Ask Brad: The Double-Edged Sword of a Producing Branch Manager
This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.
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You can’t have your cake and eat it too.
According to the scribes at Wikipedia, that declaration was first uttered in the early 1500s and has been repeated ever since.
Within our industry, a fitting application is when brokerage firms prefer (require?) their branch managers to have a producing book for themselves.
I am referring to branch managers in W2-affiliation models, and, as I will explain, it applies to indie-B/D platforms.
The perceived benefit to a brokerage firm of having producing branch managers is that the broker is performing the responsibilities of a branch manager. By being a revenue producer themselves, they help offset the expense of their own branch manager position.