P R O F I T F O R M U L A
72486 5/06 0000553158 1 ea/Rev 04
You’ve achieved extraordinary success as a Financial Advisor. It’s a fact. You’re one of the best in the business. Now, where do you go from here? You sense that you can do more— better — for yourself. And you’re right. Wachovia Securities offers an opportunity that will let you make the most of your talents — an alternative compensation model for successful, entrepreneurial Financial Advisors. It’s not just full-service brokerage. It’s not going fully independent. In fact, it’s the best of both. It’s more freedom to control your business and your future with the support of a major firm behind you. It’s called Profit Formula — and you’re about to see why.
“ With Profit Formula, you feel like you are in charge of your own destiny — and you
feel a great sense of ownership that I have never felt before. It’s the best of being in a
branch, with the benefits of owning your own business.”
– R. Cox, Senior Vice President – Investment Officer, Salt Lake City, UT
R E A P T H E B E N E F I T S O F Y O U R G R O W T H
As a traditional full-service Financial Advisor, it’s human nature to want more than you get. As an independent, you often get more than you bargain for. With Profit Formula, you get the best of full-service and independent brokerage. In Profit Formula, you’ll have more latitude in calling your own shots: in other words, greater control over your success, your income, your business and your future.
You’ll have a high payout for your efforts — as high as 75 percent. You’ll keep more of what you earn, because there are no ticket charges to decrease your profits. And since your expenses come out of gross, you receive pre-tax advantages. Once you’re up and running, you can compensate your employees for what they’re worth, choose the technological capabilities that suit your style, market and advertise your business, and design your practice the way you see fit. With Profit Formula, it’s up to you.
As an exclusive Financial Advisor, you deserve to choose how to grow your business. Now you can design your practice your way – and enjoy full-service support you can call on whenever you need it.
Yo u r D e c i s i o n
N o Ti c k e t C h a r g e s
H i g h Pa y o u t
Yo u r I m a g e
Yo u r Pr e f e r e n c e s
Yo u r Pr a c t i c e
“In Profit Formula, business expenses can be run through your
practice — which gives my practice pre-tax benefits. Before joining
Profit Formula, I was spending more than $40,000 a year in
after-tax dollars on my business for seminars, meals,
client-appreciation events, etc. Now I run those costs through my business
and save about $15,000 a year that I can either pay myself or use
to expand my business.”
An independent Financial Advisor trades support for freedom. A full-service Financial Advisor trades freedom for support. With Profit Formula, you don’t have to choose either at the expense of the other.
You will have more control of your business — and behind you every step of the way is the clout and finesse of one of the nation’s largest and most respected brokerage firms. You avoid all the time-consuming, profit-draining pitfalls of doing everything yourself.
With Profit Formula, you don’t have to invent anything. There are no bills to pay, no payroll taxes to file, no bookkeeping to administer. We’ll handle those details — so you can focus on growing your business and serving your clients
.
The power of the Wachovia Securities brand offers you the benefits of our national presence, advertising campaigns and signature events, like the PGA Tour’s Wachovia Championship. Profit Formula practices may choose to create a unique group name that still allows you to leverage the Wachovia Securities brand. Again, it’s the best of both worlds.
You’ll enjoy a full array of world-class products and services including our Lending Services and our revolutionary EnvisionSM
planning process. Through our relationship with Wachovia
I N C R E A S E D F R E E D O M
Bank, Profit Formula Financial Advisors can offer a variety of Lending Services that meet the most complex client needs. And our Envision process, designed to create relationships, is a communicative tool that provides you with the ability to engage in a meaningful dialogue with your clients in order to gain a deep understanding of their personal goals and needs. Simply put, Envision can provide unparalleled value to your clients, which ultimately can be reflected in the success of your business.
Our support also includes the industry’s broadest fee-based program offerings. We have discretionary and non-discretionary programs, separate account management, a mutual fund program that offers investing with a wide selection of no-load and waived-load funds, and many others.
“Profit Formula is a business decision that allows you to feel
independent, but with the support of a large firm behind you —
allowing you to run your practice as you see fit. We like having the
resources of a major firm behind us.”
— B. Whichard, Financial Advisor In-Charge, Elizabeth City, NC
N o B i l l Pa y i n g
N o B o o k k e e p i n g
R e a l S u p p o r t
B i g Fi r m B e n e f i t s
M O R E C O N T R O L
Profit Formula Financial Advisors have joined an exclusive club. It’s not for everyone — and it’s not just “top producers.” Certainly production of $1,000,000 (or an established team production of $1,500,000) is a qualifier, but Profit Formula is more than a designation. Profit Formula is designed exclu-sively for the upper echelon of Financial Advisors who show a commitment to growing their business. As Profit Formula itself is unique, each of our practices has joined the platform driven by a multitude of reasons. Some are primarily interested in a higher payout and controlling expenses. Some want to build a family practice. Some want the ability to customize, brand and market their image. Others want the flexibility to structure their team with the resources they want and the compensation they feel they earn. In any scenario, our Profit Formula practices are elite and have a special status — both within the industry and within our firm.
“Profit Formula has allowed us to brand our team separate from Wachovia in order to portray our
team as a family office within a financial service firm with a vast array of products and services. It
is a way for you to manage your business more efficiently, brand your practice more creatively and
run your team more effectively.”
M A K I N G I T H A P P E N
At Wachovia Securities, we believe that as a Profit Formula Financial Advisor, you should direct, not perform, the work of setting up your practice. We’ve done this before. In fact, as the nation’s third-largest brokerage firm, it’s one of our core competencies. Rest assured, we’ve thought of everything. Long before your conversion date, we’ve built a team to help you through the transition. Experienced integration support specialists team with key partners throughout the firm to ensure your smooth transition and to steer your conversion, keeping all parties on task with the established time line. Throughout the process, we’re in constant contact — so by the time you’re officially on board, you’re entering familiar ground. And, if any issues arise, we’ll handle the resolution so you can focus on building your business. In short, we’re there for you — from start to finish.
We can also work with you to create a customized marketing plan, so that your communications with the public are top-notch and high-profile — reflecting your strengths and your goals.
We ensure that every aspect of your practice is in place and operational — so that on day one of your new business, you can hit the ground running.
PROFIT FORMULA: 10 YEARS STRONG
“This … strategy is driven by empowering high-quality financial
consultants while the firm takes care of the time-consuming
administrative tasks.”
T H E F I N A N C I A L S
Let’s talk about the cost of running your own practice. What does “responsibility for all your expenses” mean? Listed below are some estimated expenses you might expect to pay in a $1,200,000 Profit Formula team practice.
Estimated Annual Costs
Support Staff Salary (two associates) . . . $70,000 FA and Staff Benefits and Payroll taxes. . . $60,900 Technology and Market Data . . . $27,360 Rent and Occupancy Costs . . . $30,000 Telecommunications . . . $6,000 Branch Resources, Office Supplies, Postage, etc. . . $21,420 Marketing Materials . . . $10,200 T and E. . . $9,000 Insurance, License, Compliance and Legal. . . $19,200 Total Estimated Expenses . . . $254,080 . . . Or 21% of $1,200,000
“Profit Formula has the best of both worlds. We are compensated
like independents and have the same support as the firm’s traditional
financial advisors. It’s liberating — I could never go back to being
a typical Financial Advisor.”
Each month we will calculate your profit-based compensation. You will receive a comprehensive compensation and expense worksheet outlining your monthly revenues and detailed expenses. An abbreviated monthly example is shown to the right for a $1,200,000 team practice with two support associates. You will notice that there are no ticket charges and no expense category called brokerage and clearance. We think ticket charges are complicated for the advisor and can be a disin-centive to diversify a client’s portfolio. The standard arrangement is a payout of up to 75% on all revenues and all product types. So there you have it — the nuts and bolts of starting your own Profit Formula practice.
Profit Formula Worksheet (1.2 million dollar producer)
Eligible Revenues . . . .$100,000 75% Payout . . . .$75,000
Compensation and Benefits Expenses:
Support Staff Salaries (two associates) . . . .$5,833 Med, Life & Disability Ins . . . .$1,800 Payroll Tax Matching . . . .$2,025 Savings Plan Matching . . . .$1,250
Occupancy and Branch Resource Expenses (in-branch):
Rent and Facilities cost . . . .$2,500 Telecommunications . . . .$500 Branch Resources, Office Supplies, Postage, etc . . . .$1,785
Technology Expenses:
Server, T-1 Line and Network Access . . . .$675 PCs, Printers, Bandwidth, Workstations, etc . . . .$825 Market Data/Entitlements . . . .$780
Advertising/Promotional and T&E:
Marketing Materials . . . .$850 T and E . . . .$750
Miscellaneous:
Compliance and Legal . . . .$1,000 Insurance and Licensing . . . .$600 Total Monthly Expenses: . . . .$21,173 Net Profit Formula Compensation . . . .$53,827 . . . .(75,000 less 21,173) or 54%
Profit Formula is a way to get everything you want out of your business — and more control over your destiny. You know who you are, what you want, what you’re capable of achieving. Is it time to find the right balance — and to consider Profit Formula?
If you are producing $1,000,000 in annual revenues or are an established team of $1,500,000 or more, we invite you to let us run some calculations on what your Profit Formula business might look like. And let’s discuss how Profit Formula can help you build the practice you’ve always wanted. So ask yourself, what’s yourProfit Formula? To learn more, please call, 1-800-WSLLCFA or e-mail
profitformula@wachoviasec.com.
W H A T ’ S Y O U R P R O F I T F O R M U L A ?
Wachovia recognizes and values the diversity of its employees, customers and business partners. EOE, M/F/D/V. Wachovia Securities is the trade name under which Wachovia Corporation provides brokerage services through two registered broker-dealers: Wachovia Securities, LLC, member NYSE/SIPC, and Wachovia Securities Financial Network, LLC, Member NASD/SIPC. Each broker-dealer is a separate nonbank affiliate of Wachovia Corporation. ©2006 Wachovia Securities, LLC
“When we first heard about Profit Formula, we talked with some
of the existing practices. It sounded too good to be true — but for
a producer over $1 million with a light staff, there are no negatives —
it’s all positive. Who wouldn’t want to be able to do the same business
you’re already doing and make more money each month and each year?
It’s self-fulfilling. With Profit Formula, you reap more benefits, you have
more control and more independence — and that’s more rewarding.”
– A. Fetterman, Senior Vice President – Investment Officer,
P R O F I T F O R M U L A
“ P R O F I T F O R M U L A
i s t h e e n v y o f t h e f i e l d — i t ’s v i r t u a l l y a s t a t u s s y m b o l n o w .
”
