Broker Dealer Payouts

In the search for a new broker dealer…..

Forget about the payout

In this InvestmentNews column “It’s about more than Broker Dealer payouts”

Investment News broker dealer payouts

Jodie Papike breaks down the decision facing many advisors- to either join a Broker Dealer offering the highest payout/up front money or a firm that has resources that can actually help grow their business.

I frequently get questioned by advisors, who are looking for the best possible “deal” from a broker dealer, to explain why some broker dealers charge more than others for their services. I have been asked on more occasions than I can count, “what does a broker dealer really do for me anyways?”

 

As a way to outline how firms have changed and just how much they bring to the table in todays environment, below are some of the highlights of what they can now offer and why a search should include more than just a broker dealers payouts.

The more robust firms offer various services such as-

  • Turnkey marketing assistance- this saves advisors a tremendous amount of time and can include everything from weekly or monthly newsletters/emails, branding services, website development, branding consulting and social media guidance.
  • Business consulting- Broker dealers are now helping advisors to be as efficient as possible and can make recommendations as to where and how they allocate resources. Various broker dealers now have the ability to perform an analysis of an advisors practice, helping them to identify where they might be able to increase efficiency. Long gone are the days when an advisor is solely responsible for everything involved in the functions related to client portfolio management along with the decisions involved in running a business. This outside advice and guidance goes a long way to assistance advisors run a streamlined and efficient practice.
  • Education- Training, coaching and programs to educate advisors are now available to advisors at firms that are focused on investing back into their advisors. These offerings are expensive, but for various firms have proven to be more than worth the cost, as they assist advisors to take their practice to the next level.

 

The Independent broker dealer environment is extremely competitive. This competition has pushed many firms to increase their offerings to attract new advisors as well as retain existing ones. For advisors open to possibly paying a little more to a firm, these services are proven to expand ones business.  I would encourage every advisor to look beyond the broker dealer payout

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