Expand into new markets or focus on referrals.
Introduce new marketing campaigns.
Buy a book of business or add to your team.
You can also become registered to sell securities.
There are some fairly common reactions to that last idea, with the most frequent being:
“I don’t want the compliance responsibility.”
“I don’t have
time to get
licensed.”
"I don’t want
to spend
the money."
While these are all valid concerns, if you already have a book of business, the question to ask yourself isn’t “what is the time/commitment/monetary cost?” The real question is “What is the opportunity cost?”
Agents who become registered can offer a broader range of solutions and address more client needs. This can lead to greater cross-selling opportunities, increased client loyalty, and more referrals, all while benefiting from an increased and diversified income stream.
So let’s take a look at how compensation from securities sales works and the impact it can have on your business.
Dollars and Cents
How can becoming registered effect my compensation?
An agent licensed to sell securities is a registered representative, and their compensation is based on Gross Dealer Concessions, commonly referred to as “GDC.” GDC is the revenue generated by an investment sale. The registered representative receives a percentage of this revenue.
Keeping that in mind, let’s look at the GDC potential impact to your annual earnings, based on some common, sample business mixes.
To run these numbers, input the average number of clients you acquire in a year and the average liquid net worth of each household you serve.
An agent licensed to sell securities is a registered representative, and their compensation is based on Gross Dealer Concessions, commonly referred to as “GDC.” GDC is the revenue generated by an investment sale. The registered representative receives a percentage of this revenue.
Keeping that in mind, let’s look at the GDC potential impact to your annual earnings, based on some common, sample business mixes.
To run these numbers, input the average number of clients you acquire in a year and the average liquid net worth of each household you serve.
Equity Services, Inc., Member FINRA/SIPC, is a Broker/Dealer and Registered Investment Adviser. In CO, MO, NH and WI, Equity Services, Inc. operates as Vermont Equity Services, Inc. Third party entities are independent of Equity Services, Inc. unless otherwise stated. Home Office: One National Life Drive, Montpelier, Vermont 05604
(800)344-7437
www.equity-services.com
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