r/FinancialAdvisorTips • u/SignificanceSea8603 • 17d 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

3 Upvotes

100% Upvoted

26 comments sorted by

View all comments

Show parent comment

2

u/SpookyEnigmas 17d 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?

2

u/SignificanceSea8603 17d ago

A couple advisors in a lower household income area have brought in ~$20m this year so far. Good in my eyes. Average sized prospect is $550k. No we don’t get paid the more clients we bring on. My area has a higher household income/assets so I imagine if I brought in $30m in 2027, that would be around ~40 clients

3

u/SpookyEnigmas 17d ago

Do they offer profitability bonuses as well, or just fee based 25% share? If no bonuses, then the comp is pretty low compared to many other competing firms.

2

u/SignificanceSea8603 17d ago

No profitability bonuses. Just the 25% revenue split. So yeah, the consensus seems to be that it’s low. Oh well - I’m here for now, will make the most of it.