Payout Structure Questions at Interview

I love how Don is so quick to judge.

Don, for your info... many firms out there offer a draw to start.

Maybe he is so negative because these firms threaten his business model. Why would anyone pay Don .01 per share for REDI+ when you can pay .003 from real software?

My question to Don is...

why would someone take their series 7 to put up their own money and pay retail commission on an inferior platform?
 
Don Bright
Bright Trading

Registered: Oct 2001
Posts: 2441
04-16-02 09:57 PM
..and the point I am trying to make is that we can compete, have similar or much different business models. and be as opinionated as we like, but for the sake of everyone, we should keep it civil.

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
02-24-02 09:09 PM
2 business models, 2 approaches to growth

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
12-01-01 03:55 AM
Business models...
Hitman, you have always posted good notes (despite what some detractors have said..."hey, I've been through that, too,,,and may still be getting some negativity)....keep it up!

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
09-12-02 10:07 PM
Wow, you're reading a lot into that....I was not implying anything negative, they simply found a good business model and attempted to duplicate it (whether it is "better" or not, is yet to be seen, I wish them all the best).

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
07-17-02 01:58 PM
Then do it...why not. There have been several firms who were started by ex Bright Traders...and you know what...their business models are almost exactly the same as ours. Your model is not so dissimilar...

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
07-16-02 06:57 PM
Let me, once again, outline our business model, briefly, and why we seek only those who have confidence in their trading abilities and their ability to run a business.

Trading is a business, and before you get too involved with any firm, you should check carefully all the financials..

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
05-09-02 06:44 PM
We have come a long way in our communication with one another, let's not let it digress into a silly "war" again. There are plenty of traders in the SD area, and they can choose whichever business model they prefer.

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
04-22-02 03:45 PM
If there were a good business model, would not the main firm simply keep control? Why would they need the "sub-LLC" money in the first place, and vice-versa.?

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
04-15-02 02:29 PM
Our business model works well for the traders, and Bright Trading is continuing to grow daily (which we couldn't do if we were "suckering" people in).

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
04-05-02 02:32 PM
ROFL...Come on Hitman, we give our traders our balance sheet, to show how we keep plenty of "owners capital' to protect the traders. Have you seen yours? How you can think that "eating losses" is a good business model simply doesn't speak too well for either you or the firm. Why don't you just show your financials to everyone?
(You show me yours, I've already shown mine)....but, again, keep it nice...don't get so defensive.

And, besides, we would rather spend the resources teaching our traders to be profitable than "eating losses" -- and you know damn well that the firms who used to back traders have pretty much given up on it.

I don't need to defend a 40% average growth for 10+ years....so, just stick to the facts, and show us the financials.

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
03-02-02 01:09 PM
If you have a good business model, why in the World would one franchise it (the obvious answer is to "spread the risk" since they are not comfortable with their ability to survive in new markets). Again, this is not a slam on Andover (good firm in NY), but all franchise operations in general.

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
02-04-02 03:14 PM
We are not big fans of the "employee" trader business model since it is normally not good for the trader, and if the trader does well, then he leaves for a firm like ours....but we have made a few deals with promising traders for a short term "profit split."

Don Bright
Bright Trading
Registered: Oct 2001
Posts: 2441
11-20-01 02:06 PM
Echo was formed by a couple of our ex-traders, who saw an opportunity to try to duplicate our business model. Their main guy, Jeff, has been a good trader in the past, and went out and raised some money to get started. There have been a couple of other firms that have done the same thing. They have actually helped us (Bright Trading) by motivating us revise our business model in such a way as to maintain our lead in the industry. The similarities go right down to our old pricing models (new ones start in January) all the way through to the training they implemented.
 
Thanks for the research, and for supporting my comments!!

"Draws" ....against what is all I ask. Against a "split", not a full payout. Just a bit tough to figure how a firm can pay $$40,000 a year to someone who may not make any money. That becomes "working for the Company store" sometimes.

I just don't want anyone disillusioned, and to check what the "draw" really is, against what, and what percentage of profits....that's all.

Heck, this may be a great deal for some, and I really mean that..!!

Don
 
That didn't look like a support of your comments. There were contradictory statements ranging from support of other prop firm business models to downright criticism of these same firms.
 
Originally posted by goldenarm
That didn't look like a support of your comments. There were contradictory statements ranging from support of other prop firm business models to downright criticism of these same firms.
More...

Thanks for indulging my sarcasm. "Things change."

Serious now: My point is that there ARE different business models, and some people are drawn to these differences. That is why the individual should weigh in on all the aspects of their venture into trading. We simply choose to cater to the career professional, who is running his trading operation as a business. Others prefer the more "employee" based relationship with an employer type trading firm.

And I was serious about that perhaps that Heartland deal is good for a new trader, everyone should just weigh the details along with their own aspirations.

Don
 
I know that it is a draw against future earnings. But lets say things don't go well and there are no future earnings. Does that mean that the company eats the loss or are you now in debt to them?????
 
I also trade at heartland. Consider yourself lucky if you get hired. They usually only hire ivy grads or the like. There is an initial SALARY for the first few months. Did you hear that? salary. Which becomes a draw after a few months. The salary is to help you while you are learning how to trade. They understand the learning curve and pay you a salary to help you out. The standard deal for new traders is amazing.
Inquire at www.hrld.com
 
Originally posted by YoungNAmbitious
I know that it is a draw against future earnings. But lets say things don't go well and there are no future earnings. Does that mean that the company eats the loss or are you now in debt to them?????
More...

If you leave, the company eats the loss. They eat the draw they paid to you and they eat any losses you incurred. You leave the company with nothing owed except your immense gratitude.
 
Originally posted by nwbprop
I also trade at heartland. Consider yourself lucky if you get hired. They usually only hire ivy grads or the like. There is an initial SALARY for the first few months. Did you hear that? salary. Which becomes a draw after a few months. The salary is to help you while you are learning how to trade. They understand the learning curve and pay you a salary to help you out. The standard deal for new traders is amazing.
Inquire at www.hrld.com
More...

OK, I gotta ask this question. How does Heartland retain GOOD traders?

I mean if a trader really learned to trade and was making good money for the firm, why wouldn't he go to another firm that gives the trader 100%? What would the advantage be to staying at Heartland?
 
Originally posted by cashonly


OK, I gotta ask this question. How does Heartland retain GOOD traders?

I mean if a trader really learned to trade and was making good money for the firm, why wouldn't he go to another firm that gives the trader 100%? What would the advantage be to staying at Heartland?
More...
I used to be puzzled by this as well, until I started seeing posts by Hitman, daffunginman, DaytraderNYC, Silk, etc, etc.

There are traders that simply either:

1) Would never trade their "own" money
2) They have tried it, and all of a sudden, they get creamed.

I am not just talking newbies here either. For example, I know of seven figure traders that went from Shony to another deal where they trade "company" money.

I am no longer baffled by this...It is a trader knowing himself and his psychology.

nitro
 
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