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What is Seg 2,3,4,5?

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Apr 1, 2008 12:22 am

I am new to the whole FA career. A friend of mine has been with EDJ for about a year now and I am currently in the interview stage. I have been reading the forums for a short while now and I not been able to define what Seg 2,3,4,5 means. I understand Seg is Segment but what exactly does that mean?

Apr 1, 2008 12:34 am

It refers to levels of production (gross commissions)

  Seg 2 starts when your 4 month rolling avg. is $8000 Seg 3                                                                $15000 Seg 4                                                                 $27000 Seg 5                                                                  $40,000   That plus a minimul amount of continuing education gets you to move up a segment...one becomes Seg 1 after PDP which is after a Seg New Broker spends the first 17 weeks in the field and meets some minimul production number.   Hope this is clear for you. 
Apr 1, 2008 12:45 am

Thank you for clearing that up! Is there anything higher than Seg 5?

Apr 1, 2008 12:54 am
aseubanks:

Thank you for clearing that up! Is there anything higher than Seg 5?

  No...5 is the highest and it is pretty new itself.
Apr 1, 2008 12:04 pm

I have heard talk about a seg 6 for Million dollar producers, or Top Producers.  To me, there is abig difference between 40K per month and 80K per month in terms of your office and your focus.  And some of the seg 5 guys got there by chance from one or two monster months, then drop back down to seg 4 numbers.  I’ve actually seen some seg 5 guys now only doing high seg 3 numbers (20-25K).

It's hard to do $1mm production by chance or luck.
Apr 3, 2008 12:20 am

b24,

  great April Fool's joke ....seg6 (say that fast six time)  
Apr 3, 2008 11:44 am

That’s your 4 month rolling average PER MONTH, correct?  Seg 5 produces 40,000 a month average for 4 months, right?

Apr 3, 2008 2:04 pm
fisher23:

That’s your 4 month rolling average PER MONTH, correct?  Seg 5 produces 40,000 a month average for 4 months, right?

  That is correct sir.
Apr 5, 2008 10:56 pm

and seg6 would be what?

Apr 6, 2008 12:28 pm

There isn’t one. Yet. I had suggested that they may be implementing that for Top Producers, $1mm+ production, etc… Currently, Seg 5 is for onyone doing over 40K/mo.

Apr 6, 2008 11:37 pm

c’mon $1 million gross producers … at jones town??

Apr 6, 2008 11:45 pm

I actually know one.  They do exist.

Apr 7, 2008 12:14 am

When you pay your bills and when your wife goes shopping, the only thing that matters is the net!!! 

  You can gross so much less and live on so much more elsewhere.  Forget the jones "segment" talk.    Look elsewhere to get started. Be careful what you sign-i.e., length of commitment, dollars you're charged back if you leave, noncompete clause.
Apr 7, 2008 1:36 pm

We’ve had million dollar producers since the late 80’s.  I’ve got a few in my region that are in the 800-850K range, and they are only in about 12-15 years (they are the “vets” in my young region). 

  I think the top 300 producers go to the Manageing Partners Cofnerence.  To qualify, you have to do $615K in transaction revenue this year (not including trails).  One guy in my region did about 850K last year, but did not qualify for the MP Conference (not enough in transation revenue), which means there are at least 300 FA's doing more than 850K gross.  We've got a few $2mm producers as well.  Tough to do much more than that in a "solo" environment - one thing that irks me about Jones (no office partners).
Apr 7, 2008 7:59 pm

Jones has actually had, I believe, 6 or 7 $2 mil producers.  Had one last year in fact. 

  I'd bet that over the next few years we start seeing a lot more $1 mil producers.  If some of those $750K+ FAs can adopt the fee based model on top of the transaction revenue they'll shoot over $1 mil fairly quickly.  I know that's what I'm planning for in my office anyway.
Apr 8, 2008 6:16 pm

wow 6 or 7 $2mill producers?  That many???

How'd they build their books...the old fashioned way (inherited) I wonder if their spouses have heard how much they leave on the table .... oh wait the GP and trips make it worthwhile to stay yeah yeah that's the ticket.
Apr 9, 2008 8:26 pm

Bravo xej1984

  Run a spreadsheet in front of any spouse...they get it faster than we do since they dont receive the hourly propaganda.
Apr 9, 2008 9:23 pm

I talked with a buddy from HQ today.  He said we had at least one $3 mil producer last year.  With just his 40% and his profitability bonuses he was over 60% on payout.  The other stuff that comes along with an office on the side was just icing on the cake.  He’s happy, his four BOAs are happy.  I’m sure he knows what he’s giving up to stay at Jones.  Something keeps him here. 

  Of the 6 or 7 $2 mil producers I know the story of three of them.  Those three built their offices from nothing. 
Apr 10, 2008 1:05 am

Number of BOAs is not a status symbol or a sign of success.  Except for within jones.

  and, with an indy firm he could be getting 92%, 100%, putting away more for his retirement than a 401k.   and...How much can he sell his business for when he retires????    Spiff, "something keeps him here."  Yeah, habit, being too dug in.  Just do the math.
Apr 10, 2008 2:31 pm

You should track him down and ask him.  He’s in North Dakota.  I can only pass on info and my opinions.