Jones Production

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Dec 3, 2008 2:08 am

Hey all,



Quick question...



When EDJ refers to 100% expectations during the first year - what does that equate to in production? If this is unanswerable for some reason I guess the back-up question would be what would you consider average production for an EDJ FA during the first 12 months of sales?



I appreciate the feedback



Cheers

Dec 3, 2008 2:30 am

I'm new hire with EDJ and I was told opening at least 10 new accounts per month was what I should really be shooting for upon receiving my "can sell" date. Each month after opening 5 accounts (of a minimum size)you receive $500. Accounts 6-10 are $100 each, and 11 up are $200 each. I believe this is a temporary bonus structure and a more experienced EDJ FA should be able to shed a little more light on the subject. Like I said, I’m still a rookie with the firm just about to begin the “Study for Success” program. Hope some of this info helps.<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Dec 3, 2008 10:15 am

If I'm reading the chart right, $81,200 is "standard" which would be 100% of production total for the first year.  That equates to a net of let's say $30,450 (37.5% payout).  Add in salary, which will vary by region, milestone bonuses of $10,000 in that first year, and whatever new account bonuses you can muster and you shouldn't have to eat hot dogs at a quick stop everyday for lunch because you don't have any money.  If your salary is simply $2000 a month, you're looking at somewhere around $65K that first year.  Not too shabby.   

Dec 3, 2008 12:43 pm

I remember that first year very well. I had salary + production, and I thought I had hit the big time.

 
Then the salary ended...
 
And my production began to plateau because I had become so sick of begging people for money...
 
Then the market tanked and my production began a downward trend...
 
Then my mutual fund trails diminished...
 
And...now my family and I live in a van down by the river.
Dec 3, 2008 12:58 pm

I'm glad someone could take over my van when I left....

Dec 3, 2008 2:12 pm
Borker Boy:

I remember that first year very well. I had salary + production, and I thought I had hit the big time.

 
Then the salary ended...
 
And my production began to plateau because I had become so sick of begging people for money...
 
Then the market tanked and my production began a downward trend...
 
Then my mutual fund trails diminished...
 
And...now my family and I live in a van down by the river.
 
Just to make it clear to the OP, the market tanking and Borker's production beginning a downward trend don't really have that much correlation.  A little, but not as much as you might think. 
 
And if his production reached a plateau in his second year, he may want to reconsider his career choice.  Cause if you get tired of begging people for money in year two, it's going to be a long, long career. 
 
If your trails decreasing has had that much of an effect on your paycheck, you must have a whole lot more in assets than I'm guessing.   However, I'm guessing that it's just one more thing in a long line of excuses.  
Dec 3, 2008 2:16 pm

Let me say it here...I sold my van to Spiff before I left...He moved it to East St Louis..down by Ozzy's...

Dec 3, 2008 2:35 pm

Thanks all,

 
I appreciate the responses.  Hey at least East St. Louis is a safe, beautiful place to park your van/home.
Dec 3, 2008 2:43 pm

In East St Louis, you have the benefits of the Sauget Ballet.  I took advantage of the show many times.

Dec 3, 2008 3:37 pm

Hey bastermind, keep in mind that when Jones says that you get money after you open 5 accounts, they mean 5 HOUSEHOLDS.  If you meet a nice couple, and open 2 rollover IRAs, 2 Roth IRAs, and a joint account, Jones considers that 1 household.  You will NOT receive $500 for opening those 5 accounts.  You need to meet 5 nice couples that month to make the $500. 


That's the way it was when I started (2002), it may have changed now. 

Dec 3, 2008 6:39 pm

The new account bonus is very difficult to achieve with any regularity.  Out of all the people I kept in touch with after training, I could count on one hand the number of times we, as a group, hit it.

 
Just don't count it in your income estimates.  It should be considered a true "bonus."
 
Good luck.
Dec 3, 2008 7:40 pm

That is so true. It is ALMOST impossible to hit the new account bonus. It is very difficult to achieve the new account bonus. I have opened very, large detailed accounts (lots of paperwork, 1035 exchanges etc) and it only counts for one. Also, if you press Jones they will admit their system of keeping track of the new account bonus does not work. You need to track every account you open, know the rules and go after the new account bonus. 

Second point, the first year was gravy.. when the salary goes away it is awful!! You actually start negative each month with what you know they will take out of the monthly pay check.
I must also mention the milestone bonus is also a joke for most new fa's. You need to look at your contract, you must be at exceeding not meeting to get these bonuses. I have hit  most of them, but sometimes the money does not hit, a client drags his feet and you fall to 99 % of standard..bye bye milestone...all in all their
 bonus system is a joke!
Dec 3, 2008 9:30 pm

MB,

I agree with most of what you said, other than the Milestone Bonuses. Those are very easy to hit. Jones' hurdles are so low to begin with, that you should be hitting msot of them.

Dec 3, 2008 10:03 pm

The real question is why do you have minimum standards that are easy to achieve and then you have to add bonuses on top of that as an incentive? Why not pay fairly and not hire every Tom, Dick and Harry that apply for a job?

Dec 3, 2008 10:07 pm

monopolybet,
That mean old Edward Jones!  They didn't let you count commissions you almost got towards your bonus?  That is ridiculous.  You did all that work opening 529's for the Brady Bunch and they don't let you count each individual account?  Come on EJ!  Greg, Marcia, Peter, Jan, Bobby, and Cindy.  That should be 6 accounts.  Throw in Mike & Carol and Alice & Sam.  Lots of paperwork!  That should be $100's in bonus.  While we are at it we should count doors you almost knocked on as a contact.  Lastly, even though you asked to have 401k, life insurance, health insurance, and DI withheld from your paycheck, we should say EJ makes you start at less than zero.  It is their fault you want health insurance and it does not work that way at any other firm.  It might not actually be Jones that is the joke eh?

Dec 3, 2008 10:59 pm
now_indy:

Hey bastermind, keep in mind that when Jones says that you get money after you open 5 accounts, they mean 5 HOUSEHOLDS.  If you meet a nice couple, and open 2 rollover IRAs, 2 Roth IRAs, and a joint account, Jones considers that 1 household.  You will NOT receive $500 for opening those 5 accounts.  You need to meet 5 nice couples that month to make the $500. 


That's the way it was when I started (2002), it may have changed now. 

 
And if your new client already has a "relationship" with Jones, forget it. That one ain't counting toward the bonus either.
Dec 4, 2008 9:58 am

If you mean "relationship" as in already has an account with EDJ that they're transferring to your office, then it's not a new household now is it? 


Noggin - what does pay fairly mean?  Would it be a better business model to give everyone $10,000 more in salary to start with, but raise the minimums so that the attrition rate is even higher?  The bonuses are just simply that.  Bonuses.  You get paid extra for doing the appropriate amount of work to earn the bonuses.  Jones makes it easy enough to hit that it's really an incentive, but not easy enough that you just have to clock in everyday.  It's a ton better than it used to be with a $2000 per month draw that they paid to you in a bonus at the end of your first year.  Any of you Jones guys been around long enough to work under that structure?  Which would you rather have the draw or the salary, plus commissions, plus bonuses?
Dec 4, 2008 10:09 am

If they would hand out donkeys to help with the doorknocking..and throw in a new pair of shoes occasionally...that would be a great bonus.  But NOOOO....can't do that can you.  Whats a new donkey cost vs all the profit you clowns make. 

Dec 4, 2008 10:11 am
Borker Boy:

I remember that first year very well. I had salary + production, and I thought I had hit the big time.



Then the salary ended...



And my production began to plateau because I had become so sick of begging people for money...



Then the market tanked and my production began a downward trend...



Then my mutual fund trails diminished...



And...now my family and I live in a van down by the river.





HA HA HA AHA AH That is some funny shit...



Dec 4, 2008 10:41 am
noggin:

The real question is why do you have minimum standards that are easy to achieve and then you have to add bonuses on top of that as an incentive? Why not pay fairly and not hire every Tom, Dick and Harry that apply for a job?

 
I used to wonder that myself.  But the problem is, no matter how good the hiring prcoess is, you can't weed out people without the "IT" factor.  You don't REALLY know who is going to be successful at this business.  This business is tough as shlt, and even very talented people fail out.  So by giving incentives, you are essentially paying the people that are going to make it a higher salary, and weeding out the people that won't.  It's cold, but it's a reality. 
 
Look at it this way, if you owned your own firm, and you had to hire 10 people, would you rather pay them all a ton of money, knowing that only a few ould make it, or find a way to pay the really good people (who you can't yet identify) more than the people that will ultimately fail anyway?
 
I am certain that if Jones, or any other firm, knew the secret to hiring people that they KNEW wouldn't fail, they could pay them all a whole lot more.  Problem is, like being an FA, there is no magic bullet in hiring/recruiting.