Edward Jones Segment/Production Levels

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Sep 15, 2009 3:22 pm

I have been reading these forums for quite some time and always find them interesting. I have seen various postings that mention Edward Jones "segments" with regard to production. Would one of the veterans from Edward Jones mind offering some details about these?

 
Also, as relates to this, how do these segments match up (roughly) to years of service with the firm? For instance, if someone has been at the firm for 1 year, 3 years, 5 years, etc. you might expect them to be performing at segment X if they are "on track/doing well".
 
Thanks in advance!
Sep 15, 2009 4:00 pm

Seg 0- new in production.  Pre PDP

Seg 1-After PDP-$8,000 rolling 4 month average
Seg 2-$8,000-15,000 rolling 4 month average
Seg3-$15,000-24,000 rolling 4 month average
Seg4-$24000-45,000 rolling 4 month average
Seg 5-$45,000 +
Sep 15, 2009 4:22 pm

Close, but no cigar.


You are correct up to Seg 3.  The hurdles to jump segment are $8K, $15K, $27K, and $40K.  You start in Seg 1, and progress from there.  You also don't go backwards if you fall from say a $20K 4 month average to a $12K 4 month average.
 
As far as averages go, maybe 12 months for in Seg 1,  18 months in Seg 2.  Seg 3 is a pretty substantial jump, so you could be there for a few years.  Some FAs never make it to Seg 5. 
Sep 15, 2009 4:32 pm

Wow.  I'm a dummy.  Haven't looked at those requirements in a long long time.

Sep 15, 2009 4:34 pm

Now isn't it if you hit a segment you never go down?  So lets say you're doing $20,000 per month and you pop two $750k VAs at 5.5% GDC you are now a Seg 5 for as long as you're with Jones even as you roll along doing $20,000 per month.

Sep 15, 2009 4:57 pm

You never lose segments but you must go through them all. So you can't skip segments, must be in each one for a minimum of 4 months(I think).. But there are production requirements regardless of segment based on 4 month rolling average and time with Jones

Sep 15, 2009 5:38 pm

Thanks everyone for contributing to this discussion, this was VERY helpful!

Sep 15, 2009 5:48 pm

As a follow-up to this, I am curious about the production figures/income figures from the Career web site for Edward Jones. For those not familiar, they give you an income comparison calculator which is great but... In this this calculator they break the groups into 3 segments. The first is a group going between 50 and 100 % of "goal". The second group is 100-150% of goal and the third group is made up those doing 200% of goal. First, these are pretty wide bands. Second, they never really state what that "goal" is. Obviously, those doing better have earning that reflect this but i would also think that there is a significan difference between someone doing 50% of goal and someone doing 100% of goal.  So my next question is simply- what is "goal" and does this goal evolve with tenure with the firm? I saw earlier someone listed a timeframe when someone might be expected to be in certain segments. How does this relate to any goal/quota you are measured against. Also, how is it handled if you are not meeting that goal? Are you put on any sort of a "action plan" for period of time (for instance another 4 months to reevaluate your rolling average)?  Thanks for your insights! I have had these questions for some time now and I really appreciate you guys helping me out!

Sep 15, 2009 6:02 pm
Curious1:

As a follow-up to this, I am curious about the production figures/income figures from the Career web site for Edward Jones. For those not familiar, they give you an income comparison calculator which is great but... In this this calculator they break the groups into 3 segments. The first is a group going between 50 and 100 % of "goal". The second group is 100-150% of goal and the third group is made up those doing 200% of goal. First, these are pretty wide bands. Second, they never really state what that "goal" is. Obviously, those doing better have earning that reflect this but i would also think that there is a significan difference between someone doing 50% of goal and someone doing 100% of goal.  So my next question is simply- what is "goal" and does this goal evolve with tenure with the firm? I saw earlier someone listed a timeframe when someone might be expected to be in certain segments. How does this relate to any goal/quota you are measured against. Also, how is it handled if you are not meeting that goal? Are you put on any sort of a "action plan" for period of time (for instance another 4 months to reevaluate your rolling average)?  Thanks for your insights! I have had these questions for some time now and I really appreciate you guys helping me out!



 
You have a low goal if you start from scratch.  If you accept a Goodknight which are assets given to you then you have higher goals you must hit, usually by churning the assets you were given in addition to doing the doorknocking that all new reps must do. 
Sep 15, 2009 6:05 pm

I am somewhat familiar witht he Goodknight program from having read posts and can understand how/why goals would be different but can you or someone else, speak to specific goals or quotas both for those just starting out, as well as those who have maybe reached a higher level like segment 2/3?

 
I read a posting on here (don't recall by who) and they remarked they had been with Jones and missed quota one time by $500 and were fired. I doubt this was true but it did make me wonder how strict their goals/quoats are and what steps they take to assist those who are struggling?
Sep 15, 2009 6:06 pm

Couple things have changed recently ... you can fall backwards, first of all, from what I understand.

 
And your goals are individualized; my goal and yours can be completely different based on whether or not I have a GK, or a Legacy, a new-new, whatever. I wouldn't put a lot of emphasis on any of those numbers. They really don't mean crap.
 
Fail to hit your numbers, yes, you are put on "goals" for a time. Consistently fail? Bring your laptop. The RL wants to see you.
Sep 15, 2009 6:17 pm

Ok- i can certain understand that and I think the idea of individualized goals is a great idea so that they can be specific to the situation as you said - new/new, GK, etc. However, that being said, could someone give me some general sense of what these might be? For instance, in the first 6 months/year, what might a "general" goal for production/new AUM be?  I understand that if someone is a GK/legacy, etc. they will begin with a set AUM, but what might someone be expected to add to this? What sort of production expectations might a new/new have for their first year?

 
I am just trying to get a general sense of what is expected as that has been rather hard to come by. I think anyone starting out would want to work hard and strive to outperform any given goal but I am curious what those goals might be and also, from those with experience, are they generally realistic goals?
 
Also, I read someplace (here perhaps, a survey, not sure) that the "average" Jones FA has production of roughly $256K gross per year on an asset base of (on average) $44M and that the "average" Jones account is roughly $90-$100K. Do those figures meet with what the expereiced Jones FA's on here have/are seeing from others?
Sep 15, 2009 6:53 pm

A general sense is what you've actually been told, over and over again.



25 serious contacts per day, 125 per week, 500 per month.



Does that seem harsh? Look, I'm not doing terribly. Not a superstar, but alright. My "average" household is $50K and judging by other people that's about right. But the top 20 people: about $450000.



IF you produced 20K per month, you'd be a seg 3 guy. Unless you are the most motivated seller around, you won't hit that until 2013 or even 2014. Don't worry about those numbers, they'll take care of themselves.

Sep 15, 2009 7:21 pm

Thanks for your reply.  It was not "harsh" just still a a little vague for me.

 
I am not with Jones, just on the outside looking in, trying to understand it a little better. I am in Sales and have been in sales/sales management for years. I guess coming from a different industry, I just don't quite understand how the sales process in this area is managed. Hence my trying to understand the "quota" for a rookie, vet, etc.
 
To give you an example, this year I will do just over $6M in sales. I knew starting the year that my quota was $4.5M. I understood what my commission rate would be at 100% of quota and what my accelerators would be if I exceeded my quota. I guess I also knew (or had a good sense) of how far "below" this assigned quota I could go and not be asked to leave. 
 
That is just what I was looking for in this post. I thought in an industry driven by figures, it might be easy to say that for a new/new, the quota is $50K gross for the first year, for instance. I really don't know, just tossing out a number and I was hoping that a veteran might be able to give me some sense of this.
 
Thanks again for the insights that you have shared everyone. If any of you can offer anything more specific, I would appreciate it. 
Sep 15, 2009 9:47 pm

Everybody is different, so set your own goals.
Really, the first goal is to simply survive long enough to figure out what works and what you want to do.
Remember that even if you work for Edward Jones you are your own boss. If you do well, you can write your own ticket and set your owns goals, wherever you are.


Sep 16, 2009 9:20 am
Curious1:

As a follow-up to this, I am curious about the production figures/income figures from the Career web site for Edward Jones. For those not familiar, they give you an income comparison calculator which is great but... In this this calculator they break the groups into 3 segments. The first is a group going between 50 and 100 % of "goal". The second group is 100-150% of goal and the third group is made up those doing 200% of goal. First, these are pretty wide bands. Second, they never really state what that "goal" is. Obviously, those doing better have earning that reflect this but i would also think that there is a significan difference between someone doing 50% of goal and someone doing 100% of goal.  So my next question is simply- what is "goal" and does this goal evolve with tenure with the firm? I saw earlier someone listed a timeframe when someone might be expected to be in certain segments. How does this relate to any goal/quota you are measured against. Also, how is it handled if you are not meeting that goal? Are you put on any sort of a "action plan" for period of time (for instance another 4 months to reevaluate your rolling average)?  Thanks for your insights! I have had these questions for some time now and I really appreciate you guys helping me out!

 
The stats on the website are horsesh!t.  Here's why: included in those numbers are: newbies, transfer brokers - whether you brought over $5mm or $50mm, new FA's taking over offices - big, small, and in-between, FA's getting Goodknights - big, small, and in-between.  So the numbers may be technically accurate, but it's completely distorted based on HOW you get into the business.  There is a HUGE difference between a newbie and being a transfer broker bringing over $40mm from ML and taking over an existing office.
Sep 16, 2009 9:28 am
B24:
Curious1:

As a follow-up to this, I am curious about the production figures/income figures from the Career web site for Edward Jones. For those not familiar, they give you an income comparison calculator which is great but... In this this calculator they break the groups into 3 segments. The first is a group going between 50 and 100 % of "goal". The second group is 100-150% of goal and the third group is made up those doing 200% of goal. First, these are pretty wide bands. Second, they never really state what that "goal" is. Obviously, those doing better have earning that reflect this but i would also think that there is a significan difference between someone doing 50% of goal and someone doing 100% of goal.  So my next question is simply- what is "goal" and does this goal evolve with tenure with the firm? I saw earlier someone listed a timeframe when someone might be expected to be in certain segments. How does this relate to any goal/quota you are measured against. Also, how is it handled if you are not meeting that goal? Are you put on any sort of a "action plan" for period of time (for instance another 4 months to reevaluate your rolling average)?  Thanks for your insights! I have had these questions for some time now and I really appreciate you guys helping me out!

 
The stats on the website are horsesh!t.  Here's why: included in those numbers are: newbies, transfer brokers - whether you brought over $5mm or $50mm, new FA's taking over offices - big, small, and in-between, FA's getting Goodknights - big, small, and in-between.  So the numbers may be technically accurate, but it's completely distorted based on HOW you get into the business.  There is a HUGE difference between a newbie and being a transfer broker bringing over $40mm from ML and taking over an existing office.
 
Agreed. I think a lot of those numbers posted are recruiting propoganda.  I would guess that most of the people in their first 2-3 years would be excited to breach the $120k mark in production if they haven't had some leg up (assets given, transfer in assets, take over existing branch, etc). Unless you have a large amount in savings, have one of those legs up, or are in the top 5% of new producers, be prepared to starve for a few years.
Sep 16, 2009 9:34 am
BerkshireBull:
Curious1:

As a follow-up to this, I am curious about the production figures/income figures from the Career web site for Edward Jones. For those not familiar, they give you an income comparison calculator which is great but... In this this calculator they break the groups into 3 segments. The first is a group going between 50 and 100 % of "goal". The second group is 100-150% of goal and the third group is made up those doing 200% of goal. First, these are pretty wide bands. Second, they never really state what that "goal" is. Obviously, those doing better have earning that reflect this but i would also think that there is a significan difference between someone doing 50% of goal and someone doing 100% of goal.  So my next question is simply- what is "goal" and does this goal evolve with tenure with the firm? I saw earlier someone listed a timeframe when someone might be expected to be in certain segments. How does this relate to any goal/quota you are measured against. Also, how is it handled if you are not meeting that goal? Are you put on any sort of a "action plan" for period of time (for instance another 4 months to reevaluate your rolling average)?  Thanks for your insights! I have had these questions for some time now and I really appreciate you guys helping me out!



 
You have a low goal if you start from scratch.  If you accept a Goodknight which are assets given to you then you have higher goals you must hit, usually by churning the assets you were given in addition to doing the doorknocking that all new reps must do. 
 
It's not like your goals double when you are a GKN.   The churning the assets comment was a bit harsh.  I won't go into the inner workings of the GKN compensation plan right now, but all of the GKNs that I know of, when looking back at it, would just as soon have started new/new or taken over an existing office.  They said the GKN assets weren't enough to really do much more than give them warm bodies to talk to. 
Sep 16, 2009 9:36 am
LockEDJ:

Couple things have changed recently ... you can fall backwards, first of all, from what I understand.







You cannot fall backwards LockEDJ. That still has not changed, or we would have 1/2 of our firm in Segment 1.

Sep 16, 2009 9:39 am
LockEDJ:

Couple things have changed recently ... you can fall backwards, first of all, from what I understand.

 
And your goals are individualized; my goal and yours can be completely different based on whether or not I have a GK, or a Legacy, a new-new, whatever. I wouldn't put a lot of emphasis on any of those numbers. They really don't mean crap.
 
Fail to hit your numbers, yes, you are put on "goals" for a time. Consistently fail? Bring your laptop. The RL wants to see you.
 
Nothing has changed.  You can't fall back segments.  Not that it matters at all.  Going from one segment to another doesn't change anything except what meetings you go to and what group of people at the home office tracks you.