EJ Contract, 1 year no solicit
My contract says that I cannot talk to clients whether I seek them out or they call me for 1 year after I leave the company. I don’t mind the the 3 year thing, but this seems to be extreme. The paragraph says that it was revised 09/09. I don’t plan on leaving, but I do want to have all of my options available.
Can they really preven my customers from contacting me after I fulfill my 3 year commitment?[quote=I knock]My contract says that I cannot talk to clients whether I seek them out or they call me for 1 year after I leave the company. I don’t mind the the 3 year thing, but this seems to be extreme. The paragraph says that it was revised 09/09. I don’t plan on leaving, but I do want to have all of my options available.
Can they really preven my customers from contacting me after I fulfill my 3 year commitment? [/quote]No. They can't prevent customers from contacting you. They are free to do business with whoever they want.
It's basically an unenforceable contract.
Dislcaimer: The contents of this post reflect only the opinion of Moraen and do not constitute legal advice. Please consult with an attorney.
Anyway, it is unlikely anybody could enforce that.
I knock from a different thread - "Do the people that don't make it at Edward Jones fail because they don't actually get out and doornock their butt's off?
Others that started from scratch how did you do it? I need to make a decision before I sign on the dotted line. So any positive feedback would be appreciative. Yes, I know that this is a sales job. I have been in sales before. I am not afraid to discuss assett allocation, risk tolerance, bonds, American funds etc... Yes I am prepared to knock on door after door after door, cold call, send out mailers, set up a monthly community meeting about who what and why. I don't know any rich people so all assetts will be gathered from cold calling and knocking, is it possible?" Dude. Just pack it in. You are thinking about all of the wrong issues. You have no clients right now. You are dripping of prospecting avoidance. Go to a bank or find a different career path. Full disclosure - I am at a bank.Paste in the exact wording. My contract (of course from several years ago) does not state that.
Having that wording may at least allow them to put out a TRO to stall things until your attorney says NFW.Your agreement no to solicit means that you shall not, during your employment with EJ, and for a period of one year thereafter, contact or communicate with, regardless of who initiates said contact or communication, and EJ client for the purpaose of inviting, encouragin or requesting any EJ client to transfer from EJ to you or your new employer.
Guys leave all firms whether it be EJ or a bank or a wire to go Indy. It isn't much different. Everyone signs contracts and everyone has some kind of non solicit. What I am saying to you is going Indy isn't a concern for you at this point. You need to have a singular focus on gathering assets and when the time comes whether it be 1 year or 10, then you can worry about going Indy. Now you don't have a single client and you are asking about your contract and if it is possible to build a business without rich contacts. Yes it is possible. Yes it takes a long time without a natural market. That is why I went to a bank after plowing forward at EJ for 2 1/2 years at a pace I wasn't happy with.
[quote=Ron 14]
I knock from a different thread - "Do the people that don't make it at Edward Jones fail because they don't actually get out and doornock their butt's off?
Others that started from scratch how did you do it? I need to make a decision before I sign on the dotted line. So any positive feedback would be appreciative. Yes, I know that this is a sales job. I have been in sales before. I am not afraid to discuss assett allocation, risk tolerance, bonds, American funds etc... Yes I am prepared to knock on door after door after door, cold call, send out mailers, set up a monthly community meeting about who what and why. I don't know any rich people so all assetts will be gathered from cold calling and knocking, is it possible?" Dude. Just pack it in. You are thinking about all of the wrong issues. You have no clients right now. You are dripping of prospecting avoidance. Go to a bank or find a different career path. Full disclosure - I am at a bank. [/quote] Ron prospecting does not scare nor intimidate me. It does not make sense to build a book of business knowing that you can never go independent. But if you never plan on leaving the bank by all means stay there and get your W-2This thread gets started once a week under different headings, but ultimately the moral of the story is the same. Ron is trying to say that you are on step 6 or 7 without getting to step 2. It’s like worrying what you’re going to name your first yacht. You don’t own one, nor will you imminently own one, so don’t worry about it.
If you are already worrying about it, half the battle is already lost whether you admit it or not. You should be worrying about putting food on your table in the month of February, period. It sounds harsh, but it’s true.
Now, of course, you will post again getting all defensive and self righteous about how you already know that, etc, etc, etc. Do yourself a favor and just internalize the advice.
Well the answer to your initial question is no. Now go out and build that book that you are afraid you will be unable to transfer.
For your first 5-7 years this business is a relentless series of kicks to the nuts. You need to be completely focused on gathering assets and nothing else or you will be taken down. I made mistakes at Jones that hampered my progress. I see you worrying about some of the same irrelevant things that I was concerned about. Next thing you know you have knocked on 10,000 doors and you are grossing 10k and pissed at the world.[quote=Ron 14]Well the answer to your initial question is no. Now go out and build that book that you are afraid you will be unable to transfer.
For your first 5-7 years this business is a relentless series of kicks to the nuts. You need to be completely focused on gathering assets and nothing else or you will be taken down. I made mistakes at Jones that hampered my progress. I see you worrying about some of the same irrelevant things that I was concerned about. Next thing you know you have knocked on 10,000 doors and you are grossing 10k and pissed at the world. [/quote]I see your point.
[quote=I knock][quote=Ron 14]
I knock from a different thread - "Do the people that don't make it at Edward Jones fail because they don't actually get out and doornock their butt's off?
Others that started from scratch how did you do it? I need to make a decision before I sign on the dotted line. So any positive feedback would be appreciative. Yes, I know that this is a sales job. I have been in sales before. I am not afraid to discuss assett allocation, risk tolerance, bonds, American funds etc... Yes I am prepared to knock on door after door after door, cold call, send out mailers, set up a monthly community meeting about who what and why. I don't know any rich people so all assetts will be gathered from cold calling and knocking, is it possible?" Dude. Just pack it in. You are thinking about all of the wrong issues. You have no clients right now. You are dripping of prospecting avoidance. Go to a bank or find a different career path. Full disclosure - I am at a bank. [/quote] Ron prospecting does not scare nor intimidate me. It does not make sense to build a book of business knowing that you can never go independent. But if you never plan on leaving the bank by all means stay there and get your W-2 [/quote] GET THE F*&K OUT OF HERE!!. Don't make fun(or attempt to make fun of people who have a W-2) million dollar wirehouse producers have w-2s.... Second, you aren't going to make it... Your posts on this forum consists of not knowing rich people and troubles with reading a standard non-solicit contract(all firms have these by the way). Most people know Ron on this forum and a good knowledgable guy. Banks aren't the worst place to be and can be great for those starting out....[quote=Squash1][quote=I knock][quote=Ron 14]
I knock from a different thread - "Do the people that don't make it at Edward Jones fail because they don't actually get out and doornock their butt's off?
Others that started from scratch how did you do it? I need to make a decision before I sign on the dotted line. So any positive feedback would be appreciative. Yes, I know that this is a sales job. I have been in sales before. I am not afraid to discuss assett allocation, risk tolerance, bonds, American funds etc... Yes I am prepared to knock on door after door after door, cold call, send out mailers, set up a monthly community meeting about who what and why. I don't know any rich people so all assetts will be gathered from cold calling and knocking, is it possible?" Dude. Just pack it in. You are thinking about all of the wrong issues. You have no clients right now. You are dripping of prospecting avoidance. Go to a bank or find a different career path. Full disclosure - I am at a bank. [/quote] Ron prospecting does not scare nor intimidate me. It does not make sense to build a book of business knowing that you can never go independent. But if you never plan on leaving the bank by all means stay there and get your W-2 [/quote] GET THE F*&K OUT OF HERE!!. Don't make fun(or attempt to make fun of people who have a W-2) million dollar wirehouse producers have w-2s.... Second, you aren't going to make it... Your posts on this forum consists of not knowing rich people and troubles with reading a standard non-solicit contract(all firms have these by the way). Most people know Ron on this forum and a good knowledgable guy. Banks aren't the worst place to be and can be great for those starting out.... [/quote]Thanks for answering the contract question and the words of wisdom.
[quote=I knock]
...It does not make sense to build a book of business knowing that you can never go independent. But if you never plan on leaving the bank by all means stay there and get your W-2 [/quote] Is there terribly dishonourable thing about working at a bank? Ron and I go at it regarding moral issues, but not about being at a bank. Wish I qualified, but banks where I work require a T12 of $250K. I can't imagine a world where a fully qualifed prospect list comes to you, and where work always, always ends before dinner time and you can't see the client before 9. Yeah, really makes that image-swallowing w-2 even harder to take. BTW ... at Jones, do you get a W2?"Make sure you get a back up gig you thoughtless TOOL"
This would be a much better forum with basic manners. (even for newbies who aren't gonna make it). Maybe we need a minimum age requirement.[quote=LockEDJ][quote=I knock]
...It does not make sense to build a book of business knowing that you can never go independent. But if you never plan on leaving the bank by all means stay there and get your W-2 [/quote] Is there terribly dishonourable thing about working at a bank? Ron and I go at it regarding moral issues, but not about being at a bank. Wish I qualified, but banks where I work require a T12 of $250K. I can't imagine a world where a fully qualifed prospect list comes to you, and where work always, always ends before dinner time and you can't see the client before 9. Yeah, really makes that image-swallowing w-2 even harder to take. BTW ... at Jones, do you get a W2?[/quote] Yes edj is w-2[quote=newnew]
"Make sure you get a back up gig you thoughtless TOOL"
This would be a much better forum with basic manners. (even for newbies who aren't gonna make it). Maybe we need a minimum age requirement.[/quote] Age isn't the issue, Grubs are... People who have never prospected or sold anything come on here and make fun of people and where they work.My comment still stands. Wow- thin skin
It’s interesting how E/J attempts to “own” it’s FA’s book, all while actively soliciting transfer rep’s. And E/J doesn’t seem to mind the no-compete terms of those xfer contracts at all. Keep a file of all internal notes about transfer FA’s. Your lawyer will be able to use it as evidence in case jones ever tries to enforce the no-compete clause.
[quote=52new]It’s interesting how E/J attempts to “own” it’s FA’s book, all while actively soliciting transfer rep’s. And E/J doesn’t seem to mind the no-compete terms of those xfer contracts at all. Keep a file of all internal notes about transfer FA’s. Your lawyer will be able to use it as evidence in case jones ever tries to enforce the no-compete clause.[/quote]
Why is that interesting? Jones is trying to protect it’s business. Sometimes the threat of inconvenience is enough to get people to stay. It’s good business.
The non-solicit has been upheld quite often.
Does this mean Jones won’t let him call his Mom or Dad for a year after he leaves?
[quote=Moraen] [quote=52new]It’s interesting how E/J attempts to “own” it’s FA’s book, all while actively soliciting transfer rep’s. And E/J doesn’t seem to mind the no-compete terms of those xfer contracts at all. Keep a file of all internal notes about transfer FA’s. Your lawyer will be able to use it as evidence in case jones ever tries to enforce the no-compete clause.[/quote]
Why is that interesting? Jones is trying to protect it’s business. Sometimes the threat of inconvenience is enough to get people to stay. It’s good business.
The non-solicit has been upheld quite often.
[/quote]
[quote=Ron 14][quote=Moraen] [quote=52new]It’s interesting how E/J attempts to “own” it’s FA’s book, all while actively soliciting transfer rep’s. And E/J doesn’t seem to mind the no-compete terms of those xfer contracts at all. Keep a file of all internal notes about transfer FA’s. Your lawyer will be able to use it as evidence in case jones ever tries to enforce the no-compete clause.[/quote]
Why is that interesting? Jones is trying to protect it’s business. Sometimes the threat of inconvenience is enough to get people to stay. It’s good business.
The non-solicit has been upheld quite often.
[/quote]
Non-solicit does not prevent the client from leaving their current b/d and following the FA. FINRA makes it quite clear the client is free to do business with whomever they chose, regardless of the verbage in the contract. I am not a lawyer, this does not constitute legal advice and you should contact legal representation regarding your own circumstances.The non-solicit has been upheld quite often.
Non-solicit does not prevent the client from leaving their current b/d and following the FA. FINRA makes it quite clear the client is free to do business with whomever they chose, regardless of the verbage in the contract. I am not a lawyer, this does not constitute legal advice and you should contact legal representation regarding your own circumstances.[/quote][quote=Moraen] The non-solicit has been upheld quite often.
I didn't say that it did. That's why I said his original statement was ridiculous. You can't prevent a client from doing business with who they want to.
Just the non-solicit part.
[quote=Mr.Blonde][quote=Ron 14][quote=Moraen] [quote=52new]It’s interesting how E/J attempts to “own” it’s FA’s book, all while actively soliciting transfer rep’s. And E/J doesn’t seem to mind the no-compete terms of those xfer contracts at all. Keep a file of all internal notes about transfer FA’s. Your lawyer will be able to use it as evidence in case jones ever tries to enforce the no-compete clause.[/quote]
Why is that interesting? Jones is trying to protect it’s business. Sometimes the threat of inconvenience is enough to get people to stay. It’s good business.
The non-solicit has been upheld quite often.
[/quote]
who cares what you think.......................? I am tired of idiots coming on here with the same question over and over. i.e. "How much vacation time can I take?" or "I've been in the job 2 months and was wondering if I could be a hedge fund manager" or "I've been in the job 1 month and was wondering how I could be a institutional bond trader?" or this guy.................."Do the people that don't make it at Edward Jones fail because they don't actually get out and doornock their butt's off? Others that started from scratch how did you do it? I need to make a decision before I sign on the dotted line. So any positive feedback would be appreciative. Yes, I know that this is a sales job. I have been in sales before. I am not afraid to discuss assett allocation, risk tolerance, bonds, American funds etc... Yes I am prepared to knock on door after door after door, cold call, send out mailers, set up a monthly community meeting about who what and why. I don't know any rich people so all assetts will be gathered from cold calling and knocking, is it possible?" You want nice newnew? Go back to you teletubbies chat room and talk to LaLa[/quote] Hilarious! Oh, and: SometimesNowhere is not a lawyer, and his views on what is funny and not funny are not to be construed in any way as a legal definition of funny. You should consult a qualified law professional for advice as to what is officially funny and what is considered funny hereto by the laws and bylaws in your state of residence.[quote=newnew]My comment still stands. Wow- thin skin
Just remember, the company you work for, Jones or whoever, is not your friend, benefactor, daddy etc. Loyalty is a fools errand. Large companies have been taking advantage of employees for a long time. Protect yourself. Plan accordingly. And set yourself up to go independent. That way you can use Jones to learn the basics until you are able to set up your own shop where you can run an ethical fee-based business, rather than the churn churn churn of the current E/J recipe. Get good legal advice sooner rather than later. A no compete for a small <50mm FA is probably not worth trying to enforce.
What do you mean by this ? Thats BS.Just remember, the company you work for, Jones or whoever, is not your friend, benefactor, daddy etc. Loyalty is a fools errand. Large companies have been taking advantage of employees for a long time. Protect yourself. Plan accordingly. And set yourself up to go independent. That way you can use Jones to learn the basics until you are able to set up your own shop where you can run an ethical fee-based business, rather than the churn churn churn of the current E/J recipe. Get good legal advice sooner rather than later. A no compete for a small <50mm FA is probably not worth trying to enforce.
I can't believe you're in your 50's; SOunds like you've never worked before, whining like a little bitchJust remember, the company you work for, Jones or whoever, is not your friend, benefactor, daddy etc. Loyalty is a fools errand. Large companies have been taking advantage of employees for a long time. Protect yourself. Plan accordingly. And set yourself up to go independent. That way you can use Jones to learn the basics until you are able to set up your own shop where you can run an ethical fee-based business, rather than the churn churn churn of the current E/J recipe. Get good legal advice sooner rather than later. A no compete for a small <50mm FA is probably not worth trying to enforce.
Say anything about jones and the rats crawl out of the woodwork. Face it, churning is more common than doorknocking at jones. Deal with it.
You are an idiot, half my posts make fun of Jones, though I will forever appreciate the training and experience. You are a hack that will never make it past 3 years, quit now.Say anything about jones and the rats crawl out of the woodwork. Face it, churning is more common than doorknocking at jones. Deal with it.
Deal with your temper. What I know is that a lot of seg5’s make a lot of money. You don’t make a lot of money with a 10bp trail. So you move people from mutuals to bonds to stocks to mutuals ad infinitum. The only way to make a good living in a transaction based business.
The best way to make a good living is to have a large book of business.Deal with your temper. What I know is that a lot of seg5’s make a lot of money. You don’t make a lot of money with a 10bp trail. So you move people from mutuals to bonds to stocks to mutuals ad infinitum. The only way to make a good living in a transaction based business.
This isn't a EJ phenomenonDeal with your temper. What I know is that a lot of seg5’s make a lot of money. You don’t make a lot of money with a 10bp trail. So you move people from mutuals to bonds to stocks to mutuals ad infinitum. The only way to make a good living in a transaction based business.
Here we go.....Just remember, the company you work for, Jones or whoever, is not your friend, benefactor, daddy etc. Loyalty is a fools errand. Large companies have been taking advantage of employees for a long time. Protect yourself. Plan accordingly. And set yourself up to go independent. That way you can use Jones to learn the basics until you are able to set up your own shop where you can run an ethical fee-based business, rather than the churn churn churn of the current E/J recipe. Get good legal advice sooner rather than later. A no compete for a small <50mm FA is probably not worth trying to enforce.
OK, here's the deal...thought I wouldn't like doing business this way, many, many big producers still regularly open 10-20 new accounts per month. They are not sitting around switching out fund families and churning stocks. They are opening new accounts, they are taking in new assets from existing clients, they have some C shares, they manage some company retirement plans with new money coming in all the time, they now have some advisory accounts, they do life insurance, LTC, etc. It doesn't all revolve around churning assets. I find the asset churners are not the big producers, but the $250K producers that have been in the business 15 years and aren't really trying anymore. The big producers are still going after assets.Deal with your temper. What I know is that a lot of seg5’s make a lot of money. You don’t make a lot of money with a 10bp trail. So you move people from mutuals to bonds to stocks to mutuals ad infinitum. The only way to make a good living in a transaction based business.
You are getting lit up by people who don't even like Jones. What the hell are you talking about ? Do us all a favor and lose your password to this site.Say anything about jones and the rats crawl out of the woodwork. Face it, churning is more common than doorknocking at jones. Deal with it.
Guys 52new is not an advisor. Ignore him. Apparently he got burned by some old EJ advisor who has long since been fired.
It’s ok 52.
You should have done a little bit of research before pretending to work for Jones though. A segment five likely gets a lot of new business. I have seen churning at jones, but it is the exception, not the rule. Just like everywhere. Sorry you had that bad experience.
Me thinks you protest too much!
I feel like I should pay you something for your advice. I am amazed you are giving this away for free! That "fools errand" quote is priceless.Just remember, the company you work for, Jones or whoever, is not your friend, benefactor, daddy etc. Loyalty is a fools errand. Large companies have been taking advantage of employees for a long time. Protect yourself. Plan accordingly. And set yourself up to go independent. That way you can use Jones to learn the basics until you are able to set up your own shop where you can run an ethical fee-based business, rather than the churn churn churn of the current E/J recipe. Get good legal advice sooner rather than later. A no compete for a small <50mm FA is probably not worth trying to enforce.
ytrewq - I think you did something to piss off 52 - were you his advisor?!
He has it in for Seg 5’s like you.
[quote=52new]Me thinks you protest too much![/quote]
Methinks that “Me thinks” is how Neanderthals used to speak. God, but you’re a moron.
What’s worse, a moron, or the idiot that can’t keep from responding to him? If BS had value, you’d be a very rich man.
The moron is worse.
Besides.....everyone knows it's "I thinks"![quote=52new]Me thinks you protest too much![/quote]
Methinks that “Me thinks” is how Neanderthals used to speak. God, but you’re a moron.
The real mystery is how he got to be in his 50’s without getting killed. There is a reason they have the Darwin awards.
The moron is definitely worse.[/quote] Ice, Am I the idiot responding to the moron 52? Is Moraen the idiot responding to me the moron? Or. Am I now the idiot responding to you the moron? Me thinks I will just be the idiot moron for all of us.[quote=52new]What’s worse, a moron, or the idiot that can’t keep from responding to him? If BS had value, you’d be a very rich man.
Hit another nerve. If it weren’t an issue then it wouldn’t register a response. All about the customer? Right.
[quote=52new]Hit another nerve. If it weren’t an issue then it wouldn’t register a response. All about the customer? Right. [/quote]
Poor 52.
I figured it out. Mel told him that he was an EJ broker, told him he should short the market 'cause it was going to 950 and lost his 52’s life savings of $1200.
That thing isn't worth the paper it is written on.
Most non-competes are non-enforceable. Even the Supreme Court has weighed in on this. However, a non-solicit clause is different. EJ's contract has already been shot down in several state courts regarding EJs mentality that the clients are EJs.
With that said, spend $500 and have a lawyer look at it before you sign it, and let you know how to get out of it without having a war of letters between attorneys.
I left within the 3 year mark and took 80% of my assets. EJ never even came after me.
I knock these posts all have some good advice. First I am glad that you are looking down the road...that is smart that you actually read the contract. When I came on board with Jones I did not read it because they buried it somewhere and promptly mailed me a copy 2 days after resigning. There is no easy way to leave jones they only way to do it effectively is to bring value to the table and make an effort from the onset to sell yourself not the company. From the beginning you will be trained to tout the firm..because you are new but keep in mind what you are doing. The cases where I have seen Jones brokers take most of their book is when they were in a small town everyone loved and respected them. Other than that if you leave and there is a weak spot in your game it will be exploited.
From my experience you are correct..Jones knows that the formula works..25 quality calls/contacts a day works. I have only met a few people who can do it consistently. Those people did very well and made a lot of money. The other side of the coin is that they created a monster of an office because there were too many households. Hence the goodknight plan..They are like McDonalds or Coke or Pepsi...etc... they have a process that statistically will work just about anywhere.. yes there will be the situations where you'll have a strange circumstance where it doesn't work.
Jones is also not part of the broker/dealer protocol...The clients will always be "thiers" no matter what you say..although the do have the right to work with who they want.
Advice given before is spot on..If you are OK with the contract and your possible goal of going indy you are one step ahead because most Jones brokers don't think about how to get out vs thinking about it before the marriage...sounds like you want a pre-nup but there isn't one on the table..I have to commend you for thinking ahead and knowing where you want to go..but like the other comments...have a short term plan and long term goals.. Good Luck to you
I have been searching the forums and cannot find much on what Jones does to enforce the contract. I just left to take a position elsewhere and I do not see other people's experiences posted here. How did they negotiate their contract to not pay back training fees?
Maybe there is some sort of gag order? I left on good terms and do not plan on taking my book of business. It was a great opportunity, but just not for me. I have not been there for 3 years, closer to 2. I wish no ill will, just need to make a change.
If they require reimbursement, you will be notified by their attorney. I have heard stories about FAs receiving one letter, no letters and/or receiving letters certified with delivery signature. You can decide if and when to respond. I have heard they will negotiate the amount down to .05 on the 1.00. With you being there over 2 years I would guess it will be minimal anyway. Good luck...
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