EDJ+ Saturartion?

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Feb 26, 2006 12:44 pm

As mentioned in an earlier post, I'm considering a career with EDJ. One drawback that  I see is that there are currrently 2 offices in my town(Population Base 20k & Growing Rapidly) If I opened up the doors with EDJ, would I be saturating local market and taking business share away from other reps and/or myself? Your opinions and expereince are appreciated in advance.



Dan 

Feb 26, 2006 2:51 pm

When I was still a bank broker the big bank I worked for really wanted us to stay in the territory assigned to our branch. I dont know if this the case at Jones, but even with the smallish area I had "assigned" to me and given that there were 10 banks, before brokers and insurance, and there was still plenty of business to be had.


If you are not stuck in a territory you can just rip stuff up. I went indy the first of this year and I still cant realize that I can call on the entire state.

Feb 26, 2006 2:57 pm

You're not in competition with EDJ reps, you're in competition with every broker, etc. in town.  Therefore, when you acquire a new client, the chance that that person would have gone to another EDJ rep is very slim.

Feb 26, 2006 3:24 pm

In a town of 20,000 figure 75% of the people have no money or are not prospects i.e kids, etc.  That leave 5000 possible clients.  You could build a nice book with 5-10% of those people.  Say 250 clients avg relationship 200K = 50 Million dollar book

Feb 26, 2006 7:32 pm

I agree with Bankrep, besides the town will be your base of people from prospecting but you should after awhile gain referals from other than your territory.

Feb 26, 2006 9:49 pm

Nice point bank.. It only takes about 200 people to make it. Then if their investments go up 10%...

Feb 26, 2006 11:26 pm

What’s the usually time frame for a broker, opening 250 accounts, average size $200K?



Merrill, Smith Barney & UBS is requiring $15-20m in 18-24 months.



Feb 27, 2006 7:13 am

Sonny: Only selling for 2-3 months and 335 posts!! When do you have time to talk to people?

Feb 27, 2006 11:12 am

So what do you EDJ guys do when you see each other on opposite sides of the street?? Do you duck behind a bush and wait till the coast is clear, or do you greet in the middle of the street and do the happy dance while celebrating that $100/month automatic investment into Income Fund of America ????

Feb 27, 2006 11:30 am

EDJ used to have a market formula that said for every $600 mill in investable assets in a zip code, there was room for one EDJ office.  You may ask about the investible assets in the community, and then consider the other firms in the area too.


FYI, I was in a town of approx double that size and when I left there were about 16 EDJ IRs in the town, with most of them making it.

Feb 27, 2006 12:18 pm

That is just stupid.  Every Zip code is going to be different.

Feb 27, 2006 12:48 pm

I live in a city of 25k outside a large metro area.  We have 7 Jones reps and I don't think any are breaking $300k in production.  Most are under $200k.

Feb 27, 2006 2:05 pm

BR do you think this is because of the size of the city or the quality of the broker?

Feb 27, 2006 2:39 pm

BR do you think this is because of the size of the city or the quality of the broker?


Most likey due to the demographics of the area.  You can have a city of 25K in or around Palm Springs California or 25K in Camel Hump Eastern Oregon.  Where do you think the money is and which area can support multiple brokers?


That is just stupid.  Every Zip code is going to be different.


I agree, but then that is Jones.  A one size fits all kind of company.

Feb 27, 2006 7:35 pm
blarmston:

So what do you EDJ guys do when you see each other on opposite sides of the street?? Do you duck behind a bush and wait till the coast is clear, or do you greet in the middle of the street and do the happy dance while celebrating that $100/month automatic investment into Income Fund of America ????


Happy dance for $50, if we got a $100 ticket its lunch at subway.

Feb 27, 2006 7:57 pm
blarmston:

So what do you EDJ guys do when you see each other on opposite sides of the street?? Do you duck behind a bush and wait till the coast is clear, or do you greet in the middle of the street and do the happy dance while celebrating that $100/month automatic investment into Income Fund of America ????





Feb 27, 2006 8:00 pm

Happy dance for $50, if we got a $100 ticket its lunch at subway".


Nice... I like that. You should treat yourself and get a milkshake at In N Out Burger afterwords...

Feb 27, 2006 8:15 pm
blarmston:

Happy dance for $50, if we got a $100 ticket its lunch at subway".


Nice... I like that. You should treat yourself and get a milkshake at In N Out Burger afterwords...



Sadly I dont have In N Out where i Live, but I hit it everytime im in Vegas, AZ or Cal.  I love In N Out!!!!

Feb 27, 2006 8:29 pm

I love "IN" mostly.

Feb 28, 2006 8:43 am

It's a mixture of both.  I'm in the midwest and there is a surprising number of extremely wealthy farmers in the area that have come from old family money.  The remainder of the city is your typical diverse economy - some execs that don't mind the commute to a nearby metro area, but like the laid back lifestyle.  There are also a bunch of middle-income people and the staple McDonald's cashiers.  It's certainly not a destination for the wealthy, but the money is there, nonetheless. 


There is no wire or major BD there, simply a group of independents and EDJ reps, so the more wealthy, from what I understand, have gone away from the rep sin town and to a firm with a better product offering than Jones.  I can't blame them.