Is Jones changing its model?

Not quite. Supposedly Jones will have one centralized location where new FAs can work out of and that will be staffed with BOAs or BOA-trainees. Then, when he/she qualifies for their new office they can take one of the BOAs from the office with them. Details are few at this point becuase it does, on the surface, appear to conflict with Legacy arrangements.

Don’t know anything about this, but I think it makes sense in many

cases to drop the one broker office model.

Not quite. Supposedly Jones will have one centralized location where new FAs can work out of and that will be staffed with BOAs or BOA-trainees. Then, when he/she qualifies for their new office they can take one of the BOAs from the office with them. Details are few at this point becuase it does, on the surface, appear to conflict with Legacy arrangements.

Just like Gross said, but it does not conflict with Legacy arrangement, since they are doing it in metro areas with few existing offices, and a lot of potential for growth.

[quote=Grosspayout]Not quite. Supposedly Jones will have one centralized location where new FAs can work out of and that will be staffed with BOAs or BOA-trainees. Then, when he/she qualifies for their new office they can take one of the BOAs from the office with them. Details are few at this point becuase it does, on the surface, appear to conflict with Legacy arrangements.

I doubt it, Field Supervision would still be responsible for the newbies I would assume.

One other detail. These offices where the new FAs can work out of can also be used for at least some meetings, training and, of course, phone sessions. I’d want to see how it actually works. Like which new FAs would you put in there? The ones who eventually work closest to this facility? Are you going to have new guys drive 90 minutes to this office and then 90 minutes back?

Jones offices now are only one FA?    Where is manager or supervisors?

Jones offices now are only one FA?    Where is manager or supervisors?

[quote=Shania Twain] Jones offices now are only one FA?    Where is manager or supervisors?

[quote=Shania Twain] Jones offices now are only one FA?    Where is manager or supervisors?

[quote=Moraen] [quote=Shania Twain] Jones offices now are only one FA?    Where is manager or supervisors?[/quote]

St. Louis. They supervise in between shifts at Wal-Mart. [/quote]

You know what is funny. As much as i do enjoy working for Jones, my Development Leader (Pre-PDP), used to tell me about working in the mall as well. lol They must get paid crap.

As to the original question - Jones is thinking about starting some incubator offices like the one described for new FAs.  There would in essence be a HQ employee who manages the place and acts like a full time trainer.  Picture your ATL/DL working in the same building with you, checking on your progress, etc until you qualify for your own office. 

As to the original question - Jones is thinking about starting some incubator offices like the one described for new FAs. There would in essence be a HQ employee who manages the place and acts like a full time trainer. Picture your ATL/DL working in the same building with you, checking on your progress, etc until you qualify for your own office.

That would be the best move they every made, no sense wasting offices on people who aren’t going to make it and then have to fill the office over and over again.(15 reps have gone through my office since I left… and there were 7 before me).

[quote=Squash1] That would be the best move they every made, no sense wasting offices on people who aren’t going to make it and then have to fill the office over and over again.(15 reps have gone through my office since I left… and there were 7 before me).



[/quote]



23 reps in one office? I’m not saying it couldn’t happen, but the only one in our area even close to that was shut down after 10ish. But, they sure don’t like to close a “location”.

Mine had 5 advisors in first 2 years.

Correct me if I’m wrong but isn’t a BOA a $14/hr secretarial position?  Is it the type of job or career someone would move to pursue?  Is it possible to be a failed BOA if you show up and don’t steal anything?

how many licensed individuals are permitted in ONE location before that location MUST be registered as a “branch”?

how many licensed individuals are permitted in ONE location before that location MUST be registered as a “branch”?

That’s a good question, I’m glad you asked.  I honestly don’t know.  We use the “branch” term pretty loosely around here, but I don’t know exactly how they are registered. 

Well in a recent sugg Weddle says, that" He does not believe that Jones should abandon the One FA office." In fact he goes on to say that he believes. “The great majority of two-financial advisor offices simply do not work well”. That should answer your question. I’m not sure why someone would support a model, they don’t think works.

not relevant. Like he would spill the beans in the sugg box! I remember how he talked about A shares being “in the best int of our clients”, too, right up until he announced the formation of a fee-based program task force. Think of the behind-the-scenes politics he needs to employ against the “old guard” to change these things.

I am torn about what jones sees in the one-man office.  I think they either see it as one of their differentiating factors, or they believe there are negative business ramifications to doing it (i.e. what happens to the assets if one of them leaves - do they go to the other advisor?  Does a new person get them?  Do you get to pick your own “team”, or is an advisor “assigned” to your office?  Who decides if you will have multiple FA’s in the office?  How do you agree on out-of-pocket overhead?  Also, they may feel it could lead to teams leaving en masse).

Said and done, there’s a distinction to be made about having your own office and being a trainee. Once you’ve qualified - and that distinctly appears in the opening post here - you get your own office.

Locked, I think you hit on a good point.  I think maybe Advisory Solutions (dare I bring it up) is going to solve some of these issues.  Why?  Because I think the goal is to have new FA’s be more profitable before they get their own office.  How do you get them profitable, consistently?  Recurring revenue.  Once they are consistently profitable, they are making a contribution to the firm.  Lower the overhead for non-performing “assets” (i.e. newbie FA’s), and you improve your firm profit.

Just to be clear, I don’t believe Jones is talking about changing the structure of the one man offices.  I think they are simply looking for a way to great a high growth model without the issues associated with that kind of model.  If you can take areas like Orlando, Boston, or LA where there are significant assets, but virtuallly no Jones presence and grow it rapidly, but cost effectively at the same time, it benefits everyone involved.  

I would agree with that model. It might scare the people coming into the business, who it really isn’t for. I think the people who won’t make it, will end their career before it starts, instead of sippin on the titty (salary) for a few months and getting in their office before deciding to leave. They’ll probably quit the first few weeks of doorknocking.

Its called Location Rich Market. Phonenix, Tornonto, LA soon, more in the future. Centralized training, boa support from the beginning, trainers so the veterans aren’t overwhelmed, etc. FAs “graduate” to their own office. Not changing our model at all, just better systems for new FAs to succeed. Goal is to have 250 plus succesful offices in large markets

makes a ton of sense. I did my first several months out of my bedroom; not ideal!! Certainly was no admin support…and all of the newnews failed

Having left Jones 2 1/2 years ago and going indy after spending 14 years at Jones as a seg 4.  I am the branch manager for 2 FA’s one is 15 miles away and one is 60 miles away.  Though technology and personal visits it is very easy to manage these offices.  If Jones does the start ups in one building it would be a smart move.  For all the reasons listed I would have a branch manager S-24 in that office and based their pay based on success of the new FA’s and asset gathering…also I would require the new FA’s to hit seg 2 substained 2 cycles to get their own office.  The amount of money saved at Jones would be $$$$$$$$$$$…also I believe the quality of training would increase.  Plus the new BM could control the wholesellers who screw up new FA’s.  If Jones does this I would have to give them a lot of credit!

Agreed, all these original thoughts and good ideas after I left the green machine, makes me want to go back

I haven’t heard a peep about this yet, but it sounds fantastic. In this scenario the best newbies could take over offices, the strugglers get the training they need and the ones not working can’t just sit at their house all day.

If Jones would have had this available they’d hold onto guys like still@jones, instead he’s crushing it at an insurance firm who got a fully trained and functional advisor for nothing and Jones wasted $40k paying him, training him, and getting him his licenses.

It may be the best idea a Jones person has had since Doug Hill introduced the concept of revenue sharing to John Bachmann.

Spiff-

I think your comment about the profitable FA’s producing more is a difficult thing.  There are a ton of guys in my region, and around the rest of the firm, who are Seg 4 producers averaging $25-30K a month.  They’re pretty comfortable there.  Other than bigger bonuses and bigger paychecks, what’s in it for them to making more money?  What kind of additional effort will they have to put out to do it?  How do you motivate folks like that to go from Seg 4 to Seg 5? 

This COULD be the best move with we hired Windy!

Spiff, I agree wholeheartedly.  However, I think that’s why Jones puts the profit bonus program in place.  And I wouldn’t do it based on segments, I would do it based on consistent production.  IOW, I might make segment 4 one month by hitting a few homeruns - but it doesn’t mean I should still get a higher payout if my production drops in the future (even though I am “segment 4”).  I assume you were sort of suggesting this, but just my $0.02.

I agree.  There is no point to the Segmentation model.  There's no financial benefit to a Seg 4 guy going to Seg 5 and just like there are no finacial consequences with dropping back to Seg 3.  They're going to have to get creative with getting those folks motivated.  They're certainly not doing it now. 

It’s funny - I was once told that one of the characteristics that Jones looks for in their “personality interview” is someone who “never has enough” and always wants more more more.  And to be honest, I probably used to be like that.  But as I’ve matured, I’ve found one of the greatest things one can have is contentment.  One of the nice things about Jones is the ability to decide when enough is enough.  They can dangle all the carrots they want - doesn’t mean anything to me.

It would suprise me if Jones did anything to encourage FAs like you to stop being content and work a little harder to reach a new plateau.  I don't really see them paying any bonuses for hitting a production goal or raising payouts at a certain level.  They're going to try negative reinforcement with the Seg 4 to Seg 3 thing.  I'm positive that's just going to piss people off. 

Spiff, I agree.  I think they are going to stumble on this.  However, they need to find a way to motivate the 7-10 year, $15-18K/mo. producer into becoming a 25-28K producer without pissing off everyone above that.  They have made their bed with the really low hurdles, now they have to lie in it.  It will not be easy, but I think AS will have a lot to do with it.  Think about it…a lot of those 15-18K producers have 40-50mm AUM (or more), but it’s all in stocks, bonds, and A-share funds.  They get tired of constantly calling and “asking for the order” to generate commissions.  If those guys can get half, say 20mm in advisory, that would mean about 20K per month in fees.  That would certainly improve things considerably.

B24-

Then they go public, sell, or merge.

Mark my words.

I agree with the first part of your statement, but not your second.  We're one of the biggest brokerage houses in the business.  We're not in financial distress.  We have no shareholders to satisfy.  Why would Jones go public, sell, or merge? 

I’ll say again. This is a brilliant move. A compromise between increasing the amount of people in the one-person office and leaving it alone.



Likely the best thing EJ ever did was choose Weddle to be their managing partner. Maybe at some point he’ll get rid of all of the nepotism and cultness.

Nepotism has been an Achilles heel for years–sort of their dirty little secret that’s not allowed to be discussed openly.  But, when the best and brightest people are not ascending to the top of an organization, there’s a problem.  Many of the best and brightest who came to Jones from '97-‘06 left when they accepted this reality.  At some point, this time period will be referred to as Jones’ Lost Decade.