Another reason to go indy

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May 11, 2006 12:37 am

i took over an edj office that 4 previous ir's had failed at and the assets had been given to a nearby ir. i am in an older part of a large community that a lot of people are moving out of.  i have also seen my prospecting area shrink significantly by all of the new brokers they have added. i have survived and built a nice book anyway. the appeal of going indy for me would be the ability to move my office to a better location, to prospect wherever the heck i wanted and to be able to use personalized newsletters, brochures,web site,etc. things we are not allowed to do at edj.       doubleb

May 11, 2006 1:45 am

doubleb,


    You must be new to the business, good luck to you.  Problem is, I don't think you get it.  If you are worried about competition from other Jones brokers, there must not be much competition from other firms.


    I hate to break it to you, but if one of the reasons you want to move is to prospect wherever you want to, you have not been in the business long enough to even think about moving indy.  You need 40-50 million to make it worth your while.


    If you need personalized newsletters and brochures, you need to spend less time worrying about what you can and can't print out, and more time prospecting in person and on the phone.


    Not to hammer a fellow Jones broker, but it sounds like the leadership in your region is lacking, otherwise someone would have already told you what I just did.

May 11, 2006 6:44 am
rankstocks:

doubleb,


    You must be new to the business, good luck to you.  Problem is, I don't think you get it.  If you are worried about competition from other Jones brokers, there must not be much competition from other firms.


    I hate to break it to you, but if one of the reasons you want to move is to prospect wherever you want to, you have not been in the business long enough to even think about moving indy.  You need 40-50 million to make it worth your while.


    If you need personalized newsletters and brochures, you need to spend less time worrying about what you can and can't print out, and more time prospecting in person and on the phone.


    Not to hammer a fellow Jones broker, but it sounds like the leadership in your region is lacking, otherwise someone would have already told you what I just did.



$40-$50 million to make it worth your while?  Come on rankstocks, give us a break.  I left Jones with $22 million and am doing great.  You have had a bit too much of the kool aid.

May 11, 2006 8:47 am
Gone Indy:
rankstocks:

doubleb,


    You must be new to the business, good luck to you.  Problem is, I don't think you get it.  If you are worried about competition from other Jones brokers, there must not be much competition from other firms.


    I hate to break it to you, but if one of the reasons you want to move is to prospect wherever you want to, you have not been in the business long enough to even think about moving indy.  You need 40-50 million to make it worth your while.


    If you need personalized newsletters and brochures, you need to spend less time worrying about what you can and can't print out, and more time prospecting in person and on the phone.


    Not to hammer a fellow Jones broker, but it sounds like the leadership in your region is lacking, otherwise someone would have already told you what I just did.



$40-$50 million to make it worth your while?  Come on rankstocks, give us a break.  I left Jones with $22 million and am doing great.  You have had a bit too much of the kool aid.



rankstocks


Where are you getting your numbers from? (40-50 mil)...please don't tell me that a GP gave you these numbers. The averege book at RJ indy is 23 million.

May 11, 2006 10:08 am

Dude, quit main-lining kool-aid.  I've seen indy reps be much more successful with $15M AUM than some Jones reps with $30-40M.  Contrary to the "Is the Grass Really Greener" propaganda they throw out to you, going indy isn't evil.  Annuities aren't evil.  Dare I say...Fee-based business isn't evil.  The fact is is that door-knocking isn't everyone's cup of tea.  DD may be better at cold calling, seminars.  Bottom line is that there are different marketing tactics that work better for different people. 


I think they're looking at it in the right perspective - Jones is shrinking the area by having an office between every Subway and dry cleaners in the area and there is no differentiation between these to prospective clients.  He/she is looking to DIFFERENTIATE themself from the other Jones offices by being able to provide something different.  Maybe it's fee-based products, maybe it's financial planning, who knows.  It comes back to what they can do today that has made them successful and what other tools they can add to the roadside emergency toolbox that Jones gave to them that came equipped with a balpine hammer, 7/8 ratchet and an allen wrench.


I live in a city of 25,000 outside of a 750,000 person metro area (20 mi in between).  In my city, there are 11 Jones reps.  ELEVEN!  Tell me that's not oversaturation!  We have more Jones offices than Subways.

May 11, 2006 10:29 am

I actually agree somewhat with rank .  While many brokers go indy with 20-25 million--I'd advise someone to wait until they have at least 35 million.  With staff pay, rent, other overhead.  Need to be doing 250k at a minimum to come out ahead.


Of course guys do it with less--have part time staff (or no staff) and they do just fine.  I'd still advise to get to the 35 million mark before you leave. 

May 11, 2006 10:44 am

It is much easier to do with that amount, but like you said, Zacko, if you don't have a ton of overhead, it's no biggie.  Reps transition all the time with no admin just to get started and are able to build from there. 


I placed a guy who had $3M in assets.  He called me back from a voicemail, we went through his numbers and I almost crapped my pants when he said he wanted to go indy with only $3M.  I told him I ehtically can't advise him to do so unless he has $10M+ and he would have to work directly with the Business Development Dept. and the CEO to deem whether it's a good move.  Just seemed far too risky.


Turns out, he made the move, brought on $5M the last 3 months of last year and has doubled his production, so they knew what they were doing.  I played devil's advocate the entire time because he needed to hear the raw truth with what could happen if he moved and blew up. 

May 11, 2006 12:04 pm

Hey doubled,


Just do it! Don't wait until you have 35, 40, 50, or 100 Million. It doesn't matter. I left with under 20. I never regreted it. I have used a part time assistant from time to time but mostly I am on my own. I laugh at all the Jones guys, all bragging about how much they are grossing. They won't tell you the truth, which is what they are NETTING! It's always the same DUNG from them. "Well I grossed "X" much but I did get a trip ( which they are mad that they have to pay taxes on,) and they always through in the "possiblity" of Partnership.


None of us that are indy are talking or bragging about the stock options available to us, nor are we talking about our own investments and returns, yet, the Jones guy always throws everything into the mix.



Trust us doubled! You can make it with 10 mill just fine. You can team up with other exjones guys and share an assistant until you really feel that you need your own! It works and your business model there at Jones can easily transform into Truly being yours!

May 11, 2006 10:02 pm

thanks for the feedback, both pro and con. actually i am at 33mm in assets. i would like to triple that in the next few years. i just wonder if that is possible within my little 2 mile radius. or , would i be better off to move, lose some assets in transition but be able to prospect a much larger and more prosperous area.   doubleb