Diamond says some advisors need the support of the big brands to grow their businesses, even if it means taking home less of their production in the beginning.
These big brokerage houses give advisors more time to be out connecting with clients and prospects, hosting seminars and special events in their communities. The company's staffs and technology help take care of day-to-day operations. "From a growth perspective, at a wirehouse you're freer to put your head down and do what you do," Diamond says.
Also, they can leverage the brand recognition of Bank of America's Merrill Lynch or Morgan Stanley Smith Barney, and also get referrals from partnering bank branches.
The next level of brokerage in size, the regionals, don't offer big bonuses but can have their own advantages, in that they have a similar support structure with a more personal feel. They can also be less bureaucratic and more flexible about approaches to risk, for instance, or use of social media. And these can be tools for growing business that ultimately may mean more than a signing bonus.
Advisors who pride themselves on their unique investment ideas and portfolio management are more likely to thrive and grow in the autonomy and sophistication offered by many independent RIA's.
Barnaby Levin is hoping to be a case in point. At Smith Barney for a decade and other major firms for 12 years before that, he took the leap to join an independent RIA, HighTower Advisors, last spring. He thought he could be more successful under his new set-up because it would give him more freedom to hedge his clients' investments.
Being his responsibilities for managing his own business are greater, and that squeezes the time he can spend with clients, "You clearly have to be very entrepreneurial. It's a different world," Levin says.
And if an advisor needs a manager's pressure to stay motivated and build business, the increased independence can backfire, higher payout notwithstanding. They also can miss out on corporate training programs that allow them to add important professional designations.
Another factor an advisor who is just thinking about the immediate money can overlook: The competition within a branch. "If you're going to be competing with 30 other guys who have the same business card, you're not going to have as many chances to get new clients," says Jeff Spears, a former wirehouse broker who is now chief executive of Sanctuary Wealth Management in San Francisco.
The personalities and skill mix in the office, including those of the manager and the other advisors, is key, too. "You have to make sure your personality and your business fit in with the local management and other people you'll be working with on a daily basis," Tasnady says. "These broker-dealers aren't like McDonald's. The service and expertise is much more varied based on the specific office you're in."
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