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A Telling Sign for EJ?

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May 12, 2009 3:33 pm
Ron 14:

I think an argument can be made that a BOA isn’t even needed until you are consistently doing 20k gross. So what is the purpose outside of a pair of eyes to watch over the FA.

  I agree...but that is part of the pitch "we have people here to take care of you if the FA is busy".. My boa did crosswords puzzles and that wierd japanese number game all day..
May 12, 2009 3:35 pm
Incredible Hulk:

Someone to answer the phone while the broker is supposed to be out of the office meeting people. Getting an answering machine at 10:00 am isn’t professional.

  Do they make answering machines anymore( i thought it was just voicemail til jones sent me one in the mail).   Getting voicemail isn't unprofessional. I have a friend who works at a wire and if he isn't available they don't take a message they put you to his voicemail.   Not calling back within a specified time is unprofessional.
May 12, 2009 3:41 pm
B24:

Noggin, I see what you are saying.  But my point was that I think the reason this BOA was actually writing in was that the guy was probably more of a slacker than we would assume.  If he was doing 25K a month working two days, it’s no big deal.  But if he’s doing 10-12K, working two days a week, and she is twittling her thumbs, is that REALLY a good use of resources?  I know it’s sort of a dilemma, because as long as you are hitting the minimum,  they will leave you alone.  But we are a partnership, so every slacker affects everyone else’s bonuses, profit sharing, etc.  It’s not like the guy is just taking Friday’s off.  There are plenty of people working much less than 40 hours.  And nobody at Jones cares, as long as you are hitting your numbers.  I don’t think anyone is trying to change the culture, just inject some reality and balance.  It seems to me that there was never a time where the Managing Partner of the firm would be pleased to be hear about a seg 3 guy working 2 days a week.  You can spin it how you want, but lets be realistic.

  I think this is the biggest problem.. which you point out.. Jones tells you when you are hired as long as your are profitable and ethical, you can run your business how you want.  Problem with that is they hired way too many new people and now the existing branches profit level is dragged down severly because of the influx of new people.   Their business model worked at 5k,6k... even 8k employees(FAs) but once they start hitting 9k, 10K and 11K.. the chances of being a decent producer start to dwindle(unless you are in a New Jones area) and the turnover gets high and that takes from the profitability of the firm... so they need barely profitable seg 3s to do more
May 12, 2009 3:45 pm

So you are paying someone $15 an hour to be a human voice mail machine? And you have to remember when you are starting THERE ARE NO CLIENTS TO SERVICE !

May 12, 2009 4:31 pm

Thus you don’t get a BOA until you hit a certain point, unless inherited from the previous broker. They also should be running the broker’s marketing campaigns. Mailings, seminars etc… Is there free time early on? Of course, just one of the “perks” I guess. I mean, we are paying 60% for nothing more than the EDJ sign over the door.

May 12, 2009 4:45 pm

They should have 2-3 FAs per office, then the BOA cost would go down, and BOAs would actually have something to fill their day with.

May 12, 2009 4:51 pm
Incredible Hulk:

Thus you don’t get a BOA until you hit a certain point, unless inherited from the previous broker. They also should be running the broker’s marketing campaigns. Mailings, seminars etc… Is there free time early on? Of course, just one of the “perks” I guess. I mean, we are paying 60% for nothing more than the EDJ sign over the door.

  Yeah, you get a BOA at about 8k/monthly production. They aren't needed at that point. Marketing campaigns ? Mailings? Yeah, good luck with those. How is 60% for an EDJ sign working out for you ? Sounds like a crappy deal.
May 12, 2009 4:54 pm

There are thousands of BOAs across the country reading romance novels as we speak. This firm could drastically cut costs with a 2-3 FA office, and probably boost firm-wide production due to the increased comraderie and inter-office competition.

I agree with previous posters: one of the BOAs' primary roles is to solidify relationships with clients so they'll stay on board when the existing FA leaves. That benefit alone is apparently worth a trememdous amount of money.
May 12, 2009 6:49 pm
Ron 14:

[quote=Incredible Hulk]Thus you don’t get a BOA until you hit a certain point, unless inherited from the previous broker. They also should be running the broker’s marketing campaigns. Mailings, seminars etc… Is there free time early on? Of course, just one of the “perks” I guess. I mean, we are paying 60% for nothing more than the EDJ sign over the door.



Yeah, you get a BOA at about 8k/monthly production. They aren’t needed at that point. Marketing campaigns ? Mailings? Yeah, good luck with those. How is 60% for an EDJ sign working out for you ? Sounds like a crappy deal.[/quote]



So, Jones is a crappy company because you get nothing for the 60%? And Jones is a crappy company because they give us a BOA when we could share it with 2 or 3 other brokers?



Just so I follow the logic, they give us more than we need, but we over pay for what they don’t give us? Reminds me of a Yogi-ism.



You don’t believe in mailings? Have you ever started a business? Did people magically appear with their checkbook when you opened your door? Going face to face is apparently beneath you.



Finally, my guess is that my 40% is more than your 80%.



How did I get sucked into another one of these circular arguments?
May 12, 2009 7:05 pm

I think the direction Jones is going is that in populated areas, you don’t start out on your own.  They have dramatically scaled back on opening new offices, and a lot fo Goodknights/Legacies are staying longer in their host office (due to current financial concerns).  My guess is that they will learn that they should extend these setups until the new FA is self-sustaining.  I think it should be a 3-year period, personally.  If you are hitting the numbers after 3 full years, they let you open another office.  This does a couple things…it prevents Jones from making a huge outlay on an office that may or may not make it.  It will help the new FA make it (because you have an office, you have a vet to talk to, etc.), and it will give the new FA time to build up assets before going out on their own.

May 12, 2009 7:20 pm

There are not thousands of BOAs reading romance novels.  Are there some.  Absolutely.  Thousands, no. 

The only reason a BOA should be reading a book and not doing work is if her FA has simply stopped doing anything.  If you're a new FA you should be out doorknocking, making phone calls, getting statements, or having appointments.  All of those activities have follow up items the BOA can handle.  Doorknocking means prospects that need to go into the system with follow up phone calls scheduled, info mailed, or repeat contacts scheduled.  Phone calls typically mean some material goes out in the mail or some trade gets placed.  Statements need to be entered into Portfolio or FAST questionairres need to be input into the system.  Appointments mean ACATs or things along those lines.  It's not going to consume all of her time, but it will certainly take a chunk.  And let's not forget the training modules they have to do once they get hired.  Seminars, speaking engagements, mailings, marketing, etc are all activities she can and should be doing also.  When we have a seminar my BOA calls all of the people she sent the invitations to ask in person if they will be attending.    The purpose of the one FA one BOA set up it simple.  Advice and service.  The FA gives the advice, the BOA is responsible for the service.  The clients need to know from the get go that the BOA is to handle anything that doesn't require a S7 to do.  Period.  I don't need phone calls during the day wondering where their statement is or what we're serving at the seminar.  If they've got cash or an investment question send them through.  Otherwise the BOA can handle it.    There absolutely is some benefit to Jones in having those BOAs in the offices.  They do keep some assets because of the BOAs.  I would disagree that it is the primary reason they have BOAs in the offices of new FAs. 
May 12, 2009 7:40 pm

[quote=Incredible Hulk] [quote=Ron 14] [quote=Incredible Hulk]Thus you don’t get a BOA until you hit a certain point, unless inherited from the previous broker. They also should be running the broker’s marketing campaigns. Mailings, seminars etc… Is there free time early on? Of course, just one of the “perks” I guess. I mean, we are paying 60% for nothing more than the EDJ sign over the door.[/quote]

 
Yeah, you get a BOA at about 8k/monthly production. They aren't needed at that point. Marketing campaigns ? Mailings? Yeah, good luck with those. How is 60% for an EDJ sign working out for you ? Sounds like a crappy deal.[/quote]

So, Jones is a crappy company because you get nothing for the 60%? And Jones is a crappy company because they give us a BOA when we could share it with 2 or 3 other brokers?

Just so I follow the logic, they give us more than we need, but we over pay for what they don't give us? Reminds me of a Yogi-ism.

You don't believe in mailings? Have you ever started a business? Did people magically appear with their checkbook when you opened your door? Going face to face is apparently beneath you.

Finally, my guess is that my 40% is more than your 80%.

How did I get sucked into another one of these circular arguments? [/quote]   You are a real wizard. Yes, they give you more than you need, AT YOUR EXPENSE. I worked at Jones for 3 years and mailed out plenty of those nifty little Investment Focus Newsletters, WordPower Letters, Mailers, Postcards, Thank you notes. You know what they produced? Jack sh*t. Im not beneath doorknocking, I did it and it works. So does cold calling. Mailers, not so much.
May 12, 2009 7:42 pm

Spiff, with 10k plus FA’s there are definitely 1k+ BOA’s reading books as we speak. If you are not producing 20k the BOA works about 3 hrs a day at most. Even in Seg 5 offices the BOA’s are only needed 5 maybe 6 hours a day.

May 12, 2009 7:51 pm

I guess that’s why most of our Seg 5 offices and a lot of our Seg 4 offices have at least two BOAs.  One full time and one part time. 

  Think what you want.  I'm pissing in the wind if I think I'll be able to change your mind. 
May 12, 2009 8:05 pm

I was in a region of 45 FA’s. 11 were Seg 5 and 9 Seg 4. Only 2 had more than 1 BOA. The RL and a guy who inherited a 100mil office. I am not a mathematician, but 2 out of 11 isn’t most.

May 12, 2009 8:22 pm

Guess what the two BOAs in the Seg 5 office in my town spend most of their time doing? Reading magazines.

  (And then they alternate running personal errands when the FA's out golfing or fishing.)   Fact.
May 12, 2009 8:49 pm

[quote=Spaceman Spiff]

There are not thousands of BOAs reading romance novels. Are there some. Absolutely. Thousands, no.



The only reason a BOA should be reading a book and not doing work is if her FA has simply stopped doing anything. If you’re a new FA you should be out doorknocking, making phone calls, getting statements, or having appointments. All of those activities have follow up items the BOA can handle. Doorknocking means prospects that need to go into the system with follow up phone calls scheduled, info mailed, or repeat contacts scheduled. Phone calls typically mean some material goes out in the mail or some trade gets placed. Statements need to be entered into Portfolio or FAST questionairres need to be input into the system. Appointments mean ACATs or things along those lines. It’s not going to consume all of her time, but it will certainly take a chunk. And let’s not forget the training modules they have to do once they get hired. Seminars, speaking engagements, mailings, marketing, etc are all activities she can and should be doing also. When we have a seminar my BOA calls all of the people she sent the invitations to ask in person if they will be attending.



The purpose of the one FA one BOA set up it simple. Advice and service. The FA gives the advice, the BOA is responsible for the service. The clients need to know from the get go that the BOA is to handle anything that doesn’t require a S7 to do. Period. I don’t need phone calls during the day wondering where their statement is or what we’re serving at the seminar. If they’ve got cash or an investment question send them through. Otherwise the BOA can handle it.



There absolutely is some benefit to Jones in having those BOAs in the offices. They do keep some assets because of the BOAs. I would disagree that it is the primary reason they have BOAs in the offices of new FAs. [/quote]



Not to nitpick, since this is a very interesting conversation, but you don’t need a S7 to give advice.



Also, I have to side with the Jonesers here. I worked my BOA like a dog. Probably why she hates me for leaving, among other things. I was not a Seg 4 or 5. I did not have $25mil under management. But I gave her enough work to do that she really didn’t have time to F off.



You hear at all the regionals “leverage your BOA”. I was leveraging her like Lehman.



She was still an idiot and a crack (or some kind of drug) addict, but I sure did give her a lot of work. Did it get done correctly all of the time? Of course not.





May 12, 2009 10:39 pm

The thing about Jones BOAs is that for some reason very few of them are hot, either.


May 12, 2009 11:10 pm

Luv - and you're point is?

Morean - you get the point with the S7 comment.  Don't be a hater. 
May 12, 2009 11:33 pm

[quote=Borker Boy]Guess what the two BOAs in the Seg 5 office in my town spend most of their time doing? Reading magazines.

  (And then they alternate running personal errands when the FA's out golfing or fishing.)   Fact.[/quote]   In my GK office she spent the day watching soaps, talking to her friends on phone, and did work the other 4 hours. She was good looking and smarter than the FA, but those are few and far between.