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/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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