Walt Bettinger explains to Wall Street why some prospects are balking at investing in Schwab franchises
The Schwab CEO tells listeners of the interim update that the $10 million asset-gathering quota is a psychological hurdle -- but one that can be overcome
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Walt Bettinger axes current and former Schwab retail chiefs, Terri Kallsen and Andy Gill; funnels responsibilities to Jonathan Craig, for now
The Schwab CEO is 'restructuring,' which includes cutting the Chairman's Club program that sent 200 top performers to Hawaii on a free junket
July 24, 2019 at 12:53 AM
Finetooth Consulting
Consulting Firm
Top Executive: Ryan Shanks
Firstgroup Recruiting Solutions, LLC
Recruiter
Top Executive: Frederic St Laurent Jr
Diamond Consultants
Recruiter
Top Executive: Mindy Diamond
FA Match
Consulting Firm, Specialized Breakaway Service, Recruiter
Top Executive: Ryan Shanks
Fred St Laurent
I think I should clarify the comments I made to Lisa Shidler about this topic.
First I would agree with both Ms. Diamond and Mr. Shanks, that it should be relatively easy for a good broker to hit a million a month or more in new assets.
That is not what I was addressing in my comments. Personally I work with some ultra high net worth brokers who would not invest time with new clients with less than $10 million in assets to invest.
The issue here is that Schwab is not bringing on brokers who have hit those kinds of numbers in the past. Additionally, they are setting up store front shops near malls and Walmart stores (one less than 1/2 a mile from trailer parks) and targeting small account, blue collar, walk in traffic.
This model reminds me of Quick and Reilly or H&R Block.
Do the math.
How many small accounts (as little as $300) does it take to hit a million a month in new assets?
If a broker target clients with more money to invest they will have an easy time hitting those numbers.
I have more questions than I do answers about this franchise and have changed my opinion of it since writing the article about the new franchise in NH. Many people have reached out to me since that article was published.
