At least eleventy kabillion!

yeah, Joe!!

expectations should be very clear to you upon accepting the job. Talk w/your BM

If you don’t know what is expected of you at this point in the process, I doubt you’re gonna make it.

You need to know that at EDJ you will be limited in the type of business you can do.  You will do transactional business only.  Your opportunity to build a fee based practice are nil.

Also, you will be TOLD how to prospect and you will be tracked.

You sound like you have the desire to be in this business, do some more research and pick a better firm.

Wow, that's some great advice you got from these folks.  Vbrainy is correct to an extent with what he told you.  We (I'm a Jones guy) are taught how to prospect one way: doorknocking.  It works, but past your initial training no one really cares how to prospect as long as you do and you bring in new assets.  Your trainers will tell you how to doorknock.  Do what they tell you. 

You are going to do transactional business.  Fee based biz is coming around in the near future, maybe even before you get your CSD.  However, unless you are really good at gathering assets really quickly you're going to need to do transactional while building your fee based biz. 

As to your original questions.  It's not going to be as easy as #new clients x AUM = $$$.  Too many variables.  Your goals at Jones are 10 new accounts per month.  Maybe that's 3 new couples with IRAs and a joint account or it's 10 new DCA accounts for 10 new people.  Each new account should bring in new assets, let's say you bring in $7-10 million per year. 

Just to keep your job at Jones at the end of yr 1 you should have grossed about $25K.  End of year 2 is $75K gross.  End of yr 3 is $121K gross.  You keep just under 40% of the gross.  Plus new account bonus, milestone bonus, etc.  That's just the minimum.  Bring in the $7-10 mil per yr and you'll be above that. 

Right now to win the trips you need to gross $107,500 in a 6 month contest. 

Call you Regional Leader and ask him or someone else in your new region to have lunch with you to explain everything. 

Welcome to Jones.  Take half of what you read on this forum with a grain of salt. 

Thank you for the insightful feedback Spaceman Spiff.  People like you are one of the reasons I joined Jones.  Hopefully I'll soon be able to answer questions of others in my current position.  I'm looking forward to making a contribution to the firm.  Take care.

LKG1, Spiff is not quite accurate in his numbers.  You do not 'keep' just under 40% of your gross.  He forgot to mention that 100% of advertising comes out of your end.  Half of the postage comes out of your end, as well as half of the phone bill, if memory serves.  Health insurance comes out of, you guessed it, your end.  There's a major league haircut on annuities BEFORE your split.  Under the catch-all phrase, "Occupancy", anything other than rent and electricity is your problem.  A hefty chunk of your P&L is an assessment for your communications system.  In short, you should plan on 'keeping' around 20% of your gross, pre-tax. 

Spiff is correct when he says take what you hear with a grain of salt...but that applies to pro as well as con.  In the words of Ronald Reagan, "Trust.  But verify."

[quote=vbrainy]

You need to know that at EDJ you will be limited in the type of business you can do. You will do transactional business only. Your opportunity to build a fee based practice are nil.

Also, you will be TOLD how to prospect and you will be tracked.

You sound like you have the desire to be in this business, do some more research and pick a better firm.

[quote=Starka]

LKG1, Spiff is not quite accurate in his numbers. You do not ‘keep’ just under 40% of your gross. He forgot to mention that 100% of advertising comes out of your end. Half of the postage comes out of your end, as well as half of the phone bill, if memory serves. Health insurance comes out of, you guessed it, your end. There’s a major league haircut on annuities BEFORE your split. Under the catch-all phrase, “Occupancy”, anything other than rent and electricity is your problem. A hefty chunk of your P&L is an assessment for your communications system. In short, you should plan on ‘keeping’ around 20% of your gross, pre-tax.

Spiff is correct when he says take what you hear with a grain of salt…but that applies to pro as well as con. In the words of Ronald Reagan, “Trust. But verify.”

[quote=Incredible Hulk] [quote=Starka]

LKG1, Spiff is not quite accurate in his numbers.  You do not ‘keep’ just under 40% of your gross.  He forgot to mention that 100% of advertising comes out of your end.  Half of the postage comes out of your end, as well as half of the phone bill, if memory serves.  Health insurance comes out of, you guessed it, your end.  There’s a major league haircut on annuities BEFORE your split.  Under the catch-all phrase, “Occupancy”, anything other than rent and electricity is your problem.  A hefty chunk of your P&L is an assessment for your communications system.  In short, you should plan on ‘keeping’ around 20% of your gross, pre-tax. 

Spiff is correct when he says take what you hear with a grain of salt…but that applies to pro as well as con.  In the words of Ronald Reagan, “Trust.  But verify.”

The advertising is 1% of net commissions…I realized a few months ago in looking at my Earnings screen that that means it is the same as 2.5% gross.  So, really I start out at 37.5% and then start deducting postage, phone, et al–that’s not too bad because it doesn’t go up as you generate more gross (except indirectly a bit).  However, the 1% net doesn’t have a cap (that I know of).

I think it is capped, Cowboy, or at least it was at one time.  If memory serves, it was $250.

[quote=Incredible Hulk] [quote=Starka]

LKG1, Spiff is not quite accurate in his numbers.  You do not 'keep' just under 40% of your gross.  He forgot to mention that 100% of advertising comes out of your end.  Half of the postage comes out of your end, as well as half of the phone bill, if memory serves.  Health insurance comes out of, you guessed it, your end.  There's a major league haircut on annuities BEFORE your split.  Under the catch-all phrase, "Occupancy", anything other than rent and electricity is your problem.  A hefty chunk of your P&L is an assessment for your communications system.  In short, you should plan on 'keeping' around 20% of your gross, pre-tax. 

Spiff is correct when he says take what you hear with a grain of salt...but that applies to pro as well as con.  In the words of Ronald Reagan, "Trust.  But verify."

[/quote]

I 'keep' closer to 28%. At least that is a ball park number of what is deposited into my checking account. That is after a semi-healthy 401k contribution.[/quote]

You're doing well at controlling expenses, Hulk.  My point, however, is that you don't 'keep' 40%.  Dependent upon my monthly production of course, I average somewhere near 65%, pre-tax.  (Stronger months the percentage is higher, lower months, the number is weaker.)Arguably, I do spend more time on non-selling tasks that relate to owning a business.  But at the end of the day, at least to me, it's all about how much ends up in my account.

Boy, you all act like you get 100% payout with no expenses.  Give me a break.  If you are successful, as with Indies, wirehouses, regionals, etc., you will make good money.  It all comes out in the wash.  It doesn't matter who pays for toilet paper or 1% marketing.  It all balances out.  Jones has some things that others don't (i.e. profit bonuses, profit sharing, trips, etc.),  while others pay for some things that Jones charges you for. 

It's about how successful you are.  If you are crying about a few nickles and dimes here or there in this business, you will be sadly disappointed anywhere you go.

I am comparing apples to apples, Broker24.  My numbers are net of ticket charges, rent, occupancy, salary and benefits for assistants, etc.  Futher, most reputable firms do offer profit sharing. 

I'm not denigrating the success of anyone at any firm.  I'm merely refuting the claim that at Jones, one 'keeps' 40% of their gross.  No matter what you claim, that is not true.

[quote=Broker24]

Boy, you all act like you get 100% payout with no expenses.  Give me a break.  If you are successful, as with Indies, wirehouses, regionals, etc., you will make good money.  It all comes out in the wash.  It doesn't matter who pays for toilet paper or 1% marketing.  It all balances out.  Jones has some things that others don't (i.e. profit bonuses, profit sharing, trips, etc.),  while others pay for some things that Jones charges you for. 

[/quote]

I don't know about that, B24.  If Starka nets 30-40% more for selling the exact same product as a Jones broker that's more than a few nickles and dimes, wouldn't you agree?

I think we've lost sight of the fact that the newbie was asking questions about Jones, not whether or not he should go indy.  Payouts don't mean squat if you don't have the gross to begin with. 

LKG1, they are correct that there are expenses that come out before we get paid.  Sorry, my fault.  Should have used the word net instead of keep.   

There are quite a few expenses at Jones.  Some you control, some don't.  Be aware of them, but don't focus on them for a while.  Your goal at Jones, just like other places, is to become profitable.  Period.  Figure out what that is and shoot for that.  Once you get there, then you can focus on trimming the fat. 

I think Spiff just mailed it.  Jones seems to be a great place to start out in the business, and many Jones reps are vary successful spending their entire career there.