Bank vs. EDJ

or Register to post new content in the forum

18 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Feb 10, 2006 2:43 am

Long time lurker, 1st time poster.  Looking for some advice, particularly from anyone familar with both EDJ and working in a regional bank.  Ok, here's my situation.


I am currently EDJ, and contemplating a move.  I am not a Jones hater, but the cummulative affect of several things, some specific to my situation along with the usual complaints, notably no fee based and other product restrictions, are pushing me to the edge.


I'm Segment 3 and "meeting expectations" for whatever that's worth, but an honest assessment is that I am not a very good prospector.  That is the main reason I am looking at a bank rather than going independent now.  Also, the portion of my book that is worth taking is not enough to go independent yet.  Ultimately I would like to have a large enough book to go independent and have a largely fee based practice. 


Is taking an intermediate step to a bank a wise move, so I can build AUM faster, or would it be better to suck it up and stay with EDJ for a few more years?   The bank would also let me have fee based accounts, which I can't now.  Based on what I know about this bank program, and banks in general, I should be able to grow my assets faster there.  I will lose some in the move, but I have a lot of high maintenance low revenue clients right now, and I think most of the ones I want to keep will follow. 


The bank is regional, and management appears to be hands off.  I realize that could change tomorrow, but from talking to other brokers current management doesn't push anything in particular, just the obvious desire to increase revenue and AUM.


Please don't respond with EDJ sucks, etc posts.  I am looking more for 1.  comparisons btw bank and EDJ, and 2. advice on whether the loss in AUM now is worth the increase I will get in referals and new business.  As I said, much of the AUM I will lose is dead $$, where I either have everything already or at least everything I will ever get. 


Thanks.

Feb 10, 2006 7:53 am

It's a tough situation.  The only comments I will offer on this is if you truly desire to move indy at some point in the future, going from a bank to indy is a bit more difficult in terms of having assets follow you; however, the law of large numbers may end up making it equal in the end.  Just take your time and due your thorough due dilligence on all your avenues before you jump. 

Feb 10, 2006 8:38 am

go to the bank and tough it out for 3-5 years then go indy. That's my plan.

Feb 10, 2006 9:07 am

The bank tellers will help you find more 'low revenue/high maintenance' clients, which is exactly what you do not want.


Stick with EDJ, and figure out what you can do to better service your "A" clients and clone them through referrals


Start developing relationships with allied professionals, such as estate and litigation attorneys and CPA's, who could send business your way.  Bigger business.


Start, some time in the next 12 months, to learn about the different 'flavors' available to you in the indy channel so you can investigate thoroughly over time and make your decision on YOUR schedule.


You might also want to see if there is an established indy office in the area with a good reputation, could save you some hassle in the transition and perhaps enable you to go indy sooner.

Feb 10, 2006 10:14 am

Everything Joe said, plus this...


I would agree with Joe's idea of sticking it out a little while longer at Jones and skipping the bank part of the plan, unless you intend to stay bank channel for your career.  I believe that lifting assets out of Jones would be easier than lifting them out of a bank, due to the desire of most banks to have you sign draconian non-compete agreements.  I was lucky to wriggle out of mine (thus far, at least), due (I believe) to a technicality that wouldn't apply to most folks.  From what I've read, moving from Jones is far easier, as all you have to deal with is training costs if you leave in the fist three (four?) years.  After that, it's open season, from what I've observed.


If you are concerned about prospecting, many indy firms allow you to revenue-share fee-based accounts with accountants, attorneys, etc., without them needing to be licensed.  You would be amazed how good the referral action can be if you offer a CPA or attorney 10% of the fee, as long as the account is at least $100,000 and the fee is at least 1%.  I've just started this program and the early action looks very promising...

Feb 11, 2006 12:36 pm

Isn't there something wrong about your last statement Indyone?? Sounds like instant litigation. Yikes!!

Feb 11, 2006 1:11 pm
JonesIR:

Isn't there something wrong about your last statement Indyone?? Sounds like instant litigation. Yikes!!


Exactly WHAT sounds like instant litigation?

Feb 11, 2006 3:38 pm

You have to excuse that question it's out of the box thinking which isn't allowed at his b/d.

Feb 11, 2006 9:47 pm
JonesIR:

Isn't there something wrong about your last statement Indyone?? Sounds like instant litigation. Yikes!!


Just because Jones doesn't allow it, doesn't mean that it can't be done.  The longer you are there, the more things you'll discover that are legal and compliant, but not allowed by Jones. Drink up.

Feb 11, 2006 11:44 pm

You said you are not a very good prospector. If you go indy, you will still have to prospect. Even IF you had a big book...you would still need to bring in new clients. You just don't have to go door to door. If you are seg 3, then you are not doing any door knocking anyway.


You need some ideas on how to prospect & network. Once you find a style that you like, you can get it started while at Jones. Try it, get some success & build your confidence. Get your pipeline full, get close to your best clients and take time to plan your transition to indy.


Have you read Ron Carsons book. Tested in the Trenches. He is/was the top producer for LPL. It's a great book.


You need to feed your mind once in awhile. Jones does NOTHING like that for their reps Doesn't it seem odd that Jones NEVER has any guest speakers for their Reps? No motivational speakers. They definitely do not want ANY of the Columnists or Authors you find in the trade publications. 


Good luck.


DT

Feb 12, 2006 6:39 am

I am reading this right?? Brokerage firms are requiring door to door selling??


Which ones?

Feb 12, 2006 8:22 am

EDJ4now,



You may be surprised how good you are at prospecting.  What you
have accomplished thus far is with limited tools and resources...as
Indyone indicated with his professional alliance strategy.  If you
move, I would not move to a bank, but rather to a situation that will
afford you more tools and power while prospecting. 



I was not a good prospecter until I left the bank, and found it rather simple and exciting...with the right tools.

Feb 12, 2006 7:29 pm

EDJ4now,


Two things I would suggest are finding someone in similar shoes to leave Jones with and share office expenses and an admin. person.  You'd be amazed how the additional payout and multitude of products make going indy easier than you might think.  If that doesn't work try to find a large ind. office that is looking to add an established rep like yourself.  You'll prob have higher payout than you have now, lower expenses than going it alone, and the tools and products to start building the business you want alot earlier than doing some time at a bank first.  You may be able to work it out with the manager owner that you will leave at some point and you won't even have to do any client transfers.  Just put up your own shingle when your ready and the cleints have no change whatsoever.  Personally I would stay away from the bank. 


That's my 2 cents from a guy that was in pretty darn similar shoes this time last year and havent regretted my decision to go ind. for a second.  PM me if you want more details or info.....I'd be happy to share my experience.

Feb 16, 2006 1:12 am

I appreciate everyone's advice.  I have been leaning towards the bank, but your responses are giving me some pause.  If I pursue the bank route, are there any particular pitfalls I should be aware of?  It seems like I would have more flexibility at the bank than I have now, but maybe I just feel that way because I am sick of some of the crap I have been putting up with here lately.  I also would probably get an increase in pay for the first couple of years, based on the business I am doing now, expected growth, and the extra referrals.  I also found out yesterday that my stay at home wife is expecting another mouth to feed in 8 months or so, so the extra $$ would come in handy, as would the better health insurance.  That also is pushing me away from trying to just go indy now.


For those of you who have spent time in bank programs, what questions should I be asking?  What, if anything, can I be doing to protect myself if I take the position?  There are small enough that I might have some negotiating room, although probably not much.


Thanks.

Feb 16, 2006 8:06 am

Get a guaranteed payout for five years, because if you don't they'll change your payout the very next year. Don't budge on this.

Feb 16, 2006 6:43 pm

I would say if you can get what EZ suggested that would be good.  I would also look closely at the bank itself.  Do they bend over backwards to take care of their customers or simply say take it or leave it.


If you find a good bank that bends over backward for customers this will create instant loyalty and will give you an open door to success.  If I were looking for a bank today I would find one that has a strong business clientel, and loyal, loyal customers.

Feb 16, 2006 8:13 pm
bankrep1:

I would say if you can get what EZ suggested that would be good.  I would also look closely at the bank itself.  Do they bend over backwards to take care of their customers or simply say take it or leave it.


If you find a good bank that bends over backward for customers this will create instant loyalty and will give you an open door to success.  If I were looking for a bank today I would find one that has a strong business clientel, and loyal, loyal customers.



Bend over backwards for customers instead of bending their brokers over forwards you mean? 

Feb 16, 2006 10:37 pm

good luck on your move, man. hope you are happy there at the bank