I'm 27 with 5 years tech sales experience. I make 100 base and made 180 ote last year. would a move into financial advising at a large bank make sense.
Ashkan Shafiee
Have you heard of anyone leaving tech sales to be a financial advisor?
21
Usually those roles are commission only and take 2-3 years before you make any substantial money. Are you disliking tech sales?
I do well and I do enjoy it just want to explore my options and feels like this is the age to do it. Also this role has a base of 90-130 plus commission
From what I’ve heard it’s incredibly difficult
Lots of competition and the only thing you really have is credibility
Which you don’t have when you start off
Lots of competition and the only thing you really have is credibility
Which you don’t have when you start off
I get a lot of them reaching out to me on LI...
I don't think the prospecting would be fun.
I don't think the prospecting would be fun.
I'd get all your certifications and licenses in order before making that leap. You should also have enough money in the bank to survive for at least a year. If you can, get a role working under someone for shitty but guaranteed pay that is willing to teach you.
If you’re passionate about it, do it. You don’t need our validation to pursue your dreams brother. If you build it, they will come. Chase the dream. You’ll be on the pursuit of happiness.
I don't know if it makes sense. But that's not what matters. Does it make sense to YOU? Is it something you want to do?
I did the opposite track. Tech is so much better imo but up to you to consider that.
WFH, Work life balance, and overall much less stressful. Yes it’s sales and there is a stigma but lots of folks hate FAs. And, if you loose someone money even if it’s just because of market risk they’ll still be pissed.
I overall prefer selling b2b as well.
WFH, Work life balance, and overall much less stressful. Yes it’s sales and there is a stigma but lots of folks hate FAs. And, if you loose someone money even if it’s just because of market risk they’ll still be pissed.
I overall prefer selling b2b as well.
Thank you that’s very helpful!
Pursue what you are good at and the money will come.
Smart to get some bank exp if you want to be in Fintech. Get some contacts and learn the industry.
Why?
Not one that lived, no.
Not sure I would listen to most of the feedback on here ( including mine 🤷♂️) . Some of the most successful people I know are FA’s. Built their business for 10 years and are multi millionaires with 6-7figure residual income every year based on their AUM. Start young and work under someone who has a massive book of business . Learn the ropes from the big dogs and create your own path. Tech sales isn’t the only way to make money in this world. We are just in a bubble with dreams of hitting an IPO or the 3 year enterprise sale to make a $1M check. Go for it and don’t look back. Tech sales ain’t going anywhere.
as someone who did the reverse....i would NEVER go back to the financial sector. I was an advisor for 4 years and a manager for 1 before getting into Saas.
Why do you want to leave saas and go into Financial advising?
Why do you want to leave saas and go into Financial advising?
Be that but please do no spam me on LinkedIn or try to sell me after connecting :)
You may take an income hit initially, but long-term you can make substantially more as a financial advisor. If you are interested in the day to day of what you could be doing in that space, pulling back on income in the short-term to have more money and fulfillment long-term makes all the sense in the world. Of course, you have to know yourself. Not everyone is comfortable with the risk, with a potential initial pay cut, and of course, not everyone will find the work as a financial advisor interesting or fulfilling.
Mind I ask how did you break into tech sales? It's funny you are wanting out while I am wanting in. lol. I come from a completely different industry that requires a lot of traveling and being a family guy I am in pursue of a better work-life balance.
I started in finance but moved over to tech sales - it’s more fun and dynamic, I wanted to travel, work for different firms. It’s also much more fun closing deals than just increasing digits in a spreadsheet.
Finance industry can be little stiff & hierarchical. You have to put in years before moving up, but then when you do move up you can make incredible money (same with SaaS)
Finance industry can be little stiff & hierarchical. You have to put in years before moving up, but then when you do move up you can make incredible money (same with SaaS)
I can comment as I spent the first ten years of my career as an "advisor", both at an insurer and then as a licensed private wealth banker working closely with a branch-based FA. You need to ask yourself if you prefer B2B sales, especially if you are selling a differentiated product with specific customer profiles, or if you want to sell a B2C commodity that "anyone" can use.
IMO, the FA industry has several things going against it:
1) It is arguably under-regulated and suffers from a lack of credentialing, knowledge, and professionalism. There is no legal bar to calling yourself a "financial advisor"; literally anyone can do it. There are only certain licenses required to sell certain products, I.E insurance licenses (not difficult) or series licenses (not difficult). If you wanted to be a "fee based" advisor and just charge by the hour, or a flat fee, you can be in business tomorrow. If you want to manage assets, you just need a Series 65 (which you can sponsor yourself for)
All this confusion and free-wheeling creates an industry full of bad actors (its not just a few bad apples) with no way for the layperson to differentiate. Many products have commission structures (paid up front) that are at odds with the clients best interest (continuing management over time). People join any one of a number of glorified boiler room type firms (even the big name ones like Northwestern Mutual), throw everything they can at their phone book, and flame out after a year or two. That colors peoples perception.
The industry is basically akin to the realtor industry: way too many unqualified practitioners doing anything they can to scrape a commission off someone. This will eventually change, most other countries have moved to increased licensing / credentialing requirements and fiduciary standards (which our American industry lobbies against here). It will happen and it will be for the better
2) You will be selling a commodity. Pretty much all reputable financial services firms have the same service and product offerings. You are a number and you are selling a widget. Your success will purely be based on how well you can connect with people who know even less than you do. Being smart helps, but not as much as it would in a highly specialized SaaS vertical. In general, being a rank and file FA is incredibly intellectually under-stimulating. It can be emotionally rewarding if you like helping people with simple concepts that they dont understand, but the FA is basically a behavioral therapist, not a consultative expert
3) Automated tools, robo advisors, and augmented (on-demand) offerings will only grow in scope and popularity as younger generations come into wealth and older generations become more comfortable banking online (I saw this firsthand being a wealth banker through COVID). Already today, I would argue someone under $1 million in net worth has no use for an advisor. That threshold will go up and you will be chasing a smaller pool of wealthier clients, who are all already working with someone and being solicited nonstop by their financial institutions
4) The only remotely recommendable way to get into the industry is to either join an established producer group as a junior, or to join a bank where you will get leads / bank clients referred to you. Do not join a random, no-name company (even one like Northwestern Mutual), anyone who isnt willing to offer you a livable salary as you learn the business is a huge red flag. Those companies are having you take all the risk while they get a cut of your rewards
5) The downside of #4 is that being a bank advisor can intrude on your ability to make your own schedule and control your business. For example: as an independent advisor, you can get way more write-offs, but the bank will report everything on a W2. They may mandate you are in the branch certain hours. Some banks are more flexible than others, and many people eventually leave the branch to go to an advisor hub with the same institution (you may lose a few clients) or try to take their book to an outside firm (you will lose a chunk of clients)
6) IMO the interesting stuff is at the high end, especially with insurance planning (private placement life insurance, premium financing, non qualified deferred comp, defined benefit plans). You will need age, experience, and networking with trust / estate attorneys and CPAs
7) As with anything, survivorship bias makes it seem like being an FA is a slam dunk. The 50+ year old guys you meet came up in a different system; the reputation was different then, people needed brokers and advisors more, commissions were higher, and compliance non existent. Many of those guys are sitting on recurring revenue, not really growing, and wouldnt be able to replicate their success today.
8) No potential for big equity gains. This one is a long shot, but theres always a chance that you join a SaaS enterprise that has a chance to moon and net you some big gains on your options and equity grants. Most of the big banks rarely hand out stocks, and their large cap stock doesnt have much upward potential
9) Very little WFH / remote flexibility in the beginning until you are established or go independent. Always in the office, always wearing that stupid suit. Drove me nuts.
At the end of the day, I found the work to be generic, boring, and unrewarding, which was terminal for my ability to put in the work to grind to the next level. I am stepping into B2B SaaS, eventually eyeing more specialized verticals that require significant consultative selling. I just personally find that more interesting; I prefer project based, "lets solve a problem" type sales. I dont want to constantly flag reminders to ask a book of 200 clients about their kids and vacations and birthdays. However, retiring and investing is something everyone has to do, so theres way more clients out there for it.
Pick your poison. I notice you mentioned an offer of 90-130 base, can you clarify what kind of company / program this is? In general you will definitely take a pay cut, and a reputable company with a 3-year training program MIGHT give you an 80k base for your first year (Merrill, BofA, Fidelity, Morgan Stanley, UBS have em) but it will already begin to drop off by year two. Those programs also largely focus on sales and are light on planning and equity research skills.
180k OTE is solid. Live below your means, invest in alternative sources of income, and see if you can either segue into a more lucrative vertical, or build up sufficient savings / side income to supplement the drop in income when you switch industries.
IMO, the FA industry has several things going against it:
1) It is arguably under-regulated and suffers from a lack of credentialing, knowledge, and professionalism. There is no legal bar to calling yourself a "financial advisor"; literally anyone can do it. There are only certain licenses required to sell certain products, I.E insurance licenses (not difficult) or series licenses (not difficult). If you wanted to be a "fee based" advisor and just charge by the hour, or a flat fee, you can be in business tomorrow. If you want to manage assets, you just need a Series 65 (which you can sponsor yourself for)
All this confusion and free-wheeling creates an industry full of bad actors (its not just a few bad apples) with no way for the layperson to differentiate. Many products have commission structures (paid up front) that are at odds with the clients best interest (continuing management over time). People join any one of a number of glorified boiler room type firms (even the big name ones like Northwestern Mutual), throw everything they can at their phone book, and flame out after a year or two. That colors peoples perception.
The industry is basically akin to the realtor industry: way too many unqualified practitioners doing anything they can to scrape a commission off someone. This will eventually change, most other countries have moved to increased licensing / credentialing requirements and fiduciary standards (which our American industry lobbies against here). It will happen and it will be for the better
2) You will be selling a commodity. Pretty much all reputable financial services firms have the same service and product offerings. You are a number and you are selling a widget. Your success will purely be based on how well you can connect with people who know even less than you do. Being smart helps, but not as much as it would in a highly specialized SaaS vertical. In general, being a rank and file FA is incredibly intellectually under-stimulating. It can be emotionally rewarding if you like helping people with simple concepts that they dont understand, but the FA is basically a behavioral therapist, not a consultative expert
3) Automated tools, robo advisors, and augmented (on-demand) offerings will only grow in scope and popularity as younger generations come into wealth and older generations become more comfortable banking online (I saw this firsthand being a wealth banker through COVID). Already today, I would argue someone under $1 million in net worth has no use for an advisor. That threshold will go up and you will be chasing a smaller pool of wealthier clients, who are all already working with someone and being solicited nonstop by their financial institutions
4) The only remotely recommendable way to get into the industry is to either join an established producer group as a junior, or to join a bank where you will get leads / bank clients referred to you. Do not join a random, no-name company (even one like Northwestern Mutual), anyone who isnt willing to offer you a livable salary as you learn the business is a huge red flag. Those companies are having you take all the risk while they get a cut of your rewards
5) The downside of #4 is that being a bank advisor can intrude on your ability to make your own schedule and control your business. For example: as an independent advisor, you can get way more write-offs, but the bank will report everything on a W2. They may mandate you are in the branch certain hours. Some banks are more flexible than others, and many people eventually leave the branch to go to an advisor hub with the same institution (you may lose a few clients) or try to take their book to an outside firm (you will lose a chunk of clients)
6) IMO the interesting stuff is at the high end, especially with insurance planning (private placement life insurance, premium financing, non qualified deferred comp, defined benefit plans). You will need age, experience, and networking with trust / estate attorneys and CPAs
7) As with anything, survivorship bias makes it seem like being an FA is a slam dunk. The 50+ year old guys you meet came up in a different system; the reputation was different then, people needed brokers and advisors more, commissions were higher, and compliance non existent. Many of those guys are sitting on recurring revenue, not really growing, and wouldnt be able to replicate their success today.
8) No potential for big equity gains. This one is a long shot, but theres always a chance that you join a SaaS enterprise that has a chance to moon and net you some big gains on your options and equity grants. Most of the big banks rarely hand out stocks, and their large cap stock doesnt have much upward potential
9) Very little WFH / remote flexibility in the beginning until you are established or go independent. Always in the office, always wearing that stupid suit. Drove me nuts.
At the end of the day, I found the work to be generic, boring, and unrewarding, which was terminal for my ability to put in the work to grind to the next level. I am stepping into B2B SaaS, eventually eyeing more specialized verticals that require significant consultative selling. I just personally find that more interesting; I prefer project based, "lets solve a problem" type sales. I dont want to constantly flag reminders to ask a book of 200 clients about their kids and vacations and birthdays. However, retiring and investing is something everyone has to do, so theres way more clients out there for it.
Pick your poison. I notice you mentioned an offer of 90-130 base, can you clarify what kind of company / program this is? In general you will definitely take a pay cut, and a reputable company with a 3-year training program MIGHT give you an 80k base for your first year (Merrill, BofA, Fidelity, Morgan Stanley, UBS have em) but it will already begin to drop off by year two. Those programs also largely focus on sales and are light on planning and equity research skills.
180k OTE is solid. Live below your means, invest in alternative sources of income, and see if you can either segue into a more lucrative vertical, or build up sufficient savings / side income to supplement the drop in income when you switch industries.
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