[quote=Spaceman Spiff]

B24 - You are absolutely correct that indy FAs get a better payout, even after expenses.  But Jones isn't an indy shop.  The only thing about Jones that resembles an indy setup is our one man and an assistant setup.  So, BFP's contention that 40% payout isn't good, is only looking at Jones vs indy.  When you look at Jones vs wires/regionals/banks 40% is average.  If I were to just simply look at my trailing 12 months expenses on my P&L, which includes my 40% payout, and divide it by my T12 gross, it's over 80%.  So, in essence, Jones got to keep 20% in profit from my operations last year.  I don't think that's too bad for all of the stuff behind the scenes that they do.  The fact that I got to see 40% hit my paycheck, but didn't really have to think about any of the rest of it, doesn't seem unreasonable to me.   

ND - Who pays 30% to someone just to prospect?  

So what you're saying is that if I were to start my own brokerage firm tomorrow, I should hire FAs with a 30% payout and their only function would be to work with clients.  I should hire prospectors and give them 30% for their prospecting efforts but all they're doing is smiling and dialing and setting apointments.  They don't ever touch money or make recommendations.  I should keep 40% for supplying my services as the B/D and the office space.  I could bring in 3 $1 mil producers, keep $1.2 Mil for myself, give them everything they want, including someone to generate leads for them, and they'll be happy netting $300K? 

Am I reading that correctly?   

[/quote]

No, you're right you can't compare.  My point is that existing FA's subsidize so much excess cost (technology that only half the FA's use, recruiting, hiring, training, etc.), that Jones cannot "afford" to increase payouts for the people that deserve it.  I think 40% flat for newbies is a pretty good deal.  No grid.  That's not bad.  But the 250K-750K producers (most everyone) get screwed in good years, and the top producers do comparable to the wires in real good years (when we are in high bonus brackets), but do really lousy in bad years.  Can you imagine producing $1mm and getting a 40% payout??  Anywhere??  And I am just comparing that to other wires, not indies.  Personally, I think bonuses for big producers should be based srtictly on THEIR performance, NOT the firms performance.

My biggest beefs with the Jones model and a reason I think we burn advisors so quickly.

1. No real supervision of newbs.  -  Help them learn, grow, and prosper.  Don't just say 25 a day and walk away

2. It's lonely working out of your house and leads to many distractions

3. 1st year draw blows.  It provides you with VERY little time to get the airplane flying.  I know their are bonuses and that's great but wow they are far away.

4. No vets really want to help a new guy because in a small town they are your competitors.

[quote=SuperMan]

My biggest beefs with the Jones model and a reason I think we burn advisors so quickly.

1. No real supervision of newbs.  -  Help them learn, grow, and prosper.  Don't just say 25 a day and walk away

2. It's lonely working out of your house and leads to many distractions

3. 1st year draw blows.  It provides you with VERY little time to get the airplane flying.  I know their are bonuses and that's great but wow they are far away.

4. No vets really want to help a new guy because in a small town they are your competitors.

[/quote]

And $1 in production could mean the difference between a $7000 bonus and zero.  Granted, it's not usually that close, but I have seen guys "stretch" (aka "slam a client into something") and come up few hundred short of a bonus.  That's a big kick in the wad.  The bonuses should be prorated, like most bonuses in this world.

I am going to be one of thoes Jones reps who leave at the end of this month.   New/New.   1 of only 3 FA who did not get any kind of goodknight or legacy in my class.    working out of the home sucks.   I just do not know how this is done.   I know 12,000 FA did this before me but I am at a loss on how they made it. .   I am only getting small accounts.   My hats off to all of you who were able to start a business with jones.  but I was not able to do so and I wanted this to work for me.     I have several objections to the statements  about jones not choosing quality advisors.   I do not think this is the issue considering myself and others that have left.   Perhaps times were different in the past which made this job acheivable but it is absoutely brutal at this time.    I am going to be the 17th FA from my region who leaves this year.  

I would not suggest anyone start with jones unless there is an open office with assets and even with assets you WILL still need to prospect.    25 contacts a day is impossible when you are new/new working out of your home with zero admin support 5 days a week in the summer and winter.     I also have learned that FA's at jones mislead and about how they did it.     I am confident  very few made it without taking assets.     My breakthrough class only had a handfull of FA who did not get any assets.  The rest got a least crumbs if not a full meal of assets.   They are in the silverspoon club. 

Check this out.   One FA during a call in training session said he started door knocking at 730 in the morning.   And to top it off he used this question for everyone on the phone call to hear.     mind you he was role playing with a lady.     "is it just you here?"...........   But he is making it.   All the more power to him.  

I'm calling bullsheet on you Rewster.  For a variety of reasons.

 -How much admin. support does a guy really need that is new/new and only opening small accounts. 

-What else do you have to do all day except prospect if you work out of your house?  I never made so many contacts as those days. 

- You are only working 5 days per week? And you are failing and working 5 days per week?

-I have done just fine without assets at Jones and know MANY who have.  It's a tough road but not impossible.

-Door knocking business owners at 7:30am is not a bad idea. Do you even start work before 9am?

The reason for your failure is not Edward Jones.  It's you.  This is a tough job made for men.

What is this, a Jones website? Full of failing Jones reps and the ones who drink the kool-aid?

I do have to agree that it's not Jones' fault if you fail.  This is a tough business. 

I would say it is a business for two types of people though, not necessarily "men" (especially since there are women who produce more than this board combined).

Sheep - Who put their head down, do what they are told, follow the leader and succeed based on grit and putting one foot in front of the other

Innovators - Those who figure out how to build a mousetrap that works for them.