As of 2013, stock brokers in the United States earned an average income of $70, 190, based on the Bureau of Labor Statistics. Those in the upper 10 percent earned over $166, 400 while the bottom 10 percent received a little lower than $31,330 in a year. However, it is worth noting that the median wage does not give an actual proof of how much a stock broker earns. It is only intended to provide a broad idea of the possible earnings one can expect from pursuing this career.
Stock Broker Income
As with anyone who is deciding on the best profession to take, it is only practical to know first how much you are likely to make from a particular job before you go for it. For instance, there are some people who are led into thinking tha stock brokers make millions, although this is merely stretching the truth. Although stock brokers receive a decent pay, they cannot turn themselves into a millionaire after a few months in this profession. After all, several factors are at play when it comes to the salary of stock brokers.
For instance, stock brokers may earn more or less than the average guy, depending on the work experience, qualifications, performance and place of employment. You should also keep in mind that it is never logical to compare the portfolio manager’s salary with that of a stock broker’s. After all, there is a huge difference between the two since their position in the company dictates how much they make. However, stock brokers can maximize their earning potential by having more clients who buy their products, as this equates to higher commissions.
Generally, trainees earn about $20,000 to $30,000 per year. For an initial income, this is quite higher than what other professionals receive. As soon as you start gaining more clients, then you an expect to have higher commission rates while your basic pay becomes lower.
In addition to the work experience, geography has a huge impact when it comes to the salary of stock brokers. According to statistics, New York-based stock brokers make about $135,700 annually while those situated in Kentucky earns a meager $59,060 pey year. Furthermore, the total income one receives is greatly affected by the number of commisions.
Stock brokers can expect greater profits through the commission they receive. This refers to the monetary value of every transactions they have successfully made. The commission rate depends on the type of financial product sold such as annuities, mutual funds and shares, to name a few. Stock brokers who are employed in firms obtain their commissions based on how they have perform throughout the day.
Initially, the salary may be rather decent, yet the commission increases as stock brokers are able to establish a steady base of clients. As you earn more commission, your salary will also decrease. So you need to gain more clients and boost your sales to maximize your earnings.
Ways to Build a Portfolio of Clients
As stated earlier, the best way for a stock broker to earn more is by having more regular clients. With this in mind, you should search the internet and strive to find potential clients by following these tips.
– Start with the People Around You
When looking for prospects, you may simply begin with your family members. After all, these people are more likely to become customers. All you need is to explain carefully what your product is all about, and be sure to be thorough and honest with your way of marketing your offerings. By doing so, you can increase your chances of getting new and loyal customers.
– Expand Your Network
You need to start targeting like-minded individuals who care about your products as this boosts your chances of obtaining much-needed clients that can help your business. Consider attending seminars, events and other gatherings where you can present your products and implement your marketing skills.
– Reach Out with Your Blog
Nowadays, more and more people are discovering the benefits of blogging in reaching out to a wider audience. Moreover, it provides a quicker and more efficient way for you to gain responses from your audience. A great way to start is by creating a blog about investing, then fill it with informative and meaningful content that will add value to your readers.
Provide content that is compelling enough to encourage people to share it via social media channels. Eventually, word of mouth will drive more people to your blog and convert them into potential loyal customers.
So, if you want to succeed in this profession, start applying these tips that will help you gain a solid client base and better returns on your investment.