One More Important EDJ Question
It’s quite obvious that most people on this site are anti-Edward Jones. From reading previous threads I understand the reasons. Considering the Edward Jones in a different context, what do all of you experienced brokers out there think.
I am a 21 year old college senior and a family friend has offered me a job with EDJ right out of school (it might be a Goodnight program, it might involve starting a new office). I am fairly knowledgable about the company and have even attended a monthly meeting. I have my reservations about starting with EDJ mainly because I don’t want to use up all my hometown contacts, and be unable to get them back once I start my own business, with my brothers, 5 or 10 years down the road. I think I could be successful with Jones, but is it worth the work? Factoring in my age, how good of an opportuniy is this really?
I think Jones is a good place to start, especially in your home town (if you have a good reputation).
If you plan on starting a different business with your brothers 5 years down the road, DO NOT get into this business. This is the type of business that is hard at first, but if you can stick it out, it gets easier. At five years, things should be starting to pop (referrals, nice AUM base, fees, etc.). As an old time Jones vet told me once, you've paid for the band, might as well stay for the dance. Don't go into this expecting to leave in five years.
i agree- sounds like a perfect fit
now_indy, thanks for the reply. when i say “start a business with my brothers” i mean start an investment business. So the question is: If I build a good sized book with EDJ, how hard is it to transfer clients to an independent LLC.
Would you recommend this career plan?
Anyone?
I wouldn’t go into the business with an alternate route planned, it will be too easy when things get tough to bail. It is a tough business but rather rewarding when you get past 5 years. I have been in 4 yrs now and can definitely see the light at the end of the tunnel or maybe it’s the train, either way it’s light…
I transfer in EDJ accounts from time to time and don’t find the process all that difficult, so I don’t know why you would either. It’s just paperwork.
I heard a rumor that EDJ makes you sign a one year non-compete clause. Also, if you leave EDJ early I heard they can come after you for some money.Basically, I want to get some experience at EDJ while making sure I have a door out once I get some good training.
[quote=Closer]I heard a rumor that EDJ makes you sign a one year
non-compete clause. Also, if you leave EDJ early I heard they can come
after you for some money.Basically, I want to get some experience at
EDJ while making sure I have a door out once I get some good training.
[/quote]
To be sucessful, you need total commitment. Don’t view EDJ as a phase. or you will be distracted by the pie in the sky.
If you want to, and are willing to work inside the EDJ framework, you
can go pretty far, especially once you get eligable for the LP
participations.
I started with Jones with a Goodknight program. Excellent training, the clients that I received were, as one would expect, appathetic about investing (at best, some wanted to sue and a good number were being hammered by regular margin calls). After 2 1/2 years I left to become independent. The Jones employment agreement requires an applicant to agree to many things, two of which complicate the transition: An agreement to not solicit clients and repay the cost of being acquired and trained ($67K). The agreement is not enforced uniformly (it was in my case). I've been in the business five years, it is a tough business with lots of rewards. I hadn't made less than $100k for years before I started with Jones and then I spent my time apologizing to my wife for failing to provide for the family. Once becoming independent I'm happy and so is my wife.
I have no idea why a Jones rep stays at Jones. It is so much better independent. Yes, I now write checks for overhead (rather than have it deducted from my earnings and I have to fuss with health care and training and technology but I have happy clients and have made $200k++ for two years in a row.
Start with Jones, you may like it. If not, you're licensed, knowledgeable and ready to create clients and go forward.
The non-solicit is generally for one year after leaving. As for the money, Jones will want a "repayment" of training costs if you leave within three years.
As for moving accounts, I have currently moved just over 80% of my Jones book (assets, not households). I did that in about 5 months, I'm not really trying for the rest of those accounts. Keep in mind, I started from scratch, so I had opened up 99% of the accounts in the office. You may have more trouble moving them if you took over their account, and they've only talked to you on the phone.
Oh yeah, moving cost basis SUCKS from Jones. LOTS of manuel entry.
NOW INDY, How did you avoid the non-solicit? I’ve heard of brokers sending mailings and calling ex-jones clients and then getting hammered by the Jones attorneys. Any input would be appreciated, as I will be going that route this month.
[quote=Broker7]NOW INDY, How did you avoid the non-solicit? I've heard of brokers sending mailings and calling ex-jones clients and then getting hammered by the Jones attorneys. Any input would be appreciated, as I will be going that route this month.[/quote]
First of all, you should work with the transition team from your new B/D. They have done this before. If you are really worried about it, consult an attorney on your own. I did both of those things
We have covered this in many previous posts, but here goes again. You can send your previous clients a "tombstone" type of letter that just says something to the effect of "Howdy, this is Broker 7 and I am pleased to inform that I am now at the XYZ firm. Blah blah good stuff about the new firm. Why you think this is a good move. This is my new address, phone number, etc." Be sure to get the letter compliance approved by your new B/D. (Yes, Virginia, there is compliance at indy firms ) Nowhere in this letter are you to suggest that your clients move with you. You are merely informing them of your new location. The rest is up to them. If you have done a good job for them in the past, they will call you.
You can place advertisements in the paper about your new location. There is nothing in the world to prevent you from "bumping" into people at various functions (Chamber, Rotary, Little League games) and telling them where you are now.
Or, as one broker did in SW Georgia, put his face and new B/D name and address on a billboard.
[quote=Broker7]NOW INDY, How did you avoid the non-solicit? I've heard of brokers sending mailings and calling ex-jones clients and then getting hammered by the Jones attorneys. Any input would be appreciated, as I will be going that route this month.[/quote]
I agree with what Babs said. Make sure you do a tombstone letter (compliance approved) WITH a new business card. Make sure the return address on the envelope has YOUR name on it, not just LPL or whatever firm's name you are now with. Otherwise, many will get tossed in the trash without the client even knowing you are gone.
I went to a lot of Chamber stuff as I built my business, so I see clients there. Remember who referred who. If you talk to Bill, who was referred to you by Bob, ask how Bob is doing and say "Because of my non-solicit agreement with Jones, I don't even know if he knows I've left, etc." Every time I did this, the client would tell their friend that I had left and where to find me.
If you're in a small town, a full page ad announcing your new gig could go a long way. I even had a couple clients that hunted me down on the internet (I still haven't figured out how they did that).
I did get the boiler plate Jones non-solicit "reminder." I sent it to LPL's legal dept, and they went over with me what I could and could not do. I never heard anything else from Jones. Luckily, the transfer broker they brought in was a temp from St. Louis, and the guy basically annoyed EVERY client he spoke to. That helped. If they had found a permanent guy or girl who was sharp, I would have probably lost a few clients.
I'm a new/new with Jones. This means I am a new broker, and I started a New Office. I had NO goodknight, no existing branch to inherit. Looking back on it, I would not take the road I have taken. It is too painful on your feet from doorknoicking, horrible on pay, I've starved to death. But you say they want to give you a Goodknight? How much? If it is not at least $10 million, keep looking. Even if it is $10 million, it is going to be a weary $10 million. When I say weary, i mean people who have lost money, don't invest regularly, HAVE SMALL ACCOUNTS, and don't return phone calls and hate coming into the office. Needless to say, you probably won't get good clients in a Goodknight.
What you want is an existing office. You want to "inherit" an office that someone at Jones leaves to go somewhere else, preferrably outside the financial services. Therefore you are in a non-competitive situation.
If you are going to be a new/new like me, here is an idea: accept the job, get the licenses, and then refuse to work, get fired, and go get a job at a bank, or some other firm. I have seen this happen tons. I would do it, but I have three kids to feed, and cannot afford to not produce all I can. But you are young, and you will be on salary anyway. I didn't wise up to ED Jones Bullcrap until I was off salary and into an office. hope it helps. good luck to you man.
[quote=EdJehovah]
If you are going to be a new/new like me, here is
an idea: accept the job, get the licenses, and then refuse to work, get
fired, and go get a job at a bank, or some other firm.[/quote]
And that is easy to do after getting fired for cause?
[quote]I have seen this happen tons. I would do it, but I have
three kids to feed, and cannot afford to not produce all I can.
But you are young, and you will be on salary anyway. I didn't
wise up to ED Jones Bullcrap until I was off salary and into an
office. hope it helps. good luck to you man.[/quote]
A sucessful person of quality is going to be sucessful no matter
what the situation, without griping about it. You aren't going anywhere
untill you change your attitude to life in general.
A seriously good business can be built inside of EDJ. Weather you can do it, is another question.
How long have you been with EDJ, ALLREIT? Did you start new or were you
a transfer broker?
[quote=Philo Kvetch] How long have you been with EDJ, ALLREIT? Did you start new or were you
a transfer broker?[/quote]
I was the love-child of two GP’s
[quote=AllREIT]
[quote=Philo Kvetch] How long have you been with EDJ, ALLREIT? Did you
start new or were you
a transfer broker?[/quote]
I was the love-child of two GP’s
[/quote]
It all makes sense now.
EdJehovah-
You’re right - nobody ever started from scratch at Jones and made it.
Everyone inherited a book.
If you suck at Jones, you will suck no matter where you go.
I can understand the gripes of people that have been at Jones 3, 5, 10
years and are producers, and want “more” out of their B/D. But if you are
griping after a year or two, and telling people to get themselves fired and
move to a bank, it’s probably not Jones’ fault.
AllREIT - I thought you looked familiar!
[quote=Broker24]EdJehovah-
You're right - nobody ever started from scratch at Jones and made it.
Everyone inherited a book.
If you suck at Jones, you will suck no matter where you go.
I can understand the gripes of people that have been at Jones 3, 5, 10
years and are producers, and want "more" out of their B/D. But if you are
griping after a year or two, and telling people to get themselves fired and
move to a bank, it's probably not Jones' fault.
AllREIT - I thought you looked familiar!
[/quote]
Broker24- I could not agree more!!!!!
[quote=Philo Kvetch] [quote=AllREIT]
[quote=Philo Kvetch] How long have you been with EDJ, ALLREIT? Did you
start new or were you
a transfer broker?[/quote]
I was the love-child of two GP’s
[/quote]
It all makes sense now.[/quote]
I guess I need to be a Jones insider to know what this means.
Broker24 wrote:
You're right - nobody ever started from scratch at Jones and made it.
JUST WONDERING..what is the % of hires that passes the 7
KYC, Evalgrad, doesn't inherit an office, doesn't accept a goodnight,
a true NEW/NEW makes it and is still with jones 5 years later?
My guess 3-10%
No idea. Probably about the same as at any other firm (in the same
situation).
there is no other firm that recruits so many non-lincensed individuals like ED J. So there is not a firm to make a comparison to. The hiring process is misleading. If I was told 1 out of 20 people make it with the company to the 5 year mark, I would not have accepted the offer
[quote=Broker7]Broker24 wrote:
You're right - nobody ever started from scratch at Jones and made it.
JUST WONDERING..what is the % of hires that passes the 7
KYC, Evalgrad, doesn't inherit an office, doesn't accept a goodnight,
a true NEW/NEW makes it and is still with jones 5 years later?
My guess 3-10%
[/quote] I would say, perhaps 5%. It is not a number Jones even hints at answering. Mention that question at your next regional summer meeting, and you will get dealt with. Oh no, their is no challenging the Jones hierachy. Just shut up, watch the fortunate few get a gravy train, and keep banging on doors. Come on, you can do it. Of course I can. I have. Its the non-hackers who will be the future of Jones with LP and GP. All these cheerleaders on this site are the fortunate few who inherited millions, and would love to call me with their best sales ideas! What a joke. I have been with the firm for over 3 1/2 years. It doesn't get any easier. They say, "if you spend 20 years at EDJ it is the best 18 years of your life." -meaning the first 2 years suck. Well, that is a load of bullsh*t. I've been their nearly four years, have brought in nearly 20 million in assets and I still struggle to feed myself. The expense of your own office is enormous, especially if you only get .25% on service fees.... and all of my book is not Mutual funds. I have a sizeable stock and bond business, which is like throwing money out the window at Jones -it took me two years selling to realize this. But it IS in the best interest of the clients. The downside is that a new guy who sells stocks and bonds will starve to death in the long run. Hey, I'm just saying that the hand-outs need to be a little more equitable. I'm not here to suck off Jones. I'm just telling the truth.[quote=EdJehovah][quote=Broker7]Broker24 wrote:
You're right - nobody ever started from scratch at Jones and made it.
JUST WONDERING..what is the % of hires that passes the 7
KYC, Evalgrad, doesn't inherit an office, doesn't accept a goodnight,
a true NEW/NEW makes it and is still with jones 5 years later?
My guess 3-10%
[/quote] I would say, perhaps 5%. It is not a number Jones even hints at answering. Mention that question at your next regional summer meeting, and you will get dealt with. Oh no, their is no challenging the Jones hierachy. Just shut up, watch the fortunate few get a gravy train, and keep banging on doors. Come on, you can do it. Of course I can. I have. Its the non-hackers who will be the future of Jones with LP and GP. All these cheerleaders on this site are the fortunate few who inherited millions, and would love to call me with their best sales ideas! What a joke. I have been with the firm for over 3 1/2 years. It doesn't get any easier. They say, "if you spend 20 years at EDJ it is the best 18 years of your life." -meaning the first 2 years suck. Well, that is a load of bullsh*t. I've been their nearly four years, have brought in nearly 20 million in assets and I still struggle to feed myself. The expense of your own office is enormous, especially if you only get .25% on service fees.... and all of my book is not Mutual funds. I have a sizeable stock and bond business, which is like throwing money out the window at Jones -it took me two years selling to realize this. But it IS in the best interest of the clients. The downside is that a new guy who sells stocks and bonds will starve to death in the long run. Hey, I'm just saying that the hand-outs need to be a little more equitable. I'm not here to suck off Jones. I'm just telling the truth.[/quote]I am sure that some of what you say is true.
I am also sure that your attitude stands squarely between you and a larger paycheck, no matter where you hang your shingle. Better check yourself bro and see if you can improve that a little if you want your business to pick up.
EDJ SUCKS! GO INDY, NOW!!!
Spears,
I think Ed is seeing the light!
The last full year I was at Jones they posted numbers on the screen that indicated they hired about 200 new reps a month for a total of approximately 2,400 for the year. The total NEW offices added was 10.
Of the 12 people in my KYC class only one is still with Jones INCLUDING the Visiting Vet, this is now five years down stream from KYC.
Edward Jones was a good place to start and they have a good strong well run back office. I also believe their basic operating principles are sound and I'm grateful for the 2.75 years of experience I gained operating my office.
I'm now independent. My clients are happy and so am I. My income, in the first year I was independent was four times my best year at Jones.
I have three good friends, in the business, who started with Jones at the same time I did and each of us is now independent and loving life. At the end of the day this business teaches you to act in your best interest. You may conclude that EJ is the right place, if you conclude you would be better off someplace else, make the move.
Life is good!
AMEN
I left Jones at the end of last year. In the past six months I have made over 100K net and have had my best year ever and it’s only March. I could have never done that at Jones. Life is good as long as I never have to work for Edward Jones again!!! The amazing thing is that I stay in touch with my real friends at Jones and they are all happy for me. The RL, on the other hand hates my guts, especially since I’ve taken another buddy with me and I’m working on more. Goodbye E D J, hello good life!!
I couldn’t resist. EDJ SUCKS!
come on Free, Spiffy told me you were an underperformer, soon to be fired, couldn’t recite the EDJ pledge at meetings --failure. You had to move because EDJ didn’t want you anymore. So, I don’t know who the heck your kidding, but me and Weddle think your full of S*&T!!
OK OK OK…Weedle wants me to remind you about everything you left on the table. Trips…if you could mull through all the smoke and mirrors associated with the allocation of points…(weedle can’t figure it out either), great fund families, looooong term bonds, 4.25% Looooong term tax frees, A share (forgot about those didn’t you), spys, I mean BOA’s, your American Funds wholesaler coming by once every 18 months. Regional meetings…there you go…great topics (rotated every 2.3 meetings), an ever revolving door of new people with sh*t coming out of their ears, revenue sharing, 31% net net payout. You had better run back to your old office,Louis Wray is waiting…
Holy crap! Jim W and I just drove by your old office Free, and sure as the son is shining, Louie Wray is standing in the middle of your office with a big ass welcome back sign. Jim was hiding in the back seat combing his hair, but I seen him. How can you not go back free? For a measley extra what…100k. Your just down right not very intelligent…isn’t that right Jimmy boy. Jim wants me to call Doug before he answers, just to confirm. WOW I"VE HAD A GREAT DAY WITH TRANSFERS!!!
[quote=bspears]Holy crap! Jim W and I just drove by your old office Free, and sure as the son is shining, Louie Wray is standing in the middle of your office with a big ass welcome back sign. Jim was hiding in the back seat combing his hair, but I seen him. How can you not go back free? For a measley extra what...100k. Your just down right not very intelligent...isn't that right Jimmy boy. Jim wants me to call Doug before he answers, just to confirm. WOW I"VE HAD A GREAT DAY WITH TRANSFERS!!!!!!!!!!!!!!!!!!!!!!!!!!![/quote]
Why not clinch the deal and throw in a Sam's club size toilet paper package?
Man, I only post at work so I didn’t see those last offers. Brittney girl, it’s true, by any of Jones standards I was an underperformer because I couldn’t figure out why they taxed me on $50.00 when I won a $12.00 smoked turkey. I kept forgetting to kiss the RL’s butt at the meetings that were hosted in my office and remind everyone how great he was for spending time with us all one day a month. Rust, if you make it 2 Sam’s packs of TP, I’ll come grovelling back and tell all of the clients I transferred that we need to go back to Jones because they ARE the best! NOT!!!
Darn, I missed the turkey deal. I too was amazed by the great gifts and then getting taxed on the sob’s. Made me not even look at the promos going on…trimester, Tuesday and Saturdays. Is shamrock Saturday tomorrow…sh*t, I better get my call list ready. I know they’ll have a great bond to call on!!!
B,
You missed it!! It was last Saturday. Now you don't get any brownie points from the RL because your region didn't have the required minimum participation to win money for a regional party. If you'd been there the region would have won. You slacker!!
Well…I’ll just have my own Scamrock Saturday…I’ll have my wife dress up as a leprichon (no panties) and I’ll make her tell me about a good stock she would have me call on. I think we need to have these promos put on youtube for a good laugh! Hey my idea of National DoorKnocking day is quickly approaching…I’ll offer frozen turkeys to the first 10 to sign on…Spiffy are you up for it?
[quote=bspears]Well...I'll just have my own Scamrock Saturday...I'll have my wife dress up as a leprichon (no panties) and I'll make her tell me about a good stock she would have me call on. I think we need to have these promos put on youtube for a good laugh! Hey my idea of National DoorKnocking day is quickly approaching...I'll offer frozen turkeys to the first 10 to sign on....Spiffy are you up for it?[/quote]
HAHAHHAAHA. The following is an actual home office announcement:
The portfolio analysis system will now consider the INDIVIDUAL holdings of mutual funds, instead of a general classification for the whole fund. So if your clients holdings are now out of balance by 5% or more, it's time for a rebalancing.
HAHAHHAAH.
[quote=farotech]
[quote=bspears]Well...I'll just have my own Scamrock Saturday...I'll have my wife dress up as a leprichon (no panties) and I'll make her tell me about a good stock she would have me call on. I think we need to have these promos put on youtube for a good laugh! Hey my idea of National DoorKnocking day is quickly approaching...I'll offer frozen turkeys to the first 10 to sign on....Spiffy are you up for it?[/quote]
HAHAHHAAHA. The following is an actual home office announcement:
The portfolio analysis system will now consider the INDIVIDUAL holdings of mutual funds, instead of a general classification for the whole fund. So if your clients holdings are now out of balance by 5% or more, it's time for a rebalancing.
HAHAHHAAH.
[/quote]
Well that's what's best for the client isnt it? I hope you are not implying that EDJ would EVER do something that wasn't.
nope, of course not, because we shop at the same grocery store you do!
Source URL:https://www.wealthmanagement.com/forums/rookies-trainees/one-more-important-edj-question