Spiked-

I don't know where you get your numbers but they sound pretty close. When I started we had 6500 IR's and the goal was 10K by 2000. They hit that four or five years ago, celebrated with Bachie and Dougie in England where supposedly they opened the 10,000th office and as far as I can determine five years later 9600 IR's.

So if they are training 200 per month and they have less now than five years ago. Attrition is happening on a much higher percentage than they are letting on. All I ever heard was 3-4% of vets were leaving. Well, its calculator time again, 3% of 9600 IR's would be is 288. A reason for stagnant profits (and more profitable) for the GP's because who made the bonuses, The VETS!

If I am a GP, the exodus of vets insures more $$$ to be spread amongst the owners. It's a great gig for some.

[quote=footsoldier]A reason for stagnant profits (and more profitable) for the GP’s because who made the bonuses, The VETS!

If I am a GP, the exodus of vets insures more $$$ to be spread amongst the owners. It's a great gig for some. [/quote]

I admit ignorance on the inner workings of the cult, but this statement doesn't make sense.  Are you suggesting that the bonuses for the vets are so big that they actually negate that vets profitability?

Unless EJ hit their 10,000 IR in 2006, they have not hit that goal yet.  I left in November 2005 and they weren't even close.

QUOTE=footsoldier]

Spiked-

I don't know where you get your numbers but they sound pretty close. When I started we had 6500 IR's and the goal was 10K by 2000. They hit that four or five years ago, celebrated with Bachie and Dougie in England where supposedly they opened the 10,000th office and as far as I can determine five years later 9600 IR's.

So if they are training 200 per month and they have less now than five years ago. Attrition is happening on a much higher percentage than they are letting on. All I ever heard was 3-4% of vets were leaving. Well, its calculator time again, 3% of 9600 IR's would be is 288. A reason for stagnant profits (and more profitable) for the GP's because who made the bonuses, The VETS!

If I am a GP, the exodus of vets insures more $$$ to be spread amongst the owners. It's a great gig for some.

spiked - where did you see those numbers?  I’d love to read the article or wherever it came from.  PM me with a link if you have one and wouldn’t mind.

EDjones always hits their goals.  EDJONES rules!

Lawsucks (great name by the way)-

Here is how it works. The firm states a percentage of bonus participation. 40% is the current number. And that is only on profit after 26K. The grid has 5 tiers. The best way to describe this system is to illustrate because it was conceived by the owners for the owners (or at least that's my take). Below is an example of 100K trimester profit, I am estimating a 750K producer.

Profit

6500x8%=520

6500x16%=1040

6500x24%=1560

6500x32%=2080

74000x40%=29,600

Total Trimester Bonus to IR= 34,800 (34.8%)

Total Trimester Profit to GP= 100,000-34,800=65,200 (65.2%)

Remember that the expenses the GP's control (1300 month for the god awful satellite) and I am told expenses are not decreasing when the T1's are installed. But Lawsucks my point to this was the GP's are better off having 4 IR's at 200K gross than 1 at 800K. The profit is not distributed down to the troops. It remains with the owners. So if the attrition numbers are higher but the revenues remain constant, who wins in this equation? It clearly ain't us.

I can't wait for the Jonesheads without calculators to respond. This is kumbaya week (regionals) so the fluids are flowing and their brains are turning to mush. And to think I was one of them.

I would be curious to see how many are defecting to the other firms.  Anybody have some stats!

[quote=Incredble Hulk]

EDjones always hits their goals.  EDJONES rules!

[/quote]

Incredble (no i),

You kill me man!!!  

The needle of total IRs hasn’t moved much in the last few years, and it probably won’t.  At this point, the relative numbers recruited vs. left at most firms is relatively flat.  LPL was down in net reps last year, but revenue increased.  It seems that EDJ is losing the big boys and bringing in tons of newbies to try to make up for it.

[quote=Incredble Hulk]

EDjones always hits their goals.  EDJONES rules!

[/quote]

as long as the goal is to bend you over and make you sqeal like a pig.

How do you define veteran?

Don't worry rank--your not one.

[quote=zacko]Don't worry rank--your not one.[/quote]

The thing that other firms have capitalized on is recruiting the 1st/2nd quintile producer away from Jones, LOS 5 and under.  While this isn't a big hit to Jones, it is a win for the other BDs - less costly hire, plus someone who can prove they can get the job done.  With a better product offering than Jones, these firms feel that they can capitalize on these reps.

[quote=rankstocks]How do you define veteran?[/quote]

 They look like this- remember- the guys in your region who are always laughing at your stupid comments.

[quote=BrokerRecruit]

The thing that other firms have capitalized
on is recruiting the 1st/2nd quintile producer away from Jones, LOS 5
and under.  While this isn’t a big hit to Jones, it is a win for
the other BDs - less costly hire, plus someone who can prove they can
get the job done.  With a better product offering than Jones,
these firms feel that they can capitalize on these reps.

It seems that the ones who have been there for 10+ years have deemed it is a very good fit for them and they are, generally, quite succesful.  It's not a horrible firm, just not right for some producers.  The 3-5 year IR is right in the wheelhouse for indy and wires and should continue to be the case for some time.

It seems that the ones who have been there for 10+ years have deemed it is a very good fit for them and they are, generally, quite succesful. It’s not a horrible firm, just not right for some producers. The 3-5 year IR is right in the wheelhouse for indy and wires and should continue to be the case for some time.

Out of curiosity, Incredible, what are your thoughts on why this exodus will stop?  Offering more LP?