Apple-to-Oranges Opportunities are Red Hot

This is the most challenging market most Financial Advisors have ever seen. They have seen their client’s assets take a hit; their deferred comp plummet; the reputations of their firm and industry dragged through the mud; and has witnessed firms fail and merge in such a way that would have been unimaginable even a year ago.

To add insult to injury many banks and brokerage firms are either neglecting or putting the squeeze on the bottom half of the industry brokers. Whether it is through nominal or no retention packages at all, transition packages that pale in comparison to those the top producers get, annual cuts in commission payouts, or being targeted for layoffs.

So if you are in the third or fourth quartile in regards to production what choices do you have? If you feel your clients and your family would be better off in a different situation what are your options?

“Our message to most of the neglected advisors out there is that there are compelling choices and opportunities,” says financial recruiting firm RJ and Makay CEO Darin Manis.

“Just because your current firm doesn’t love you doesn’t mean another firm wouldn’t love to have you,” says Manis.

RJ & Makay has just released an entertaining two-minute video about alternative opportunities. This is the third video targeting FAs produced by RJ & Makay. Their previous videos have received over 15,000 views. View the video here: http://www.rjandmakay.com/featured-video.

“We have never seen such a strong interest in alternative opportunities. We are setting hundreds of interviews a month with advisors looking at independent, hybrid and investment management options,” says Manis.

Manis says, “There is and always has been an interest in apples-to-apples moves such as wire house to wire house. However, alternative options that have either warm leads or higher payouts are red hot right now with FAs.”

If you are one of the advisors getting low to mid 20’s payout then you have to make a serious evaluation of what your getting in return for the 75% to 80% you are giving to your firm. Your on straight commission, no warm leads, a tarnished company name on your business card, you have to share an assistant with a bunch of other advisors, no respect from senior management, and your commission keeps getting cut year after year.

“If you can go from a net income of $75,000 to $180,000 without adding a single additional client you have to investigate. $75K to $180K is not just a different tax bracket, its an entirely different lifestyle,” says Manis.

Even FAs doing as low as $200K in production can see a net income increase from $40,000 to $120,000.

“When FAs hear they can double to triple their net income and get around a 25-50% transition package they raise their eyebrows,” says Manis.

It looks as if non-first quartile brokers are loved after all. It just may not be coming from their current firm.

-Darin Manis

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