Goodknight or New/New at Edward Jones?

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Jul 9, 2010 7:50 pm

I'm making a career change into the industry.  Currently, I'm in the final stages of the interview process with Jones (from the research I've done they seem to have good training program for newbies).

My question is, if the given the option do I go new/new or take a Goodknight position?

Goodknights have a success rate of about double those that start new/new but, they have higher goals to hit bonus and no guarantee that the book they get isn't junk.

Any legit suggestions?

Jul 10, 2010 11:44 am

No-brainer.  Work out of your house, or have an office?  Start from scratch, or have SOME clients?  In almost all situations, the GK makes more sense.  Make sure you get a good feel for the veteran you would be working with.

Jul 10, 2010 11:44 am

No-brainer.  Work out of your house, or have an office?  Start from scratch, or have SOME clients?  In almost all situations, the GK makes more sense.  Make sure you get a good feel for the veteran you would be working with.

Jul 10, 2010 4:15 pm

If you KNOW you will do good in this business don't take the handouts. You will be there soon enough I promise. If you have doubts in yourself well take anything that will keep you motivated and help you get to the next step. Your goals will be higher but who cares anyway you already think there is a chance you will fail.

Jul 10, 2010 6:04 pm

[quote=N.D.]

If you KNOW you will do good in this business don't take the handouts. You will be there soon enough I promise. If you have doubts in yourself well take anything that will keep you motivated and help you get to the next step. Your goals will be higher but who cares anyway you already think there is a chance you will fail.

[/quote]

I don't already think I will fail but, thanks for playing.  In fact, I'm very confident in my abilities if my past 13 years experience has any indication of what my future holds.  I know I will have to bust my tail the first few years regardless of a GK plan or not. 

Plus, I know how to build rapport and relationships with people to gain their trust (which really can't be taught).  Let's be honest, that's the majority of any sales type position.

My question was simply which should one favor if given the option, GK or New/New.

Jul 10, 2010 5:49 pm

If your statements are true and only you know that. Go new/new and you will have your own office and pass the GKs in no time. Big bonus is you will not have to deal with the crap accounts that always come with a GK.

Sure = New/New

Unsure = G/K

Now this is my opnion and you should do your own due dilly on the potential GK, but from what I have heard a successful FA will exceed the benefits that come with a GK in a short amount of time and the big bonus is you will not have the headaches that come with a GK.

Jul 10, 2010 5:59 pm

You're asking a smart question.  I'm about 6 weeks licensed w EJ (new/new) and love it, however it is extremely challenging.  Sounds like that is what you're looking for, so you're on the right track.  Several of my training classmates have Goodknights (up to $20M), and are experiencing faster success as a result.  But they definitely have headaches as well, and those headaches could be with them for their entire careers.  I got into this challenge because the industry is fascinating, to help people, and to make some serious $$, but first and foremost to have freedom.  I don't like the different standards, especially the higher earning potential that a GK FA has right out of the gate, but I came here for freedom, and you would immediately have to trade some of that to have a GK.  Hope that helps, and good luck.  EJ is a great company and a great opportunity if you're looking for an Everest.

Jul 10, 2010 6:48 pm

If you're new/new, there's a good chance you won't have to work from home if you're proactive about calling FA's in the area and asking if they have a back room for you to work from.

Jul 10, 2010 7:21 pm

[quote=gethardgetraw]

If you're new/new, there's a good chance you won't have to work from home if you're proactive about calling FA's in the area and asking if they have a back room for you to work from.

[/quote]

Yeah, I've already had a vet tell me I could use her conf room any time if a client wanted to meet me at "the office".

Jul 10, 2010 9:19 pm

Some advice:

Do yourself a favor and go new/new and work your butt off. The goodknight thing to me is helpful upfront but hurtful in hurdles etc in the long haul amongst other headaches but not enough to kill your career or make your career so meh.

However I think the bigger issue is the freedom you mentioned. I would strongly suggest kickin butt outta the gate and opening your own office and hiring your own boa if the goodnight and or any office you are offered has less than 15 million. Why? For me its pride and the feeling of actually running your own business is much greater doing it from scratch. This way you choose everything, where you work from who you hire and how you run your practice. The GK program holds your office search up for close to a year. The legacy program is also a joke. I would rather work from home and couple with an FA in the area willing to let you use his office on an occasion if you must. I like the freedom without someone around looking at what you do, when and how you prospect etc.

Oh and a Legacy will also hold up your office search (although Jones lies and says it doesnt).

Jul 11, 2010 8:40 am

When I was there, I GK'd assets to someone.  If you do it, make sure your vet is a big producer and you get at LEAST 10mm, or you are getting unresponsive trash.  If you have someone with 50mm and they give away 5mm, you KNOW they are shackling you with what they don't want AND they are probably not going to be a huge help in the office.  

Legacy does hold up your office search unless you get cracking fast, then they double their efforts.  In fact, your office search time is more of a function of how many FA's who are Above Standard are currently looking.  If there are 400 and there are only 25 people in leasing...do the math!!

Jul 12, 2010 9:29 am

Well, gee, since the success rate of new/new's from the point you pass your 7 is like 15%, and the success rate for GK's is like over 50%, I would hedge my bets.  It's great to look at things in the rear-view mirror, but the fact is, MOST new/new's never make it past 3 years.  How many times in your first few years did you say to yourself "Wow, if I didn't land that ONE big client last month, I'd be gone from the business"?  If you get 100 clients from a GK plan, and you turn 5 of them into "Real" clients, it pays for itself many times over.  Being able to tell someone where your office is, and have it on your CARD (not your freakin' home address).  There are some intangibles that go along with doing a GK.  Yes, some people have not had great experiences with the GK program, but it does not mean they would have been better off working out of their car. 

Your call A-Ro.

Jul 12, 2010 10:08 am

Never. Ever. Turn down a free meal. 

This discussion is stupid.

Jul 12, 2010 12:59 pm

I was a goodknight and I would not reccomend it. I think hands down you would like to try to take over an excisting office.

So depending on your area... Are there a lot of offices you would be willing to take over in your area or are you in the boonies?

If I was in an area with a lot of offices I would go new.new... if not I would take the gkn.

Jul 12, 2010 1:09 pm

RW, I agree that taking over an office (with some assets) is probably better than a GK, but there are a few caveats....first, that is ASSUMING there is an office to take over.  In my region maybe 2-3 offices come open every year (most turnover is in the new/new ranks), and almost never are offices with any substantial assets.  Obviously different regions will have different experiences. 

Second, MANY FA's have great experiences with the GK plan.  I did a GK several years ago, and even though 95% of the housholds sucked (and most of them I have either closed/fired/given away), I did turn some into real clients.  But beyond that, it gave me experience with clients, a great veteran to work with (who came from another firm), an office - which lends credibility to your practice (I know - I spent the first 8 months selling out of my house), and simply piece of mind knowing that you wouldn't be in your house forever.

Bottom line, you have to consider and weigh all your options - each situation will be different given the people involved, location, etc.  I think the WORST option is working out of your house, unless you KNOW you are going to kill it (and that does not include "I am totally prepared to work 80 hour weeks, I am great at selling, I am a people person, blah, blah, blah,.....all the crap every newbie spouts on here 3 months before they are fired.")

Jul 12, 2010 9:48 pm

B24 out selling for 8 months and then took a goodnight? Why the heck had you not opened your own office yet or at least signed a lease. No offense bud but you must have sucked outta the gate and really got lucky someone offered you a goodknight before you were otherwise fired...

Jul 13, 2010 12:43 am

[quote=B24]

RW, I agree that taking over an office (with some assets) is probably better than a GK, but there are a few caveats....first, that is ASSUMING there is an office to take over.  In my region maybe 2-3 offices come open every year (most turnover is in the new/new ranks), and almost never are offices with any substantial assets.  Obviously different regions will have different experiences. 

Second, MANY FA's have great experiences with the GK plan.  I did a GK several years ago, and even though 95% of the housholds sucked (and most of them I have either closed/fired/given away), I did turn some into real clients.  But beyond that, it gave me experience with clients, a great veteran to work with (who came from another firm), an office - which lends credibility to your practice (I know - I spent the first 8 months selling out of my house), and simply piece of mind knowing that you wouldn't be in your house forever.

Bottom line, you have to consider and weigh all your options - each situation will be different given the people involved, location, etc.  I think the WORST option is working out of your house, unless you KNOW you are going to kill it (and that does not include "I am totally prepared to work 80 hour weeks, I am great at selling, I am a people person, blah, blah, blah,.....all the crap every newbie spouts on here 3 months before they are fired.")

[/quote] The first paragraph makes your region sound pretty crappy unless it is the same 2-3 offices every year.

Did you get the GK and an office with assets or an empty office?

Jul 13, 2010 1:45 am

If you get offered, take the Goodnight.  I completed my Goodnight 4/2009 and continue to turn "bad" clients into good clients.  Just today I had a Goodnight client with $600 call for an appointment to invest a $128K matured annuity.  You just never know what people really have.

Jul 13, 2010 9:07 am

[quote=fa09]

B24 out selling for 8 months and then took a goodnight? Why the heck had you not opened your own office yet or at least signed a lease. No offense bud but you must have sucked outta the gate and really got lucky someone offered you a goodknight before you were otherwise fired...

[/quote]

You know what ASSumptions do?  Exactly.  Here's the deal....I WAS looking for an office, and there was literally NOTHING available that Jones would approve.  Not that I blame them - because I live in a sort of "historical" town, most of the office space is either too old, not ADA compliant, 2nd floor, whatever.  And there is almost no "true" office space.  Mostly rehabbed houses, etc.  So most of the good space is always occupied.  Anyway, I was getting frustrated, and my mentor asked me if I would want to do a Goodknight.  I actually almost turned it down, as I was really hoping to get my own space soon.  But it turned out perfectly, as some new office space being built opened up about 6 months into my GK plan.  It was only a few offices, but nice space.  Took several months to negotiate, re-configure, buildout, etc. (it was a 2500 sf. white box), but I moved in almost exactly one year after taking the GK.

Jul 13, 2010 9:12 am

[quote=N.D.]

[quote=B24]

RW, I agree that taking over an office (with some assets) is probably better than a GK, but there are a few caveats....first, that is ASSUMING there is an office to take over.  In my region maybe 2-3 offices come open every year (most turnover is in the new/new ranks), and almost never are offices with any substantial assets.  Obviously different regions will have different experiences. 

Second, MANY FA's have great experiences with the GK plan.  I did a GK several years ago, and even though 95% of the housholds sucked (and most of them I have either closed/fired/given away), I did turn some into real clients.  But beyond that, it gave me experience with clients, a great veteran to work with (who came from another firm), an office - which lends credibility to your practice (I know - I spent the first 8 months selling out of my house), and simply piece of mind knowing that you wouldn't be in your house forever.

Bottom line, you have to consider and weigh all your options - each situation will be different given the people involved, location, etc.  I think the WORST option is working out of your house, unless you KNOW you are going to kill it (and that does not include "I am totally prepared to work 80 hour weeks, I am great at selling, I am a people person, blah, blah, blah,.....all the crap every newbie spouts on here 3 months before they are fired.")

[/quote] The first paragraph makes your region sound pretty crappy unless it is the same 2-3 offices every year.

Did you get the GK and an office with assets or an empty office?

[/quote]

Wel, the region is fairly young by EDJ standards.  The first FA in our region started 19 years ago.  And really, they didn't start growing the region much until about 10-12 years ago.  So a lot of 9-12 year players, and 0-4 year players (not sure why that is - I guess recruiting comes in waves).  Most of the turnover is newbies without offices, and most of the offices that get vacated are guys that got an office and left after 3 years or so.  Yes, some of them are the same offices repeatedly.  Very little turnover among the 7+ year crew.