25% seems high to me.  I guess it depends on how much you will be grossing.  25% is a big chunk of dough if you're doing 500K.  Is the agency providing anything more than OSJ, office space and supplies?  If not, those are some pricey Bic pens....

I am at 15%. I think that number is very fair. What do you get for 25%?

Glad I chimed in, because I thought 20% OSJ/Branch space was high.... Now it seems that IS HIGH!

[quote=clemente]

25% seems high to me.  I guess it depends on how much you will be grossing.  25% is a big chunk of dough if you're doing 500K.  Is the agency providing anything more than OSJ, office space and supplies?  If not, those are some pricey Bic pens....

[/quote]

I agree.

Thanks - he explained that 10% is the customary OSJ fee and the extra 15% is for everything else, office space, marketing,  secretarial clerical staff, conference rooms, supplies, etc... basically all overhead.  And the 25% is AFTER all other LPL fees would be taken out.

[quote=iceco1d]

Gettingstarted, I think you're confused about how the fees are taken out.  It's 25% of your gross, not your net. 

[/quote]

No I'm not.  At the end of the month - advisors are to add up all they have "netted" from LPL, insurance, etc, THEN take that and multiply by .25 and cut a check. 

So, you do $20K in a month.  LPL pays you out at 90% (on your first 250K).  That leaves 18K.  Then, LPL takes out fees, E&O, technology, etc.  Let's just say another 1K in fees.  17K left over, of which you owe 25% to this agency you are talking to.  So, you'd net 12.75K, for a net payout of 63.75%.  Do I have that right?

There are certianly less expensive OSJ arrangements out there, the question is whether or not the "marketing support" is worth the extra $$ you will be paying.  A good marketing partner is worth its weight in gold.

Have you looked at any other indys?