Choosing an EJ location
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maddmatt,
Listen to B24, he's keeping it real and he is still there. Sounds like he is one of the Vet's that actually cares about all the newer brokers coming in to Jones.
From my experience Jones doesn't believe in markets being saturated.
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My main concern is that this market isn't saturated and that my timing might be way off. I do have another question for you: I live in a city without about 75K people. I am north of DFW by about 35 miles. There are currently 8 Jones reps in my city. This is 1 rep for every 9K people. This seems a tad saturated to me. What are your thoughts on this?[/quote] I don't know if saturation is ever an issue. My town of 81,000 has a ML office with at least 40 brokers in it and I doubt any of them worry about saturation. There are also banks and other wirehouses and independents -- probably the same in your town. You can't control that. There are gas stations on every corner and lots of people make livings owning gas stations. So it is in our business, except the barriers to entry are higher and the dropout rate higher. Jones is probably well known in your town and that will help.[quote=jkl1v1n6]
I've said it before and I'll say it again. Jones is a good place to start, but if you start out totally new/new it will be hard. I'd be looking for a place with assets to start, doesn't matter which firm. Problem is that will be very hard to come by right now. If I read a post of yours correctly you have 20 yrs in Fin Serv. maybe look at a bank or credit union.
My financial success is a little better then when I was at Jones but not too much. My personal success is a world apart. I'm not as stressed out, I'm debt free, I don't have to work weekends or nights unless I choose to. I spend a lot of time with my family and I'm much happier when I'm doing it due to the lower stress levels. That to me is my measurement of success.
[/quote] I agree on your assesment of what success is. Success can mean many different things to many different people. I imagine Bernie Madoff doesn't feel too successful right now. Are you suggesting I work for a bank or credit union? Never thought of a credit union as an option. I actually like the Jones business model. Years ago I made a decent living running Medicare Supplement leads until the government restructured our commissions. So, the door to door thing doesn't bother me a whole lot. I also have many contacts in the auto industry. I feel as if I could make a good run of it. Knowing what people in the industry are going through right now is a tremendous benefit. I'll say this much: if there were rose colored glasses on my face prior to reading this forum, there aren't any now.New/News, be prepared to work out of your house for the next 15 mos. rpior to getting in your office, I have started new and it’s tough, trust is the biggest barrier. Month one two and three after can sell the whole "I’m looking for a good location/waiting on leasing negotiations etc. is fine; but by month 6 or 7 it’s OLD! to you…to your clients…to your prospects… I am doing OK all considered, but IT SUCKS be prepared for frustration being a regularity as a new new.
As an aside, I actually think having Jones offices close by is an advantage; it gives you a possible placeto meet until your office is complete, your prospects will more readily recognize and respect the brand, and if you are working hard and a seg 5 takes notice he/she may bring you in out of the cold, at the least a legacy(office sharing) possibly a goodknight (asset and office sharing). I am in a small town of just under 3k population. next closest office is approx. 15-20 min. away. It's tough to be the long term door-to-door stockbroker, Good luck! Just some insight from the trenches DC[quote=maddmatt]
I appreciate the honesty. I know this market is out of whack. I have been in Financial Services for 20 years. I have never seen such a mess. When I start thinking I must be out of my mind to start a new career and I want to fall back on my current position I get feedback from people I know and trust with many years of life experience telling me this is a great time for me to make the change. In fact, I have not had a single person look at me crosseyed. Either they know I will succeed because they know me or they are afraid to tell me I'm crazy because they love me. So, I turn to forums such as this for a more clinical unbiased viewpoint. My selling ability and work ethic are not my concern. My main concern is that this market isn't saturated and that my timing might be way off. I do have another question for you: I live in a city without about 75K people. I am north of DFW by about 35 miles. There are currently 8 Jones reps in my city. This is 1 rep for every 9K people. This seems a tad saturated to me. What are your thoughts on this? [/quote] There are now 3 Jones reps in my town of about 12,000. There are also 7 at AGE/WACH/WF, 6 at SB, 4 at Merrill, 6 at MS, a handful of indy advisors, many insurance guys that also do investments, and 7 banks, all that have one or two investment reps. And there is still more than enough assets out there. But probably more than 65% my clients aren't even in my zipcode, so how do you actually measure? I bet if you ask most advisors, they will tell you that at least 50% of their clients are not in their own zipcode. Bottom line, are there enough people out there within a 50-mile radius? How many companies are in your area that people commute to? How many of your potential clients have co-workers (i.e. referrals)? Don't get hung up on how many people are in town unless you live in a rural community without ties to the outside communities. But heck, some of our best producers live in those type of towns.B24, what are the liguid investable asset projections for the town of 12k? just curious. Seems like alot of brokers for such a small community
DC - what’s it like to be the only Jones guy in town? Within that same 15-25 minute drive in my area there are, oh, 35 other Jones FAs. Wanna trade offices?
Jones figures a zip code with at least $750 million of liquid investable assets will support an office. If B24 has 3 Jones guys that's about $2.25 Billion in dollars out there to go get and that doesn't include any other zip codes in that area. If there are say 40 investment guys in town that do investments only, that's $56 million to split between them all. In a town like that if you have even a bit above that average, you're living a pretty good lifestyle. Probably as good as all of the doctors and attorneys in town. You're goal is to just make sure you work your tail off to get your chunk of those assets.Spiff nailed it. But my point was that the majority of my clients aren't even in my office's zipcode. And I would suggest that it's the same thing for most other brokers. So my "true" territory is more like my county, which has 250,000 people (100,000 households). I would say 85% of my clients, give or take, are within my county. The reported LNIA's in my county are about $35Billion. So I live in a rather wealthy area. And I think 35B's can be split among a few of us. And there are (I think) 8 Jones FA's in my county.B24, what are the liguid investable asset projections for the town of 12k? just curious. Seems like alot of brokers for such a small community
[quote=Spaceman Spiff]DC - what’s it like to be the only Jones guy in town? Within that same 15-25 minute drive in my area there are, oh, 35 other Jones FAs. Wanna trade offices?
Jones figures a zip code with at least $750 million of liquid investable assets will support an office. If B24 has 3 Jones guys that's about $2.25 Billion in dollars out there to go get and that doesn't include any other zip codes in that area. If there are say 40 investment guys in town that do investments only, that's $56 million to split between them all. In a town like that if you have even a bit above that average, you're living a pretty good lifestyle. Probably as good as all of the doctors and attorneys in town. You're goal is to just make sure you work your tail off to get your chunk of those assets. [/quote] And you don't even need a high school diploma to get into the game.Saw a story in the WSJ about Jones today. The line “high fees and conservative investments” didn’t sound very favorable. How do you Jones guys deal with these types of objections?
Our fees are no higher than anybody elses. ... And by conservative investments, he means we don't get into things like commodities or options or margin trading. That's generally a point in our favor with prospects.Saw a story in the WSJ about Jones today. The line “high fees and conservative investments” didn’t sound very favorable. How do you Jones guys deal with these types of objections?
maddmatt
I am with jones and almost 2yrs out of the gate. Here is my 2 cents. Year one selling not as hard as you think, you are working your tail off and getting a salary, very small but you aren't starting at zero. Year two, that salary is gone and the pressure to produce and survive mounts. I have found that the lows in this biz are really low, but all it takes is one day to turn them around. As long as your lows are getting higher rather than lower, you should be fine... can't say enough about just doing the work and keeping it positive between the ears. Good luck to you at whatever firm you choose, it will be 10 times as hard as you think it will be, no matter how much you read these forums.Got another question for you Jonesers: Will they mind if I do my survey allotment at the local mall instead of door to door? Snowing here this weekend with record cold coming next week.
I would think they shouldn't care, it not only demonstrates an ability to introduce yourself to people but to do so in a potentially hostile environment. Whaddya think?[quote=Potential]Got another question for you Jonesers: Will they mind if I do my survey allotment at the local mall instead of door to door? Snowing here this weekend with record cold coming next week.
I would think they shouldn't care, it not only demonstrates an ability to introduce yourself to people but to do so in a potentially hostile environment. Whaddya think?[/quote] No, you can't solicit at a mall. They have no soliciting rules. .... It also sounds as if you're trying to get around the basic job, which is introducing yourself to potential investors at the door. If you can do it another way, great, but that's the Jones formula. Doorknocking in the snow and cold is not fun, but it's not that difficult. Lots of people work outside in the winter. There will be harder things in your future.No, just trying to get around the weather. Personally I don't understand why Jones doesn't a dopt a two-fold strategy of doorknocking and phone coldcalls. Guys have made fortunes working the phones, its proven to work. So why subject your workforce to the rigors and indignity of doorknocking in the snow and rain? It can't be good for morale.It also sounds as if you’re trying to get around the basic job, which is introducing yourself to potential investors at the door.
No, just trying to get around the weather. Personally I don't understand why Jones doesn't a dopt a two-fold strategy of doorknocking and phone coldcalls. Guys have made fortunes working the phones, its proven to work. So why subject your workforce to the rigors and indignity of doorknocking in the snow and rain? It can't be good for morale. [/quote] Good one. Thanks for making me smile. Cold calling? I will have to look into that. None of us have ever considered that before. The rigors of doorknocking? Ha. Geez, you walk around for few hours introducing yourself to potential clients, then go back to the office to call the people you met the previous week. It can be discouraging, but it's not really hard. Now if I had to tote around a jackhammer for 10 hours in the freezing weather, like my old man, that would be rigorous. PS: When it snows, I put on some boots. Same when the bs starts getting thick.[quote=buyandhold]It also sounds as if you’re trying to get around the basic job, which is introducing yourself to potential investors at the door.
Go to businesses and talk to the owners instead of residential. And I don’t mean the stores at the mall - I mean local businesses - shops, restaurants, etc. that have local owners. You can talk to the managers too.
[quote=buyandhold]Good one. Thanks for making me smile.
Cold calling? I will have to look into that. None of us have ever considered that before.[/quote] Why the sarcasm? Did I imply no one had ever thought of cold calling before? [quote=buyandhold]The rigors of doorknocking?[/quote] Yeah, the rigors. I would say making a phone call is easier than walking around in 25 degree weather while it's snowing (like it is right now), wouldn't you? [quote=buyandhold] Now if I had to tote around a jackhammer for 10 hours in the freezing weather, like my old man, that would be rigorous. [/quote] I guess if your old man ever logs in, he'll have the right to ridicule me for calling doorknocking rigorous. Seriously, I don't want to be contentious. If you don't have something constructive to say, please spare me the mindless jeering and derision. Doorknocking is more rigorous than phone calling. That's a fact, not an opinion.Good idea. Thanks for the constructive response, B24.Go to businesses and talk to the owners instead of residential. And I don’t mean the stores at the mall - I mean local businesses - shops, restaurants, etc. that have local owners. You can talk to the managers too.
[quote=Potential]
Why the sarcasm?I don’t mean anything personal. But you’re thinking too much. They want to see if you have the moxie to go out and do 25 surveys before they hire you. And they want to know if you can commit to doorknocking. If you can do it some other way, great, but that’s the Jones recipe, and it works. Do businesses if you want, it’s probably better than homes. But you are going to have to physically get in front of people, no matter what the weather.
And no, doorknocking is not particularily rigorous. Personally I would much rather walk around and talk to people, even on a cold day, than sit in the office pounding the phone.