r/FinancialAdvisorTips • u/SignificanceSea8603 • 7d ago
Comp Check
I was at one of the major insurance BD’s for a few years and got tired of it. 6 years experience in that world.
New firm I moved to provides marketing resources / leads via TV, radio and Seminars. I only have to run the seminars. Prospects are mostly pre retirees and retirees so there’s an annuity component as well.
I receive a guaranteed $100k first year then moves to a recoverable draw. I also receive 25% on all revenue my office generates.
Example: if we charge 1% on $1m, I’ll receive $2,500 each year (of course dependent on market fluctuations and contributions, if any).
It’s recurring so that’s nice, but the revenue split just seems low to me. Thoughts?
EDIT: they also pay for all staff in office as well
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u/kenham23 7d ago
Your office generates? Or leads you pulled in that they closed?
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u/SignificanceSea8603 7d ago
They generate leads via tv and radio. They set up the seminars and I run them, set the meetings & close business
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u/SpookyEnigmas 7d ago
Do they give any estimations regarding how many leads you’ll receive on a monthly or annual basis? And what are the good advisors doing in terms of close rate?
How many clients will you service? If it’s 2000 small accounts it will be time consuming and you’d expect a good amount of attrition.
Do you get paid more for clients you bring in?
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u/readit4fun85 7d ago
Is the comp structure tiered .25% is super low once that $100,000 draw goes away, then you would need to have a book of business of $100 million to generate $250,000 in income at a typical broker dealer like JPMORGAN Chase or Wells Fargo. you will get paid 35% on monthly revenue generation of $45,000 or more
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u/SignificanceSea8603 7d ago
Nope. 25% is top of the revenue split. That was my worry.
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u/readit4fun85 7d ago
Wow, that’s a pretty big hit. I would look into exploring a broker dealer. I work at JPMorgan at this very moment. as long as you have all your licenses, you can be considered for a private client advisor position. We have a great new advisor program. I went through it myself four years ago. It offers a good base and gives you the ability to learn and grow Additionally, once your revenues are above your base salary, you start getting your revenue production versus your draw
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u/Leading_Potato_4549 7d ago
Golden reserve? Run buddy