For any representative who is considering changing from another independent platform to our independent platform, I have five questions that I recommend they ask themselves before making a decision:
For those of us who’ve gone independent, we’ve done so in large part to attain a measure of autonomy and individualization for our practices. Many folks whom I’ve talked to over the years who’ve made the switch have found that their firms have gone from hundreds of reps to thousands. As firms grow in scale, they inevitably need to create systematized processes to supervise their enlarged databases. As a result, they can feel less and less “independent.”
There are only so many ways you can split a dollar, and in today’s increasingly regulated environment, transparency in your compensation program will become paramount as you build your long-term financial game plan for your business.
On a regular basis, I have folks come to us and say, “I wanted to be independent, but I didn’t want to be this independent,”, or “I thought I was going independent, and it turned out I just joined another branded platform concealed as an independent firm.”
We know from research from both the wirehouse side of the industry to the insurance-based, broker-dealer side that large cases are worked on in teams. We see wirehouses now requiring new recruits to join existing teams. The insurance industry has lagged behind on that, but what we know from anecdotal data is that large cases tend to generate eight times the revenue when they’re worked in teams, rather than individually. How many people do you know at your independent firm who would collaborate with you on a practice?
While there are a lot of revenue opportunities to be had if you join a firm that can help you innovate in the face of the new incoming changes to the Department of Labor regulations, there is also a lot of hard work waiting for you all over again, like prospecting and revenue generating.
If you’re considering switching from one independent broker-dealer to another and you found any value in this conversation today, feel free to download our brochure, send me an email, or give me a call so we can have a conversation about how some of these questions impact you. I look forward to hearing from you!
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