While the last couple of years have been incredibly good for advisor recruiting, the game isn't over yet. A much needed slump over the summer has created still more opportunity for you. But don't wait too long, as the recruiting tides will be changing again.

Once you have been coached by a knowledgeable recruiter about the parameters of a deal, be prepared to make a decision. If you don't, it may cost you. I cannot tell you how many times I have heard some version of the same basic tale of woe over this past year. Let's use an advisor I'll call Dave as an example. He is based in New Jersey and produces $350,000 to $400,000 in a good year with a length-of-service of more than 20 years. He is a mediocre candidate at best.

Over a two-year time span, one of my top recruiters worked with non-committal Dave to get him a very lucrative deal, given his statistics. She had Dave in front of a premier wirehouse at least five times during this two-year period. The wirehouse told Dave different things, depending on the quarter. Last March, when Dave's numbers finally got up to $402,000, the manager got him a deal.

The deal was around 125% upfront with a back end of 80%. Not bad for a third or fourth quintile producer. Many of Dave's friends took the deals during the big advisor shuffle, but Dave just couldn't find the time to "have that talk" with his wife. If he had, my guess is she would have been fine with it, as they had two boys in high school and college educations to fund in their near future.

So fast-forward two months. The company rescinded Dave's offer. His whining became incessant at this stage: "My friends made out like bandits. I can't believe how much money they made. I should have moved when I had the chance."

Unfortunately for Dave, he really did need money at this point and moved to a lower-paying regional firm. Dave went from an Ivy League type establishment with the paycheck to prove it, straight to a strange community college that nobody has ever heard of. The $500,000 check quickly became around $270,000. His slow response cost him more in the long run than he will ultimately pay in taxes.

Lesson Learned

If you are a mediocre producer that really might need a check and you get a good offer, take it and take it now.

"Tom" is yet another shining example of a fence sitter who waited too long. Tom is a $300,000 producer with a length of service of about 15 years. He had been actively interviewing with a wirehouse for six months or so. My recruiter advised Tom that if the wirehouse were to extend him an offer he should accept it after the negotiations were done. And given Tom's borderline numbers, it would be best to act immediately. But Tom suffered the same fate as Dave. The 30-day offer expired and a new one was never issued. Tom went a few months later to a regional firm for half the money. Tom admits today that it probably would have been an easier transfer if his clients had actually known the name of the new company where he wanted to bring their assets. Due to this fact, barely 55% of his book has transferred. He's quick to add, though, that there's a lot less stress at the new firm.

Sure, but that's because their standards are lower, as is your paycheck.

There are many examples of this. Advisors, for whatever reason, waited too long after an offer was made and then ended up with less than they expected. One long-time team I know with two advisors were issued three different deals by the same company over the course of a year, each one lower than the last. They got angry and refused to take any offer. They subsequently went to another wirehouse for 70% upfront versus the 125% that they were initially offered.

Deals at both firms are back up today. Moreover, the new McLagan numbers will be coming out shortly. Expect the first and second quintile numbers to be coming down. This only makes sense, since the whole marketplace is down. Contrary to what many managers will tell you today, last year's third quintile unhireable recruit could be today's second tier recruit. And these days, you can expect to pocket around 120% to 160% upfront and another 75% to 90% in the back end. Not so bad, right?

If I become pay czar anytime soon, you can rest assured I will stabilize your upfront bonuses at approximately 200%. But, since I'm not next in line for that throne, I can only advise you to go now. Otherwise, it may cost you.