One More Important EDJ Question

or Register to post new content in the forum

44 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.
Feb 26, 2007 9:02 pm

It's quite obvious that most people on this site are anti-Edward Jones. From reading previous threads I understand the reasons. Considering the Edward Jones in a different context, what do all of you experienced brokers out there think.

    I am a 21 year old college senior and a family friend has offered me a job with EDJ right out of school (it might be a Goodnight program, it might involve starting a new office). I am fairly knowledgable about the company and have even attended a monthly meeting. I have my reservations about starting with EDJ mainly because I don't want to use up all my hometown contacts, and be unable to get them back once I start my own business, with my brothers, 5 or 10 years down the road. I think I could be successful with Jones, but is it worth the work? Factoring in my age, how good of an opportuniy is this really?

Feb 26, 2007 9:22 pm

I think Jones is a good place to start, especially in your home town (if you have a good reputation).


If you plan on starting a different business with your brothers 5 years down the road, DO NOT get into this business.  This is the type of business that is hard at first, but if you can stick it out, it gets easier. At five years, things should be starting to pop (referrals, nice AUM base, fees, etc.). As an old time Jones vet told me once, you've paid for the band, might as well stay for the dance. Don't go into this expecting to leave in five years.

Feb 26, 2007 9:33 pm

i agree- sounds like a perfect fit

Feb 26, 2007 9:40 pm

now_indy, thanks for the reply. when i say "start a business with my brothers" i mean start an investment business. So the question is: If I build a good sized book with EDJ, how hard is it to transfer clients to an independent LLC.
Would you recommend this career plan?
Anyone?

Feb 26, 2007 10:13 pm

I wouldn't go into the business with an alternate route planned, it will be too easy when things get tough to bail. It is a tough business but rather rewarding when you get past 5 years. I have been in 4 yrs now and can definitely see the light at the end of the tunnel or maybe it's the train, either way it's light.....

Feb 26, 2007 10:52 pm

I transfer in EDJ accounts from time to time and don't find the process all that difficult, so I don't know why you would either.  It's just paperwork.

Feb 27, 2007 3:38 am

I heard a rumor that EDJ makes you sign a one year non-compete clause. Also, if you leave EDJ early I heard they can come after you for some money.Basically, I want to get some experience at EDJ while making sure I have a door out once I get some good training.

Feb 27, 2007 4:22 am
Closer:

I heard a rumor that EDJ makes you sign a one year
non-compete clause. Also, if you leave EDJ early I heard they can come
after you for some money.Basically, I want to get some experience at
EDJ while making sure I have a door out once I get some good training.





To be sucessful, you need total commitment. Don't view EDJ as a phase. or you will be distracted by the pie in the sky.



If you want to, and are willing to work inside the EDJ framework, you
can go pretty far, especially once you get eligable for the LP
participations.



 

Feb 27, 2007 7:42 am

I started with Jones with a Goodknight program.  Excellent training, the clients that I received were, as one would expect, appathetic about investing (at best, some wanted to sue and a good number were being hammered by regular margin calls).  After 2 1/2 years I left to become independent.  The Jones employment agreement requires an applicant to agree to many things, two of which complicate the transition:  An agreement to not solicit clients and repay the cost of being acquired and trained ($67K).  The agreement is not enforced uniformly (it was in my case).  I've been in the business five years, it is a tough business with lots of rewards.  I hadn't made less than $100k for years before I started with Jones and then I spent my time apologizing to my wife for failing to provide for the family.  Once becoming independent I'm happy and so is my wife. 


I have no idea why a Jones rep stays at Jones.  It is so much better independent.  Yes, I now write checks for overhead (rather than have it deducted from my earnings and I have to fuss with health care and training and technology but I have happy clients and have made $200k++ for two years in a row.


Start with Jones, you may like it.  If not, you're licensed, knowledgeable and ready to create clients and go forward.

Feb 27, 2007 9:11 am

The non-solicit is generally for one year after leaving. As for the money, Jones will want a "repayment" of training costs if you leave within three years. 


As for moving accounts, I have currently moved just over 80% of my Jones book (assets, not households). I did that in about 5 months, I'm not really trying for the rest of those accounts.  Keep in mind, I started from scratch, so I had opened up 99% of the accounts in the office. You may have more trouble moving them if you took over their account, and they've only talked to you on the phone.


Oh yeah, moving cost basis SUCKS from Jones. LOTS of manuel entry.

Mar 4, 2007 9:54 am

NOW INDY, How did you avoid the non-solicit?  I've heard of brokers sending mailings and calling ex-jones clients and then getting hammered by the Jones attorneys. Any input would be appreciated, as I will be going that route this month.

Mar 4, 2007 11:46 am
Broker7:

NOW INDY, How did you avoid the non-solicit?  I've heard of brokers sending mailings and calling ex-jones clients and then getting hammered by the Jones attorneys. Any input would be appreciated, as I will be going that route this month.


First of all, you should work with the transition team from your new B/D.  They have done this before.  If you are really worried about it, consult an attorney on your own.  I did both of those things


We have covered this in many previous posts, but here goes again.  You can send your previous clients a "tombstone" type of letter that just says something to the effect of  "Howdy, this is Broker 7 and I am pleased to inform that I am now at the XYZ firm.  Blah blah good stuff about the new firm.  Why you think this is a good move. This is my new address, phone number, etc."  Be sure to get the letter compliance approved by your new B/D.   (Yes, Virginia, there is compliance at indy firms )  Nowhere in this letter are you to suggest that your clients move with you.  You are merely informing them of your new location.  The rest is up to them.  If you have done a good job for them in the past, they will call you.


You can place advertisements in the paper about your new location. There is nothing in the world to prevent you from "bumping" into people at various functions (Chamber, Rotary, Little League games) and telling them where you are now. 

Mar 4, 2007 7:24 pm

Or, as one broker did in SW Georgia, put his face and new B/D name and address on a billboard.

Mar 4, 2007 10:47 pm
Broker7:

NOW INDY, How did you avoid the non-solicit?  I've heard of brokers sending mailings and calling ex-jones clients and then getting hammered by the Jones attorneys. Any input would be appreciated, as I will be going that route this month.


I agree with what Babs said. Make sure you do a tombstone letter (compliance approved) WITH a new business card.  Make sure the return address on the envelope has YOUR name on it, not just LPL or whatever firm's name you are now with.  Otherwise, many will get tossed in the trash without the client even knowing you are gone.


I went to a lot of Chamber stuff as I built my business, so I see clients there.  Remember who referred who. If you talk to Bill, who was referred to you by Bob, ask how Bob is doing and say "Because of my non-solicit agreement with Jones, I don't even know if he knows I've left, etc."  Every time I did this, the client would tell their friend that I had left and where to find me.


If you're in a small town, a full page ad announcing your new gig could go a long way. I even had a couple clients that hunted me down on the internet (I still haven't figured out how they did that).


I did get the boiler plate Jones non-solicit "reminder."  I sent it to LPL's legal dept, and they went over with me what I could and could not do.  I never heard anything else from Jones.  Luckily, the transfer broker they brought in was a temp from St. Louis, and the guy basically annoyed EVERY client he spoke to.  That helped.  If they had found a permanent guy or girl who was sharp, I would have probably lost a few clients.

Mar 5, 2007 1:29 am

 I'm a new/new with Jones.  This means I am a new broker, and I started a New Office.  I had NO goodknight, no existing branch to inherit.  Looking back on it, I would not take the road I have taken.  It is too painful on your feet from doorknoicking, horrible on pay, I've starved to death.  But you say they want to give you a Goodknight?  How much?  If it is not at least $10 million, keep looking.  Even if it is $10 million, it is going to be a weary $10 million.  When I say weary, i mean people who have lost money, don't invest regularly, HAVE SMALL ACCOUNTS,  and don't return phone calls and hate coming into the office.  Needless to say, you probably won't get good clients in a Goodknight. 


What you want is an existing office.  You want to "inherit" an office that someone at Jones leaves to go somewhere else, preferrably outside the financial services.  Therefore you are in a non-competitive situation. 


If you are going to be a new/new like me, here is an idea: accept the job, get the licenses, and then refuse to work, get fired, and go get a job at a bank, or some other firm.  I have seen this happen tons.  I would do it, but I have three kids to feed, and cannot afford to not produce all I can.  But you are young, and you will be on salary anyway.  I didn't wise up to ED Jones Bullcrap until I was off salary and into an office.  hope it helps.  good luck to you man.

Mar 5, 2007 6:31 am
EdJehovah:

If you are going to be a new/new like me, here is
an idea: accept the job, get the licenses, and then refuse to work, get
fired, and go get a job at a bank, or some other firm.


And that is easy to do after getting fired for cause?


I have seen this happen tons.  I would do it, but I have
three kids to feed, and cannot afford to not produce all I can. 
But you are young, and you will be on salary anyway.  I didn't
wise up to ED Jones Bullcrap until I was off salary and into an
office.  hope it helps.  good luck to you man.


A sucessful person of quality is going to be sucessful no matter
what the situation, without griping about it. You aren't going anywhere
untill you change your attitude to life in general.


A seriously good business can be built inside of EDJ. Weather you can do it, is another question.

Mar 5, 2007 7:40 am

How long have you been with EDJ, ALLREIT? Did you start new or were you

a transfer broker?

Mar 5, 2007 8:36 am
Philo Kvetch:

How long have you been with EDJ, ALLREIT? Did you start new or were you

a transfer broker?





I was the love-child of two GP's

Mar 5, 2007 8:38 am
AllREIT:
Philo Kvetch:

How long have you been with EDJ, ALLREIT? Did you

start new or were you

a transfer broker?




I was the love-child of two GP's





It all makes sense now.

Mar 5, 2007 9:33 pm

EdJehovah-



You're right - nobody ever started from scratch at Jones and made it.

Everyone inherited a book.



If you suck at Jones, you will suck no matter where you go.



I can understand the gripes of people that have been at Jones 3, 5, 10

years and are producers, and want "more" out of their B/D. But if you are

griping after a year or two, and telling people to get themselves fired and

move to a bank, it's probably not Jones' fault.





AllREIT - I thought you looked familiar!