Avg AUM and number of client EJ

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Jul 21, 2009 2:56 pm

Hi,

 
Will like to no what is the  avg AUM and the number of client you have if you work at Edward Jones. Also how many year with the firm and if you no the avg for these at EJ in general.
 
Thanks
 
 
Jul 21, 2009 3:01 pm

seriously do you have an issue with the English language? and the word is "know" not "no"

Jul 21, 2009 3:02 pm

It's really going to vary.  I don't think there is an average.  Figure $5-7 million AUM for each year worked.  The client number is going to be really difficult.  Some guys open every account they can and have a ton of accounts, but their average account size is small.  Others have fewer but larger accounts. 

 
All of that info is absolutely meaningless to you.  It's your office, you run it the way you want within the guidelines that are set.  Whether I have $40 million AUM or $150 Million, has zero impact on you.
 
Squash - if you'd take the time to read his profile, he's probably used to speaking French instead of English.  You have to read his posts phonetically. 
Jul 21, 2009 3:05 pm

I see and take a lot of $5000-$15000 accounts from Jones.  Of course we then merge it with the $10,000 they have at their bank and then take over the wife's $40,000 Ameriprise account and get them contributing again to make a decent household.  Of course there's usually an insurance or annuity sale along the way with some of the NQ money as well.

 
A better question would be:  Would most Ed Jones Reps need to door-knock and prospect hard for new accounts if they did fact-finders and uncovered the rest of the assets their current customers (can't call most of them clients) have that they don't know about?
Jul 21, 2009 3:13 pm
Spaceman Spiff:

It's really going to vary. I don't think there is an average. Figure $5-7 million AUM for each year worked. The client number is going to be really difficult. Some guys open every account they can and have a ton of accounts, but their average account size is small. Others have fewer but larger accounts.



All of that info is absolutely meaningless to you. It's your office, you run it the way you want within the guidelines that are set. Whether I have $40 million AUM or $150 Million, has zero impact on you.



Squash - if you'd take the time to read his profile, he's probably used to speaking French instead of English. You have to read his posts phonetically.





I didn't know people where telling the truth on their profiles.. I think mine says Trinidad... not from there.... just for future reference..

Jul 21, 2009 3:17 pm

Thanks Spaceman the reason for this question is because just wanted to set target of AUM and client would like to have and what is manageable .

Jul 21, 2009 3:19 pm
BerkshireBull:

I see and take a lot of $5000-$15000 accounts from Jones.  Of course we then merge it with the $10,000 they have at their bank and then take over the wife's $40,000 Ameriprise account and get them contributing again to make a decent household.  Of course there's usually an insurance or annuity sale along the way with some of the NQ money as well.

 
A better question would be:  Would most Ed Jones Reps need to door-knock and prospect hard for new accounts if they did fact-finders and uncovered the rest of the assets their current customers (can't call most of them clients) have that they don't know about?
 
Hey Berkshire...I thought from your early posts that you were going with Jones...where did you end up?
Jul 21, 2009 3:26 pm
Hey Kool-Aid:
BerkshireBull:

I see and take a lot of $5000-$15000 accounts from Jones.  Of course we then merge it with the $10,000 they have at their bank and then take over the wife's $40,000 Ameriprise account and get them contributing again to make a decent household.  Of course there's usually an insurance or annuity sale along the way with some of the NQ money as well.

 
A better question would be:  Would most Ed Jones Reps need to door-knock and prospect hard for new accounts if they did fact-finders and uncovered the rest of the assets their current customers (can't call most of them clients) have that they don't know about?
 
Hey Berkshire...I thought from your early posts that you were going with Jones...where did you end up?


I like to stir the pot with both pro and anti-Jones posts.  In all seriousness  I think they're a fine firm. 
 
I never considered moving, I've been in the business for 3yrs, 2 1/2 as a rep under my own shingle, and 6mo ago to present as the junior on a team.
Jul 21, 2009 4:27 pm

Here's what I find at Jones - and I am only talking about FA's with 10+ years...most of them are in the $150K average account range.  However, they might have like 600-800 households (I am excluding the guys with 1000+ housholds).  So you take away their bottom 80%, and they are left with an average household of like 300-500K and about 200-300 clients, and 80% of the revenue.  The thing is, most Jones guys spent so many years opening so many accounts, that their "average household" is a meaningless number.  Until recently, it was not very easy to shed yourself of the low-end households at Jones.  At most wirehouses, you give them away to juniors in the office, maybe share the revenue for a while (or not) and focus on the top 20%.

Jul 21, 2009 5:19 pm
Squash1:

I didn't know people where telling the truth on their profiles.. I think mine says Trinidad... not from there.... just for future reference..
 
Seriously?
Jul 22, 2009 4:20 pm
B24:

Here's what I find at Jones - and I am only talking about FA's with 10+ years...most of them are in the $150K average account range.  However, they might have like 600-800 households (I am excluding the guys with 1000+ housholds).  So you take away their bottom 80%, and they are left with an average household of like 300-500K and about 200-300 clients, and 80% of the revenue.  The thing is, most Jones guys spent so many years opening so many accounts, that their "average household" is a meaningless number.  Until recently, it was not very easy to shed yourself of the low-end households at Jones.  At most wirehouses, you give them away to juniors in the office, maybe share the revenue for a while (or not) and focus on the top 20%.

 
I'm sure what you're staing is tru, but I've yet to run into a Jones account greater than 100k in my 13 months in production. Tons and tons of small accounts at jones. 90% of the ones I've run into were in A-share american funds.
 
I asked a Jones broker once why he was almost exclusive to American Funds. He replied "Can you find a better fund company"?  I just rolled my eyes...
Jul 22, 2009 4:29 pm

How does a Jones advisor get ride of their lower end clients, without doing a Goodknight?  My firm has a semi-annual giveaway where only qualified advisors can send their crap clients (Less than $25,000 household assets, no financial planning arrangement in force) to home office.  Other than that advisors who don't qualify are S.O.L..  I'm just interested how other firms let their guys cut out the fat and build a practice along the lines of how they want it structured.

Jul 22, 2009 5:47 pm
SB0807:
B24:

Here's what I find at Jones - and I am only talking about FA's with 10+ years...most of them are in the $150K average account range.  However, they might have like 600-800 households (I am excluding the guys with 1000+ housholds).  So you take away their bottom 80%, and they are left with an average household of like 300-500K and about 200-300 clients, and 80% of the revenue.  The thing is, most Jones guys spent so many years opening so many accounts, that their "average household" is a meaningless number.  Until recently, it was not very easy to shed yourself of the low-end households at Jones.  At most wirehouses, you give them away to juniors in the office, maybe share the revenue for a while (or not) and focus on the top 20%.

 
I'm sure what you're staing is tru, but I've yet to run into a Jones account greater than 100k in my 13 months in production. Tons and tons of small accounts at jones. 90% of the ones I've run into were in A-share american funds.
 
I asked a Jones broker once why he was almost exclusive to American Funds. He replied "Can you find a better fund company"?  I just rolled my eyes...
 
Honestly, because with so many households, you focus on your largest/best accounts.  So they guy with 25K in American Funds might get a call once a year, if lucky.  That's what I was trying to get across.  Most Jones FA's have way too many households to manage properly.  I can say the same about the wirehouses.  I bring over 50K-$1mm households all the time (OK, not lots at the upper end, but I have had a few).  Why? Because most tenured wirehouse FA's also have too many housholds, and they get ignored.  The standard response from wirehouse clients that are unhappy? "Well, it's been OK (or I got crushed!), but the guy never calls me, even when I call him he never calls back."
 
The guy with $5mm is getting plenty of service, so I'm not running into him every day.
 
You're 13 months into production - you're not going to be poaching huge accounts for a while.  You likely won't even get to the table with most of them yet.  You will get the occassional $1mm account, but it's hard for a newb to pull a huge account from a veteran at any firm.  Most clients worry that they would be jumping out of the fireplace into the fire.  Not that I know you or your business, that is just typically how things go int eh beginning.
Jul 22, 2009 5:50 pm
3rdyrp2:

How does a Jones advisor get ride of their lower end clients, without doing a Goodknight?  My firm has a semi-annual giveaway where only qualified advisors can send their crap clients (Less than $25,000 household assets, no financial planning arrangement in force) to home office.  Other than that advisors who don't qualify are S.O.L..  I'm just interested how other firms let their guys cut out the fat and build a practice along the lines of how they want it structured.

 
You can do Goodknights and Partner Plans to people in other offices as well.  Essentially, you can give away the assets in exchange for a share of the production over a specified time period.  If you don't have enough assets given away to quailify for one of those plans, you can just give them to another FA that will take them.
Jul 22, 2009 10:23 pm
B24:
SB0807:
B24:

Here's what I find at Jones - and I am only talking about FA's with 10+ years...most of them are in the $150K average account range.  However, they might have like 600-800 households (I am excluding the guys with 1000+ housholds).  So you take away their bottom 80%, and they are left with an average household of like 300-500K and about 200-300 clients, and 80% of the revenue.  The thing is, most Jones guys spent so many years opening so many accounts, that their "average household" is a meaningless number.  Until recently, it was not very easy to shed yourself of the low-end households at Jones.  At most wirehouses, you give them away to juniors in the office, maybe share the revenue for a while (or not) and focus on the top 20%.

 
I'm sure what you're staing is tru, but I've yet to run into a Jones account greater than 100k in my 13 months in production. Tons and tons of small accounts at jones. 90% of the ones I've run into were in A-share american funds.
 
I asked a Jones broker once why he was almost exclusive to American Funds. He replied "Can you find a better fund company"?  I just rolled my eyes...
 
Honestly, because with so many households, you focus on your largest/best accounts.  So they guy with 25K in American Funds might get a call once a year, if lucky.  That's what I was trying to get across.  Most Jones FA's have way too many households to manage properly.  I can say the same about the wirehouses.  I bring over 50K-$1mm households all the time (OK, not lots at the upper end, but I have had a few).  Why? Because most tenured wirehouse FA's also have too many housholds, and they get ignored.  The standard response from wirehouse clients that are unhappy? "Well, it's been OK (or I got crushed!), but the guy never calls me, even when I call him he never calls back."
 
The guy with $5mm is getting plenty of service, so I'm not running into him every day.
 
You're 13 months into production - you're not going to be poaching huge accounts for a while.  You likely won't even get to the table with most of them yet.  You will get the occassional $1mm account, but it's hard for a newb to pull a huge account from a veteran at any firm.  Most clients worry that they would be jumping out of the fireplace into the fire.  Not that I know you or your business, that is just typically how things go int eh beginning.
 
I was just stating that I haven't ran into an account of any substantial size from Jones. Mostly from other wirehouses and various regionals, but not Jones.