Is becoming registered
to sell securities worth it?

As an experienced life producer who wants to continue to grow your business you have several options:

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

"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.

ESI is a distribution system of National Life Group. National Life Group® is a trade name of National Life Insurance Company (NLIC), Montpelier, VT and its affiliates. Equity Services, Inc. (ESI), Member FINRA/SIPC, is a Broker/Dealer and Registered Investment Advisor affiliate of NLIC. ESI Financial Advisors is a trade name of Equity Services, Inc. All other third-party entities are independent of ESI and its affiliates unless otherwise indicated. To participate in the ESI distribution system, agents must comply with certain requirements and restrictions, including restrictions on product offerings and compensation.

For Agent Use Only - Not for Use With the Public