Goodknight program

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edjnewhire's picture
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Joined: 2007-12-14

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!

Roadhard's picture
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Joined: 2007-02-23

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?

Roadhard's picture
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Joined: 2007-02-23

Buy the way it is advisor, not advbisor!  Check your spelling!

edjnewhire's picture
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Joined: 2007-12-14

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.

MISS JONES's picture
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Joined: 2007-08-28

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.

advisorman's picture
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Joined: 2007-12-14

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.

chaz's picture
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Joined: 2007-08-18

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).

newnew's picture
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Joined: 2007-02-23

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.

Broker24's picture
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Joined: 2006-10-12

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).

outofjail's picture
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Joined: 2007-12-11

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.

advisorman's picture
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Joined: 2007-12-14

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.

bondo's picture
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Joined: 2007-04-15

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.

advisorman's picture
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Joined: 2007-12-14

90% success rate for GK is much higher than our region. What is your region doing to get that high a rate?

bondo's picture
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Joined: 2007-04-15

advisorman wrote: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.

advisorman's picture
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Joined: 2007-12-14

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.

compliancejerk's picture
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Joined: 2004-12-03

advisorman wrote: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.
 
A real office .... next you'll be telling us that you have a branch too?

Borker Boy's picture
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Joined: 2006-12-09

bondo wrote:
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.
 
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 *********************        

Roadhard's picture
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Joined: 2007-02-23

Thanks for being honest Borker Boy--it's true!  I did it myself!

chaz's picture
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Joined: 2007-08-18

bondo wrote:
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 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.

Roadhard's picture
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Joined: 2007-02-23

Chaz and Bondo, the 40% is five years out--from what I can remember when I was at Jones.

chaz's picture
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Joined: 2007-08-18

advisorman wrote:
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 think you may be mistaken here, although you may be right.  I would be surprised that anyone would do 5 GK already. I especially don't think it would be likely that all 5 would fail, statistically.  I also do not believe that home office/RL would continue to allow that FA to do a GK without making some strides to show him how to complete a successful one.
 
The success of the GK advisor rests with the Vet. The accounts- $5 mil .0025 trail = $12k gross will not be the difference between someone failing and someone exceeding. The veterans advice as a mentor will. They receive a bonus if they complete the program with the GK advisor meeting standards so they have a vested interest.
 

noggin's picture
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Joined: 2004-11-30

3 out of my original class of 12 are in business today 5 years later. That's a lot less than 40%....

chaz's picture
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Joined: 2007-08-18

noggin wrote:3 out of my original class of 12 are in business today 5 years later. That's a lot less than 40%....
 
You are right- that is 25%. Congrats on succesful math. Do yo feel that your sample of 12 must hold true for all classes? Also, you may note that the 45% number was based on 3 years.
 
Seriously, what is your point?

Borker Boy's picture
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Joined: 2006-12-09

Seven years out, my mentor (who did a GK)  is the last survivor from his class of 13...

bspears's picture
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Joined: 2006-11-08

My class has 2 out of 12....and 1 took over a 40mil office and another was still seg 2 when I left.  But its just probably my class that had the high failure rate...I was the only one to go indy...everyone else left the industry.

Spaceman Spiff's picture
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Joined: 2006-08-08

You guys talk about attrition numbers like they are unique to Jones.  They are not.  Every firm that takes on newbies has a high attrition rate.  Jones is always looking for ways to make the % go down.  The new concept is that nobody starts from zero.  Everyone gets accounts.  Goodknight plans, Legacy plans, Sunset plans, etc all are a way to get the attrition numbers to drop.  However, it still doesn't guarantee success.  There was a girl that started in my region at the same time as me.  We took over identical offices and then she took over another small office.  Ended up with something like $15 mil.  She lasted all of three months.  So, taking over assets is only a small part of success.  You have to want to do the job. 

advisorman's picture
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Joined: 2007-12-14

Spaceman Spiff wrote:You guys talk about attrition numbers like they are unique to Jones.  They are not.  Every firm that takes on newbies has a high attrition rate.  Jones is always looking for ways to make the % go down.  The new concept is that nobody starts from zero.  Everyone gets accounts.  Goodknight plans, Legacy plans, Sunset plans, etc all are a way to get the attrition numbers to drop.  However, it still doesn't guarantee success.  There was a girl that started in my region at the same time as me.  We took over identical offices and then she took over another small office.  Ended up with something like $15 mil.  She lasted all of three months.  So, taking over assets is only a small part of success.  You have to want to do the job. 
 
The same is true with my class. Out of 10 there is only 2 left and the one guy that took over a office was one of the first to go. This is a tough business.

compliancejerk's picture
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Joined: 2004-12-03

edjnewhire wrote: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!
 
Sorry I forgot to ask, but what is your Can Sell date?

MISS JONES's picture
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Joined: 2007-08-28

Her can sell is this coming spring.. We chatted in a few PM's that is how I know..

bspears's picture
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Joined: 2006-11-08

My bad, now just 1 out of 12 left.  I know its just my class with this low rate, probably nothing more than coincidence. 

compliancejerk's picture
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Joined: 2004-12-03

edjnewhire,
the reason I asked is that if you don't have a cansell date then you need to focus on passing the exams first then where you go is secondary.  Now I will contradict myself...unless the GK is in a prime location for YOU.  Yes you will be an extension of him.  Is he succesful, is this his first GK (in order for him to look good you'll have to be success too).  If it isn't his first how many have succeded v. failed and ask why for both.
 
The GK program works, as long as both you and the GK work together (boy is this a "duh" statement).
 
Just remember your advisor is doing a GK just as much  for his benefit (if not more) than for you.  Having a successful advisor as a mentor gives you something that "legacy" or takeover startups don't get.. A personal touch.
 
One advisor locations go through "lonely times" as you don't have anyone to talk to professionally. Sure you have a BOA but unless they are licensed to sell they have no concept of what you are going through. Having a someone close to bounce ideas off of is lot more condusive to success then having to wake up each morning and having to come up with new ideas on how to find new prospects.
 
Best of luck and good for you for having the foresight to plan ahead.

FreeFromJones's picture
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Joined: 2006-11-29

ONLY 2 OF MY ORIGINAL 12 LEFT, AND I'M THE ONLY INDY.  ONE TOOK OVER A 30 MILLION OFFICE THE OTHER HAS SCRATCHED HIS WAY TO SEG 4 BUT HASN'T BEEN ABLE TO SUSTAIN THOSE NUMBERS.
SOUNDS SORT OF STANDARD THAT ONLY 20% OR SO ARE STILL AROUND OUT OF MULTIPLE CLASSES.

compliancejerk's picture
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Joined: 2004-12-03

If your advisor is like a "Miss Jones" then I suggest doing a GK. She doesn't seem to be the know it all kid  his hand up saying "o o o I know I know" only to find out he is 3 questions behind with his answers.

Broker24's picture
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Joined: 2006-10-12

FreeFromJones wrote:
ONLY 2 OF MY ORIGINAL 12 LEFT, AND I'M THE ONLY INDY.  ONE TOOK OVER A 30 MILLION OFFICE THE OTHER HAS SCRATCHED HIS WAY TO SEG 4 BUT HASN'T BEEN ABLE TO SUSTAIN THOSE NUMBERS.
SOUNDS SORT OF STANDARD THAT ONLY 20% OR SO ARE STILL AROUND OUT OF MULTIPLE CLASSES.
 
Probably about right.  Tough business, though.  Scary that Jones' attrition rate is actually slightly lower than the industry.  It seems to me that it's a combination of people not realizing how tough this busines is (not realizing it's a SALES business, even though it is imprinted on your forehead before you even start), not really liking it once they start (they thought they would sit around managing investments for people), or not being able to generate business (often just the wrong personality).
 
It's a shame, but I don't really know how you fix that in this industry.  You can only screen people so closely, but until they are actually DOING the job, you just don't know (of course, I am not including people already in the business).

bspears's picture
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Joined: 2006-11-08

Sorry, but i'm going to take the gk under Miss Jones.  I think it would be a great opportunity to get up close and personal and have her show me the ropes.  Can't wait. 

compliancejerk's picture
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Joined: 2004-12-03

she can show you the ropes
But i'll work under her

MISS JONES's picture
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Joined: 2007-08-28

Hey Fellas.. There is enough of me to go around.. Just Kidding.. In all honesty- I think NewHire will do well.. We have chatted in a few PM's she asks good questions and has realistic expecations.  Either way- best of luck..
 
Miss J

troll's picture
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Joined: 2004-11-29

compliancejerk wrote:edjnewhire,
the reason I asked is that if you don't have a cansell date then you need to focus on passing the exams first then where you go is secondary.  Now I will contradict myself...unless the GK is in a prime location for YOU.  Yes you will be an extension of him.  Is he succesful, is this his first GK (in order for him to look good you'll have to be success too).  If it isn't his first how many have succeded v. failed and ask why for both.
 
The GK program works, as long as both you and the GK work together (boy is this a "duh" statement).
 
Just remember your advisor is doing a GK just as much  for his benefit (if not more) than for you.  Having a successful advisor as a mentor gives you something that "legacy" or takeover startups don't get.. A personal touch.
 
One advisor locations go through "lonely times" as you don't have anyone to talk to professionally. Sure you have a BOA but unless they are licensed to sell they have no concept of what you are going through. Having a someone close to bounce ideas off of is lot more condusive to success then having to wake up each morning and having to come up with new ideas on how to find new prospects.
 
Best of luck and good for you for having the foresight to plan ahead.I just wanted to say 'thank you' for making constructive contributions...it's nice to see.

compliancejerk's picture
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Joined: 2004-12-03

joedabrkr wrote:I just wanted to say 'thank you' for making constructive contributions...it's nice to see.
 
you like me you really like me (Jim Carrey from the MASK)
 

Broker7's picture
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Joined: 2007-02-23

bspears wrote:My bad, now just 1 out of 12 left.  I know its just my class with this low rate, probably nothing more than coincidence. 
 
2 or 12 in my class...I'm about 3.5 years from can sell
BOTH took over 8 figure offices.  All the new news bombed out by the 18 months mark

troll's picture
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Joined: 2004-11-29

compliancejerk wrote:joedabrkr wrote:I just wanted to say 'thank you' for making constructive contributions...it's nice to see.
 
you like me you really like me (Jim Carrey from the MASK)
 
lol...no I just appreciate that you decided to bury the hatchet....

compliancejerk's picture
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Joined: 2004-12-03

joedabrkr wrote: lol...no I just appreciate that you decided to bury the hatchet....
 

                                        lets get something straight
                                              he/she wussed out
                              in the "olden days" he/she was "flamed"

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