For those that have ever changed firms
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Raymond James is definitely cutting those up-front checks to reps for joining, but keep in mind that their Indy model is also COSTING them money right now (check their last financial report). Something's going to have to change over there, because their indy model is an asset drain for them...
Indy model is very profitable...not sure what your looking at Freedomlvr.
Wirehouse side is dishing out cash and stock (like most other firms) for bringing in brokers. Your correct on that.
Sorry Zacko, my mistake entirely!!! I'll correct myself here:
The Private Client Group at RJ is profitable, the numbers I was looking at (Page 22 of the 2005 Annual Report) showed a 5% decrease in Pre-Tax Earnings from '04 to '05. According to the report, they attributed much of that to marketing and recruiting costs.
So again, I apologize for the screw up, and thanks to Zacko for putting me back on the path... RJ's private client group IS profitable, but less profitable than a year ago.
RJ is also raising minimum production requirements to run your own indy branch to 200k. LPL is still at 125K I think.
[quote=zacko]
Wirehouse side is dishing out cash and stock (like most other firms) for bringing in brokers.
[/quote]Agreed. Up front deals and back end bonuses are better than ever.
I hope that I'm not laughed off the board for saying this, but there's more to the deal than money. There are other things to check too:
Good relationship with management. The number one reason that brokers change firms is that they are unhappy with management.
Good back office, transition staff, location, etc.
Firm image and name recognition. Can you keep your sales pitch consistent? (for example, don't rail against Wirehouses and then try to transition your customers there). Is the firm's platform appropriate for your target market?
Your correct Jeff. Brokers who only change for payout are shortsighted and tend not to be happy at the new firm either.
I'll add, and I'm sure that Zacko would agree, that if you take a check, the firm WILL get it back, generally in the form of lower payouts. If you understand that and are OK with it, then fine, but I wonder how many people take a big check only to later realize that they've been pimped. Just understand that an up-front check is NOT a bonus...it is an ADVANCE on your production. If you believe otherwise, you are very naive.
Ditto....If you can produce, get the relationship with a good BD you don't need any up front loan, go for it............FREEDOM.....
I can't beleive how much I have increased my networth by owning my own business the past two years.........leaving Edward Jones was the best thing I ever did, I just wished I would have done it sooner. No guts NO GLORY!
By investing in myself instead of investing in Edward Jones Partnership my returns are out of sight, instead of getting the shaft, I now own the GOLD MINE !
"The number one reason that brokers change firms is that they are unhappy with management."
True. Also, in the case of EDJ mgt just seems to get more cocky each time they change MP's. You should see some of Weddle's sugg box responses.
Also pushing A shares ad nausium basicly forcing IR's to use one fund family. What if American Funds were to blow up like Putnam down the road? Sorry, been there done that. I need a managed money program which is one of the reasons I am leaving.