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Innovation Partners, LLC

Here is a collection of PDFs regarding the firm, products/services available and more. PROTON DRIVE FOLDER


Innovation Partners Benefits

Tabs

1: Stable Firm & Independent

IP has stable management that doesn’t make changes on a whim. They are Advisor-friendly that puts us before the corporation. They fully understand independent advisors and our need for independence. We, the sales force, have been given the freedom and infrastructure to custom-design our organization the way we want. IP truly lets us build a company within a company, while leaving us alone. - Founded in 2007. - $25 billion of brokerage and RIA assets. - Over 2,500 reps. - They are not for sale and not undergoing any consolidation. - They are not owned by private equity. - The Home Office team has 137 employees with over 200+ years of combined investment and insurance industry experience. - Personal account managers to shepherd all cases and issues. Expert transition team that does all paperwork and coordinates ACATs and transfers of all assets to firm platform. - You can get assistance directly from in-house CFAs, attorneys, actuaries and other professionals who have been CEOs of broker-dealers and other business lines. Out team (AFG) has already tested this with some very large cases. - They allow Advisors to be independent but not alone. Despite their size they know our names (really true). We are not a number to them. They actually listen. I have already made a number of requests and suggestions that they have implemented, including making an improvement with a very large variable annuity provider, and adding Living Trusts, Land Trust and LLCs to our platform.

2: Low Fees

  • IP has given our Team an exclusive discount of $750 on startup/transfer fees!

  • For those starting brand-new in the industry and getting licensed, IP will reimburse you 20% of your Kaplan study material after you've written you first securities sale. This discount is exclusive to our group.

  • The monthly fees are $185. This includes E&O! IP has one of the lowest cost Errors and Omissions (E&O) Insurance that covers life insurance, securities and RIA business. These are very low and reduces the barrier to entry.

  • The only required extra expense is Docusign ($300 per year).

  • If you want a FINRA branch the annual cost is only $200.

  • Visit our licensing fees calculator.

  • Note: for life-only reps the E&O is $50 / month. No start-up costs.

3: Product Offerings

IP offers Broker/Dealer, Advisory and Insurance services but is not tied to any product sponsors, allowing our Advisors to freely choose the best investment solutions for each individual client.

  • We have designed various investment and insurance products and understand both the liability and asset sides of our clients' balance sheet.
  • Over 9,000+ managers and products to choose from. PDF
  • Equities, Fixed Income, ETF, Mutual Funds, 529 plans, Variable Annuities, Options, etc.
  • Managed Accounts and Model Portfolios with Lifetime Minimum Guarantee Income
  • BICE/DOL Compliant products for IRA and qualified plan sales.
  • High Net Worth insurance wraps for Managed Accounts, Model Portfolios, Alternative Investments, and other Asset Classes.
  • Alternative Investments, including Hedge Funds, Managed Futures, Private Equity, REITs, LPs and more.
  • All types of life insurance from dozens of providers.
  • Equity Index Life and Annuity Products.
  • Multi-Custodian RIA Platforms: Folio/Goldman Sachs, Schwab, Fidelity, BNY Mellon/Pershing, US Bank, and more.
  • Private Placement Variable Life and Annuity Products
  • Investment Banking and Succession Planning Services.
  • Asset Protection Trusts, Charitable Giving and Legal Services.
  • Accident insurance.
  • Health Insurance.
  • Disability insurance.
  • Auto insurance via a referral program.
  • Mortgage referral program PDF
  • Manage Bitcoin and Etherium for customers using Flourish which is a subsidiary of Mass mutual. It's basically like a bank account. Client deposits cash. Then they can purchase, or with a discretionary agreement you can purchase and sell Bitcoin and Etherium directly. Paxos is the custodian.

Here is a collection of securities / life insurance products available at IP Google Drive Folder

4: Technology Platform

  • LaserApp (free), Docusign ($300/yr) and SigniX are approved.
  • Redtail and Sales force CRM Integrations.
  • Moneyguide Pro, EMoney and Fiancé Logix approved planning software platforms.
  • Broadridge - Forefield. FINRA reviewed articles, illustrations and tables, interactive calculators, 50 topical movies, 200 FINRA-reviewed presentations, newsletters, professional websites and more.
  • Yodlee and ByAllAccunts data aggregation software.
  • Turnkey compliant marketing materials and lead generation systems.
  • Presentations, calculators, spreadsheets, tools etc are all online.
  • Most of the services above are discounted through IP.


Streamlined Applications
  • Coming from a firm that has been using electronic signatures for years via DocuSign and LaserApp (at least with vendors such as American Funds and Jackson VA), It was great to see that IP has this feature as well - albeit simpler, quicker and cheaper.
  • Our method eliminates the need for LaserApp (but you can use it if you wish), and dramatically simplifies our workflow.
    1. Use one of our pre-made templates in DocuSign for whatever app type you're doing (IRA, 529, VA etc).
  • Add your client's information to the application.
    1. The client signs it.
  • Then you sign it. DONE!
    1. The completed DocuSign will automatically be sent to New Business and they will check it, and they will enter it into the trade blotter for you, and then forward it to the fund family.
  • IP is using a special direct connection whereby our trades get processed within 24-48 hours and our commissions payouts are just a quick.

5: Compliance & Freedoms

  • IP is very flexible, lenient and permissive.
  • Expert compliance team that deals with all compliance issues in addition to CE, firm element, etc.
  • You will work with experienced compliance principals who have dealt directly with FINRA and the SEC and resolved various compliance matters. Thus, you can rest assure that any issue you may experience in the future will be addressed with diligence and prudence.
  • We allow you to conduct business via email, video, phone or in-person. No geographic restrictions (must be licensed).
  • Allow securities-related content on LinkedIn, Facebook and Twitter (with approval).
  • Centralized OSJ and administration from IP Corporate.
  • IP has the ability to do Medallion signatures for client (not common for BDs).
  • Annual compliance requirements are completed online at your own time via RegEd.
  • You can customize your own business cards and use the printing company of your choice. With approval, of course.
  • You can customize your own web site, with approval.
  • They allow personalized branding (such as "Wilson Wealth Management") subject to FINRA and SEC disclosure rules.


AdvisorFirst Group Benefits

“Absorb what is useful, discard what is useless and add what is specifically your own.” -Bruce Lee

“In the beginning I looked around and, not finding the automobile of my dreams, decided to build it myself.” -Ferdinand Porsche

"Loyalty to a company only rewards the company. Investigating other opportunities that may be better for your business is what smart entrepreneurs do." -unknown

Tabs

1: Exclusive Discounts

  • As mentioned above IP has given our Team the following exclusive discounts:

    • $750 on startup/transfer fees! That means the total getting-started cost (not including licensing) is less than $200 (depending upon the states you add).

    • For those starting brand-new in the industry and getting licensed, IP will reimburse you 20% of your Kaplan study material (this is on top of the initial 10% discount our Group gets) after you've written you first securities sale.

  • In addition, our Team gets a 20% discount on DocuSign for only $240 for the first year, and $300/yr thereafter.

2: Robust Commissions

  • Ratcheted promotions. Meaning, your commission level can go up, but never down. We don't have quotas nor minimum (no "bonuses" either, which are a form of quota).
  • 45% - 75% commission levels with no minimums, no quotas, no re-qualification, no office requirements.
  • 100% pass-through revenue from the product-provider with no haircuts. Your commissions are the same across upfront revenue (UFR) and residual revenue (ARR).
  • We believe that both UFR & ARR have their place and both have their advantages and disadvantages. Thus, we let you decided which compensation method to use when you see fit; we don't "push" a certain type of comp.

3: Team Building

We have a sensible recruiting philosophy. Not MLM and not "corporate". It works the way you would expect. It’s “common sense”. We won’t change the system after you’ve built your team and cut you out. We won’t steal your team from you. If you want to build a team of one (yourself), or five Advisors, or 100 Advisors - that's fine. We will support you and give you the override. We have a simple, elegant and fair system - the override is simply the difference between your contract level and your downline's. It only changes if you and/or your downline get promoted, but we will never steal your team or fuddle with your overrides.

We pay overrides on Securities, Advisory, Life Insurance and Living Trusts. We pay the same commissions on trails and renewals as we do on upfront revenue.

Recruiting Advisors is easier than at other firms due to our 1) low-fees ($140/m); 2) part-time (ie outside business); 3) no quotas; 4) high commissions; 5) extensive training & support; 6) Minimal meeting requirements.

4: We Do What's Right

  • How do you define “what’s right” for your clients? Easy, ask yourself: "Knowing what I know, what would I do?" Do that.

  • IP doesn't use the Advisor' monthly fees as a profit center (most B/D's do). They charge us exactly what the wholesale cost of E&O and technology packages are.

  • IP Advisory doesn't charge extra fees on fee-based accounts. It's simply the investment management fee (ie, Capital Group), the platform fee (Schwab, Orion etc) and the Advisor fee (you). Many firms charge extra purely for profit (my previous company charged client an extra 0.15% on top of the previouosly listed fees!).

  • We treat our Advisors as humans not revenue-producing-machines. Any decisions we make consider you as a person. We won't change the system on you every 12 - 24 months, we won't steal from you, nor make empty promises (all things I've experienced at my previous B/D).

  • At AdvisorFirst we believe in long-term client relationships, not one-time transactions. We will teach how to follow-up with your clients and build a residual income.

  • We believe in marketing the products that are right for your clients, not those that are "right" for you pocket-book. We won't try to convince you to sell the wrong products just to make a profit, such as fee-based accounts on "normal" long-term, middle-class clients, or cash-value insurance, or index/fixed annuities etc.

5: Training, Education, Resources, Support & Help

"We are light on hype and heavy on training." -Michael

We believe a competent Advisor is a confident Advisor, and a confident Advisor is a productive Advisor.

We have fantastic training and mentoring system, including group webinars, one-on-one, multimedia, an online Knowledge Base (this Wiki), an active group Chat with other Advisors, and other many other resources. Our trainings and systems are documented and duplicable.

  • We have a weekly Advisor training email newsletter.

  • Telegram Dailies Chatroom where we post 1 - 4 training lessons daily.

  • Telegram Advisor Chatroom. This is a private chat exclusively for Advisors of our Group where we are all connected. Ask questions, answer questions, and discuss. Because of this cross-pollination feature of our Group, we benefit from the experience of our peers and it provides a sounding board for ideas and questions.

  • One of our most valuable resrouces is our AdvisorFirst Wiki (this site). It contains over 33 years of accumulated knowlege in one place.

  • We have one live webinar per week, called Monday Kickoff Meeting, which is under 60 minutes (with an agenda). MKOM is recorded so you can view it anytime. Upon request we will host additional live training and Q&A Meetings.

  • if you need help we're a phone call, email, Telegram chat message away; otherwise we leave you alone.

  • We frequently bring in wholesalers from our product providers.


What We DON'T Do
  • No meetings on the weekends.
  • No mandatory live webinars. Optional Monday 1-hour webinar which is recorded.
  • No daily check-in calls, webinars etc.
  • No rah-rah or pump-up events.

7: Rewarding Culture

We understand that there’s more to this business than money, thus we have a very robust recognition system.


Competition & Comparisons


General Principles of Comparing B/Ds

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Intro

After 25+ years of recruiting, training, coaching, mentoring and building an agency, I have realized there are some things I take for granted that many advisors today may not have been exposed to or have knowledge of when trying to run their business. Today, not only do financial professionals need to make decisions on what products to use, whose products to use, who to market to, and how to brand themselves, but also which broker-dealer is right for them.

It is probably not an “a-ha moment” when I say, “not all broker-dealers are the same.” In fact, some broker-dealers are not the same today as they were maybe just five or 10 years ago. Companies change, products change, your practice most likely has changed, and broker-dealers change.

By helping hundreds of financial professionals come into this business, decide which companies and products to offer, and also pick a broker-dealer that is right for them, I have come up with my A, B, C list of, “top things to consider” when faced with a the decision to change or not to change broker-dealers.

Aphorisms & Axioms

  • Whatever any other firm can do, we can very likely adopt and improve upon. And it's often easier for us since we're younger and more nimble. In addition, our CEO is an actual Advisor and was a Branch Manager at other financial firms, and our model was designed by field leaders. This is our biggest benefit.

  • One of our two foundational philosophies is: An Advisor-First Firm. I've personally never seen any other firm whose actions indicate that they share this ethic to the degree that we do.

  • Many firms that operate in the independent market have the same products available to them. We all draw from the same sources. But, what about adhering to the proper financial philosophies? And training? Parsonexers arespecialists. The other firms create generalists. We believe in becoming experts in one area (retirement income planning), while other firms sell a very broad range of products and thus become masters of none. It is the "division of labor" feature of capitalism.

  • Among "similar" firms (PFS,WFG,CC,HBW, Px) I believe we are the only one that is truly securities focused from the genetic level. All the others are insurance companies first, with a broker/dealer bolted on.

  • "There are only 100 pennies in a dollar." No firm can pay out more than 100% (in fact, no firm can pay out exactly 100%). Parsonex Securities pays out 88% - as far as I can detect none of the other "similar" firms pay this much. The secondary issue is in what proportion is the revenue paid out? Is it all to the producers? To the branch owners? To the hierarchy builders? etc.

Iron Triangle

Select Two out of the Three when Selecting a B/D

Obviolusy, depending upon which two B/Ds you compare, once firm may have all three advantages over the other.

iron-triangle(bd).png

If you're being recruited by another firm

If you're considering change of B/D you should research the "players" in the firm, and not just sign up with the first person that prospects you. I understand you may feel some loyalty to the recruiter, but THIS IS YOUR CAREER. Choose wisely! I would even argue that the Agency and Mentor you select to work under is more important than the firm (within reason).

Whenever my Advisors get prospected by another firm, I tell them ask the following questions, and I encourage you to do the same. YOU ARE INTERVIEWING THEM:

  1. How long have you been in the industry and how long with this firm?
  2. What is your last 12-months rolling income (not your best year)?
  3. How many $50,000-earners and $100,000-earners do you have? YOU, not your company.
  4. What is the average revenue generated our of your Agency/Office/Base Shop?
  5. How many Active Advisors do you have per month on average?
  6. What is the Average Revenue produced per month, per active Advisor?

Don't accept B.S or wishy-washy answers. Get the FACTS. Preferably get a screen shot of their Leaders Board or reports. The leadership, training and culture is sometimes more important than all other features. You want to be with someone who can CREATE successful Advisors.

10 Questions to Ask

Changing broker-dealers can seem to be one of the most stressful things you ever do, but it does not need to be. With proper planning and coordination, it can be quite rewarding. If the transition is properly executed, then it is quite possible that you could gain a deeper relationship with your current clients, review their current needs, and even increase money under management or pick up additional sales or clients. The goal is not to just move your current clients to a new broker-dealer, but to look for ways to grow your business in the process.

  1. Are your clients loyal? What percentage of your clients would make a change with you if you decided to move to another broker-dealer? If you are like most, 80% of your gross income is generated by about 20%-30% of your top clients. Therefore, look at your top clients and decide how many of them are 100% committed to staying with you no matter what. If you can retain at least 80% of your top relationships, then you can consider a change.

  2. Payout/commissions. For many advisors payouts are the number one issue, because at the end of the day you're in this business to build financial independence for your family. Payouts can be deceiving. For example, you want your commissions to be static, and unchanging - or at least that they can't go down, so no "re-qaulification" of your contract year to year. Once you attain a level, you don't want it to go down. Same for "bonus" that reward a higher commission level for a limited time period based upon last year's production. Again, you want to know what you get is what you get, forever.

  3. Compare your net, “take home after all expenses are paid” income, not gross income earned.
  4. Some broker-dealers will pay more gross commission, but then mark up services, fees, ticket charges, have additional affiliation fees, or higher costs of doing business. Which could affect your bottom line net profit?

  5. Are there minimum production requirements that need to be met to maintain good standing? You want a zero mimimum production requirement (or very low).

  6. What is the cost of doing business? Compare the cost of doing business at your current broker-dealer with the one you are considering. Look at items like E&O insurance, ticket charges, technology and software fees, registration fees, branch office fees, marketing fees, material costs for sale brochures or product brochures, and the many additional fees that you spend every day just to do your job for your clients. Remember, these costs of doing business impact your bottom line profitability. Look for a broker-dealer with a “no mark-up” philosophy or a “not-for-profit/break even on services and technology” way of thinking.

  7. Does your** business model** fit that of the broker-dealer? There are broker-dealers who are more insurance-driven, investment-focused, full planning thinking, money management or fee-focused, and then there are captive career contract, independent contract, and some independent contract but non-compete or no-client-ownership broker-dealers. There are broker-dealers who believe they work for you and are representative-focused and those who believe you work for them and are only concerned about product distribution or asset growth. Make sure that your business plan fits with the business plan of the broker-dealer.

  8. If what is important to you is also important to the broker-dealer, will it will be a good move over the next five to 10 years? Over that period of time, do they plan to grow fast, slow, sell, merge, be national, or stay regional?

  9. How does the contract read? Ask to see a sample of the contract you will be signing with the broker-dealer. Is it representative-friendly? What I mean by that is:

  10. Does it have a non-compete clause? These can be painful if you want out.
  11. Who owns the client? Although most clients do business with you, not the company you represent, some broker-dealers contractually own your clients.

  12. Will they pay you or a spouse trail income at death or incapacity? Ongoing trail income is significant, not only for you but for your survivors. Some firms do allow your trails to be paid to a spouse or heir

  13. Financial strength. You need to know how long the broker-dealer has been in the broker-dealer business.

  14. Is the broker-dealer a start-up or privately held firm?
  15. Is it a combination of broker-dealers that were merged together?
  16. Are they national or only licensed in a few regional states?
  17. How long has the senior management been part of the broker-dealer?
  18. What is the compliance history of the broker-dealer?
  19. Today many “new named” broker-dealers are also a combination of older broker-dealers that have been merged together.

  20. How much AUM is at the firm? Indicated stability and success.

  21. What is the culture and character of the broker-dealer? I believe that both are important. It is easy for any broker-dealer to roll out the red carpet and be impressive when they are trying to recruit you and things are going well. But what is their character after they have you contracted or things are not going well? Asking for references from others who are already with the firm is also wise, but keep in mind they most likely will not give you a unhappy representative as a reference. The best way to judge is to research the growth and lost rate of producers over the past several years. If more advisors are joining and few are leaving, then it may be one to consider.

  22. What technology platforms can they support and provide?

    1. What are the fees?
    2. If you abrubpty leave the firm can you retain your data? The best is if the technology services (such as DocuSign) are purchased directly by you and not tied to your employment at the firm.

  23. Business development, coaching, mentoring and marketing support. Succession planning, business planning and marketing are key items to consider. It is not always about the money, as the right business development support can increase your bottom line more than a commission contract increase.

  24. Products and services. Many broker-dealers are simply the conduit to allow you to gain access to the products and services that you want for your clients. 1. What vendors do they have selling agreements with?

    1. What third-party money management firms do they allow on their platforms?
    2. What is the home office employee support ratio to number of representatives in the firm?


Comparisons to Specific Firms