#5 NuSKINNERS

As a general rule, multi-level marketers allocate more time to recruiting other salespeople than to mastering their products. The choice makes sense, because they get a scrape of everything their “down-line” recruits sell.

NuSKINNERS are stockbrokers who resemble multi-level marketers. They work at “wire houses,” the big firms with thousands of investment reps. Their advice—how much to allocate to stocks, bonds, and other investments—is cookie-cutter clear. They are great closers, so they build their businesses by teaming with junior stockbrokers in vast revenue-sharing networks.

You’ll never see a brawl among NuSKINNERS like the one in the video. They’re lovers, not fighters. The problem is they don’t study the capital markets. And you won’t receive much attention once they reel you in. There are too many down-line demands on their time.

Recognize anyone you know?

Check back as we continue our presentation. Once the series is complete, we will post our complete white paper on the Top 10 Species of Stockbrokers.

About the author

Norb Vonnegut wrote 178 articles on this blog.

Do you ever feel the financial news makes no sense? Do stories leave you with more questions than answers? I created Acrimoney to discuss Wall Street’s behavior behind the headlines. As a veteran of a wealth management business that exceeded $1 billion in assets, I offer insight into the people and the “doings” that affect your money. I’ll start the discussion. But I hope you’ll jump in and say what you think.

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