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Jun 22, 2006 5:06 pm

Growth, Growth, Growth!  You train em, we'll recruit em!


JANUARY 2005 thru JUNE 2006


155 Veteran IR's have left the mothership (Jones) in favor of mixing their own koolaid at LPL.


I don't know what the numbers are at RAYJAY, Wachovia or some of the others, but it looks like Jones is losing about 500-600 veteran IR's a year to the competitors. 


Jun 22, 2006 6:32 pm

Spiked-


I don't know where you get your numbers but they sound pretty close. When I started we had 6500 IR's and the goal was 10K by 2000. They hit that four or five years ago, celebrated with Bachie and Dougie in England where supposedly they opened the 10,000th office and as far as I can determine five years later 9600 IR's.


So if they are training 200 per month and they have less now than five years ago. Attrition is happening on a much higher percentage than they are letting on. All I ever heard was 3-4% of vets were leaving. Well, its calculator time again, 3% of 9600 IR's would be is 288. A reason for stagnant profits (and more profitable) for the GP's because who made the bonuses, The VETS!


If I am a GP, the exodus of vets insures more $$$ to be spread amongst the owners. It's a great gig for some.

Jun 22, 2006 9:45 pm
footsoldier:

A reason for stagnant profits (and more profitable) for the GP's because who made the bonuses, The VETS!

If I am a GP, the exodus of vets insures more $$$ to be spread amongst the owners. It's a great gig for some.


I admit ignorance on the inner workings of the cult, but this statement doesn't make sense.  Are you suggesting that the bonuses for the vets are so big that they actually negate that vets profitability?

Jun 23, 2006 7:46 am

Unless EJ hit their 10,000 IR in 2006, they have not hit that goal yet.  I left in November 2005 and they weren't even close.



QUOTE=footsoldier]


Spiked-


I don't know where you get your numbers but they sound pretty close. When I started we had 6500 IR's and the goal was 10K by 2000. They hit that four or five years ago, celebrated with Bachie and Dougie in England where supposedly they opened the 10,000th office and as far as I can determine five years later 9600 IR's.


So if they are training 200 per month and they have less now than five years ago. Attrition is happening on a much higher percentage than they are letting on. All I ever heard was 3-4% of vets were leaving. Well, its calculator time again, 3% of 9600 IR's would be is 288. A reason for stagnant profits (and more profitable) for the GP's because who made the bonuses, The VETS!


If I am a GP, the exodus of vets insures more $$$ to be spread amongst the owners. It's a great gig for some.

[/quote]
Jun 23, 2006 9:09 am

spiked - where did you see those numbers?  I'd love to read the article or wherever it came from.  PM me with a link if you have one and wouldn't mind.

Jun 23, 2006 9:55 am

EDjones always hits their goals.  EDJONES rules!


Jun 23, 2006 10:19 am

Lawsucks (great name by the way)-


Here is how it works. The firm states a percentage of bonus participation. 40% is the current number. And that is only on profit after 26K. The grid has 5 tiers. The best way to describe this system is to illustrate because it was conceived by the owners for the owners (or at least that's my take). Below is an example of 100K trimester profit, I am estimating a 750K producer.


Profit


6500x8%=520


6500x16%=1040


6500x24%=1560


6500x32%=2080


74000x40%=29,600


Total Trimester Bonus to IR= 34,800 (34.8%)


Total Trimester Profit to GP= 100,000-34,800=65,200 (65.2%)


Remember that the expenses the GP's control (1300 month for the god awful satellite) and I am told expenses are not decreasing when the T1's are installed. But Lawsucks my point to this was the GP's are better off having 4 IR's at 200K gross than 1 at 800K. The profit is not distributed down to the troops. It remains with the owners. So if the attrition numbers are higher but the revenues remain constant, who wins in this equation? It clearly ain't us.


I can't wait for the Jonesheads without calculators to respond. This is kumbaya week (regionals) so the fluids are flowing and their brains are turning to mush. And to think I was one of them.

Jun 23, 2006 2:45 pm

I would be curious to see how many are defecting to the other firms.  Anybody have some stats!

Jun 23, 2006 3:29 pm
Incredble Hulk:

EDjones always hits their goals.  EDJONES rules!




Incredble (no i),


You kill me man!!!  

Jun 23, 2006 4:28 pm

The needle of total IRs hasn't moved much in the last few years, and it probably won't.  At this point, the relative numbers recruited vs. left at most firms is relatively flat.  LPL was down in net reps last year, but revenue increased.  It seems that EDJ is losing the big boys and bringing in tons of newbies to try to make up for it.

Jun 23, 2006 6:12 pm
Incredble Hulk:

EDjones always hits their goals.  EDJONES rules!




as long as the goal is to bend you over and make you sqeal like a pig.

Jun 26, 2006 12:43 am

How do you define veteran?

Jun 26, 2006 9:58 am

Don't worry rank--your not one.

Jun 26, 2006 11:04 am
zacko:

Don't worry rank--your not one.


Jun 26, 2006 11:38 am

The thing that other firms have capitalized on is recruiting the 1st/2nd quintile producer away from Jones, LOS 5 and under.  While this isn't a big hit to Jones, it is a win for the other BDs - less costly hire, plus someone who can prove they can get the job done.  With a better product offering than Jones, these firms feel that they can capitalize on these reps.

Jun 26, 2006 12:31 pm
rankstocks:

How do you define veteran?



 They look like this- remember- the guys in your region who are always laughing at your stupid comments.

Jun 26, 2006 3:02 pm
BrokerRecruit:

The thing that other firms have capitalized
on is recruiting the 1st/2nd quintile producer away from Jones, LOS 5
and under.  While this isn't a big hit to Jones, it is a win for
the other BDs - less costly hire, plus someone who can prove they can
get the job done.  With a better product offering than Jones,
these firms feel that they can capitalize on these reps.





That would be me

Jun 26, 2006 3:06 pm

It seems that the ones who have been there for 10+ years have deemed it is a very good fit for them and they are, generally, quite succesful.  It's not a horrible firm, just not right for some producers.  The 3-5 year IR is right in the wheelhouse for indy and wires and should continue to be the case for some time.

Jun 27, 2006 11:59 pm
BrokerRecruit:

It seems that the ones who have been there for 10+ years have deemed it is a very good fit for them and they are, generally, quite succesful. It's not a horrible firm, just not right for some producers. The 3-5 year IR is right in the wheelhouse for indy and wires and should continue to be the case for some time.





I have a feeling the window is closing on the 3-5 year brokers exodus. Assuming they stop jacking around with the LP.

Jun 28, 2006 8:51 am

Out of curiosity, Incredible, what are your thoughts on why this exodus will stop?  Offering more LP?