Why should you chose the entrepreneur path?
The main reason is the cashflow you generate with your book.
In wealth management you get paid a flat % on the assets you manage for your clients.
It's hard and slow to start, but once you reach X $/ month, you will have the same salary next month minimum.
Your book (salary) grows organically (client's contributions, market growth, referrals ...) - around 10-15%/year.
The bigger your book, the bigger your salary.
Example:
Let's say you manage 50 M$, and you charge an average fee of 1% to your clients.
Your growth revenue is 500K/ year.
Your payout is 50% (your income, the other portion goes to the brand ex: BANK A)- you make 250K.
The market goes up 10%, + you have referrals from exisiting clients + RRSP contributions (total 15%)
Your book at the end of the year is now 57.5 M$ and you salary 287.5K.
Keep in mind, this compounds every year.
What is the classical path to own a book ?
You usually start as a telemarketer.
If you want to own your book, you need to learn how to sell.
You have to learn how to cold call, warm call, follow up and book appoitment with potentiel clients.
You need to learn how to use CRM, evaluate good prospects and understand the finance industry.
You usually have minimum salary + commissions.
This period is a trial, just to evaluate if you have what it takes to build your own book.
After 6 months + and your first few clients you can be eligible to become officially junior and pass your licenses
Telemarketing & sales
Junior
Once you passed the RSE + CIRE, you become a Junior Advisor.
You keep making calls and book prospects but you are now more involve the the acquisition process.
You help the senior advisor build financial plans, reports and analyze client's portfolio.
You start to split the income generate from your book with the senior advisor.
Your goal is to build a steady cashflow (at least 3/4K/month) in order to have sufficient cashflow to become an advisor.
This step usually last around 1 year.
Advisor
You are now registered on the National Registration Database (NRD) as an investment dealer.
You work for yourself and are free to build your book the way you want.
You are now directly paid on the assets you own (book).
You need to insure your business for compliance, plus pay for your licenses annually.
You can hire employees (administrative assistant, associate advisor) to help you grow your business.