No Chumming at Edward Jones

or Register to post new content in the forum

20 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Mar 5, 2007 1:58 am

 Does Chumming exist at all wirehouses?


 I recently interviewed with another firm.  I was telling the interviewer the thing I hated most about Edward Jones:  seeing undeserving, non-producers, with less tenure than me inherit $40,000,000 + offices and then having them touted as the real deal, and then constant comparisons to why I can't be as productive as them at workshops, meetings, etc... 


 I asked, "what happens to accounts when a broker leaves your firm."  The interviewer (Branch Manager in this case) stated, "well, if any other brokers in the office have an existing relationship with a particular client, they tell me about it pretty quickly.  Otherwise, I deal them around the office to the remaining brokers." 


 I mentioned this to a Barney rep, and he said, "yep, that's chumming."  The phrase is taken from "chumming" the ocean for Great White Sharks.  The Barney rep told me he has made a very nice living by staying longer than other Barney reps, and absorbing their assets as others leave the business, or go Indi, or another firm.


 My recent post about starting out at Jones makes reference to what an ex-Jones broker told me: "when you start at Jones, some get sucked, and some get fu**ed."  It is becoming ever apparent to me that seeing a  new/new (new broker, new office) broker at Edward Jones succeed and thrive  is as rare as  seeing a short white guy succeed in the NBA. 


Are all of the wirehouses like this.  Do all wirehouses chum?   I mean I'm asking myself why am I staying at Jones, when I could produce as much as I am now at a wirehouse, and perhaps "chum" some accounts from departed brokers. 


You need to start with a really good head start (enherit office, Goodknight, give a blow to Regional Leader) at Edward Jones or your success rate is probably less than 10%.  Jones doesn't publish this figure, but I bet some Koolaider have some bull**it to make up.


Does Chumming exist at other firms?


If this is in fact the case at other firms, I would like to hear about it, and please be firm specific.  I'd drop my glass of koolaid in a nano second for free AUM opportunities.  I didn't inherit crap, and I'm starving too death....not to mention my feet hurt.

Mar 5, 2007 5:59 am

If you are not making it at Jones, you also aren't going to make it at a wirehouse.  The chumming that gets done is going be on your assets when you leave the wirehouse.

Mar 5, 2007 6:25 am
anonymous:

If you are not making it at Jones, you also aren't
going to make it at a wirehouse.  The chumming that gets done is
going be on your assets when you leave the wirehouse.





Exactly, it's also a PITA, since often you are trying to rescue accounts that are about to be ACAT'ed out anyways.



All the EDJ'ers who are whining need to quit looking for greener grass
and work thier own office and build thier own book. Once you get
started and rolling, you will get into the LP system which is where you
do quite well.

Mar 5, 2007 12:40 pm

First of all, I would never speak about things I hate in an interview.  I would focus on positive things, not negative things.

Secondly, I would never base my business on getting leftovers from other advisors.  Go out and get your own clients.




Mar 5, 2007 2:00 pm

of course it happens at all the firms.  what do you think they do with all the assets?


the good ones go to the big producers, they junky ones come to new reps.

Mar 5, 2007 3:02 pm

As a fellow new/new would you quit whining.  This is your second
post where you seem to be asking "why do I not get the free stuff as
well?"  As was mentioned in this thread, build your business, work
your butt off, and 5 years from now if you still feel the same way
towards Jones, leave.  

Mar 5, 2007 9:38 pm
AllREIT:
anonymous:

If you are not making it at Jones,

you also aren't

going to make it at a wirehouse. The chumming that gets done is

going be on your assets when you leave the wirehouse.




All the EDJ'ers who are whining need to quit looking for greener grass

and work thier own office and build thier own book.




Amen. This guy isn't going to make it anywhere.

Mar 5, 2007 10:21 pm

EdJ--


Everything you are saying is exactly why I left.  I just couldn't take it anymore, either.  For those who haven't worked at Jones, you don't know how you are constantly compared to brokers who have never worked half as hard as you, half have the talent and enthusiasm for the business, yet always seem to be in the "right place at the right time."  I know the system will never be perfect.  But something has to be done to make it more fair. 


The "fortunate ones" make six figure incomes, go on Diversification Trips, earn bonuses, and are the apple of the RL's eye.  The other folks are meant to feel as if they are inferior pieces of sh*t who are a drag on the entire organization.  It's like you are constantly being told, "You're no good.  You suck!  Why can't you be more like Johnny?  Would it help if Johnny called you to give you some of his best sales ideas?"  And you know in your heart of hearts that Johnny ain't fit to carry your jock on his best day.  I know.  I've been there.

Mar 6, 2007 11:46 am

I was at a dinner at the summer regional, sitting with a GP.  Of the four IRs at the table, three of them had taken over some type of office (I had not).  They were all talking about various diversification trips they had gone on, and how great they were.  The GP asks when my can sell was, and then asks how many trips had I been on.  When I told her none, you would have thought I had leprosy with the way she looked at me.  Yet another reason I decided to leave.

Mar 7, 2007 2:42 am
Soothsayer:

EdJ--


Everything you are saying is exactly why I left.  I just couldn't take it anymore, either.  For those who haven't worked at Jones, you don't know how you are constantly compared to brokers who have never worked half as hard as you, half have the talent and enthusiasm for the business, yet always seem to be in the "right place at the right time."  I know the system will never be perfect.  But something has to be done to make it more fair. 


The "fortunate ones" make six figure incomes, go on Diversification Trips, earn bonuses, and are the apple of the RL's eye.  The other folks are meant to feel as if they are inferior pieces of sh*t who are a drag on the entire organization.  It's like you are constantly being told, "You're no good.  You suck!  Why can't you be more like Johnny?  Would it help if Johnny called you to give you some of his best sales ideas?"  And you know in your heart of hearts that Johnny ain't fit to carry your jock on his best day.  I know.  I've been there.


  amen brother, you preach the true gospel of the Lord, the one true god, the god of all gods.  I grossed 22k a few months back.  you know how much i got home with?  5,000 is all I got home with.  My office expense was huge, i'm dying over here.  I appreciate your comments. 


good luck to you in this world

Mar 7, 2007 8:33 am

EDJ SUCKS

Mar 9, 2007 7:31 pm
EdJehovah:
Soothsayer:

EdJ--


Everything you are saying is exactly why I left.  I just couldn't take it anymore, either.  For those who haven't worked at Jones, you don't know how you are constantly compared to brokers who have never worked half as hard as you, half have the talent and enthusiasm for the business, yet always seem to be in the "right place at the right time."  I know the system will never be perfect.  But something has to be done to make it more fair. 


The "fortunate ones" make six figure incomes, go on Diversification Trips, earn bonuses, and are the apple of the RL's eye.  The other folks are meant to feel as if they are inferior pieces of sh*t who are a drag on the entire organization.  It's like you are constantly being told, "You're no good.  You suck!  Why can't you be more like Johnny?  Would it help if Johnny called you to give you some of his best sales ideas?"  And you know in your heart of hearts that Johnny ain't fit to carry your jock on his best day.  I know.  I've been there.


  amen brother, you preach the true gospel of the Lord, the one true god, the god of all gods.  I grossed 22k a few months back.  you know how much i got home with?  5,000 is all I got home with.  My office expense was huge, i'm dying over here.  I appreciate your comments. 


good luck to you in this world



5k net off of 22k production at (on average) 39% commission?  Or is that 5k gross? 

Mar 9, 2007 8:06 pm

I assume he means his paycheck (after health insurance, office expenses like half phone and postage, supplies like Jones folders and other literature that we have to pay for) was only $5,000 after grossing $22,000.


I grossed $28,000, and barely $7,000 was direct deposited into my checking account.  That doesn't include toilet paper, ANY advertising I ran, club dues, etc.  Oh yeah, my BOA needed a new stapler, some hanging folders, etc., guess who paid for that...


Now I pay for all of that stuff, BUT I keep more of my gross to pay for it all. With my current situation, if I gross more than $8,000 in a month, my take home will be bigger than when I was with Jones.  I have to gross about $5500 to have no paycheck (but not owe anybody for my business expenses). That's after health insurance, rent, dues, advertising, mailings, etc.

Mar 9, 2007 8:23 pm
now_indy:

I assume he means his paycheck (after health insurance, office expenses like half phone and postage, supplies like Jones folders and other literature that we have to pay for) was only $5,000 after grossing $22,000.


I grossed $28,000, and barely $7,000 was direct deposited into my checking account.  That doesn't include toilet paper, ANY advertising I ran, club dues, etc.  Oh yeah, my BOA needed a new stapler, some hanging folders, etc., guess who paid for that...


Now I pay for all of that stuff, BUT I keep more of my gross to pay for it all. With my current situation, if I gross more than $8,000 in a month, my take home will be bigger than when I was with Jones.  I have to gross about $5500 to have no paycheck (but not owe anybody for my business expenses). That's after health insurance, rent, dues, advertising, mailings, etc.



Is that a typo about producing 8k a month and you'll make more at EJ?  Even with a home office, minimal health, and a small ad budget you'll only be left with 6.5k a month.  Subtract taxes(being self employed) of 1050.00 just for FICA/Medicare and you're left with 5450 before income taxes.  Another 1k for state and fed income tax? unless you have a family the size of the waltons and you're left with 4450?  And in my experience of business, i'd say that number is high, my best guess would be closer to 4k?


so 4kish was your average takehome pay at EJ?

Mar 9, 2007 10:44 pm

If I gross more than $8000 in a month, I'll generally take home more as an independent.


Edward Jones: Gross $8000 -> 40% -> Net $3200 -> subtract $1250 for health ins, postage, phone, supplies, etc. -> Net Net $1950 (that doesn't include misc stuff like Rotary dues, mileage, advertising, etc.)


Indy: Gross $8000 -> 90% -> Net $7200 -> subtract $5200 for health ins, mailings, supplies, ticket charges, LPL charges, rent, shared assistant, etc. -> Net Net about $1950. (that includes Rotary dues, mileage, advertising, etc.)


Obviously, my expenses vary month to month, but that's pretty close to how it's working out.  And, I try not to get near that $8000 number in a month   If I think I'm going to have a bad month, then I would cut back on postcard mailings, advertising, supplies, etc. to keep costs down that month. Also, I'm in a shared space with shared assistants, so my costs are lower than someone in their own office with their own assistant.


However, I still think Jones is a good place to start, as someone will generally average less than $8k to $10K/month when starting out.  I would say that once you can fairly consistently gross $15k or more, and your three years are up, it's time to hit the road.

Mar 9, 2007 10:45 pm

The "Net Net" numbers above do NOT include taxes.

Mar 10, 2007 4:43 am

Ok I get ya now.  1250 for health insurance?  Wha? I pay 160 a month for my family in a blue cross blue shield hsa (wife and 3 kids I'm not on it) but would only be 250 with me on it.  5k deductable (annual total for family) though and no maternity coverage(done with kids anyway). 


You get a wash and wax everytime you go to the doc with that plan or something? lol

Mar 10, 2007 9:52 am

the 1250 is for real benefits, it's like 400 if you want the 5k deductible at jones then you contribute extra to an hsa so you can pay your actual bills since you'll prolly never hit your deductible

Mar 10, 2007 8:08 pm

When I was with Jones, my health insurance (family plan) was around $900/month, the other $350 was what Jones charged me for half phone, half postage, and if I had ordered any supplies (Jones folders, mailings done by Jones like a newsletter or postcards, any office supplies ordered through the office supply company, etc.), and my BOA had her 7. Jones doesn't pay for BOA's to be licensed, so that $450/yr was out of my pocket.


Jones does subsidize your health insurance at first (I think it's for two years).

Mar 10, 2007 9:44 pm

The health insurance subsidy at Jones is now 4.5 years. So I only pay like

$180/mo. or something. They also extended the $7K milestone bonuses

out to like 42 months I think. You get them around every 6 or 7 months.