EDJ - Got to ask

I’m sure this has been commented on before, because I know the question has been asked. 

But I’ll answer it anyway, since it would be interesting to see if my answer has changed any.

People hate Edward Jones for several reasons. 

1)  It is easy to hate the guy on top (EDJ is after all #1 in client satisfaction, no matter what conspiracy theories I may have about how it is conducted; they are usually #1 on the broker report card and up there on the best places to work as well).

2)  Their platform.  Jones has a certain theory on how money should be managed and they stick to it.  I think they are wrong in their approach and use outdated models.

3)  Most of all, I think people who used to work at Jones (myself included) were sold a bill of goods they didn’t quite receive.  There are those who weren’t of course, but I think they are actually in the minority.

4)  Another reason is hypocrisy.  Putting someone forward as the representative of how you should run your business or look up to simply because he inherited $30+ million in assets. 

I’m sure there are other reasons, but those are some I can think of.

I didn't trust Jones management to live by their credo that the client came first. Actions speak louder than words and they never walked the talk.

From the other side of the coin…Jones is a quality company.  The partnership structure meant that while our competitors are worrying about solvency and ownership, we can concentrate on FAs, financial health of the firm, and client satisfaction.  We do have a specific way that we think money should be managed.  It’s been basically the same philosophy for decades.  There have been some tweaks here and there, but the basic idea is to buy good stuff and hold onto it.  Nothing fancy. 

[quote=Spaceman Spiff]From the other side of the coin…Jones is a quality company.  The partnership structure meant that while our competitors are worrying about solvency and ownership, we can concentrate on FAs, financial health of the firm, and client satisfaction.  We do have a specific way that we think money should be managed.  It’s been basically the same philosophy for decades.  There have been some tweaks here and there, but the basic idea is to buy good stuff and hold onto it.  Nothing fancy. 

I see both points.  I agree, Jones is a good company.  Weddle has made some of the best (only) changes to the company in decades.  You can’t change a company on a dime.

Okay, so I am new to this forum and a lot of responses have slammed EDJ. Why do some people here hate Edward Jones so much? Is it because of their “door-to-door” approach? Fees? What is it that makes some members here knock them? (No, I dont work for EDJ either.)

It’s my observation that some advisors love them, and some hate them. There really isn’t much in the middle.

I know some of y’all will give stupid remarks, but try to keep them serious.

Edward Jones is the BEST FIRM EVER!!!

Edward Jones #1

I guess I would fall into quite another category. I didn’t really have a beef with management but I was rather disappointed with the company’s response to a major issue in my old region. They frankly didn’t display the qualities that they were never shy about talking about. That being said they are a good company to start for and as long as you understand the limitations that you will have there i.e…product…strategy. After being gone from the Ed Jones machine, there is a total emphasis on the FA headcount that used to drive me bonkers when I was there. That being said, there is so much to this industry that until you are immersed in the industry you cannot fathom all the implications of the firm you started with until you are there 3 years or more…It takes at least that long to be competent to help your clients rather tahn your wholesaler.

Was just at Spring regionals. Panel of  FAs at the end telling us how to run our business. One of the guys works 30 hrs a week after getting 30million non compete. Biggest loser in our region…

[quote=RealWorld]Was just at Spring regionals. Panel of  FAs at the end telling us how to run our business. One of the guys works 30 hrs a week after getting 30million non compete. Biggest loser in our region…

[quote=hotair1][quote=RealWorld]Was just at Spring regionals. Panel of  FAs at the end telling us how to run our business. One of the guys works 30 hrs a week after getting 30million non compete. Biggest loser in our region…

I find the problem with these “newly minted rock stars” is that their ideas are so different than what other newbies need to hear.  If I am out 2 years and have 75 housholds and 10mm AUM, I don’t need to be told how to manage and mine my book.  I don’t have a book yet!  If you are given 650 households, even if many are not that great, you probably don’t ever have to “prospect” again in the strictest sense.  You are more focused on developing and mining your book, and culling referrals from them.  You aren’t out knocking on doors and cold-calling.

[quote=Moraen] [quote=hotair1][quote=RealWorld]Was just at Spring regionals. Panel of  FAs at the end telling us how to run our business. One of the guys works 30 hrs a week after getting 30million non compete. Biggest loser in our region…

Ditto everything about those inheriting books and being help up as the next Troy Nelson. There are some quality people at Jones though and it is a fantastic place to start and learn the business. HR department for the industry.

spiff-

Hot Air?

—Dear Jones brokers that are upset about brokers inheriting assets and then giving speeches at regionals…grow a set.  If it concerns you so much, why not call them out.  I do it in the occational regional I go to (maybe that’s why half the region loves me and half hates me).  But what difference does it make.  I even had our Area leader giving a talk about how great the number one producer at Jones (based in North Dakota I think) got there in something like 5 years.  I actually interupted him and asked how many assets he had inherited (knowing the answer), took the wind out of the area leader’s sail, but there’s always a story behind a fast starter like that (Inherited 150 million or so). 

By the way, there was a guy that inherited 70 million in my region around 10 years ago.  It was a succession plan with another broker.  He was getting a little c***y one day, so I let him know it would be just a matter of time before I passed him.  Sure enough, around 5 years later, there I was, looking at him in my rear view mirror.  He’s now around 50 million behind.  Once again, control what you can control.

[quote=rankstocks]—Dear Jones brokers that are upset about brokers inheriting assets and then giving speeches at regionals…grow a set.  If it concerns you so much, why not call them out.  I do it in the occational regional I go to (maybe that’s why half the region loves me and half hates me).  But what difference does it make.  I even had our Area leader giving a talk about how great the number one producer at Jones (based in North Dakota I think) got there in something like 5 years.  I actually interupted him and asked how many assets he had inherited (knowing the answer), took the wind out of the area leader’s sail, but there’s always a story behind a fast starter like that (Inherited 150 million or so). 

Rank - I did just as you say when I was there.  Talk about getting ostracized.  Yes, half of the region loved me, but they weren’t the half that had the influence.  It got to the point where the wives gave my wife a hard time.  And my wife doesn’t play. 

Needless to say, it was easy to leave.

[quote=Mr.Blonde] [quote=rankstocks]—Dear Jones brokers that are upset about brokers inheriting assets and then giving speeches at regionals…grow a set. If it concerns you so much, why not call them out. I do it in the occational regional I go to (maybe that’s why half the region loves me and half hates me). But what difference does it make. I even had our Area leader giving a talk about how great the number one producer at Jones (based in North Dakota I think) got there in something like 5 years. I actually interupted him and asked how many assets he had inherited (knowing the answer), took the wind out of the area leader’s sail, but there’s always a story behind a fast starter like that (Inherited 150 million or so).

[quote=B24] [quote=Mr.Blonde] [quote=rankstocks]—Dear Jones brokers that are upset about brokers inheriting assets and then giving speeches at regionals…grow a set.  If it concerns you so much, why not call them out.  I do it in the occational regional I go to (maybe that’s why half the region loves me and half hates me).  But what difference does it make.  I even had our Area leader giving a talk about how great the number one producer at Jones (based in North Dakota I think) got there in something like 5 years.  I actually interupted him and asked how many assets he had inherited (knowing the answer), took the wind out of the area leader’s sail, but there’s always a story behind a fast starter like that (Inherited 150 million or so). 

That may be, but I guarantee he had a “hook”. There’s no way to capture $50mm in one year at Jones without a hook. You can do it at a firm that specializes in insitutional money or Ultra HNW folks, but you simply can’t gather that many assets in one year slinging American Funds. Even if every account was $500K, that would be 100 households at 500K each. I have heard of guys buying other books and transferring them to Jones (under the radar). Not sure if this was the case with him.

That may be, but I guarantee he had a “hook”. There’s no way to capture $50mm in one year at Jones without a hook. You can do it at a firm that specializes in insitutional money or Ultra HNW folks, but you simply can’t gather that many assets in one year slinging American Funds. Even if every account was $500K, that would be 100 households at 500K each. I have heard of guys buying other books and transferring them to Jones (under the radar). Not sure if this was the case with him.

[quote=Moraen] Rank - I did just as you say when I was there. Talk about getting ostracized. Yes, half of the region loved me, but they weren’t the half that had the influence. It got to the point where the wives gave my wife a hard time. And my wife doesn’t play. Needless to say, it was easy to leave.

[/quote]



Your wife must have a thin skin and be a drama queen.

Your a broken record with your wife.

Heard it a dozen times.

[quote=DD] [quote=Moraen] Rank - I did just as you say when I was there.  Talk about getting ostracized.  Yes, half of the region loved me, but they weren’t the half that had the influence.  It got to the point where the wives gave my wife a hard time.  And my wife doesn’t play.  Needless to say, it was easy to leave.

[/quote]



Your wife must have a thin skin and be a drama queen.

Your a broken record with your wife.

Heard it a dozen times.[/quote]

What’s up mel?  Wife leave when she found out you were getting banged by your branch manager?

[quote=AGEMAN][quote=RealWorld]Hot Air?

[quote=B24] [quote=Mr.Blonde] [quote=rankstocks]—Dear Jones brokers that are upset about brokers inheriting assets and then giving speeches at regionals…grow a set.  If it concerns you so much, why not call them out.  I do it in the occational regional I go to (maybe that’s why half the region loves me and half hates me).  But what difference does it make.  I even had our Area leader giving a talk about how great the number one producer at Jones (based in North Dakota I think) got there in something like 5 years.  I actually interupted him and asked how many assets he had inherited (knowing the answer), took the wind out of the area leader’s sail, but there’s always a story behind a fast starter like that (Inherited 150 million or so). 

That may be, but I guarantee he had a “hook”. There’s no way to capture $50mm in one year at Jones without a hook. You can do it at a firm that specializes in insitutional money or Ultra HNW folks, but you simply can’t gather that many assets in one year slinging American Funds. Even if every account was $500K, that would be 100 households at 500K each. I have heard of guys buying other books and transferring them to Jones (under the radar). Not sure if this was the case with him.

[quote=B24]That may be, but I guarantee he had a “hook”. There’s no way to capture $50mm in one year at Jones without a hook. You can do it at a firm that specializes in insitutional money or Ultra HNW folks, but you simply can’t gather that many assets in one year slinging American Funds. Even if every account was $500K, that would be 100 households at 500K each. I have heard of guys buying other books and transferring them to Jones (under the radar). Not sure if this was the case with him.

John is in Banking Services.  The guy I mentioned is Todd Osterhage.  He is in Banking Solutions.  My mistake.  I guess one is products one is solutions. 

I am interested in EDJ, can you tell me if transactional business, along with fee based biz are considered the same from a production standpoint?

What about insurance?

Can an FA recommend a stock or muni bond?

You get 40% payout on almost everything - stocks, bonds, MFDS (A shares), annuities, insurance, etc.  You get 35% payout on heavily discounted stock trades, C share mutual funds, and some UIT's (the shorter maturities).

They take a haircut on annuity and insurance business before you get your 40%.

Yes, you can recommend stocks and bonds.

Thanks B24. If I were to bring over around 10 mm in assets from a former employer, and prospect through referrals and other contacts, will that approach be well recieved at EJ?

Or will I still also be expected to prospect through their format (DK)?

Do I have any say in the branch location of BOA hiring process?

[quote=careerFA]

Thanks B24. If I were to bring over around 10 mm in assets from a former employer, and prospect through referrals and other contacts, will that approach be well recieved at EJ?  - Yes

Or will I still also be expected to prospect through their format (DK)? - Yes.  But only during the initial training period if you go through the normal KYC/EvalGrad process.  After that, they really don't care how you prospect as long as you're putting up the numbers. 

Do I have any say in the branch location of BOA hiring process? - Some.  As to the BOA, if you have someone in mind, you can give their info to the home office.  They'll interview them just to make sure they are a good person to hire.  After that you can hire anyone that makes it through their screen

As to the office location, you get to pick your area, then work with the leasing folks to find office space.  It's highly likely that you could end up taking over an existing office or doing a Goodknight plan or some derivation it, so finding an office immediately may not be in the cards for you.

[/quote]

Can anyone tell me about EJ technology to support clients? Do you have access to financial planning software, a CRM tool to propsect, send emails?

Does the company offer turn key seminar formats, other rmarketing support?

Thanks

[quote=careerFA]

Can anyone tell me about EJ technology to support clients? Do you have access to financial planning software, a CRM tool to propsect, send emails?

Does the company offer turn key seminar formats, other rmarketing support?

Thanks

[/quote]

Yes to all of that.  But let me elaborate:

The technology used to be pretty piss-poor.  However, they have come a LONG way in improving it.  They have one of the best CRM tools of most captive firms (i.e. wirehouses), and the integration with their portfolio aggregation software, financial planning software, and order-entry system is virtually seamless.  You can now send e-mails from the CRM tool and they are logged in CRM.  You can create marketing lists, sort and filter by dozens of criteria, etc.

They have tons of canned seminars.  Most of them are good.  I would not call many of them "great", but they get the job done for the most part.  They are pretty typical of what you would expect for canned seminars that have to go through compliance. 

The marketing support is excellent.  Literally hundreds of customizable flyers, ads, internet banners, etc.  Lots of canned seminars, access to wholesaler seminars as well, seminars for CPA's and attorneys, several different newsletters (short form, long form, tax newsletters, and newsletters specifically for CPA's and attorneys), tons of brochures that can be ordered very inexpensively (some are free), canned postcards that can either be ordered blank, or you can download the PDF, customize them and have them printed at a printer, canned radio ads, canned newspaper reports/articles you can submit to local papers (weekly).  They also have an extensive direct-mail campaign that you can opt into for clients and prospects.  You have to pay for it (they do offer some free ones during the year), but the cost is far less than doing them yourself, and the postage is cheaper.

They also reimburse you for seminars...usually a maximum of $150 per seminar, but more for certain seminars, and more for newbies.  There is no limit as to how many seminars they will remiburse you for.

This forum has been extremely helpful..

Is EJ a place for someone who wants to build the practice, with the company support, and do this for the next 20 years?

In other words, how many of the EJ FA's have 10+ years with the firm?

B - It's actually $300 on the seminar reimbursement.  That's the highest they'll go. 

FA - yes.  For all the complaints about EDJ on this site, Jones is a fine company to work for if you want your name associated with a firm.  Many of the things people like to complain about don't have much to do with you building your business and creating a life for yourself. 

[quote=careerFA]

This forum has been extremely helpful..

Is EJ a place for someone who wants to build the practice, with the company support, and do this for the next 20 years?

In other words, how many of the EJ FA's have 10+ years with the firm?

[/quote]

I would guess about 1/2 the FA's have 10+ years.  Keep in mind, the firm didn't really start to grow exponentially until the 90's, so there are a lot of FA's in the 8-12 year mark.  In 1997 we had 4,000 FA's.  We now have around 12,000.  So you can see that it's a relatively young firm in terms of growth

[quote=Spaceman Spiff]

[quote=careerFA]

Thanks B24. If I were to bring over around 10 mm in assets from a former employer, and prospect through referrals and other contacts, will that approach be well recieved at EJ?  - Yes

Or will I still also be expected to prospect through their format (DK)? - Yes.  But only during the initial training period if you go through the normal KYC/EvalGrad process.  After that, they really don't care how you prospect as long as you're putting up the numbers. 

Do I have any say in the branch location of BOA hiring process? - Some.  As to the BOA, if you have someone in mind, you can give their info to the home office.  They'll interview them just to make sure they are a good person to hire.  After that you can hire anyone that makes it through their screen

As to the office location, you get to pick your area, then work with the leasing folks to find office space.  It's highly likely that you could end up taking over an existing office or doing a Goodknight plan or some derivation it, so finding an office immediately may not be in the cards for you.

[/quote]

[/quote]

Care to elaborate on why that would be the case?

Spiff made that comment, and that was news to me. Most EJ office in my area have been populated by new hires recently licensed

I would assume the 6-9 month building contacts applies to everyone, then if producing, office comes next.

This thread is like reading a script...  (good grief these econs suck)

EDJ has been a great firm to work for in my opinion. I started approx 4 1/2 yrs ago. I did a 10mil Goodknight program, and have grown my business to slightly over 40 mil. We have great support, comraderie, and leadership in our region. My experience at Edward Jones has been a great one, and I would recommend the firm to anyone thinking about going into this business.

[quote=careerFA]

Spiff made that comment, and that was news to me. Most EJ office in my area have been populated by new hires recently licensed

I would assume the 6-9 month building contacts applies to everyone, then if producing, office comes next.

[/quote]

It sort of depends on how quickly you do it.  If I were you, I would ask for a "Legacy" office at minimum - and office that you can work out of rather than your house.  That way you can take your time looking for office space.  If you really bring over $10mm, and it's a "productive" $10mm, you should be able to look for an office right away.  If it's $10mm in dead-end assets, it won't help you much.

And you are better off with a bunch of newbies in the surrounding offices - those are the one's that fail out quickly and open up offices.  If you had a bunch of veteran offices, none of them would open up.  Very few veterans leave the firm (as in 10+ year vets).

[quote=joelv72]

[quote=Spaceman Spiff]

[quote=careerFA]

Thanks B24. If I were to bring over around 10 mm in assets from a former employer, and prospect through referrals and other contacts, will that approach be well recieved at EJ?  - Yes

Or will I still also be expected to prospect through their format (DK)? - Yes.  But only during the initial training period if you go through the normal KYC/EvalGrad process.  After that, they really don't care how you prospect as long as you're putting up the numbers. 

Do I have any say in the branch location of BOA hiring process? - Some.  As to the BOA, if you have someone in mind, you can give their info to the home office.  They'll interview them just to make sure they are a good person to hire.  After that you can hire anyone that makes it through their screen

As to the office location, you get to pick your area, then work with the leasing folks to find office space.  It's highly likely that you could end up taking over an existing office or doing a Goodknight plan or some derivation it, so finding an office immediately may not be in the cards for you.

[/quote]

[/quote]

Care to elaborate on why that would be the case?

[/quote]

They would rather stick an experienced FA with assets into an office before an un-proven newbie.

I've got experience, have 10mm that come into wrap or managed accounts, then another 25 million to reestablish the relationship then gain commitment, and over 50 mm in potential rollovers over the next 5 years.

Can anyone shed light on the products for managed money, the bonds inventory for munis and corporates/agencies, and transactional commission structure?

[quote=B24]

[quote=joelv72]

[quote=Spaceman Spiff]

[quote=careerFA]

Thanks B24. If I were to bring over around 10 mm in assets from a former employer, and prospect through referrals and other contacts, will that approach be well recieved at EJ?  - Yes

Or will I still also be expected to prospect through their format (DK)? - Yes.  But only during the initial training period if you go through the normal KYC/EvalGrad process.  After that, they really don't care how you prospect as long as you're putting up the numbers. 

Do I have any say in the branch location of BOA hiring process? - Some.  As to the BOA, if you have someone in mind, you can give their info to the home office.  They'll interview them just to make sure they are a good person to hire.  After that you can hire anyone that makes it through their screen

As to the office location, you get to pick your area, then work with the leasing folks to find office space.  It's highly likely that you could end up taking over an existing office or doing a Goodknight plan or some derivation it, so finding an office immediately may not be in the cards for you.

[/quote]

[/quote]

Care to elaborate on why that would be the case?

[/quote]

They would rather stick an experienced FA with assets into an office before an un-proven newbie.

[/quote]

The way I read it, you would more likely move into an existing office than have one built out for you as a new rep.  If that's the case, then why is that?  B24 and Spiff, how many div points do you get per post?

joel - how many different people need to spell it out for you?  Let me see if I can simplify it for you.  You are the RL who is looking for a new FA to take over an office in Anywhere, CT.  The last FA couldn't cut it at Jones and now works for Thrivent.  You have a few choices.  One, you could hire the local dairy farmer who just submitted his resume to you to become the newest EDJ FA in Anywhere.   Two, you could hire a 22 year old kid you've never met who just got out of college, but who sounds really eager to work.  Or three, you could hire careerFA who is already licensed, has a decent sized book of business established.  With options like that, who do you think is going to get the nod from the RL?  careerFA can walk right in, set up shop, and be on the ground running in a matter of a few weeks.  And if he can instantly add $10MM in fee based biz to the branch, he's more than likely got an instantly profitable office in his region and he looks really good on his regional report card. 

Or he can take a chance on the dairy farmer or the 22 year old kid.  If I were the RL I'd tell the 22 year old kid to go get some real work experience, come back in 3-5 years, and do a GKN with careerFA who evidently will have a $60MM book by that time.   

I told him it was more likely that he'd get an open office or do a GKN or something like it because of the focus Jones has right now of starting everyone in an office with at least a few assets.  Unless he's going into an area where Jones doesn't have a ton of offices yet, if he does a plan that puts him in an office sharing environment for a while, chances are an office will open up. 

And zero points for all the posts.  I'm the propoganda division for Jones and I work for free. 

Ohhhh, I figured it was because a great many Jones offices are revolving doors.  My bad.

Joel, you are the biggest fukcnut I know.

[quote=joelv72]

Ohhhh, I figured it was because a great many Jones offices are revolving doors.  My bad.

[/quote]

The funny thing, funny as in interesting not funny as in ha ha, is that the attrition at EDJ is no different than with other brokerage firms.  It's just more noticible because of our one man office setup. 

Who knows, maybe careerFA could end up taking over your office when your boss figures out that you're not mentally competent to be in it. 

Hey, I'm not a Jones basher!  Spiff put it right, and even B24 commented on it as well in another thread.  With your business model you end up with alot of empty offices.

[quote=Spaceman Spiff]

[quote=joelv72]

Ohhhh, I figured it was because a great many Jones offices are revolving doors.  My bad.

[/quote]

The funny thing, funny as in interesting not funny as in ha ha, is that the attrition at EDJ is no different than with other brokerage firms.  It's just more noticible because of our one man office setup. 

Who knows, maybe careerFA could end up taking over your office when your boss figures out that you're not mentally competent to be in it. 

[/quote]

I guess that means I would have to fire myself. 

youve got to get out while you can YOURE TRAPPED YOUVE GOT TO GET OUT

Gunn caught the Tar Sands and oil bubble of the middle of the past decade and made a great killing......probably bought and sold stocks that weren't "sanctioned" by St. Lou. 'cuz he had such a big and profitable book he got solicited by many firms......he threatend to leave UNLESS he got a GP (I'm not sure if he even had much if any LP).

 I can believe riding oil and killing it, also I know he went into the home office 1 month before shit really started to fly in 08. Employees telling the green machine what to do, not so sure about that.

I have reviewed the FA guide prior to my screening interview, and I wanted if someone can asnwer this question for me:

If I already have 200 local contacts, will that meet the guidelines for KYC, FF, contact entry stuff?

Will the RL or mentoring FA press me hard on doing the DK as well in my area?

(PS:  I have assets and clients ready to make the move)

[quote=Mr.Blonde]

 I can believe riding oil and killing it, also I know he went into the home office 1 month before shit really started to fly in 08. Employees telling the green machine what to do, not so sure about that.

[/quote]

Jones probably would have told him to take a hike.  They've let big producers who were too big for their britches go before.  BTW, what's up with the David Gunn reference in the middle of this thread? 

[quote=careerFA]

I have reviewed the FA guide prior to my screening interview, and I wanted if someone can asnwer this question for me:

If I already have 200 local contacts, will that meet the guidelines for KYC, FF, contact entry stuff?

Will the RL or mentoring FA press me hard on doing the DK as well in my area?

(PS:  I have assets and clients ready to make the move)

[/quote]

It's really going to depend on how they categorize you when you hit the pipeline.  You will either go through the producing transfer broker training or the new FA KYC training.  If you're lumped in with the latter, then you will need to do some doorknocking.  200 names is a good start, but nowhere near the number of contacts Jones is going to want to see in your system.  If you figure the average selling month is 20 days, then they're going to want to see 500 or more prospects in your system.  At least that's the way it used to be.  I'm confident the number will be higher than 200. 

Your RL and mentor will only press you if they think you're not working hard enough.  Bring over the assets you say you're going to and put some commission dollars in your pocket and nobody will bother you.  Fall behind on either of those and you'll have either your mentor or your RL, probably both, telling you that you need to keep prospecting. 

[quote=careerFA]

I have reviewed the FA guide prior to my screening interview, and I wanted if someone can asnwer this question for me:

If I already have 200 local contacts, will that meet the guidelines for KYC, FF, contact entry stuff?

Will the RL or mentoring FA press me hard on doing the DK as well in my area?

(PS:  I have assets and clients ready to make the move)

[/quote]

CFA,

The bottom line is that you will need to show that you can consistently bring in prospects and clients.  They will MOST LIKELY pressure you to doornkock and fill your pipeline.  HOWEVER, they will NOT fire you if you have production.  So the bottom line is that you should play along with their game, and jsut make sure you produce.  As soon as your production falls below expectations, and you stop producing, you will get a big "I told you so".  And then they will show no mercy on you.  In their defense, there is a considerable investment they make in each new FA, brand new or veteran, so they need to make sure that person is going to at least TRY to perform.  They try to teach you the best way THEY know how to prospect.  Their assumption is that unless you have a better method, you should do what they suggest.

Honestly, they don't know where you get the prospects from.  But they CAN see your CRM database, and know how many prospects you have.  A newbie with no experience and no connections is most likely going to identify 750-1000 prospects in the first 3-6 months to start working on.  If you only have 200, you better HOPE that those are a productive 200.  Most on this board would agree that 200 prospects (unless they are pretty warm) is not a lot starting out.

So again, bottom line is that you should go through their motions, learn their methods, maybe try some doorknocking (residential, commercial, or both), but focus on getting those clients over and converting some of those prospects.  And yes, you can enter them as prospects, regardless of how you got them.

Did I read it correctly that if a husband has a trad IRA, Roth, and wife has same..open 4 accounts..that's really only considered one account?

I find it hard to believe DK for 6 months will produce 500 leads, but you all state its realsistic?

500 leads should take you about 20 days of doorknocking.  Jones says you should make 25 contacts a day.  They'll figure that as a new FA you'll be meeting new people all day long and not doing anything else.  So, if you concentrate your first 20 days on meeting 25 new people a day, that's 500.  In a 6 month span of time you could easily get 1500 - 2000 new prospects in your system, work with your existing book and on the 200 contacts you already have, and make repeat contacts on the new prospects you create. 

Doorknocking only sounds awful until you've actually done it for a while.  Once you realize the possibilities it becomes a less daunting task and more of a challenge.  If you consider that out of those 1500-2000 prospects is a group of say 500 people with $250K or more, that's at least $125 mil in assets that you've touched in 6 months.  If you figure the rest, call it 1000 people, have just $50,000 then that's another $50 mil.  You're up to at least $175 mil in 6 months.  So the question is can you do something you don't really want to do like doorknocking for 6 months to give yourself a shot at that $175 mil?  

well stated spiff....The hurdle for me is the DK, but I guess its the same as cold calling, but more presonal and immediate.

I can cold call all day and prospect, agree to meet, then move forward..DK is the just a different approach going for the same results

I know I could get up to 25mm from my 200 contacts, but the problem will be satisfying the DK and new contacts requirements..b/c I also believe I could referrals from those 200 clients, so 50 mm from estalbished relationships is definitely possible..all my contacts/clients have at least 500k in retirement assets alone

CFA, if you want to cold-call you can.  You might get an earful from your trainer, but if you are putting up the numbers, they'll leave you alone.  Don't let the doorknocking be an obstacle unless you really don't have as many clients or prospects as you say.  If you start putting up big numbers, that'll shut them up.  If you could put those 10mm AUM into advisory relatively quickly, you won't have anyone from training talk to you ever again.  At an average of 1.25%, you would be doing 10K per month gross.  It would take a few years before you slipped below expectations.  In that time, you would certainly be adding more clients.  At 25mm in advisory, you'd be pretty close to segment 4 numbers just by opening your doors each month, and be netting 125K.

[quote=careerFA]

I know I could get up to 25mm from my 200 contacts, but the problem will be satisfying the DK and new contacts requirements..b/c I also believe I could referrals from those 200 clients, so 50 mm from estalbished relationships is definitely possible..all my contacts/clients have at least 500k in retirement assets alone

[/quote]If this is TRUE, why would you choose to be an employee? Many FAs with books like these work easy hours pulling in 6 figures as an independent advisor. I would search for RIAs in your town, share your story and start building your business. For a little off the top you should be able to make it happen and never worry about DKing.

On the other hand, at EJ the bare minimum, two years ago, was I believe ~500 names in your prospecting log and a MINIMUM of 125 phone appointments sceduled that you can call from EVAL/GRAD to pitch a stock or bond to. If you have these two things and a guarenteed sell at E/G then you will barely get by. After that it does not really matter as long as you produce. If you do not produce then they will ask you why you are not DKing and all that jazz...

I would talk to the following places just to see other options...

Cambridge, Cantella, Commonwealth, Harbor Financial, LPL Financial, Raymond James, TradePMR and share your story. Ask them if they have an advisor in your area that would be interested in adding another advisor. Also check with invesmentadvisorsearch.com for RIAs in your area looking for the same opportunity.

If your story is true, we would defenitley speak to you. And you would not have to worry about Jolly Green Giant breathing down your neck. Even though it is not that big of a deal. If you can sell, you can BS your way through the EJ system.

Good luck and feel free to PM me any other questions!

ND,

Thanks for the head slap. I came to the same conclusion last night. I'm looking at all my options, starting with TradePMR and Commonwealth. The DK stuff to me is a waste of time, you grow your business through referrals, so I'd spend the time with my clients, and then propsect of a targeted mailings and group participation locally.

I was stunned to see EJ had 100 advisors just in one of the first city where I live.

[quote=careerFA]

ND,

Thanks for the head slap. I came to the same conclusion last night. I'm looking at all my options, starting with TradePMR and Commonwealth. The DK stuff to me is a waste of time, you grow your business through referrals, so I'd spend the time with my clients, and then propsect of a targeted mailings and group participation locally.

I was stunned to see EJ had 100 advisors just in one of the first city where I live.

[/quote]

You must live in a small town. 

Spiff,

Actually the metro area has 1.1 million people, four distinct cities. So I would guess there are at least 500 EJ FA's competing for the dollars. Just seems ludicrous to me, and supports why EJ has a bunch of top producers, and small all the other small shops struggling to survive.

There are 2 Merrill, UBS, and MSSB, Schwab branches. 1 Fidelity....A lot of small FA firms.

That's probably $200-300B in assets just in that metro area.  That's more then enough $$ to go around.  And remember, a certain % of clients will live outside that metro area for all FA's, so your opulation is actually larger than JUST your metro area.

I have about 100,000 HH's in my entire county (750 sq. miles), like $30B in assets, and we have like 14 FA's (along with every wirehouse, tons of banks and CU's, a couple of huge indy firms (over $1B AUM each), lots of small indies, several Ameriprise offices, and tons of insurance guys).  And there are PLENTY of assets to go around.

The "small shops" are not small due to lack of assets in the market.  They are small due to lack of proper effort or inability.  That's not a dig at them - this is a very difficult career to be successful at - it is just simply the truth.  I have seen people be wildly successful in crappy markets and people be wild failures in great markets.  You can't just open your doors and expect peopel to walk in.  It's NOT a level playing field.  You have to know your market and know where and how to find the money, how to bring them in, and how to close them.  Tall order.

Good example, friend of mine that I trained with took over an EDJ office in East Bumfukc Wisconsin.  No other brokers (Jones or otherwise) for 25 miles.  The guy before her just gave up after 5 years.  Left just under 10mm AUM.  She said he probably never did more than 15K gross in a month.  He claimed there was "No money" in that area.  He is probably half right.  She got in there and within a year was averaging 20K per month.  She was doing the "coffee shop" thing, the "seminar" thing, doing rate postcard mailings.  She said virtually everyone in town were CD buyers, as the bank (with no brokerage office) was the ONLY place nearby for "investments".  So what did she do?  She sold them what they wanted.  CD's.  She was bringing in $1mm a month for the first few years just advertising CD's.  She turned some onto muni bonds, and started using mutual funds for some people.  She wasn't making a killing (by my New England standards), but for her, she was now making more than her husband who is in the union running phone lines.  In her 2nd full year at Jones, she netted over 100K, took 2 trips, and was earning bonuses.  And she had never made more than $9.00 per hour in her life.  She did all this because she knew her market, and new HOW and WHAT to market.

For every Jones office you see, figure there are at least $750 million investable dollars.  That's the number they use as a metric for whether an area will support a Jones office.  My county has over 125K households and about  $44B in assets up for grabs.  Just like B24's area we have BAC/Merrill, Morgan, Stifel, banks, CU's, lots of indy offices, and a lot more I can't even think of off the top of my head.  We've only got 60 Jones FAs to cover it.  And only a  4% market share.  I'd say the average office in my area isn't struggling, but they're also not at $100 mil AUM either.  Average is probably in the mid $30 mil range.  We've got lot's of room to grow. 

If  you shoot me a PM I'll tell you how many liquid assets and households Jones says your area has.  I think you'll find there's some method to the Jones madness. 

ok, I got some details...You need 20mm in assets and trailing 150k in revenue to be considered for transitioning advisor role. Otherwise, you start as a new advisor and go through the training as any new hire would.

[/quote]

I know that situation pretty well. There's always more to the story. First, production was closer to $1 million, not 2. Second, Daddy was/is a lawyer, and sent many settlements to Junior, who promptly locked it up in what you would call B shares. Third, great location, almost downtown - kudos to Gunn for picking it. Fourth, his wife worked for some big firm in Calgary, and he was awarded what you would call the the 401K for that firm. Lots of employees, big coin coming in every month, with little effort beyond the initial sign-up.

The firm was desperate to have a local leader. It was a split region, with half the IRs being in Northern Montana, and the other half being in southern Alberta - a HUGE territory for the RL at the time to cover. I once got invited to some type of top producer meeting for the region - 600 miles, ONE WAY. As I say, the firm was desperate to have local leadership for the region, and this guy gave them what they needed. Former car salesman, pushy, young guy, successful, good golfer, a proven liar (I have several personal experiences to back that claim) - in other words, a PERFECT regional leader.

He served a year or so as RL - the firm invited him in as a GP a couple of years ago, and sent him to Mississauga (CDN HO). Don't know what they did about RL status after that point...

On a personal level, I had little interaction with him. He was successsful in monetary terms, as was I (not like him, but half of his production was still pretty good). I cheer on other people's successes, and have zero animosity to others who are more successful than I am. Been gone from EJ for several years, have stayed friends with guys I met there, and I am eternally grateful for the start they gave me (despite some raw dealing I saw). But I always disliked how Jones would imply "this too, can be you, if you just follow the recipe" - the guy was productive, yes - but he was The Chosen One, and had a TON of help.

There is always a story behind ALL big producers, not just at Jones.  Funny thing is, the ONLY person I have met that is a big producer (only 850K) that actually got there from scratch, and through doorknocking and hard work, is in my region.  He worships that guy from American Funds - the one that used to be at Jones.  That little militant SOB.

Anyway, this guy doorknocked straight for 3 years.  He is so fukcin driven.  He's a nice guy, thinks pretty highly of himslef, but always willing to help someone.  I hate his business model (very transactional, "old school", on the phone selling pretty much 6-8 hours of every day).  I wouldn't want to be chained to the desk like that after 20 years and $180mm AUM later.  But I guess he likes it.  He nets around $500K most years (other than 2009 since bonuses sucked), but also receives like 250K in LP/SLP returns (former RL/GP) each year.  He said in his best year (I think 2006 or 2007) he netted close to $1mm including bonus and LP/SLP returns.

BUT, as you pointed out, there's a story behind most big producers.