Goodknight program
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I am a recent EDJ new hire and was offered a goodknight program. I am not that familiar with how it will work but I know I will be given assets from a veteran advbisor to start out. It sounds like he is basically taking me under his wing and allowing me have some success early on. He is going to let me use an office in his office for calls/appointments or just a place to come to get away from door knocking/cold calling. It sounded like a great opportunity and one not everyone gets. Is anyone out there more familiar with this program. Is it good? Will it help me beat the odds of failing in the first 1-2 years as I will have something to start out with? I was already nervous about starting from scratch in such a difficult industry. He is my financial advisor so he has been so helpful through the hiring process. Any feed back would be greatly appreciated. Thanks!
edjnewhire, it is a good start–remember he will help you some, but he is not going to give you his best accounts either, some are bi-polar, depressed, buttholes, and just strange people–I know I did one and that’s what I was told to give away and that’s what I gave away–are you getting 5 - 10 - 20 million in assests?
I apologize for the typo, I was typing fast at work to get the post in before the morning rush.
I don't expect to be given 10-20 mill. but I also hope to not get "screwed". After all he is my financial advisor and he has all my money. I would hope he actually cares about me and how well I do as he got the referral for hiring me. I just wanted to see if this program helps someone stay in the business longer, as I know my hard work will determine my future, but the failure rate is so high it's hard not to get nervous.Read my post of your other post… Just FYI- You don’t need to post the same topic under a different header. We are able to view them all on one singular page.
Most likely you will be geting the accounts the Vet FA does not want to manage anymore. If you do a good job with them then you both win. If you don’t do a good job with these accounts you can be sure the Vet FA is going to find out and you will not get anymore accounts from the Vet. You also have to spend at least a year in their branch so if you want to survive you have to pay your dues to the Vet. Good Luck.
The biggest benefit from a GK program is being in an office with an advisor and a BOA. Instead of starting out working from home and by yourself, you immediately have credibility. The Boa is getting a few hundred a month from you being there, so she can answer your questions and help you get the paperwork figured out when you open accounts.
Be respectful of the GK advisors time- and yours. You shouldn't be in talking to him during prime prospecting time unless it is important. The biggest benefit is already being in the office. The biggest downside is already being in the office. Don't get caught up looking around at your pretty green walls because that will cost you. Don't think the way the GK advisor runs his day is how you should (he must be atleast Seg 4 or 5 to be doing a GK). Set your contact goals separate from GK. You should be spending a few hours a week tops on them. Set aside a time- like Tuesdays before noon- that you focused on outgoing contact with GK clients. Rotate it so you are calling people at different times/days. The rest of the week unless they contact you then you should be acting as if you are a new new. It's normal to retain 95%+ of the accounts with a letter and a phone call. You don't have to meet with each of them in your first month. Call them and let them know you want to meet. If they don't, call them back in a month. In the meantime, move on. A handful will use this as an opportunity to close their account and move on- let them. Have the GK advisor highlight a few accounts that are clearly above the rest. They could be ones where he doesnt have a good relationship with them (personality) but they actually have money. Or, they could be the 45 year old with a nice sized 401k but 4k in a Roth at Jones. If you get a list of more than 15 he's lying and the list doesn't mean anything. Your production expectations are the same if you are a Level II GK and if you are a New New- so that should tell you something. Create a List Manager of GK accounts by street name where you are doorknocking. It breaks up the day knocking on a few houses that are already your clients. I'm assuming your GK advisor hasn't done this before, which means after reading these posts you will likely know more than him. Ask for a list of advisors in your area that recently or are doing a GK. CALL them. They will all tell you to not focus on the GK accounts (just like we all have so far) but it will help reinforce it. But what it really does is gives you a contact as you are going through the process. Good luck. Avoid wasting time reading/listening to propoganda- it can really eat into your day. Finally, if you are going to take any time off, do so in your 5th and 10th months as those months do not calculate into any of your bonuses other than new account. Work your butt off between months 6-9 and prospect like crazy in month 11 to clear the 15 month milestone ($7k).any amount of time spent here in the first 18 months is a mistake–you are SO busy that any extra time you DO have will go to the kids. also, the negativity here is a killer when you are so new. Once you are doing “the Jones thing” (a good move) you do not need any thoughts in your head about greener pastures, etc.
If you are going to start from scratch anywhere in the business, starting with someting rather than nothing is a leg up. If you are serious about this career, take the Goodknight. Whether the assets end up being good, bad, or irrelevant is beside the point. You will be about 25-100% ahead of a “scratch” starter in the first year or maybe two by taking the GK. After that, it’s all up to you. Believe it or not, “scratch” starters often outpace the GK or existing office takeover advisors in the longrun, since they had to bust it to build any type of book, so they have developed better prospecting habits. The morale of the story is to build your own book, and incorporate the GK accounts as a really warm list of prospects - because chances are they are some of the smallest, weakest, least contacted clients. You WILL turn some into very good clients - but not many. Likes someone else said above, you will find a few that have different circumstances now (maybe they had the 5K Roth, but they have since retired or moved jobs since your advisor last spoke to them 7 years ago).
Go ahead and do it! Just make sure you sell yourself to the GK accounts and not the name Jones! then leave in 3 years and go indy. Good luck.
Use the GK accounts to help supplement your business but do not try and make them your business. Also if you get an account from your GK that is not working out make sure you talk to the GK FA and explain why it is not working out. In most cases the GK FA will know your pain (it was his or her account) and will help if they can.
For one year you will be tied to the GK FA and you have to make the best of it. Not to be negative but I know one GK FA that had 5 new FA under a GK with him and not one made it for they felt that the accounts they got from the GK took all their time and they made no money. You have to get your own accounts and not depend on the GK accounts if you plan on making it long term.I have a friend who has run two or three GK through his office. He says the success rate for a new broker on his own at EJ is around 40%. Starting out in the GK program raises the success rate to over 90%.
I know he likes it because he can mentor, hand off some accounts he does not serve (or does not like to), and it reduces his office expenses which increases his bonus.90% success rate for GK is much higher than our region. What is your region doing to get that high a rate?
Honestly, I have no idea. I don't work for EJ, but when I was considering options he shared the info with me. Plus, he is in a different state. Their presence in my area is nothing compared to where he works. Last time I was in his neck of the woods there were EJ billboards all over the place. I have seen one where I live and it was out in the country.90% success rate for GK is much higher than our region. What is your region doing to get that high a rate?
In my own observations I find that some new FA either come in with a look and see attitude that is almost always fatal to their career or the ones that come ready to do what ever it takes and they usually make it.
GK program in our region have not done as well for the FA that take them think it is an easier route to success. It is not. So you know I was offered a GK myself but after talking to three other successful FA they made me realize the quicker you can get out on your own the faster you can get to your goals. GK accounts are not a great way to start or build your business. Just gives you a little more income in the first year but can slow you down from finding really good clients. I did do what they call a Legacy Plan that gives you the support of a segment 4 or 5 FA and BOA without the obligation of having to stay in the branch for a year. Was a lot better than working out of the house and when I had appointments I had a REAL office to meet with them in. It also did NOT slow me down in getting my Branch and having the Branch has helped me a lot in building my business.[quote=advisorman]In my own observations I find that some new FA either come in with a look and see attitude that is almost always fatal to their career or the ones that come ready to do what ever it takes and they usually make it.
GK program in our region have not done as well for the FA that take them think it is an easier route to success. It is not. So you know I was offered a GK myself but after talking to three other successful FA they made me realize the quicker you can get out on your own the faster you can get to your goals. GK accounts are not a great way to start or build your business. Just gives you a little more income in the first year but can slow you down from finding really good clients. I did do what they call a Legacy Plan that gives you the support of a segment 4 or 5 FA and BOA without the obligation of having to stay in the branch for a year. Was a lot better than working out of the house and when I had appointments I had a REAL office to meet with them in. It also did NOT slow me down in getting my Branch and having the Branch has helped me a lot in building my business.[/quote] A real office .... next you'll be telling us that you have a branch too?[quote=bondo]
I know he likes it because he can mentor, hand off some accounts he does not serve (or does not like to), and it reduces his office expenses which increases his bonus.
[/quote] I had a newnew in my office the other day who was in awe of the "spirit of volunteerism" at Jones. He just couldn't get over the Visiting Vet program, Field Trainers, Mentors, etc., and that they do it all out of the goodness of their hearts. I explained to him that no one in this business does anything without leveraging themselves to make another dollar, and although I hated to burst his bubble this early in his career, he'd soon understand that nearly every altruistic gesture at Jones boils down to two words-- ********************** Limited Partnership *********************[quote=bondo]
I have a friend who has run two or three GK through his office. He says the success rate for a new broker on his own at EJ is around 40%. Starting out in the GK program raises the success rate to over 90%.
[/quote] I was told about 45% of new new are still with the firm after 3 years. About 88% are still with the firm after 3 years. This is firm wide, not region specific. This says nothing about those who meet standards, etc- simply that they are employed.Chaz and Bondo, the 40% is five years out–from what I can remember when I was at Jones.