Wells Fargo: “You want a 550% recruiting deal? Come right this way…”
Wells Fargo announced today that they will continue, in perpetuity, the largest recruiting deals on the street. They also reiterated their commitment to significantly reward recruiters for pushing valuable recruits to their multiplicity of platforms with increased recruiting fees that dwarf the industry standard.
Wells Fargo just extended the holiday season for eligible advisors, teams, and recruiters. But there is a bit more to the story that hasn’t been put out into the media over the past year that will grab your attention:
If you are a Tier 1, experienced advisor the actual top end potential with an end of contract kicker is 550%. Yes, you just read that right. 550%. One more time for effect: 550%
How does Wells Fargo get there for its employee channel recruits? First, it offers the aforementioned ‘traditional’ deal structure attached to a 9 year forgivable loan/contract. Then WF decides to add the real sweetener and offers Tier 1 advisors the option to sell their book within the Wells Fargo ecosystem for a stated and committed 225%.
Bam! Pop! Bang!
So if you are a 55 year old advisor at Merill Lynch with a partner, a junior advisor, and two client service associates doing $3m in annual revenue, do a little math. Why don’t we do a little math for you: that’s $16,500,00.00. Take another look at that number.
Meanwhile, with an ongoing recruiter payout that sits at 10% versus the industry standard of 6% – your friendly neighbor recruiter is HIGHLY incentivized to convince you to hit the mf’ing bid!
Take a look at a couple of teams that did just that late last year:
“In December, a five-broker Merrill team in Plano, Texas with $4.5 million of annual revenue joined the “advisor-led” channel of standalone Wells Fargo Advisors offices, following a $4- million team from Morgan Stanley that joined in Boca Raton, Florida, in September.”
If those teams chose the aformentioned deal, their ‘all-in’ payouts are $22M and $24.75M. Eye popping numbers.
Expect Wells Fargo to not only stop the bleeding in 2020 – but to be a favored destination for UBS, Merrill Lynch, and Morgan Stanley advisors looking for comfortable surroundings and a ‘back the truck up’ load of liquidity.