Base Salary (second year)
I am seriously considering Edward Jones--it seem like a great opportunity and a great fit for my personality and experience (sales background, but new to the industry). I am concerned that the base salary for the Los Angeles area will not be sufficient as I get my business going. Also, the base salary is stopped after 12 months in the field, replaced by incentives and bonuses. Is the income in the second year adaquate? Any EJ advisers who can comment? Any advisors from other firms?
Bobby, cut the crap.
William, a lot will depend on your performance. If you meet/exceed your expectations, you will also get what are called "milestone bonuses". They vary over time, but it amounts to about 36K over 3 years, in addition to the salary (and obviously commissions).
You will definitely make more in salary at the wirehouses, but the hurdles to KEEP your job are MUCH higher, so the likelihood of being out of a job earlier are much higher. If surviving on the newbie salary is your biggest concern, and you don't have much savings, you might consider somewhere else.
William - frankly it is not about the salary. It is about the potential based on your efforts. As B24 indicates you perhaps will get a higher salary at wirehouses BUT and not to be taken lightly the EXPECTATIONS will also be higher. If you are thinking I can coast for two years and if things don't work out ...nice salary and experience that won't happen. It's about the numbers.
Think to yourself on how hard you want to work. If it is however many hours it takes to get your business going, then keep reminding yourself that. If it is merely, 40-50 hours a week and then whatever, you may want to reconsider the decision. I plan on working 6 or 7 days a week just to push my business that extra mile. The job isn't for everyone. Ultimately, if you want to make it, you're the only one holding you back from success.
EDJ has a lot of support and bonuses available to those who push themselves to grow their accounts. I like that idea. EDJ does not offer the great salary because those who only want to survive will do so on that salary. However, if you want to exceed, those bonuses are supplements to your salary and commission.
I just got an offer from EDJ, but that is how I looked at the breakdown of pay. I agree with B24 that you must have some savings or at least support from some individuals because you will more than likely have some rough months.
I disagree about the level of the salary being a non-issue.
If you're committed to working 6 to 7 days a week for as long as is necessary to build your business, you will be successful eventually. However, if you can earn a nice salary (from a wirehouse), put some of it back to supplement your income when you go straight commission, you'll probably be able to last until the "beast to starts feeding itself."
The reason so many Jones folks fail is that they take a substantial paycut in the beginning, the salary plus commissions barely pays their family's bills, and then when it's straight commission time, they have to start dipping into the savings account to survive.
At this point, a lot of folks just can't hang on anymore and have to bail--even if they're keeping their production dot above the red line.
It's just a tough business, plain and simple.
Borker - Of course more is always better. You must agree that with a higher salary the reality is that the expectations are also higher.
Your conclusion...tough business , plain and simple it the absolute truth and reality.
I would view the bonuses as just that, a "bonus." If you need to depend on them to make the numbers acceptable think twice. Also, the new account bonuses are hard to get. When I started, over two years ago, until you signed and were in training, they didn't tell you there were significant restrictions on which accounts qualify. I haven't opened a record number of accounts but have done ok. I've only earned the $500 bonus once.