FINET Payout
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With the changes to the PCG grid at WFA, I was wondering if there were any changes to the payout for next year for FINET reps??
LA, I heard your place is up to a payroll plan. Heard anything yet? PM me if you must.
[quote=LA Broker]
Legend, what are the payout changes to the PCG grid?
[/quote]
It was 24% of the first 10k each month and then 50% of everything over that. Now it is 22% of the first 10k.
The executives decided they needed an extra 36MM for their bonuses I guess.
You have to love the way they brag about how well things are going and how much money is being made but then lower the payouts to the advisors.
You have to do a higher minimum commision per month before a haircut and ticket charges are up at FINET. PCG just got $2400.00 a year taken from them. A market manager quote " this is good...we need to push our guys"...doubt he is taking a haircut on his first 10K.
Finet has been a very fair deal.
If you do less than $22,000 a month for a one person office the payout goes from 90-85% or 85-80% and get's worse for lower producers. Solution is don't do less than $22,000 a month. You can also have a branch payout structure and the payout is reduces if your less than 60K a month I think. No other real changes. Contact your FINET rep for a payout schedule. www.wfafinet.com. It still beat PCG by a mile if you keep your costs down and don't have big health issues. Good Luck
If you move from PCG to FINET you have to pay 15% addition x gross back to PCG as a transition pay. It is only for 12 months. It hurts but it is a great time to annuitize your book and get rid of PIA's. If you factor in the costs of ACATs and the possible loss of clients it was well worth the haircut. You have to keep your first year costs down to a minimum. You can can ask your landlord and staff to work with you on the first years rent and payroll. You will be surprised what they will do if you ask. Payroll and payroll taxes are a killer.
I didn't see any real paycut on the FINET side for 2011. $1.00 more on the ticket charge (but there are not ticket charges in fee based accounts so no big deal). They raised the minimum per month to $22,500.
Hope this helps.
They have to stop or slow down the movement from PCG to FiNet. I am sure that they will throw up other barriers to entree.
Sorry guys I didn't hear that it is now 24 months now . I have not confirmed that yet but It sounds like a stategy that they would use.
The life boats must be filling up fast!
Good Luck.
All these comments help explain why few, other than existing legacy WFA PCG advisors, would consider joining FiNet. As they represent an insignificant fraction of Wells Fargo's overall business and even smaller to their bottom line, FiNet will always be a distraction at best, to the CEO. (sure, you can talk to him... but why would he ever do anything for a division that contributes nill to his company's bottom line?)
Cheers,
Indyguru
[quote=Indyguru]
All these comments help explain why few, other than existing legacy WFA PCG advisors, would consider joining FiNet. As they represent an insignificant fraction of Wells Fargo's overall business and even smaller to their bottom line, FiNet will always be a distraction at best, to the CEO. (sure, you can talk to him... but why would he ever do anything for a division that contributes nill to his company's bottom line?)
Cheers,
Indyguru
[/quote]
Indyguru
Indyguru, Let me clarify some of your misconceptions about FiNet; 1. PCG transfers make up less than 50% of the almost 900 practices. 2. While the FiNet contribtuion to the WFA bottom-line might be 'insignificant', FiNet operates at over a 15-18% profit margin, which happens to be slightly higher than PCG. Also, FiNet has been consistantly profitable to the WFA bottom line, including the miserable markets we have suffered thru. 3. Why bother talking to Danny, he doesn't listen to any channel advisor, On the other hand, John Peluso is very accessable and owner friendly.
Just the FA's I know at PCG wells fargo, said nobody's moving to Finet now because of the two year haircut. The comment was that the two years at 15% less made them take a second look at LPL and RJF. Don't know if it is actually affecting anything yet.Still sounds easier than all those ACATs.
[quote=Baron Automatic]
Just the FA's I know at PCG wells fargo, said nobody's moving to Finet now because of the two year haircut. The comment was that the two years at 15% less made them take a second look at LPL and RJF. Don't know if it is actually affecting anything yet.Still sounds easier than all those ACATs.
[/quote]
The new hair cut is 15% first year and 10% in hte second year.
It was only a matter of time before the rocket scientists in St. Louis tried to stem the tide of PCG leaving for FiNet. I guess they think getting a 100% of nothing is better than 15% of something.