EDJ Startup/Ongoing Expenses

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Feb 6, 2008 9:02 am

Maybe the Jones people can clear this up because the website doesn't go into detail.  As a new rep, what are your out of pocket expenses?  Does Jones pay for (and for how long) office expenses, secretary and marketing materials, in additional to a very small salary?  What gets them comfortable with the risk of fronting all the startup costs and then having a new rep just leave?  Thanks.

Feb 6, 2008 12:41 pm

you pay for postage and advertising out of pocket. you must sign a 3 year deal. office costs come out of future bonuses, to some degree. with 11000 reps, they have a good handle on the risk for Jones. it’s a great way to start, but not for everyone.

Feb 6, 2008 12:56 pm

read and understand the 3 year son soliciate agreement and the $72,000 training program that you may have to pay back if you leave early.    Its a good start, but you need to make a 3 year commitment if you can make a living in the industry.

Feb 6, 2008 1:43 pm
Broker7:

read and understand the 3 year son soliciate agreement and the $72,000 training program that you may have to pay back if you leave early.    Its a good start, but you need to make a 3 year commitment if you can make a living in the industry.

  Remember too, that is only the case if you move on to another brokerage with your license within that 3 years.  If you decide to quit being a registered rep, you owe nothing.
Feb 6, 2008 2:40 pm

You pay for the koolaid, but indirectly!  I just had to do it sorry guys–Jones is a great place to start–they recently changed who pays for what.  If I were you I would pm Broker24, Spiff, Mrs Jones ect…, with questions–I’m kinda nice but some of the other ex-Jones would go for the main vein!

  Good luck on your adventure--work hard!
Feb 6, 2008 3:39 pm

[quote=lambda]

Maybe the Jones people can clear this up because the website doesn't go into detail.  As a new rep, what are your out of pocket expenses?  Does Jones pay for (and for how long) office expenses, secretary and marketing materials, in additional to a very small salary?  What gets them comfortable with the risk of fronting all the startup costs and then having a new rep just leave?  Thanks.

[/quote]   They keep 60% from there on out.. You make 40% and then years later you will bitch becuase they keep too much of your money..   Miss J
Feb 6, 2008 3:54 pm

When it comes to locating office space, will they shell out for a decent storefront or put you in the cheapest available 20x20 room in some obsure office building?  You would think visibility is important in letting the public know you exist in areas of high foot traffic.

Feb 6, 2008 4:04 pm

look around you town…where are the Jones offices? not to be cynical, but it is like a 10-15% shot that you will end up with an office when you start with jones.

Feb 6, 2008 4:08 pm

i qualified for an office at Jones right before leaving and they were not cheap when it came to finding a spot.  they do care where you go, but remember, at the end of the day YOU end up paying for the office one way or another.  if you choose a new expensive location smack dab in the middle of a high priced area, it will play into how soon you become profitable and what not.  your rent is a direct expense sent back to you on the P&L. 
Jones “pays” for it sure, but they also take 60%.  there are tradeoffs everywhere, no matter who you go with.

Feb 6, 2008 4:09 pm

i knew plenty of Jones guys who were seg 3, in their 3rd year who wished their rent was lower.

Feb 6, 2008 4:11 pm

they prefer storefronts like the one they did for me; but most people in my training class simply waited to move to whereever a good current location became available–very common. depends on whether or not you are flexible location-wise. I was not due to schools, etc.

  Success totally depends on your prospecting anyway--you WILL STARVE if you think foot traffic makes any difference. no offense.
Feb 6, 2008 4:14 pm

Ok…what qualifications do you need to obtain an office?  Otherwise, what’s the alternative?  You don’t want clients coming to your house with the kids shooting them with water guns and the dog ready to chew someone’s head off…

Feb 6, 2008 4:19 pm

I agree prospecting is what makes or breaks you…

Feb 6, 2008 4:19 pm

why not ask Jones what their qualifications are?  you might want to know those things going in.  you have to be meeting or exceeding your goals at various levels.  i must admit you have to be pretty lazy or just not cut out for this profession to not be at least meeting expectations.
most new new work out of a veteran’s office for appts if they need space.  otherwise use a coffee shop, restaurant, whatever until you get an office. 

Feb 6, 2008 4:38 pm

i worked out of my bedroom until I had the required 50 accounts, and was above “expectations”.takes about a 8-12 months, though, when you figure study time, training, etc 

Feb 6, 2008 5:17 pm

Sounds like they make you pay some dues before getting that office.  Makes sense.

Feb 6, 2008 6:16 pm

if you are new/new they do.  they have been preaching no more new/new without an office or some assets to start for awhile.  not sure how that is working out.  hang in there, offices open up all the time.  it is not always the best producer who gets them either.  it is they guy most “active” within the Jones culture normally.  kissing the right behind aint a bad idea either.  it is ok to call the big dogs every once in awhile and just pick their brain.  the regional leader hears this stuff from his reps.  my region had nothing open when i left, and 2 weeks later 3 people went to rayjay and 2 others left as well.  5 open offices just like that.  maybe not the greatest situation, but an office and “storefront” nonetheless.

Feb 7, 2008 11:18 am

newnews are not yet “outlawed”

Feb 7, 2008 11:30 am

Not enough holes for  all the pegs…

Feb 7, 2008 11:30 am
theironhorse:

if you are new/new they do.  they have been preaching no more new/new without an office or some assets to start for awhile.  not sure how that is working out.  hang in there, offices open up all the time.  it is not always the best producer who gets them either.  it is they guy most “active” within the Jones culture normally.  kissing the right behind aint a bad idea either.  it is ok to call the big dogs every once in awhile and just pick their brain.  the regional leader hears this stuff from his reps.  my region had nothing open when i left, and 2 weeks later 3 people went to rayjay and 2 others left as well.  5 open offices just like that.  maybe not the greatest situation, but an office and “storefront” nonetheless.

  A lot of Goodknights are being done, but obviously only where offices already exist.  If you are trying to go into a new area, Jones can't help you much.  So unless you are in an area with several offices already, start scoping out potential office space (think 800-1200 sq ft).   As far as the office, don't go to either extreme.  Jones likes to keep the rent in a range, but they will pay for a nice space.  I have a VERY nice office.  And it was not that expensive.  However, I have seen some pretty crummy ones.  Mostly, it is the FA that lets them go to crap.  I walk into some that are just awful.  Crap everywhere.  Most locations can be made to look good.  But I absolutely did not want a "storefront" next to the proverbial Subway, so I waited to find a good class-A space in my town.  If you are going after the upper end client, you can't be next to a laundramat, with "buy 5% CD's now!" plastered on your windows.  My spot is first class, no neon signs, very little is "Jonesy" about it.  And I decorated very nicely.  Spent some money to do it right.