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Wet_Blanket View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Wet_Blanket Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:32pm
Originally posted by helado helado wrote:

Originally posted by freebird freebird wrote:

I personally vouch for TCook.  Be nice to him 

You can't vouch for people when you yourself have no credibility.  LOL
LOL
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Conrad Dobler Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:32pm
Originally posted by Wet_Blanket Wet_Blanket wrote:

Originally posted by helado helado wrote:

Originally posted by freebird freebird wrote:

I personally vouch for TCook.  Be nice to him 

You can't vouch for people when you yourself have no credibility.  LOL
LOL

Tough, but fair. LOL
Call me Dirt, Dirt Diggler.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:35pm
Hacksaw - it is a thin margin model for both us and the BD, but it works.  We realize that scale at the group level allows for those thin margins, while also protecting those margins over the long term.  The BD has $1.2T, and our group works with $12B, so with those size numbers at both levels we are able to work skinny.   
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Post Options Post Options   Thanks (0) Thanks(0)   Quote freebird Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:41pm
Originally posted by Conrad Dobler Conrad Dobler wrote:

Originally posted by Wet_Blanket Wet_Blanket wrote:

Originally posted by helado helado wrote:

Originally posted by freebird freebird wrote:

I personally vouch for TCook.  Be nice to him 

You can't vouch for people when you yourself have no credibility.  LOL
LOL

Tough, but fair. LOL

Did you accidentally click here instead of politics?
Conrad on 5-16-22:
A woman is a person, of either sex (male or female)…who choses to live life in the gender role of woman.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:50pm
Originally posted by missionshooter missionshooter wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue.  Our payout that is higher than that and we retain the difference.  93.5% = 93.5%!

I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well.  We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points.  If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both.  We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually.  Pretty simple math to determine the improvement over a 10 year period of time.  That higher up front check can be very costly.

So you're saying that for every $1 my client pays, I would receive $.935? 

Where is the SAM/SWM program fee?



We are a corporate RIA affiliated, so we use SAM only.  Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing.  Would need to discuss to come up with something that works for everyone.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:54pm
Originally posted by TCook TCook wrote:

Hacksaw - it is a thin margin model for both us and the BD, but it works.  We realize that scale at the group level allows for those thin margins, while also protecting those margins over the long term.  The BD has $1.2T, and our group works with $12B, so with those size numbers at both levels we are able to work skinny.   

Oh I know.  $65k split between 2 companies for the risk and overhead associated with a $1mm producer plus making a profit, seems WAY too tight to me. Only way to make that work is to get size, and get it quickly.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 4:57pm
Originally posted by TCook TCook wrote:

Originally posted by missionshooter missionshooter wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue.  Our payout that is higher than that and we retain the difference.  93.5% = 93.5%!

I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well.  We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points.  If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both.  We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually.  Pretty simple math to determine the improvement over a 10 year period of time.  That higher up front check can be very costly.

So you're saying that for every $1 my client pays, I would receive $.935? 

Where is the SAM/SWM program fee?



We are a corporate RIA affiliated, so we use SAM only.  Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing.  Would need to discuss to come up with something that works for everyone.

Wait.  So is the SAM fee (3-8 bps) not included in the payout?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote missionshooter Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:02pm
Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

Originally posted by missionshooter missionshooter wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue.  Our payout that is higher than that and we retain the difference.  93.5% = 93.5%!

I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well.  We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points.  If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both.  We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually.  Pretty simple math to determine the improvement over a 10 year period of time.  That higher up front check can be very costly.

So you're saying that for every $1 my client pays, I would receive $.935? 

Where is the SAM/SWM program fee?



We are a corporate RIA affiliated, so we use SAM only.  Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing.  Would need to discuss to come up with something that works for everyone.

Wait.  So is the SAM fee (3-8 bps) not included in the payout?

NO it is NOT.  He lied to us because he failed to mention the SAM Program Fee.  

If you charge 1.00%.  3-8BPS comes out off the top.

So let's say 8 BPS.  So, 0.92 goes to your 93.5% Grid.  

So really you get $86 out of $100.  

That's a fact Jack!




"We probably have a 98% close rate." - Circlejerk 7-28-22

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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:03pm
Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

Originally posted by missionshooter missionshooter wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue.  Our payout that is higher than that and we retain the difference.  93.5% = 93.5%!

I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well.  We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points.  If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both.  We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually.  Pretty simple math to determine the improvement over a 10 year period of time.  That higher up front check can be very costly.

So you're saying that for every $1 my client pays, I would receive $.935? 

Where is the SAM/SWM program fee?



We are a corporate RIA affiliated, so we use SAM only.  Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing.  Would need to discuss to come up with something that works for everyone.

Wait.  So is the SAM fee (3-8 bps) not included in the payout?

It is not included in the payout.  The house keeps the 3-8bps, and then the rest is paid out at the grid.  My understanding is that most BD's run it that way.  So if you were at 3bps, and you charged 1.03%, you would receive 93.5% of the remaining dollar after the house kept the .03%, or put another way, client pays $1.03 and you are paid 93.5 cents in this example
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Post Options Post Options   Thanks (0) Thanks(0)   Quote freebird Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:03pm
No different than RJ charging 15 bps or whatever for freedom.  Right?
Conrad on 5-16-22:
A woman is a person, of either sex (male or female)…who choses to live life in the gender role of woman.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:05pm
Originally posted by freebird freebird wrote:

No different than RJ charging 15 bps or whatever for freedom.  Right?

Correct.  They keep the 15bps, LPL keeps the 3-8bps.  Then to the payout.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:10pm
Originally posted by freebird freebird wrote:

No different than RJ charging 15 bps or whatever for freedom.  Right?

I pay zero - it's baked into our payout.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote freebird Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:14pm
Originally posted by Hacksaw Hacksaw wrote:

Originally posted by freebird freebird wrote:

No different than RJ charging 15 bps or whatever for freedom.  Right?

I pay zero - it's baked into our payout.

Right but your payout doesn’t start anywhere near 93 1/2


Edited by freebird - Oct/03/2022 at 5:14pm
Conrad on 5-16-22:
A woman is a person, of either sex (male or female)…who choses to live life in the gender role of woman.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:20pm
Originally posted by TCook TCook wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

Originally posted by missionshooter missionshooter wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue.  Our payout that is higher than that and we retain the difference.  93.5% = 93.5%!

I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well.  We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points.  If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both.  We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually.  Pretty simple math to determine the improvement over a 10 year period of time.  That higher up front check can be very costly.

So you're saying that for every $1 my client pays, I would receive $.935? 

Where is the SAM/SWM program fee?



We are a corporate RIA affiliated, so we use SAM only.  Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing.  Would need to discuss to come up with something that works for everyone.

Wait.  So is the SAM fee (3-8 bps) not included in the payout?

It is not included in the payout.  The house keeps the 3-8bps, and then the rest is paid out at the grid.  My understanding is that most BD's run it that way.  So if you were at 3bps, and you charged 1.03%, you would receive 93.5% of the remaining dollar after the house kept the .03%, or put another way, client pays $1.03 and you are paid 93.5 cents in this example

That makes more sense, but also not what you said when I asked directly the question bolded.  Might want to tighten that up.

In reality, at $1mm in production, the payout is somewhere between 86.02% and 90.695% (93.5% after 3-8bps).  But that's also if I'm charging 1%.  If I was higher, it's higher, and if lower, it's lower.

charge 1.25% = 87.515% - 91.256% 
charge .75% = 83.527% - 89.75%


Still good - decent payouts by the way.  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Hacksaw Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:20pm
Originally posted by freebird freebird wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by freebird freebird wrote:

No different than RJ charging 15 bps or whatever for freedom.  Right?

I pay zero - it's baked into our payout.

Right but your payout doesn’t start anywhere near 93 1/2

Neither does his

Edit to add - Mine is higher than his "93.5%", but we also have the added compliance of our own RIA


Edited by Hacksaw - Oct/03/2022 at 5:22pm
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Post Options Post Options   Thanks (0) Thanks(0)   Quote TCook Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:45pm
Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

Originally posted by missionshooter missionshooter wrote:

Originally posted by Hacksaw Hacksaw wrote:

Originally posted by TCook TCook wrote:

No, that would be a net payout to you, so in your example, at $1 Million with a 93.5% payout you would receive $935k of revenue.  Our payout that is higher than that and we retain the difference.  93.5% = 93.5%!

I would also mention that the admin pricing on advisor as portfolio manager is very competitive as well.  We compete with firms that charge anywhere from 10-30 basis points for program fees on the advisor as port manager program, when we are at 3-8 basis points.  If an advisor has $100 Million in advisory that is a significant difference in higher retained revenue, decreased cost to the client or both.  We have some situations were other BD's may pay $300k higher in transition dollars, but their advisory charges are $200-$300k higher, annually.  Pretty simple math to determine the improvement over a 10 year period of time.  That higher up front check can be very costly.

So you're saying that for every $1 my client pays, I would receive $.935? 

Where is the SAM/SWM program fee?



We are a corporate RIA affiliated, so we use SAM only.  Its 3-8 depending on AUM, and we do have some flexibility on the flat SAM pricing.  Would need to discuss to come up with something that works for everyone.

Wait.  So is the SAM fee (3-8 bps) not included in the payout?

It is not included in the payout.  The house keeps the 3-8bps, and then the rest is paid out at the grid.  My understanding is that most BD's run it that way.  So if you were at 3bps, and you charged 1.03%, you would receive 93.5% of the remaining dollar after the house kept the .03%, or put another way, client pays $1.03 and you are paid 93.5 cents in this example

That makes more sense, but also not what you said when I asked directly the question bolded.  Might want to tighten that up.

In reality, at $1mm in production, the payout is somewhere between 86.02% and 90.695% (93.5% after 3-8bps).  But that's also if I'm charging 1%.  If I was higher, it's higher, and if lower, it's lower.

charge 1.25% = 87.515% - 91.256% 
charge .75% = 83.527% - 89.75%


Still good - decent payouts by the way.  

Fair enough, consider it tightened.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote WarPig Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 5:52pm
All this slave talk is exhausting.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote advisorman Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 10:00pm
LPL sucks
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Post Options Post Options   Thanks (0) Thanks(0)   Quote helado Quote  Post ReplyReply Direct Link To This Post Posted: Oct/03/2022 at 11:29pm
Originally posted by TCook TCook wrote:

Not sure about an across the board 95/3, but we are extremely competitive.

Why not?  

Why don't you consult with your partners / upper management and tell them you have a chance to be an ongoing active participant on a forum that could double up your AUM over time, and you don't have to pay a thing for it.

If you get business from being here, your acquisition cost is $0.  What is it normally?  I bet it's a 5 figure number.  
My posts are for abrasive entertainment only. Nothing posted is investment, legal, tax or any type of advice, nor is anything mentioned true or even based on real events. Posts are complete fiction.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote richchick Quote  Post ReplyReply Direct Link To This Post Posted: Oct/04/2022 at 1:05am
Originally posted by helado helado wrote:

Originally posted by TCook TCook wrote:

Not sure about an across the board 95/3, but we are extremely competitive.

Why not?  

Why don't you consult with your partners / upper management and tell them you have a chance to be an ongoing active participant on a forum that could double up your AUM over time, and you don't have to pay a thing for it.

If you get business from being here, your acquisition cost is $0.  What is it normally?  I bet it's a 5 figure number.  

If you all recall, I suggested a group AH LPL trip to the 4 seasons and no one took me seriously.  
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