Series 6, 7 and 63 License . . .

[DHK]

GDC payout depends on your firm. My old Credit Union firm has a monthly GDC tier structure. The more you did, the higher the % payout. We capped out at 45% if we did $44k (we had an assistant, otherwise it was just $40k).

$44k x 45% = $19,800

The ranges were (without an assistant):
$0 - $15k: 15%
$15k - $25k: 25%
$25k - $40k: 35%
$40k+ : 45%

My firm has a monthly structure, but many others have a cumulating annual structure based on annual production.

Here's what you didn't know: The firm would put any FIXED insurance business "through the grid" AND we had "wholesaler relationships" to "feed". So I never sold a fixed or indexed annuity, nor did I know anything about life insurance until I LEFT the firm... because our wholesalers represented mutual funds, variable annuities, and fee-based AUM services.

Then they also control who you can contract with and your marketing materials & efforts. Lots of restrictions. But at a credit union, they had the members to sell to, so you have to weigh it out.

Anyway, there's lots on the forum regarding securities licensing. I will say this: having BEEN securities licensed... I understand many more things about financial planning than I would have if I never had them.

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I thought you had your PM machine turned off. Did it automatically restart at midnight?

I turned it on for a few people and never turned it back off. Oh well.

 

[myinsurebiz]

Gross Dealer Concession or GDC is the revenue to a brokerage firm when commissioned securities and insurance salespeople sell a product, whether it is an investment like stocks, bonds, or mutual funds, or insurance like life insurance or long term care insurance. The commission that the agent receives is usually a percentage of this figure, although some firms like Merrill Lynch use figures called Production Credits, usually smaller than GDC, to determine payouts and retain more revenue.

For example, a mutual fund with a 5.75% sales charge is sold to someone who invests $10,000. $575 GDC is created by the sale, and the investor has an initial account balance of $9425. If the sales agent receives 32% of the GDC, he makes $184. If the payout is based on Production Credits or PCs, it would perhaps be about 5.5% of the total sale, or 32% of 550: $176.



https://en.wikipedia.org/wiki/Gross_dealer_concession

 

[DHK]

All I'll say, is that you have FAR more research to do before you start down this path.

Here is my contribution to your securities education:

 

[myinsurebiz]

Oh without a doubt - I'm not even close to understanding.

I'm going to start the pre-licensing courses in a few weeks. That may enlighten me quite a bit . . .

Thanks for the advice . . .

All I'll say, is that you have FAR more research to do before you start down this path.

Here is my contribution to your securities education:
www.youtube.com/watch?v=e6I6ZYt9FpU

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Decide to watch the movie The Big Short. At the beginning they quote Mark Twain - but, sounds like Amtrak . . .

" It ain't what you don't know that gets you in trouble,

It's what you know for sure that just ain't so . . . . "

Oh - so much to learn.

 

[Tahoe Ray]

Gross Dealer Concession or GDC is the revenue to a brokerage firm when commissioned securities and insurance salespeople sell a product, whether it is an investment like stocks, bonds, or mutual funds, or insurance like life insurance or long term care insurance. The commission that the agent receives is usually a percentage of this figure, although some firms like Merrill Lynch use figures called Production Credits, usually smaller than GDC, to determine payouts and retain more revenue.

For example, a mutual fund with a 5.75% sales charge is sold to someone who invests $10,000. $575 GDC is created by the sale, and the investor has an initial account balance of $9425. If the sales agent receives 32% of the GDC, he makes $184. If the payout is based on Production Credits or PCs, it would perhaps be about 5.5% of the total sale, or 32% of 550: $176.

https://en.wikipedia.org/wiki/Gross_dealer_concession

Maybe I'm a little slow tonight...why are you posting this?

We all know what GDC is and how it is calculated.

Are you asking a question?

 

[myinsurebiz]

Maybe I'm a little slow tonight...why are you posting this?

We all know what GDC is and how it is calculated.

Are you asking a question?

Yes - I want to make that 30% to 40% commission on the GDC that I may create. Doable?

 

[Tahoe Ray]

Yes - I want to make that 30% to 40% commission on the GDC that I may create. Doable?

Independents make more like 70-90% on GDC...the 30-40 stuff is for the wires and banks.

 

[myinsurebiz]

Independents make more like 70-90% on GDC...

Awesome! How?

 

[DHK]

With experience and discipline so that independent broker/dealers will want to take on the RISK of having you represent their firm.

 

[GreenSky]

Independents make more like 70-90% on GDC...the 30-40 stuff is for the wires and banks.

Why are you helping this loon?

Rick