's no reason to explain, yet again, to Putsy that often the net effect is lower costs for the client...
[quote=Devil'sAdvocate]
Something I legitimately do not know because it's never been of interest to me. If a client wants to take delivery of his mutual fund shares I assume he won't have to pay the 100 to 125 basis points so many of you are currently raping them for.[/quote]
First, I couldn't care less about accounts so small that they really should be in mutual funds. Second, if you're talking about the 12b-1, it's paid even if the fund is held AT the fund. Then again, in most flat fee accounts clients get the 12b-1 refunded to them AND they avoid loads.
[quote=Devil'sAdvocate]Don't you think that a spokesman for some group--say AARP--appearing in TV commericals could persuade most people to ask to have their shares delivered to them to stop the bleeding?
[/quote]
If your hero Schawb and every hack $8 trade outfit can't talk people out of the value a good advisor provides, why would the spokesperson for AARP be able to do it?
It's amazing how little you understand about the mechanics and fee structure of the biz, Putzy. Were you too busy keeping the paperclip boxes full?
Mike,
Give up on NASD Newbie or what ever his handle of the moment is.
It's hard, he's on almost every thread. The Ignore feature would help this forum, then if everyone didn't reply he wouldn't exist at all!
[quote=mikebutler222][quote=dude]
C'mon MikeB, I clearly explained what happened. To be completely honest, I was blown away by the quality of referrals I was getting at the time ....[/quote]
If this is meant as a response to my final comment, the one about you leaving the bank, relax. It wasn't intended as an attack. You had your reasons, fine by me, I won't question them.
By the same token, I saw what I saw in a bank program, perhaps the biggest in the country. Brokers there have to take every referral (or risk the rath of management angry that you haven't been a "team player" for ther bank side) while watching the real money go to the PB. Dump in unpaid "bank side" activities (I had to attend a couple of evening "spirit sessions" that made my skin crawl) and the ever changing grid/relationship with the bank junk and I hated it.
[/quote]
Butler, what percentage of your bank clients followed you? Thanks in advance.
I was curious about that too Mike. How long were you there and what percentage eventually came with you? Thanks.<!–
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If any of you other former bank guys (Indy, rightway, Babs, etc) could
add their takes on the above questions I would appreciate it. Thanks.<!–
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//–>
[quote=mikebutler222][quote=Indyone]MB, much of what you just said is a pretty fair assessment of what I saw. I literally had to ignore 90% of the referrals I received and build my book with the remaining 10% that were worth something and my own prospecting efforts. [/quote] Some how I was under the impression you were in PB or trust and not a "bank broker".[/quote]
The program was designed to not create competition between trust/PB and retail...so we did it all...
[quote=Indyone]
The program was designed to not create competition between trust/PB and retail...so we did it all...
[/quote]
Did your bank have separate trust, PB and retail profit centers?
Mine is a little misleading as about half of my book was either junk/underpriced accounts, or were structured so they had to stay at the bank (bank as trustee, etc.). Of the half that I could take, I've taken about 80% and am still moving accounts, although it's slowed considerably. I'm guessing that I'll ultimately take about 85% of what I targeted.
When I decided to make my move, I did an honest appraisal and realized that early on, I was far too focused of AUM sometimes at the expense of quality. I then used my move to cull my book of unwanted accounts, and yes, I told several former clients who asked to move that I could not take them.
[quote=Devil'sAdvocate][quote=Indyone]The program was designed to not create competition between trust/PB and retail...so we did it all...[/quote]Did your bank have separate trust, PB and retail profit centers?[/quote]
I don't think they separated the revenues and expenses, but I'm not sure. That would have involved allocating my time, as well as many other employees. Most of the support staff were dedicated to one area, but advisors were not.
[quote=Indyone]
I don't think they separated the revenues and expenses, but I'm not sure. That would have involved allocating my time, as well as many other employees. Most of the support staff were dedicated to one area, but advisors were not.
[/quote]
Would you say you worked for a bank, or a bank, or a BANK
[quote=no idea]I was curious about that too Mike. How long were you there and what percentage eventually came with you? Thanks.<!-- var SymRealOnLoad; var SymReal;
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//–> [/quote]
I was there about 2 1/2 years and I'd say about 65% (my deal wasn't dependent on assets coming with me) of the "real" brokerage clients came along. I was more successful moving the larger, more profitable accounts than the others.
So if everyone agrees you can take 50+% of your book, and you can build a business way faster in a bank than outside of one. Why would anyone start at a wire.
I am just thinking about my own situation. I never worked long hours, I have made decent money since day one, I never cold called, and now I have the option of going to a wire and taking a big fat check, going indy, or staying where I am, of course I am staying where I am.
[quote=bankrep1]So if everyone agrees you can take 50+% of your book, and you can build a business way faster in a bank than outside of one. Why would anyone start at a wire.
I am just thinking about my own situation. I never worked long hours, I have made decent money since day one, I never cold called, and now I have the option of going to a wire and taking a big fat check, going indy, or staying where I am, of course I am staying where I am.[/quote]
Because otherwise you might actually have to work? Develop an actualy relationship with your client?
[quote=bankrep1]So if everyone agrees you can take 50+% of your book, and you can build a business way faster in a bank than outside of one. Why would anyone start at a wire. [/quote]
Notice I didn't say 50% of the book, I said 65% of the "real brokerage clients". They amounted to 50% to 60% of the book. The deal I set up didn't require me taking many clients with me for the bank, thankfully.
Now, for someone like you, with you work ethic and the fact that you contact so many clients just once a year, you're better off where you are. Youwouldn't survive at a wirehouse.
[quote=mikebutler222]
[quote=bankrep1]So if everyone agrees you can take 50+% of your book, and you can build a business way faster in a bank than outside of one. Why would anyone start at a wire. [/quote]
Notice I didn't say 50% of the book, I said 65% of the "real brokerage clients". They amounted to 50% to 60% of the book. The deal I set up didn't require me taking many clients with me for the bank, thankfully.
Now, for someone like you, with you work ethic and the fact that you contact so many clients just once a year, you're better off where you are. Youwouldn't survive at a wirehouse.
[/quote] I'm not sure in all cases but the whole contacting your customers' issue in a bank setting has to be a bit different than in other settings. I "contact" my customers many times throughout the year simply because they walk into the bank to take care of their banking needs. I'll simply invite them over to do an account review. In actuality i'm "contacting" them 10-15 times a year in this manner.
scrim
[quote=mikebutler222]
[quote=bankrep1]So if everyone agrees you can take 50+% of your book, and you can build a business way faster in a bank than outside of one. Why would anyone start at a wire. [/quote]
Notice I didn't say 50% of the book, I said 65% of the "real brokerage clients". They amounted to 50% to 60% of the book. The deal I set up didn't require me taking many clients with me for the bank, thankfully.
[/quote]
That sounds pretty good <?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Butler. Often we hear on this board how bank clients stay due to bank loyalty. What do you attribute to the successful transfer / following of your book?
Also, I would appreciate if I could hear from Babs, IndyOne and Rightway.
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[quote=Mike Damone][quote=mikebutler222]
[quote=bankrep1]So if everyone agrees you can take 50+% of your book, and you can build a business way faster in a bank than outside of one. Why would anyone start at a wire. [/quote]
Notice I didn't say 50% of the book, I said 65% of the "real brokerage clients". They amounted to 50% to 60% of the book. The deal I set up didn't require me taking many clients with me for the bank, thankfully.
[/quote]
That sounds pretty good <?:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Butler. Often we hear on this board how bank clients stay due to bank loyalty. What do you attribute to the successful transfer / following of your book?
[/quote]
If my income after I moved was contingent on the "success" of moving just some 40% (roughly 65% of 60%) of my bank book I don't think I'd be very happy. I’m speaking in generalities here based on my experience in the format my bank had, but very often bank clients aren't the standard investor you'd see elsewhere and they see the broker at the bank as replaceable a cog in their “banking investment machine” as the teller at the drive-thru.
They have more loyalty (or financial ties) to the bank than you, and that’s not strange considering they had a relationship with the bank before they met you. I made an effort to court those that looked and acted like the traditional investors I’d known before and I had some success in creating a solid relationship there. It didn't hurt that I have enough experience to sport some gray hair and the people the bank sought to replace me with were fresh-out-of-the-box rookies.