Edward Jones Article WSJ

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Jan 12, 2009 8:29 pm

Did anyone see the Wall Street Journal article on Edward Jones Jan 10, 2009.  The writer puts Jones FA's in a bad light.  Makes them look like small town hicks that go door to door commision only pushing investments.  I know, I know, this is all true.  I can't believe Jim Weddle let this writer in to a training class and let a one sided story get published.  Then did not give the FA's a warning it was going to be run.

Jan 12, 2009 8:39 pm

Rumor has it(heard an FA in my old region) that EDJ might actually lose money for the first time.. Having trouble selling advisor program to vets(it takes 5 days to rebalance because a client has to sign new papers to reallign).

 
 
Jan 12, 2009 8:46 pm

The story was more or less fair, and anyway, any publicity is good publicity. Jones didn't like it, though.



Jan 12, 2009 11:16 pm
Squash1:

Rumor has it(heard an FA in my old region) that EDJ might actually lose money for the first time.. Having trouble selling advisor program to vets(it takes 5 days to rebalance because a client has to sign new papers to reallign).

Are you referring to their new fee-based platform?  Why all the paperwork and delay?  Compliance CYA and tech problems?

 
 
Jan 13, 2009 7:27 am

My son who is a business major, laugh and laugh at the article.  It is soooooo degrading to edj. I was there, it really is true. They forgot the part about going out to shovel the walks of old ladies with the hopes of being paid for with there statements!!! (below zero wind chills really help) You must do whatever it takes to "gain" their confidence. The crazy thing is, it does work.  Door knocking is cheap advertising! If you door knock a new area it is not too bad. But door knocking and being the 4 or 5 to come by their door is almost a joke and appears very desperate. Have a great day! The only good thing is EDJ customer don't read the WSJ!

Jan 13, 2009 8:14 am

http://online.wsj.com/article/SB123155200027870311.html#articleTabs%3Darticle   Here is the link...enjoy!

Jan 13, 2009 12:37 pm

I didn't think it was a terrible article, although I did laugh at the mental image of Jim Weddle cowering behind a tractor after being chased by a bull.  There were a couple of statements that surprised/amused me:

 


"Edward Jones follows much the same model it did when it was founded in 1922. It features a combination of high fees and relatively conservative investments." (I've never thought of Jones as a "high-fee" firm)
 
"They are taught to hold a golf ball in their hands so that knocks are loud and knuckles don't wear down." (Isn't that hard on doors?)
 
"Advisers take notes on tablet PCs that they carry with them. Before they got the computers, they carried books and were sometimes mistaken for missionaries." ()
 
All in all, what I read is a pretty good description of local Jones reps, and other than the "high-fee" comment and the rehash of the 2004 settlement, I didn't find it all that negative.  I did take issue with the assertion that Jones missed the tech stock bubble, as I saw a lot of Lucent and Worldcom in Jones portfolios.  I'll give Jones the auction rate argument, but gee, I avoided that one too, although to be honest, I was taking a hard look at them before they collapsed.
 
All in all, not a bad article, IMO, although I think I'll reprint that article, highlight the "high-fee" comment and put it in my war book...
Jan 13, 2009 12:49 pm

I thought the part about the training hurt EDJ a little.  They made it sound as if they pull guys off the street and teach them how to approach a dog for 5 days then put FA on their business cards!

Jan 13, 2009 12:51 pm

Having worked at the firm, I think the article is accurate... But don't you just get the impression that this is a southern hillbilly firm.... I know it's not, but some of the people they interview at Jones are just terrible at giving quotes and one liners...


Glad I left..
Jan 13, 2009 1:24 pm
LA Broker:

I thought the part about the training hurt EDJ a little.  They made it sound as if they pull guys off the street and teach them how to approach a dog for 5 days then put FA on their business cards!

 
...I remember that trip  
 
Jan 13, 2009 1:52 pm

I'd say the article was spot on...they do pull people off the street and teach them to sell products.  Its a sales organization ...thats it..nothing more nothing less.

Jan 13, 2009 2:13 pm
LA Broker:

Did anyone see the Wall Street Journal article on Edward Jones Jan 10, 2009. The writer puts Jones FA's in a bad light. Makes them look like small town hicks that go door to door commision only pushing investments. I know, I know, this is all true. I can't believe Jim Weddle let this writer in to a training class and let a one sided story get published. Then did not give the FA's a warning it was going to be run.





Weddle doesn't care. Heck its on our UPTICK page today for the world to see. I didn't have time to read the article this morning but after reading these comments I went back and read it. I don't think the article was bad at ALL. I also disagree that it will discourage people from Jones I think that it was a fair view of Jones and nothing bad. I tell my clients how I started to build my business I am proud of my hard work. Since most of my clients are business owners they agree you have to do the hard work to be successful. No shame here.

WSJ could have followed around the wirehouse brokers.. That would have entailed them sitting in a cubical or an office all day while the brokers cold called people out of the phone book. That might have made for a boiler room environment.. Much more entertaining.



Miss J

Jan 13, 2009 3:37 pm
MISS JONES:
LA Broker:

Did anyone see the Wall Street Journal article on Edward Jones Jan 10, 2009.  The writer puts Jones FA's in a bad light.  Makes them look like small town hicks that go door to door commision only pushing investments.  I know, I know, this is all true.  I can't believe Jim Weddle let this writer in to a training class and let a one sided story get published.  Then did not give the FA's a warning it was going to be run.





Weddle doesn't care. Heck its on our UPTICK page today for the world to see. I didn't have time to read the article this morning but after reading these comments I went back and read it. I don't think the article was bad at ALL. I also disagree that it will discourage people from Jones I think that it was a fair view of Jones and nothing bad. I tell my clients how I started to build my business I am proud of my hard work. Since most of my clients are business owners they agree you have to do the hard work to be successful. No shame here.

WSJ could have followed around the wirehouse brokers.. That would have entailed them sitting in a cubical or an office all day while the brokers cold called people out of the phone book. That might have made for a boiler room environment.. Much more entertaining.



Miss J




Have you ever seen "The Devil in Miss Jones"?

Jan 13, 2009 4:21 pm

Did anyone think that the comment "the average salesperson, including some women, make $65,000 per year..." was bit sexist?

Jan 13, 2009 4:30 pm
advzrguy:

Did anyone think that the comment "the average salesperson, including some women, make $65,000 per year..." was bit sexist?



No. It explains the downward pressure on the average.

Jan 13, 2009 5:03 pm

I thought the depiction of the training was horrible.  I thought the comment about high fees was way off base.  And I thought the comments about the couple of prospect "turndowns" were obviously written from someone who doesn't really understand the business at all.  Turndown implies something negative happened.  He got two new prospects out of those contacts.  That's actually a good thing.  I'm actually shocked that Kevin Alm would be quoted to say that 60% of our trainees drop out in the first 6 months.  Two years, yes.  But not 6 months. 

 
Monopoly - I'm glad your wet behind the ears, not yet in the workforce, theory educated, son got a good laugh at Jones' expense.  My personal opinion is when he's walked a mile in those shoes (or anyone's shoes) he can laugh at it.   Until then, don't knock what you don't understand.
 
Jan 13, 2009 5:24 pm

Spiff..are you saying Alm was telling a lie when he stated 60% washout in the first 6months?  Are you privey to the numbers?  After reading the link, I just shook my head in disgust..what a horrible way to make a living..and the poor sole keeps hounding those people..basically begging them to do business.  I guess if I was unemployed, a few months on EDJ's dollar wouldn't be to bad until I got a new gig.  Sucks in this weather though...

Jan 13, 2009 6:01 pm
Monopoly - I'm glad your wet behind the ears, not yet in the workforce, theory educated, son got a good laugh at Jones' expense.  My personal opinion is when he's walked a mile in those shoes (or anyone's shoes) he can laugh at it.   Until then, don't knock what you don't understand.
 
 
Not too sure how I became " wet behind the ears" been in sales for over 15 years..just glad not everyone has to knock on doors to build a business. It also is true about being told to go sell after about 5 days of training.  First account I opened was over 200k, when I asked for help my field trainer,  he said "just put it in American Funds". So I did I pick 4 funds and put 25k in each!!!! That what a week of training does for ya!!
 
Jan 13, 2009 6:19 pm
monopolybet:
First account I opened was over 200k, when I asked for help my field trainer,  he said "just put it in American Funds". So I did I pick 4 funds and put 25k in each!!!! That what a week of training does for ya!!

 
I guess the training skips math and the hiring process doesn't require much either (?).
Jan 13, 2009 6:24 pm

I dunno.  Upon first read I got the impression they were describing the company in a folksy way.

 
On a second read it seems like they're selling Amway on the set of Green Acres.  A dog rescue, a kid stuck in a tree and a bull chasing you in circles around a tractor?  Bible stores surrounded by hay bales on Honeysuckle Street?
 
If I was a customer considering using Jones services, this would definitely put me off.  The product is described as high-fee (is it, compared to others?) and the description of the training program is ridiculous.  They mention Dog Approach 101 and nothing about passing the same exams as everyone else in the industry?
 
The Wall Street Journal certainly didn't do Jones any favors.
 
Oh, and somebody please tell me that humiliating yourself in 20 degree weather for 60 hours a week pays better than $65k a year.