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AFA Compensation

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Rick4money View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rick4money Quote  Post ReplyReply Direct Link To This Post Topic: AFA Compensation
    Posted: Jan/24/2018 at 8:24am
I'm new to the site but not to the industry.
I've been an advisor for over 27 years and have recently brought on a couple AFA's into my practice.
My challenge focuses around a value-based, competitive compensation plan.

Any suggestions or ideas would be welcomed.

Thanks

Rick
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PEACH_cm View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PEACH_cm Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 9:03am
Wtf is a afa
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Iamlegend View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iamlegend Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 9:19am
Associate FA?
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Iamlegend View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iamlegend Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 9:20am
Also, unless you give a lot more information it would be impossible to give a good answer.
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Rick4money View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Rick4money Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 9:32am
The AFA is newly licensed.
His job responsibilities would be to attend my meetings with current clients, purely for training purposes. Also, to build his own client base by marketing, social media, etc...
I have also assigned him approximately 70 lower-end clients to service.
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B24 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote B24 Quote  Post ReplyReply Direct Link To This Post Posted: Jan/24/2018 at 9:59am
I think ti really depends on what his ultimate role is going to be. Is he your successor? Is he just there to bird-dog for you? Are you just trying to make money from him? Is it to free up your time? Are you interested in him succeeding, or would you just replace him if he didn't start bringing in business?

Point is, you have to think through all of this (and maybe you have and just haven't explained this).

If he is meant to be a benefit to your practice because he is going to eventually take work off your hands that will free you up, or maybe be an eventual successor, then maybe it's a salary plus bonus. If he is there just so you can make an override on his production, then maybe it's commission-only.

Personally, I would give him a salary plus a bonus if you really want him to succeed. Obviously, the starting salary should depend on his experience, age, and what he can actually contribute.
"If Bellicheat pulls that rabbit out of his a$$ with this kid at quarterback, I'll personally kiss his ring." - Sporsfreak, 09/20/16

"Jags/Vikes Super Bowl. Write it down" - Sportsfreak 01/19/18
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