Why is it that some mid-level IRs are leaving Jones after receiving their LP offering? What was disclosed in the offer that made them decide to leave?
Define mid level IR. If mid level is 200-250 gross, they cant expect some huge offering.
The ones I know were between 250-300 gross with one over 400K who decided to leave after reading all of the disclosures in their LP offering paperwork! Just makes you wonder why multiple brokers who were the golden boys of the region chose to pack it in after receiving an LP offering.
[quote=FreeFromJones]The ones I know were between 250-300 gross with one over 400K who decided to leave after reading all of the disclosures in their LP offering paperwork![/quote]
Maybe you should ask the ones you know.
"Some" mid-level IR's is a pretty broad statement when there are, like, 10,000 IR's. Is some 3? Is it 2? Is it 10? Is it 500? I have been around long enough to know how these things spread. By next week, there will be a "mass exodus" of Jones IR's irate over the recent LP offering. I haven't heard any complaints yet.
I can only say for the region I was in. 3 is the number, out of 45 in the region (that includes all of the newbies), so counting me and the next one due to leave very soon, that makes 5 in a span of just a few months. All have gone independent. 10 % attrition for one region is a little extreme, just wondering if Jones is having similar problems in other regions. The 3 that left were just what I said, they were members of the “chosen”. It was really a shock that they chose to leave. Must have been either a low LP offering or they finally decided that they didn’t like Jones keeping so much of their earnings.
[quote=footsoldier]What details are you referring to Max?[/quote]
Details? I didnt say anything about details. I don’t need any stinkin details!
The only detail I can think of was the amount was less than expected. I heard that from a couple of old friends still there. Broker24 may no more.
Those folks must have left either b/c of a low offer or they were leaving anyway. If you read all the health risks for Tylenol, you would never take it either. I cant believe disclosures were part of the decision.
It's possible that those specific brokers were not offered as much as they expected. It's all based on production, AUM, firm contributions, etc. Maybe they felt short-changed. I can't speak to their specific situation. But honestly, and I guess this goes both ways, since I only know 30-40 EDJ brokers in my area, but I have never heard anyone complain about it openly. And it's optional. It's not like you are forced to accept an LP offering. But the return is pretty remarkable. Yes, it is very much like a bond (albeit a variable return), but I don't know many of us that would talk our clients out of a 30 year bond paying 15-20% (for a portion of our wealth) per year.
My guess is that if Jones brokers left because the LP they were offered was too small, then they were just looking for an excuse to leave anyway. I haven't talked to anyone yet who got as much LP as THEY felt they deserved. I haven't talked with a client yet that didn't think I should have made them more money last year. Some people gripe about everything.
I've read the disclosures and I don't remember getting pissed at Jones after I was done.
I can't believe I'm agreeing with you. But, after you volunteer for call sessions, recruiting broadcasts, regional meetings, drive hours to mentor newbies who quit it's frustrating to only receive XXXX amount of LP. They (the GP's) are able to create the aura (sp?) that the LP is the be all end all. When you actually receive the XXXX amount it's disappointing.
I have a friend of mine still at Jones who will be leaving in April and he mentioned that he received 24k in LP (first offering). So he said, $3k per year for the 7 1/2 years I've been with the firm is not worth it for me to stay here.
Jones is a great place to start but not a great place to finish! Get out in the Indy world and your eyes will light up and you will see all the things Jones holds back from you.
So, I'm assuming he didn't accept the offer for the LP? If he didn't it's probably a pretty big sign to someone at the home office that there's something not right in his office. As far as Jones is concerned anyway.
I've never heard anyone, GP or otherwise, that has said that LP is the ONLY reason you should stay at Jones. It's not the only reason I plan on staying here. I like the technology, the payout, GP's, and the insurance benefits.
So, I’m assuming he didn’t accept the offer
for the LP? If he didn’t it’s probably a pretty big sign to someone at the
home office that there’s something not right in his office. As far as Jones
is concerned anyway.
When I refused the LP, I had a phone call from my regional leader that
very evening. (I was in year four, if memory serves.) He wanted to know
just what I thought I was doing. I answered, truthfully, that I had gone
into more debt than I wanted just getting the business off the ground, I
was close to paying it all back, and I had no intentions of going into more
debt at that time for ANY reason. Further, if any more money was going
to be spent on anything Edward Jones it was going to be taken from profit
from the business and not from my pocket. My RL seemed to feel that I
was giving the region a “black eye”.
My guess is that if Jones brokers left because the LP they were offered was too small, then they were just looking for an excuse to leave anyway. I haven’t talked to anyone yet who got as much LP as THEY felt they deserved. I haven’t talked with a client yet that didn’t think I should have made them more money last year. Some people gripe about everything.
I've read the disclosures and I don't remember getting pissed at Jones after I was done.[/quote]
Dude I'm just curious do you wear boxers with the EdJones logo on them?
They must have made a round of stronger kool-aid to feed you guys.....