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14 Cards in this Set

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  • Back
  • 3rd side (hint)
What is LOS?
Length of Service. It's how many years someone has been in the business.
Which industry sector is most likely to use the term, "LOS?"
Wirehouse. It is especially used in Merrill Lynch.
Why is LOS important?
Various statistics make no sense unless you know how long someone has been in the industry. If someone has 100 HH with $10 million in AUM, that's great--if they are a relative newcomer. It's lousy for a 10-year veteran.
What's a decent number of HH and assets for an FA to have.
A few hundred HH and $20 million in AUM.
What is the "dreaded plateau."
Literally a plateau is a broad, flat area of land. In sales, a plateau is a period of time in which production is flat.
Why do people get stuck on a plateau?
The clients they bring in are offset by those they lose.
What group of people is hurt most in a downturn?
Veterans (someone who has been in the industry at leat five and most likely ten years.)
Why are Veterans hurt the most in a downturn?
Because they only rely on referrals for new business.
If we tell a veteran that the first thing we need to do is secure their client base, what do we mean?
We need to establish the client retention forumla.
What is a skinny rabbit?
A client with less than $100,000 in assets. (This is our definition, not a general industry term. An FA will know immediately, however, what you are talking about.)
Which scenario do bank advisors typically fit?
The usual scenario is: many hundreds of HH, relatively low production (5-5)
If an FA says, "I have 50 clients," what else do we need to know to interpret whether this is a problem or not?
We need to know when they started in business and how much revenue they are generating.
What is the biggest problem an FA with a large number of clients has?
They cannot stay in touch.
What do we always tell an FA with a large client base?
If you are not talking to them, someone else is.