Independent Broker Dealers Earn Up To 90% of Production

As promised, more thoughts on the Wachovia Independent broker model - the positive side:

While top brokers employed in major wire houses receive up to less than 50% of their annual production, independent broker dealers can earn up to 90% of their production, BUT they bear the cost of running their own office.

From our last post, Wachovia is the only major wirehouse offering semi-independence or full independence to advisors who want to run their own business, yet stay affiliated with the firm.

In a bad market it appears that the only way to make money for a lot of advisors is through the independent channel. We can also see that it could be a good venue for producers within the firm to “phase down” toward their retirement.

Another possible advantage for the “struggling broker” to consider: we know that pressure to meet production goals in order to stay employed has been a big issue in acknowledging the decline in advisor headcount, so an independent model could be attractive tor brokers with low to average revenue.

If any of this sounds intriguing, give us a call - let’s talk more…