Starting your FA business at EJ
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Unless you call 2 people a day, your response doesn’t make sense. Your going to talk alot of them throughout the day, but qualify or disqualify them quickly. I’m simply stating not to ACTIVELY pursue people with less than $50,000. If they automatically want to do business, by all means. If they call you later on, by all means. If they want to start DCA 25 bucks, by all means, but don’t put them on your repeat call list and spend time doorknocking/prospecting them. Spend that time looking for Qualified business.
I agree with MJ - I would not spend too much valuable time prospecting people without a lot right now, because yo will fail out/run out of money. But the point is, when tehy drop in your lap, you consider them.
Would I be safe in assuming that not too many people, even those just starting out, ACTIVELY prospect people with $20,000 or so assets? I don't know too many people that put in semi-daily/weekly phone calls to the guy with a couple extra bucks to invest out of his ING account. I think most of the time we get clients with a little less than exciting assets they are usually those asking for help and kinda fall in our lap.
[quote=3rdyrp2]
Would I be safe in assuming that not too many people, even those just starting out, ACTIVELY prospect people with $20,000 or so assets? I don't know too many people that put in semi-daily/weekly phone calls to the guy with a couple extra bucks to invest out of his ING account. I think most of the time we get clients with a little less than exciting assets they are usually those asking for help and kinda fall in our lap.
[/quote] No, that's not safe to assume. I am building my book on female employees of establishments of ill repute. I take their "earnings" and put it straight into an American Funds portfolio. That way I am directly contributing to my own book of business .[quote=voltmoie] I think it’s great you guys can turn down business but if it has a pulse and some money to invest I’m going after it right now.
I’ve learned my lesson, it took 12 weeks, but will not turn down business.
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Not according to Volt. He’ll chase $50
Dummy … I wrote that. I do think Jones brainwashes you to chase anything that moves when you start. Took me a few weeks to realize it was not the best use of my time.
I won't turn down someone that tells me they want to start a Roth when I'm on their doorstep though - just no longer will call them 3 times to set an appt.. There is however a MILF with a 2k rollover that I'm going to work very hard to secure an appt. with!!!There is however a MILF with a 2k rollover that I’m going to work very hard to secure an appt. with!!!
Amen...
Make sure you add Planned Parenthood to her portfolio
[quote=SometimesNowhere] [quote=MJ]Crumbs are nice in the beginning, but don’t waste all your time ACTIVELY prospecting on them. Don’t use valuable call/doorknock time on someone with less that $50,000. If they want to do business with you, then by all means every bit helps, but for all the time wasted prospecting those little accounts, you’ve given someone else the big ones. That $50,000 prospects neighbor could have $1M, but you’ve been calling the other guy the whole time. You just never know.
Crumbs are nice, but I don’t dig for crumbs in a brand new bag of Baked Lays, I go for the big ones and get the crumbs when I get to em.
I do agree however that helping out people who are just starting out, is very lucrative for you in the long run. People don’t start out rich and popular.[/quote]
Do you dig for crumbs in your bag of Cheeto’s? Just wondering…[/quote]
Haha. I couldn’t help but think the same thing when I read that.
Reg Rep has a great article called the The C Client Time Suck in this month’s issue. The consensus among the consultants is that an advisor should not have more than 150 clients. (“If you’re getting beyond 150 clients, I wouldn’t call those clients, I would call them customers,” agrees Dan Inveen of FA Insight.)
This is where Jones's model gets out of control quickly. There's an advisor in my town with 1600 clients; he's already done one GK to get him down from 2000, but he says he can't afford to do another GK right now. What? Jones's raison d'etre is to serve the masses and pick up the scraps from the folks who want to provide holistic, concierge-like services to a select group of clients. I'm finally realizing how foolish it is to try and run a business this way.That was my point for the question a read the book the million dollar financial services practice and he recommend no more then 100 to 150 but with minimum investable asset of 100k and that you don’t increase your AUM by more client like 1600 clients but with more big client of 100 k in asset.
So my question is ,the model of EJ is it better for alot of small client or you can concentrate on big asset client ?
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I’m trying to get 1600 $100,000 clients…maybe 2000.
Maybe I should read that book.
One Jones model is to open as many accounts as you can and then service the hell out of them because some of the 5k bond buyers will eventually move all their money over. The theory is that it’s easier to get their big stuff after you have made them a client. But to do that and survive in the early days you have to open many, many, many accounts. And I think that mind set is changing.
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B24 has said something like this before, but our current sweet spot is the 55-year-old soon-to-be retiree who will have 500k to a million when he stops working. Maybe a small business owner or a mid-level exec who took advantage of his 401k, maybe got an inheritance.
[quote=Borker Boy] Reg Rep has a great article called the The C Client Time Suck in this month’s issue. The consensus among the consultants is that an advisor should not have more than 150 clients. (“If you’re getting beyond 150 clients, I wouldn’t call those clients, I would call them customers,” agrees Dan Inveen of FA Insight.)
This is where Jones’s model gets out of control quickly. There’s an advisor in my town with 1600 clients; he’s already done one GK to get him down from 2000, but he says he can’t afford to do another GK right now. What?
Jones’s raison d’etre is to serve the masses and pick up the scraps from the folks who want to provide holistic, concierge-like services to a select group of clients.
I’m finally realizing how foolish it is to try and run a business this way. [/quote]
Borker, that’s great if you can find 150 clients with 500K-1mm each. But for the rest of us that don’t have those waiting in our lobby, we have to scale back our expectations a bit. Let’s get real.
The other thing you have to consider…many of the big-time wirehouse and indy advisors with 100mm+ AUM have been at it 20-30 years. Just look at the “Top broker/advisor/indy/ria” lists. Look at the time in business. The articles you are reading are looking through the lense of someone that has honed their practice over decades, not months. And many of them have teams of 10-15 people or MORE. So you can ridicule Jones’ model all you want, but don’t think the big-time advisors just fell off the turnip truck and into a few hundred $Million+ clients. Also, take a look at where they are located…Boston, LA, Silicon Valley, Chicago, NYC, Florida, …We don’t all live in wealth mecas.
And FWIW, there are many models at Jones. Yes, there are lots of guys that have 1000+ clients and produce well north of $1mm per year. There are also plenty of FA’s that have 200-350 clients and prodcue well over $1mm per year. But you know what? That is the case at ALL firms. Yes, even at Merrill, MS, SB, you name it. It’s documented in the same pages you read from. I’ve seen articles about advisors with over 2000 clients that only do A shares. Sound familiar? And it wasn’t a Jones advisor. Don’t think our model is SOOOO unique. $1mm clients aren’t just coming out of the woodwork everywhere across the country.
[quote=faca]That was my point for the question a read the book the million dollar financial services practice and he recommend no more then 100 to 150 but with minimum investable asset of 100k and that you don’t increase your AUM by more client like 1600 clients but with more big client of 100 k in asset.
So my question is ,the model of EJ is it better for alot of small client or you can concentrate on big asset client ?
.
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You can focus on whatever you want. You’ll hear over and over how it’s your business. Jones will expect you to open 27 (or 23?) accounts in the first 17 weeks to qualify for PDP. If you can find 27 100k accounts while not having an office please let me know how you did it. In my opinion it would next to impossible. Pop those first required accounts to get that monkey off your back and then figure out how you want to build your business.
You guys complaining about a 35 year old guy with $400/mo to dump into a roth need to learn to uncover insurance needs.
$75/mo DI policy on him
$40/mo DI policy on wife
$150/mo $150,000 UL on him with a $500,000 20yr term rider
$75/mo $100,000 UL on wife with a $250,000 20yr term rider
$15/mo 50,000 UL on his kid
Does he need these things I outlined above? Other than coverage on his kid and he can decide that part of it, he absolutely does need a program like this.
This is a $2000 insurance ticket and I’ll take the $400/mo for each him and his wife into their roths and $100/mo for the kid into a 529. I’ll collect the $380 per year in commission on the roths and 529 and the $100 per year renewals on the insurance coverage, plus when his wife quits her job when she has child #2 I’ll take her $60,000 401k into managed money for them.
I’ll also be glad to take a referral to help her parents plan for their retirement when they sell their small 160 acre farm for $500,000.
BB, the problem is that if they’re at EDJ or a wire, the commission is going to have to go through the grid. They’ll starve serving those clients just like they’ll starve while focusing their efforts on a $400/month Roth contribution.
[quote=deekay]BB, the problem is that if they’re at EDJ or a wire, the commission is going to have to go through the grid. They’ll starve serving those clients just like they’ll starve while focusing their efforts on a $400/month Roth contribution.[/quote]
What does your payout look like on insurance products at Jones?
For example, I sell a life or DI and I get 50% of the first year premium up front and then a 4% renewal. You’re telling me that the commissions goes through Jones and they only give you 45% of it and you walk away with 23% upfront and 1.8% renewal?
[quote=BerkshireBull]
[quote=deekay]BB, the problem is that if they’re at EDJ or a wire, the commission is going to have to go through the grid. They’ll starve serving those clients just like they’ll starve while focusing their efforts on a $400/month Roth contribution.[/quote]
What does your payout look like on insurance products at Jones?
For example, I sell a life or DI and I get 50% of the first year premium up front and then a 4% renewal. You’re telling me that the commissions goes through Jones and they only give you 45% of it and you walk away with 23% upfront and 1.8% renewal?
[/quote]
Correct, but a touch lower than that.
I seem unable to turn anyone away that is serious about getting help with their financial needs. Could you have an intern and/or a registered assistant to serve the B and C clients depending on the need. Clients get great service from employees climbing the ladder and wanting to move from salary/hourly to comish and build their own book one day.
If he's at a career agency, 50% is pretty standard. The difference is he'll get pension, FICA, etc. Once someone starts producing big time, the overall payout up front can reach 100%+ FYC.[quote=BerkshireBull] [quote=deekay]BB, the problem is that if they’re at EDJ or a wire, the commission is going to have to go through the grid. They’ll starve serving those clients just like they’ll starve while focusing their efforts on a $400/month Roth contribution.[/quote]
What does your payout look like on insurance products at Jones?
For example, I sell a life or DI and I get 50% of the first year premium up front and then a 4% renewal. You’re telling me that the commissions goes through Jones and they only give you 45% of it and you walk away with 23% upfront and 1.8% renewal?
[/quote]
You’re getting fukt on the insurance.