A fair number of readers are interested in finding financial planning jobs .
I thought I’d share a story that will help you if you are one of those folks.
Scott, a friend of mine, called a few days ago and asked me about an opportunity in financial services.
He’s currently out of work and needs to start earning quickly. He’s got lots of sales experience but no financial advising experience.
Undeterred, he contacted a fast-growing financial services company and was miraculously offered a job.
Before you get too excited…I need to share the particulars.
A. The “job” doesn’t pay him anything. It’s 100% commission.
B. His employer doesn’t introduce him to clients. He’s got to beat the bushes and hit up everyone he knows for business.
C. Scott has to pay for his own licensing fees too.
The only thing this “employer” provides is sponsorship to sit for the securities exams.
I asked Scott to tell me more about the interview process and the company itself.
He told me that his first meeting was a group interview with about 20 recruits like himself. After about an hour, each rookie was brought into a room with the manager for about 10 minutes and was grilled about how many people they know.
The manager told Scott that the “training” lasts two weeks and would cost him $795.
Scott told me that the company earns a commission of 7% on everything sold and the salesperson pockets 35% of that.
I told Scott to run – not walk – away from these people.
I told him that boiler room places like these just look to get lots of new rookies started. They know most of the rookies will likely fail after a few desperate months but possibly get a few clients to sign up. The rookies leave having wasted time and lots of money. The company keeps the clients and most of the commissions of course. Then…they start again with a new batch of suckers.
The list of things that are wrong with this company is pretty long.
a. They don’t provide any real training to become a successful financial planner.
b. They seem like product pushers.
c. They work on commissions.
d. The rookies have all the risk. The company doesn’t invest anything in them.
e. There is no real marketing going on.
If you want to get into the financial services industry, don’t fall for this kind of slimy pitch. Make sure the firm you go to work for:
a. Offers real training and doesn’t charge you for it
b. Isn’t just pushing products to earn commissions
c. Has a marketing plan that goes beyond your 100 closest friends
d. Has a stake in your success
Use this as your criteria. Don’t waste your time talking to firms that don’t pass this test.
It might be easier to find a lousy job like Scott almost took. But if you take the first offer you get, you’ll end up spinning your wheels and wasting time and money. Worse, you’ll sell rotten investments to people you care about and probably get burned out on the profession completely.
If you’re a financial planner, how do you get your start? What would you recommend?
If you’re trying to break into the business, what is your game plan?