Edward Jones

116 replies [Last post]
haidesu's picture
Offline
Joined: 2007-06-25

Well, this is my first time posting on here.  I've read a lot of things about Edward Jones, mostly bad obviously.  A lot of the people who post on here make broad generalizations over the firm because of their individual experiences.   Here are a few broad generalizations to keep in mind about Edward Jones :    1. EJ FAs recently ranked #1 in overall satisfaction by JD power and        Associates.  Those that make it was EJ are apparently very        satisfied (most of them).      2. Highest ranking brokerage in BusinessWeek, "Customer Service        Champs".    3. #1 2005' and 2006' for investor satisfaction with full service        brokerage firms by JD Power and Associates.    4. #1 brokerage by Forrester Research in being advocates for        our clients.      5. #1 full service brokerage in 2005 and #3 in 2006 by smartmoney        magazine.For the most part Edward Jones does what is right for the clients.  We are not the sexiest firm out there. We don't get extraordinary returns in great markets but we definitely keep pace capturing a good percentage of the upswings.  When the market is down, we generally perform better and don't take as big a hit as the market.  So again, can someone tell me why EJ is so bad? Our advisers are happy and our clients are happy.  What more can anyone ask for?

ezmoney's picture
Offline
Joined: 2004-11-30

go away.

spikedkoolaid's picture
Offline
Joined: 2006-04-20

Mr. Haidesu,
Compared to some of the other firms Jones was a great place to start.  I loved going on the trips.  I've been all over the world.  The BAD things about EDJ have been talked about extensively on these forums so I will not repeat. 
The only thing I can tell you is don't drink the KOOLAID it's spiked! 
 And make sure that when you make the statements above, please remember we veterans on this forum HATE the "Holier than thou,  we do what's best for our clients, we protect people in the down markets, etc" propaganda that the RL's and GP's feed to you and then you regurgitate.
Finally, EDJ is a good firm to start with but when you really start producing I don't think it's a great place to stay.  And based on the defection that has happened there are about 6000 people that agree with me over the past 5 years. 

uwec86's picture
Offline
Joined: 2004-11-30

Mr. Haidesu,
You are obviously new to EJ, I strongly suggest that you stay off this forum until your 3 yr obligation is complete and you've actually build a business.  If you stay here, you'll post about things you don't understand and don't need to until later.  Run laddy run.

haidesu's picture
Offline
Joined: 2007-06-25

I am not trying to come off like a saint here, sorry if I am.  The point is that I read a lot about how horrible conditions are for the FAs and how our clients are getting ripped off. 
Sure it's hard being a new FA, but it's the same at any firm.  Door knocking lasts 6-7 months and then you get to tone it down a lot depending on how smart and proactive someone is. 
And about the trips and regional meetings, I am not into those things at all.  I think they are dumb and they should just let us get on with our business....so I'm not some brainwashed dope. 
Again, to reiterate...people usually comments that our FAs are in sweatshop conditions and that our clients are getting shafted.  Third party research from reputable companies shows otherwise.  Where is this discrepancy coming from?

Gone Indy's picture
Offline
Joined: 2005-12-02

Let me guess...you are 23 years old, just out of college, and this is your first job?

footsoldier's picture
Offline
Joined: 2006-04-30

I agree with others you should hold off making any brash statements until you have some time in the industry.
You know what it is eery?
I hear myself in your words several years ago.....Hang in there, learn but always sell yourself first. And listen to Spiked. A great place to learn, but at some point you will want out. Some do stay, and they are good soldiers like Spiff. But it is the exception. Most FA's leave. How else can you explain no growth over the last five years and training 200 reps per month. 
Your firm is full of conflicts. Now they disclose, before they didn't. If that makes you comfortable, have at it.

bspears's picture
Offline
Joined: 2006-11-08

Let me ask you this...If I told my wife "we only need to by the beef at Penelopes Meat Shop, because it is the best for us and our family".  One day, my wife stops in at Penelope's and catches me in the back just goin to town with Penelope...Do you think she would be mad and want to leave me?  Hint..Revenue sharing...I didn't want her to go anywhere else because I was benefitting from using her meat..and mine. Now, I want you to understand, I was just awarded father of the year, Volunteer of the year, Championship Flight champ, little league coach of the year.  Pull the curtain back...see whats underneath, not just the propoganda they spew.  To be fair and balanced...they're okay to start your career with.

haidesu's picture
Offline
Joined: 2007-06-25

All firms have skeletons in their closets and have conflicts to deal with.  I know we are not as clean and tidy as we would like to think.  Little growth in FAs yes, again this is a tough industry to get into and most people don't make it.  EJ hires 200 new people every month, so I know that obviously it's a very high percentage that don't make it. 
Bspears, that analogy doesn't make sense.  We are not making up any propaganda as you put it, these are rankings from other firms.  Revenue sharing...ok, what firm doesn't do something similar to this. 
My answers have yet to be answered.  Is all you anti-EJ simply based on the relatively low 40% payout?  It can't be due to our FA or client satisfaction... 

FreeFromJones's picture
Offline
Joined: 2006-11-29

Spears,
It's the sam old crap.  EDJ is one thing on the outside and completely different on the inside.  It's their way or the highway.  Just talked to friend who was doing tremendous business in his home town, not the town his office is in and he was told by the area leader to cease and desist and to refer those accounts to a local office.  What a load of S##T.  They don't truly want anyone to be really successful because that person might leave. 
The propoganda is just that...propoganda!!! Buyer beware.  But fair and balanced...Great place to start, great place to leave.

dalbroker's picture
Offline
Joined: 2007-03-25

Whats the latest on Eddie'e fee-based offering?My main knock against Jones is the limited product offering.

FreeFromJones's picture
Offline
Joined: 2006-11-29

haidesu
I'll be happy to answer your question, but first a question for you.  What is your work experience? What did you do, if anything before going to EDJ?
It's not all about payout, as some seem to think.  It is about real life.  In my case, maybe enough due dilligence wasn't done.  I was hired by Merrill to work in a city where I didn't want to live (this is after 25 years ijn the military living many places I didn't want to be) so I opted out and went with EDJ, based purely on the propoganda and the koolaid spewing by the RL, besides they'd let me open an office in the town where I wanted to live.  That was great.
They didn't let me know "Mr 25 year retired military officer, we're going to treat you like a child and look at everything you're doing as if it's wrong until you can prove to us you are right."  They did say, "you can build your business your way." They didn't let me know, "as long as you repeat after them, 'if you've got 25K you should buy some today."  They didn't let me know a lot of things that occur on the inside that we don't want outsiders to know about.  They didn't tell me, we'll be sending wholesalers to talk to you to convince you to sel their products because their revenue sharing payment was higher.  I asked "what's revenue sharing." and was told, "don't worry about that, you're not getting a bonus right now.  just sell this so the GP's anf LPs bonuses can be higher."  I was told that Jones doesn't do things like charge clients a fee if they want to move their accounts...it's their money and they can have it managed whereever they want.  We're better than those other firms that do charge fees."  Then, oh by the way, now we've decided to charge people when they want to move their assets because it'll discourage them from leaving."  So much for letting the client do what the client feels is the best for them.
So no, it's not just about the lousy 38% (it sure ain't 40%) payout, it's about keeping info from the general emplolyee population unless we get caught mentality.  It's the let's brag about always doing wha't righ for the customer yet charge them as many fees as we can get by with.  It's the I could care less if you suceed or not because guys like you come and go and there will always be someone else waiting to fill your office attitude of the RLs and home office troops.
You guys who are still falling on your sword for the green and white are really so shallow, but I predict that someday you'll walk into your office with the multi-colored carpet and the one green wall and say what the h##l am I doing here and how soon can I leave.
SO, sit back, drink another cup of koolaid, and sell some CAIBX.

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

FreeFromJones wrote:
They didn't let me know "Mr 25 year retired military officer, we're going to treat you like a child and look at everything you're doing as if it's wrong until you can prove to us you are right."  They did say, "you can build your business your way." They didn't let me know, "as long as you repeat after them, 'if you've got 25K you should buy some today."  They didn't let me know a lot of things that occur on the inside that we don't want outsiders to know about.  They didn't tell me, we'll be sending wholesalers to talk to you to convince you to sel their products because their revenue sharing payment was higher.  I asked "what's revenue sharing." and was told, "don't worry about that, you're not getting a bonus right now.  just sell this so the GP's anf LPs bonuses can be higher."  I was told that Jones doesn't do things like charge clients a fee if they want to move their accounts...it's their money and they can have it managed whereever they want.  We're better than those other firms that do charge fees."  Then, oh by the way, now we've decided to charge people when they want to move their assets because it'll discourage them from leaving."  So much for letting the client do what the client feels is the best for them.

What did you want from Jones?  Did you want them to throw you out there with a phone book, no cold call script, no direction, nobody to answer to? Have fun!  Call us if you need anything!  How pissed would you have been then?
I have a hard time believing that anyone from Training or the Seg 1 folks made you feel like you were doing it wrong until you prove it to them.  In fact I'll bet that the trainers weren't really on your case until you weren't keeping up your end of the bargain. 
I also have a hard time believing that any wholesaler actually told you to sell anything based on revenue sharing.  Especially since you were so new you weren't getting a bonus.  I'd be suprised if any of the wholesalers did anything other than give you their sales material and tell you they'll do seminars and dinners for you.  And I've never personally heard anyone tell a new FA to sell something specifically because it generates revenue sharing for the firm.  If they were telling people that we wouldn't sell so much American funds.
I've never personally heard anyone in the know say that the reason we started charging transfer out fees on non IRA accounts was to discourage people from moving.  If people want to move, $50 isn't going to stand in their way.  BTW, $50 is lower than all of the major firms except LPL, who also charges $50.  With new leadership and new costs comes new fees.  Our fees are still on the low end of the industry.  It's probably just some bean counter seeing a small source of revenue and figuring it's adding to the bottom line.
Say what you will about Jones, the GPs, LPs and the flavor of the Kool-aid, but for the right people it's a great place to be.  The only legit knock against us right now is the lack of a fee based platform for the masses.  But you guys will probably complain about that when it rolls out too. 
 

haidesu's picture
Offline
Joined: 2007-06-25

I've been in the industry roughly 5 years now, straight from college with a finance degree from one of the best b-schools in the nation.  Not to brag, but to let you know I am fairly analytical and know how to value companies and all the ins and outs of risk/return. 
Now, let me ask you, "What is so wrong with CAIBX?"  Are you saying it's not a good fund and that our clients are going to get burned by it? 
Anyways, like I said people here have obviously had bad experiences with EJ...but for those who make it it's great.  
You may ask yourself why they keep such a close eye on you all the time and make you feel at times like a child, but think about it.  You are in an office with no direct supervisor there monitoring you.  They have to monitor you somehow, I don't need to tell anyone here that this industry is highly regulated and rightly so.  We are dealing with individuals livelyhoods here.  EJ does have to watch it's own butt.
About charging a fee to move assets from EJ, we actually have the lowest fees amongst the top brokerage firms.  It's only $50, so I hardly think that's enough to desuade anyone who is truly unsatisfied with their broker. 
Too bad about your friend, that is a crap situation.  It's something that strikes me as odd because most FAs that I know have accounts all over, sure 60-70% are around their area but the rest is from neighboring towns or even out of state.  Some RLs can be idiots like that, but for the most part they don't care because they know you worked hard for those accounts.   
We do have a limited product offering compared to some of our competitors.  We only follow about 300 stocks and we have 8 preferred fund families.  But honestly, how many stocks and mutual funds do you need to keep track of.  Those that are in our preferred list are damn good.  I focus on AF, GS and FT.  They give me all that I need to properly allocate funds.  They have everything from aggressive to conservative to income. 
Before I get blasted on my narrow mindedness of only using those preferred funds, let me say that I did extensive research into outside mutual fund families.  Yes, there are some out there that are great that we can't hold, but by and large most others are just crap or they only have 1-2 funds that are good. 
Yes we do get wholesalers to come talk to us...but what firm doesn't have wholesalers talk to them?  That's not a good point to make.  Of course their goal and how they get paid is for the broker to sell their products, but it's the brokers choice and if it fits with the client needs.  For me, meeting with wholesalers is part of the business and it's fairly good to see what they have to offer...then I decide if it's appropriate.
No, I don't drink any koolaid, and to be honest I've never actually had any.  I just can't seem to get an answer that satisfies my questions.  I don't have a particular answer in mind, so it's not like I only want to see what I want, but when I see a response that really makes sense to me I'll know it. 
Please let me know exactly how it is that I'm being shallow.
Again, to my shame...I've been a lurker here for at least 2 years.  I have read every single thing people have to say about EJ.  But still no response has really made sense as to the overwhelming disdain.  Is it mainly because some FAs act like we are saints who have never stumbled along the way?

FreeFromJones's picture
Offline
Joined: 2006-11-29

Spiff,
I'm happy that you've never heard a wholesaler pitch his product based on revenue sharing or bps trails but I've heard it on many occassions, not so much after all the revenue sharing crap came out but I have, plenty of times before.
I also agree that it's a great place for some and some will never leave. I believe you will be one of those.  I hope you do very well and live a nice life.
Some of us have been faced with BS before and know what it is and know what it smells like.  Maybe my region was just full of BS, I don't know but it sounds like your region actually has some decent folks in it.  To me, it just stunk and it was time to leave.
haidesu
I hope you do well in life and everyone has to start somewhere.  Coming from a top b-school doesn't give you a leg-up though, you have to earn it by working hard. You are showing shallowness by refusing to think that anyone could have a legitimate beef against Jones and that if we say bad things about EDJ, we're just disgruntled failures who moved on to another firm because we couldn't hack it at Jones. Just because "you've never heard anyone say that or seen anyone do that" doesn't mean it ain't so.
Sorry to use CAIBX as an example.  Great fund but not "the fund" for everyone.  I still have quite a bit on the books.
Life is good away from Jones and I'm sure you're happy at Jones.  So be it.  We must simply agree to disagree.

FreeFromJones's picture
Offline
Joined: 2006-11-29

It must be Friday and we're all sitting around twiddling our thumbs posting too much on this board.  Get to work!!

Gone Indy's picture
Offline
Joined: 2005-12-02

"I've been in the industry roughly 5 years now, straight from college with a finance degree from one of the best b-schools in the nation.  Not to brag, but to let you know I am fairly analytical and know how to value companies and all the ins and outs of risk/return."
Very impressive.  Sounds to me like you are ready to sit for the CFA.
In case you haven't figured it out yet, this industry doesn't care where you went to school.  

BILLYBOB's picture
Offline
Joined: 2005-09-09

Gone Indy wrote:
"I've been in the industry roughly 5 years now, straight from college with a finance degree from one of the best b-schools in the nation.  Not to brag, but to let you know I am fairly analytical and know how to value companies and all the ins and outs of risk/return."
Very impressive.  Sounds to me like you are ready to sit for the CFA.
In case you haven't figured it out yet, this industry doesn't care where you went to school.  

Not true...where you went to school can open doors.

haidesu's picture
Offline
Joined: 2007-06-25

To be fair I never said anything about those who leave or quit being failures.  I said they didn't have great experiences, or at least something to that effect.  I know this is hard work and I know great people who don't make it, and by no means would I call them failures.  So somehow you must've gotten my remarks mixed up. 
Ok, yes it makes sense that some pople have bad experiences and that they reflect that into what they write.  My question is that this forum has a deep set disdain for EJ and it's not just ex-Jones people.  What exactly makes us the laughing stock or a "third-tier" brokerage. 
Again, I understand some people were crapped on at EJ...I highly doubt this isn't true at every firm.  I'm sure they have a legitimate beef with EJ, there is no mistaking that, But why are these individual instances used to make a broad generalization about EJ FAs being unsatisfied and our clients being shafted?
Maybe I'm just not being clear enough.
The reference about being from a top b-school was just to say that I'm not ignorant about the ins and outs of investments and that im actually very informed about it.
I know this has absolutely no bearing in how successful I become becuase mostly this is information that never reaches the clients. 
I have to say I am surprised I haven't really been blasted on here.  Thanks for the actual communication and not just saying, "whatever queer", or something to that effect.

Dust Bunny's picture
Offline
Joined: 2007-05-07

But still no response has really made sense as to the overwhelming disdain
Well, here's my response. I disdain liars and doubletalkers.  EDJ lied to me and misrepresented what the business model would be like once I was actually in the office.  Everyone from the recruiter, to the regional leader lied. Later I found out that they used their insider status to hold off and give plum offices and goodnight programs to their own relatives who had never been in the industry instead of offering them to transfer brokers like myself.   They lied and hid the information that those offices were even available.  The profit and loss statement (ha...there's a joke) is made to be purposely obscure and difficult to figure out, another deception.  The push to recruit other patsies  ....I mean brokers... for a few points to get some stupid trip was distasteful.  
Running your own business, they say.  Well of course, that doesn't mean freewheeling and doing anything you want without compliance oversight.  But to me running my own business didn't mean being forced to go to regional and mini regional meetings, forced to do call sessions when I was well into the green revenue wise and all the other feel good do nothing meetings that wasted my time. 
Thankfully I wasn't pestered by wholesalers in the office, just on the phone, because my office was more rural.  But I also heard the revenue sharing pitch. which didn't make any difference to me in what products I offered.
 

FreeFromJones's picture
Offline
Joined: 2006-11-29

" I  know this is hard work and I know great people who don't make it."
This is a lot of the issue here.  If you leave Jones, you just didn't make it, because it's hard work. These people who leave Jones, myself included, must have known it's hard work because we stayed in the industry.  If it was about hard work and not wanting to work hard then I sure wouldn't be here making a living.  I'd be living on a house boat on some nowhere lake drawing my pension check.
Stop believing that only those who stay at Jones are the only ones in this industry who work hard.  It just ain't so.
What exactly makes us the laughing stock or a "third-tier" brokerage?
The laughing stock is because everyone here who doesn't work for Jones can so easily get a rise out of a Jones guy or gal.  Also, knocking on doors may get you some clients but it sure doesn't win you any respect. Showing up on someones door step red faced and sweating is not the way I want my clients to remember me. Only a few believe Jones is third-tier, but that's their opinion, live with it.
But why are these individual instances used to make a broad generalization about EJ FAs being unsatisfied and our clients being shafted?
Generalizations are made about a lot of folks because of bad or good experiences.  I know an equal number of satisfied and dissatisfied Jones guys and gals.  Everyone I know who has left has never looked back and said man I screwed the pooch on that one.  Except BSpears who keeps begging Spiffy to take him back.  The people who have left have stayed gone and are glad they departed the mothership.  I don't think the clients generally are getting shafted other than the office that has a revolving door. A new FA every few months is not good for the clients and definitely not what they signed on for.
I won't blast you, I'll leave that to the more adolescent minded few.

Indyone's picture
Offline
Joined: 2005-05-31

haidesu wrote:Ok, yes it makes sense that some pople have bad experiences and that they reflect that into what they write.  My question is that this forum has a deep set disdain for EJ and it's not just ex-Jones people.  What exactly makes us the laughing stock or a "third-tier" brokerage.
With a disclaimer of not having worked there and only getting information from here and a couple of Jones friends I speak with occasionally, here goes...
A lot of the disdain comes from those who have either left and had their eyes opened to what is possible beyond the green or those like me who have seen EJ brokers who are held up as community icons, sell entirely inappropriate investments to trusting clients.  I could go into more detail, but I've beat that horse plenty...just use the search function.  The amusement shared by former EDJ'ers comes mostly from some of the simplistic sales approaches used by Jones to teach those new to the business, such as the infamous hamburger.  I'm sure they work well for newbies, but they seem a little silly to some of the vets.  The lack of technology (and some of the awful office locations)compared to competitors are also points that detractors use to label Jones as "third-tier".
There are plenty of very worthy prospects who have done due diligence on Jones, seen the limited platform and product line, and simply moved on to someone else better suited to taking care of their needs.  Granted, these folks are not the majority of the investing public who simply need a few good funds, a basic investment strategy, and occasional simple advice (Yes, Mr. Clark, it would be a bad idea to withdraw from your IRA to pay for your daughter's wedding."), but they exist and you're lucky if you even see them.  Most would simply look at the converted filling station you have your office in and move on (and yes, I have a specific office not terribly far from me that is an actual converted gas station.  To be blunt, it looks like sh*t.)
I find all the surveys and awards suspect at best when stories are heard that amount to nothing more than stuffing the ballot box.  I don't know if it's true and frankly, I don't care.  It simply makes me take most surveys and awards with a grain of salt.  I would pay more attention to a survey that polled every advisor from a group of firms on the same subjects.  I would have a hard time believing that independents such as Commonwealth and LPL would fare poorly next to Edward Jones in such a poll.  I personally suspect that the simple truth is that EDJ has a much higher participation rate than competing firms due to encouragement.
In addition, many Average Joe clients at Jones would love their advisor even if they were being screwed...they simply trust and don't ask questions, whereas a $10 million dollar client at Merrill Lynch has high expectations about service, expertise, performance, etc., and is much less likely to completely trust the advisor and much slower to hand out praise and complete surveys about their advisor than Joe Public.  For them, high levels of service and expertise are simply expected and do not need be praised.
Hey, if it works for you, that's great.  Personally, I like the idea of having a more complex platform and much broader product line, even though a majority of my clients could probably get most everything they need from Edward Jones.  I've been in the business long enough to analyze more complex investment products, and I appreciate the opportunity to use them with my clients, even if only a handful need them.  Some of you prefer keeping it simple and appealing to the masses.  That's fine by me...just don't expect me to put much stock into surveys and awards which can be easily manipulated.
I hope that's "fair and balanced" enough to not offend everyone...you asked a question, and hopefully, I've shed a little light on the outside perspective...but I suspect it will be pretty difficult for you to fully comprehend some of the differences I've attemped to explain, without ever experiencing a firm other than Jones.  I wish you well...

haidesu's picture
Offline
Joined: 2007-06-25

Yes, our limited platform prevents us from attaining many of those HNW clients who want those sexy investments they probably don't even need.  As far as the rankings go, it would be suspect if they just came from one source.  But its a bit difficult to rig rankings from 3 different sources, JD Power and Associates, BusinessWeek and SmartMoney to name a few. 
The rest of your comment does make sense.  Some office locations are just horrible and make us look bad.  Those people are just plain stupid to agree to open offices in those locations. 
Edward Jones isn't the only firm that has some bad apples that make inappropriate investment decisions for the clients. 
I can see why when you reach a certain level you start thinking about expenses and breakeven points and why you would want to go independent.

GolFA's picture
Offline
Joined: 2007-06-19

haidesu wrote:Well, this is my first time posting on here.  I've read a lot of things about Edward Jones, mostly bad obviously.  A lot of the people who post on here make broad generalizations over the firm because of their individual experiences.   Here are a few broad generalizations to keep in mind about Edward Jones :    1. EJ FAs recently ranked #1 in overall satisfaction by JD power and        Associates.  Those that make it was EJ are apparently very        satisfied (most of them).      2. Highest ranking brokerage in BusinessWeek, "Customer Service        Champs".    3. #1 2005' and 2006' for investor satisfaction with full service        brokerage firms by JD Power and Associates.    4. #1 brokerage by Forrester Research in being advocates for        our clients.      5. #1 full service brokerage in 2005 and #3 in 2006 by smartmoney        magazine.For the most part Edward Jones does what is right for the clients.  We are not the sexiest firm out there. We don't get extraordinary returns in great markets but we definitely keep pace capturing a good percentage of the upswings.  When the market is down, we generally perform better and don't take as big a hit as the market.  So again, can someone tell me why EJ is so bad? Our advisers are happy and our clients are happy.  What more can anyone ask for?
On a slightly different tack, I think the values at Jones are great, some really nice people work there. I would like to grow my practice a little by recruiting a nearby Jones rep to come over to my solo office.
If they could bring some assets, it would help pay their salary, and some sustainable prospecting and referrals could help grow the big picture.
So what payout rate would you ask for if, theoretically, you just moved as much as you could over, kept prospecting, and took some kind of draw against commission, say a minimumum of 3k per month, until things got settled?

anonymous's picture
Offline
Joined: 2005-09-29

But its a bit difficult to rig rankings from 3 different sources, JD Power and Associates, BusinessWeek and SmartMoney to name a few. 
Nobody is saying that they are rigged.  It's just that the rankings have no meaning without understanding the methodology.  If there was a survey for the world's best hamburger, McDonald's would win handily.  It sure doesn't make it it the best burger.

apex01's picture
Offline
Joined: 2007-06-27

I was at Jones for three years. Started right out of college at 23 years old. Going through training I just thought it was the way you learned the business. Looking back at those days I just laugh. From practicing door knocking to the "hamburger" close. It was such a gag, however, I think it was good for someone like me with very little sales experience to go through and actually some of my best memories in this business were those early days in KYC, Eval-Grad (eventhough of the 12 in my immediate class i'm the only one still in the business!) 
I really have nothing new to add. I've just been reading posts on Jones for the past few months and finally felt like commenting. It's a great place to start, for some it's a great place to stay forever. For the clientele I am working with they just seemed to want a little more than what I had to work with at Jones. I really had no beef with Jones. The payout was fine at first, the profit sharing was ok, and I thought the trips were pretty cool (and so did my buddies I took along) I just think I was like alot of people and out grew Jones.
My problem with Jones didn't start until I left. The slandering of my name by my regional leader. The idiot that they actually put in front of my clients. The holier-than-tho attitude their representatives take. I read a comment earlier in this post where someone stated  "Yes, our limited platform prevents us from attaining many of those HNW clients who want those sexy investments they probably don't even need" I have a question, how the hell do you know what my clients need? That is such a Jones comment to make. If  you don't offer the product or don't understand the product (which is usually the case with most of you) then it is not appropriate for anyone and the person who does offer it and understand how to make it work in a clients portfolio is screwing them. Wow-kind of just all comes rolling out when you get typing.......I better go sit a couple plays out!

bspears's picture
Offline
Joined: 2006-11-08

Damn apex,  I'm trying to retire my bashing and then you come out and piss me off again.  I will say, you're right on the money!!  I will hold back any comments......for now.

Edward Pwns's picture
Offline
Joined: 2007-05-23

What did they lie about? 
Dust Bunny wrote:
But still no response has really made sense as to the overwhelming disdain
Well, here's my response. I disdain liars and doubletalkers.  EDJ lied to me and misrepresented what the business model would be like once I was actually in the office.  Everyone from the recruiter, to the regional leader lied. Later I found out that they used their insider status to hold off and give plum offices and goodnight programs to their own relatives who had never been in the industry instead of offering them to transfer brokers like myself.   They lied and hid the information that those offices were even available.  The profit and loss statement (ha...there's a joke) is made to be purposely obscure and difficult to figure out, another deception.  The push to recruit other patsies  ....I mean brokers... for a few points to get some stupid trip was distasteful.  
Running your own business, they say.  Well of course, that doesn't mean freewheeling and doing anything you want without compliance oversight.  But to me running my own business didn't mean being forced to go to regional and mini regional meetings, forced to do call sessions when I was well into the green revenue wise and all the other feel good do nothing meetings that wasted my time. 
Thankfully I wasn't pestered by wholesalers in the office, just on the phone, because my office was more rural.  But I also heard the revenue sharing pitch. which didn't make any difference to me in what products I offered.
 

Cowboy93's picture
Offline
Joined: 2005-05-10

To answer the original poster, the phrase "you don't know what you don't
know" comes to mind. And NO, I don't have time to explain what you
don't know. But since very few, if any, Jones FAs you know well have been
successful at other top brokerage firms, your/their view of things is quite
limited.

Imagine a small town far from a decent size town (say 50,000+ people) in
Wherever, USA where few people leave, and those that do, rarely come
back to live. That is sorta kinda where you "live" (hopefully you are
following that this is what we call a "metaphor"). Nothing wrong with the
town--clean, safe, friendly people, etc. But sometimes it is nice to
commute into the Big City if you want something you just can't get in
small towns. You don't have a car at EJ...just can't get there from here. It
is in part because it is considered too dangerous to make that long trip
on the interstate (and back) by yourself in the dark.

For the extreme EJ-lover, the movie "The Village" comes to mind.

bspears's picture
Offline
Joined: 2006-11-08

The Village...great example!!

Dust Bunny's picture
Offline
Joined: 2007-05-07

Edward Pwns wrote:
What did they lie about? 
Dust Bunny wrote:
But still no response has really made sense as to the overwhelming disdain
Well, here's my response. I disdain liars and doubletalkers.  EDJ lied to me and misrepresented what the business model would be like once I was actually in the office.  Everyone from the recruiter, to the regional leader lied. Later I found out that they used their insider status to hold off and give plum offices and goodnight programs to their own relatives who had never been in the industry instead of offering them to transfer brokers like myself.   They lied and hid the information that those offices were even available.  The profit and loss statement (ha...there's a joke) is made to be purposely obscure and difficult to figure out, another deception.  The push to recruit other patsies  ....I mean brokers... for a few points to get some stupid trip was distasteful.  
Running your own business, they say.  Well of course, that doesn't mean freewheeling and doing anything you want without compliance oversight.  But to me running my own business didn't mean being forced to go to regional and mini regional meetings, forced to do call sessions when I was well into the green revenue wise and all the other feel good do nothing meetings that wasted my time. 
Thankfully I wasn't pestered by wholesalers in the office, just on the phone, because my office was more rural.  But I also heard the revenue sharing pitch. which didn't make any difference to me in what products I offered.
 

Can't you read?
 

Edward Pwns's picture
Offline
Joined: 2007-05-23

So going to regional meetings and phone sessions was a result of EDJ lying to you.  Not taking over a $50 million office was EDJ lying to you.
I'm not disagreeing with your assertion that EDJ lies a lot, I was just curious as to specifics.
 
Dust Bunny wrote:Edward Pwns wrote:
What did they lie about? 
Dust Bunny wrote:
But still no response has really made sense as to the overwhelming disdain
Well, here's my response. I disdain liars and doubletalkers.  EDJ lied to me and misrepresented what the business model would be like once I was actually in the office.  Everyone from the recruiter, to the regional leader lied. Later I found out that they used their insider status to hold off and give plum offices and goodnight programs to their own relatives who had never been in the industry instead of offering them to transfer brokers like myself.   They lied and hid the information that those offices were even available.  The profit and loss statement (ha...there's a joke) is made to be purposely obscure and difficult to figure out, another deception.  The push to recruit other patsies  ....I mean brokers... for a few points to get some stupid trip was distasteful.  
Running your own business, they say.  Well of course, that doesn't mean freewheeling and doing anything you want without compliance oversight.  But to me running my own business didn't mean being forced to go to regional and mini regional meetings, forced to do call sessions when I was well into the green revenue wise and all the other feel good do nothing meetings that wasted my time. 
Thankfully I wasn't pestered by wholesalers in the office, just on the phone, because my office was more rural.  But I also heard the revenue sharing pitch. which didn't make any difference to me in what products I offered.
 

Can't you read?
 

Dust Bunny's picture
Offline
Joined: 2007-05-07

Ok  since I'm really bored right now.
1. I would be running my own business.    My business model doesn't include going to time wasting meetings to hear crap that I already knew.  Mandatory meetings were not a part of the recruiting package or mentioned to me when I was investigating.  My model also doesn't include calling people on Saturdays and Sundays, in a boiler room atmosphere, to sell a bond that I wouldn't offer to a client sitting across from me at my desk.   My model didn't include being a recruiter for the firm.
2. There was no other option than to start a new/new office. As a transfer broker I was interested in starting with a larger book in addition to the clients that I brought with me. I had heard that there were possiblities.  The goodnight and open offices went to relatives and buddies of the RL.
3. P&L  and expenses lies The costs that were deducted from the P&L such as satellite, national advertising and the mechanics of the P&L, which are such that it is almost impossible to be profitable in the first couple of years, were hidden and glossed over when I asked about them.  The P&L is unlike anything I have ever seen, and I have seen a lot of profit and loss statements.
 

FreeFromJones's picture
Offline
Joined: 2006-11-29

Bunny,
The koolaid drinkers just can't phathom that the leadership would ever be less than truthful in any situation.  I agree on the P&L statement.  You could never earn a bonus unless you took over a substantial book when you started. Of course, those who were GP relatives and golden boys and girls were given the cream of the open offices.  We had a 50 mil office come open before I opened mine and I went to ask the RL about taking it and he said that it was given to someone coming in from outside the region.  It was never considered to offer it internally.
Of course there are the oppoortunities offered to a transfer broker under the cover of it's a large office, just to find out it's a competitive situation and the departing broker has already taken 2/3 of the book and the other surrounding EDJ guys have been busy pilfering what accounts they could.  Then the poor transfer broker arrives to a book that's 25% or less than what was promised.
No, they never withhold the truth.  They always take care of their only profit center, the IR or FA as they're now called.

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

Since I'm bored too...the Jones world according to Spiffy
Dust Bunny wrote:
Ok  since I'm really bored right now.
1. I would be running my own business.    My business model doesn't include going to time wasting meetings to hear crap that I already knew.  Mandatory meetings were not a part of the recruiting package or mentioned to me when I was investigating. -  Did you ask about mandatory meetings during your interview process?  My guess is no.  Probably for the same reason they didn't mention them.  When Jones was recruiting you and you were investigating them it wasn't important.  The New IR meetings and monthly call sessions are a little tedious, but the regional meetings are usually a nice weekend.  My model also doesn't include calling people on Saturdays and Sundays, in a boiler room atmosphere, to sell a bond that I wouldn't offer to a client sitting across from me at my desk. - There are only 2 firm sponsored Saturday call sessions, Shamrock Saturday and the Summer BBQ in August.  And those are optional.  Other than that any Saturday phone calls you would make would be of your own volition.  Everyone I've ever heard talk about starting a biz from scratch says that you should be working constantly for the first 2 years.  I think the Judge calls it the 500 day war.  Shame on Jones for trying to get you to work hard.  And I've never heard anyone tell anybody to make calls on Sunday.     My model didn't include being a recruiter for the firm. - So, don't.  Let the firm growth talk go in one ear and out the other.  Toss the materials they send in the mail.  Done. 
2. There was no other option than to start a new/new office. As a transfer broker I was interested in starting with a larger book in addition to the clients that I brought with me. I had heard that there were possiblities.  The goodnight and open offices went to relatives and buddies of the RL. - Were you a transfer broker that was worth offering additional assets?  I don't mean that as a slam on you, but from the Jones side of things, they have to choose how to best recruit.  If they can get you to open a new office, then fine.  They can use the larger office to recruit a larger transfer broker.  But I'm going to guess that nobody promised you that your were going to be offered a GKN or an open office with assets.  Just because you heard it was possible doesn't make it a lie when it doesn't happen to you.  The RLs have a process that they go through to assign open offices.  It's not just the good ol' boy network. 
3. P&L  and expenses lies The costs that were deducted from the P&L such as satellite, national advertising and the mechanics of the P&L, which are such that it is almost impossible to be profitable in the first couple of years, were hidden and glossed over when I asked about them.  The P&L is unlike anything I have ever seen, and I have seen a lot of profit and loss statements.  - Were they really hidden or did you just not know how to look at them?  If it bothered you that much there a dozen people in the home office who could have explained the whole thing to you.  Down to the pennies.
It is almost impossible to be profitable in the first couple of years.  I just got my first bonus check last year (my 4th year in the field.)  It doesn't mean Jones is trying to make it difficult for me to get the bonuses, that's just the way it is.  Actually, it pisses me off when I have friends in Podunk, MS tell me they are profitable grossing $18K/month.  It's because their occupancy is  $1000/month and mine is $2400/month.  I may have to get to $25K/month before my bonuses are worth anything.  Still, doesn't mean Jones lied about anything. 

OK, gotta get back to work. 

Dust Bunny's picture
Offline
Joined: 2007-05-07

Spaceman Spiff wrote:
Since I'm bored too...the Jones world according to Spiffy
Dust Bunny wrote:
Ok  since I'm really bored right now.
1. I would be running my own business.    My business model doesn't include going to time wasting meetings to hear crap that I already knew.  Mandatory meetings were not a part of the recruiting package or mentioned to me when I was investigating. -  Did you ask about mandatory meetings during your interview process?  My guess is no.  Probably for the same reason they didn't mention them.  When Jones was recruiting you and you were investigating them it wasn't important.  The New IR meetings and monthly call sessions are a little tedious, but the regional meetings are usually a nice weekend. 
Why would I ask them if I was going to be forced to attend a bunch of pointless meetings, when the entire mantra is you will be running your own business.  The regional meetings were a big suck up fest in remote locations hours and hours driving from my location.
My model also doesn't include calling people on Saturdays and Sundays, in a boiler room atmosphere, to sell a bond that I wouldn't offer to a client sitting across from me at my desk. - There are only 2 firm sponsored Saturday call sessions, Shamrock Saturday and the Summer BBQ in August.  And those are optional. 
Ha, maybe in your region.
 Other than that any Saturday phone calls you would make would be of your own volition.  Everyone I've ever heard talk about starting a biz from scratch says that you should be working constantly for the first 2 years. 
I wasn't starting from "scratch" even though the office was a new location.  I was a transfer broker from a bank platform and brought over 3 million in the first couple of weeks.
 I think the Judge calls it the 500 day war.  Shame on Jones for trying to get you to work hard.  And I've never heard anyone tell anybody to make calls on Sunday.    
My model didn't include being a recruiter for the firm. - So, don't.  Let the firm growth talk go in one ear and out the other.  Toss the materials they send in the mail.  Done. 
And erase the electronic messages and refuse to answer the phone when the RL would ask where are your names of prospects.  
2. There was no other option than to start a new/new office. As a transfer broker I was interested in starting with a larger book in addition to the clients that I brought with me. I had heard that there were possiblities.  The goodnight and open offices went to relatives and buddies of the RL. - Were you a transfer broker that was worth offering additional assets?  I don't mean that as a slam on you, but from the Jones side of things, they have to choose how to best recruit.  If they can get you to open a new office, then fine.  They can use the larger office to recruit a larger transfer broker. 
So it was better to give the goodnight program to the Regional Leaders dork brother who was just out of college and who had never had a job in his life?  Instead of to a career broker with assets that could be transfered and who knows the job.   Right no nepotism there.
 But I'm going to guess that nobody promised you that your were going to be offered a GKN or an open office with assets.  Just because you heard it was possible doesn't make it a lie when it doesn't happen to you.  The RLs have a process that they go through to assign open offices.  It's not just the good ol' boy network. 
Ha ha ha ha.....oh  you were serious?
3. P&L  and expenses lies The costs that were deducted from the P&L such as satellite, national advertising and the mechanics of the P&L, which are such that it is almost impossible to be profitable in the first couple of years, were hidden and glossed over when I asked about them.  The P&L is unlike anything I have ever seen, and I have seen a lot of profit and loss statements.  - Were they really hidden or did you just not know how to look at them?  If it bothered you that much there a dozen people in the home office who could have explained the whole thing to you.  Down to the pennies.
I was a commercial lending officer for many years.  I know how to read a profit and loss statement and I know when I see one that is hiding things and shuffiling the money around.  If I had seen a profit and loss statement from a real office, instead of the crap they tell your, before moving I would certainly have thought better of making the move.  My bad.  I admit I didn't do the due dilligance that I should have before making the move. 
It is almost impossible to be profitable in the first couple of years.  I just got my first bonus check last year (my 4th year in the field.)  It doesn't mean Jones is trying to make it difficult for me to get the bonuses, that's just the way it is.  Actually, it pisses me off when I have friends in Podunk, MS tell me they are profitable grossing $18K/month.  It's because their occupancy is  $1000/month and mine is $2400/month.  I may have to get to $25K/month before my bonuses are worth anything.  Still, doesn't mean Jones lied about anything. 
Gee I guess you are right.  Witholding and distorting information isn't actually lying.  

OK, gotta get back to work. 

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

Babs - your experience with Jones and my experience with Jones must be completely different. 
Yeah, the regional meeting sucks.  Nice hotels, as much alcohol as you care to consume in the hospitality suite afterwards, free food, idea sharing with other FAs.  All that sucks.  I'm sure you never learned anything in any of the business meetings either. 
GKN plans are what they are.  The FA doing to GKN gets to choose his GKN partner.  Even if it's the RL's dork brother, as long as he can pass the S7 and other exams, he's going to get that spot. 
A career broker with $3 mil.  Seriously?  Bringing in $3 mil is nice, but it's not enough to nudge the meter in the recruiting office.  There are tons of $3 mil books out there.  Why did you think you were any more deserving of a big office than the next guy/girl.  Now if you had brought over $20 mil, you might have a case.
Nepotism is alive and well at Jones.  I've seen it before too.  Buddy of mine took over a $100 Mil office recently.  When I asked him about it he said he did enough brown nosing when he was in the home office that he figured that was what sealed the deal.  I'll bet that deal really pissed off a lot of folks in that region.  But that's politics.  Sucks if you're not the one on the receiving end. 
You really think that Jones tries to hide things and shuffle the money on the P&L statements?  With as many intelligent people as we have that look at those things every month I do find it hard to believe that Jones purposely tries to hide things.  Do you have any real examples of any inaccuracies you found or are you going on pure speculation?
See, this is what happens when two people on opposite sides of the fence get bored. 

bspears's picture
Offline
Joined: 2006-11-08

Let's see Spiffy, Spring 2005, regional meeting. Area Leader was asked about the P/L along with the distribution of GP vs LP.  I won't go into details, but the GP has been around since early 90's, couldn't even get close to detailing the breakdown on the P/L...I was more confused afterwards.  Spiffy, should a p/l be this difficult to comprehend?  Also, he quickly glossed over the 80% going to the 250 gps and the 20% going to the 5,000 LP's in the ownership payouts.  I hope the guys in your region wake up and head indy, however, you should stay put...

Dust Bunny's picture
Offline
Joined: 2007-05-07

A career broker with $3 mil.  Seriously?  Bringing in $3 mil is nice, but it's not enough to nudge the meter in the recruiting office.  There are tons of $3 mil books out there
I said in the first two weeks of being at Jones I transferred over 3 mill from my previous BD.  I never said that was my entire book. That was the tip of the iceberg so to speak.  I was always in the green and have that stupid shovel among other prizes for production.
Now that I'm indy, I have more AUM than I ever had at Jones with less households.  I'm perfectly happy.  You also need to realize that I'm in the winding down part of my career and hope to retire in 8 to 10 years, unlike yourself who is probably in the beginning of yours.  So what I thought I was going to get from Jones, what they told me the business model would be like and what I actually got were completely different things.
 Do you have any real examples of any inaccuracies you found or are you going on pure speculation?
I never said it was inaccurate, just unlike any standard profit and loss statement that any business would use to accurately reflect income and expenses.  There are a lot of intelligent people who don't have a clue about business or how to correlate a P&L, income statement and balance sheet. 
Yeah, the regional meeting sucks.  Nice hotels, as much alcohol as you care to consume in the hospitality suite afterwards, free food, idea sharing with other FAs.  All that sucks.  I'm sure you never learned anything in any of the business meetings either. 
I've stayed in much nicer hotels and traveled a lot in my time, the food was adequate, the scotch wasn't all that great.  I never heard anything that I didn't already know at any of the meetings.  Some of the guys were pretty nice and we did share some good sales ideas (not product knowledge necessarily though).  Outside of the meetings, since I'm a female, I was basically excluded on social events, golf etc. with the guy reps.  The wives who are all younger and have children in tow didn't particularly want to socialize with me as a female Rep.  So I didn't fit in anywhere and basically was bored out of my mind. That's ok though, I really didn't want to mingle anyway. 
So, yes the meetings sucked.  I would have been better off spending my time in my own area socializing with prospects and clients or taking a three day weekend to decompress with my husband in a spa or other location of my choosing.
This isn't to say that the meetings and the whole Jones thing is bad.   It isn't bad.   It just wasn't for me......at all.

Broker24's picture
Offline
Joined: 2006-10-12

Spiff/Dust Bunny,
You guys are funny.  Pretty entertaining stuff.  You both actually have good points.  BUT, I think the experience at Jones (similar to comparing different wirehouse branch offices) depends a lot on the region you are in.  I know I have mentioned this before, but I am in a great region - no call sessions, my New IR meetings used to be on Thursday nights at a restaurant (I am past that stage), and although the RL encourages growth - a lot - I don't think anyone is ever forced, coherced, or otherwise, to bring people in. 
Some people like the Regional Meetings.  Mine is fun - real nice resort, lots of things to do.  Very young region, lots of comradery.  We have several female brokers that are really tight with the group (most are over 50). 
I don't participate in any of those silly contests or call session things - I think that is rather goofy for a brokerage firm.  But they really do it for the newer people to get a solid footing in the business.  However, to Bab's point - I think they do a poor job of helping the transfer brokers along.  I don't think it is purposeful, I think their model just works better for new brokers.  If there is no office to take over, and no GK to be done (or the number of them are limited), they are sort of handcuffed in their current environment.  It's a shame, as I think the premise of the one-man office has merit for transfer brokers - if done correctly.
At this point in my career (just a few years in), I don't know what I would get out of being somewhere else.  But, I can see how some of the Jones shortcomings will get to me eventually.  I know what is out there, I think it will all depend how well I build my book, and how good the quality is.  Maybe I will be comfortable enough here and not need to move.  Who knows.

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

I think I'm in a great region too.  Although I can't say that for sure, since I've never been in another one. 
I've never been forced to do anything.  I've always had answers to whatever questions I asked.  My RL has never called me for my referrals to the Growth Team.  Nobody has ever called and asked what I'm doing or looked over my shoulder (as is evidenced by the number of posts I have on this forum.)  Maybe they should.  While I like the payout, I know where we stand vs other firms.  Indy is better, but with a lot of other issues. 
Babs is right.  I'm 35, and just about to finish up my 5th year in production.  Until I outgrow Jones and I can't find any additional value in staying, I'll stay. 
Thanks for the conversation Babs.  I like a good debate.  Especially when the both sides can walk away without holding a grudge.

advisor28's picture
Offline
Joined: 2007-06-04

Spiff,
You will eventually outgrow the transaction model....I did at the end of year 5.  Let me ask you this if you care to respond and I hope you do.  How many accounts/households do you want to have? How do you have time to continue to service these households with your vast array of planning services when you need to open more to make a living? A share trails are minimal at best.  Are you really giving your clients what they need if your time is constantly spent on opening the next $3,000 Roth IRA. This will start to affect you more at $40+ under management. 

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

My goal with my office is 100 households with $1 mil AUM.  Once I hit that I'll establish a new goal based on my age, personal goals and service expectations.  Along the way I'll also pick up a lot of the Roth IRA type accounts you mentioned, so the $100 Mil AUM with just those 100 people won't be all there is and there will be some additional $$s.  I'll do some GKN's and pare the list down.  I haven't figured out yet what it will take to outgrow Jones.
Your service question is one that I find interesting.  First, my time isn't spent trying to find the next $3000 Roth acct.  They happen, but I don't actively look for them.  Eventually I'll set account  minimums so that the $3000 acct is almost an accident.  How much service does a $3000 acct need in a year? 5 minutes?  10 minutes?  Definitely not much.  Do I honestly care if they leave me?  Not really.  I hate to lose clients, but if it's money that I can bring in with one or two more phone calls, no big deal. 
Even my $1 mil accts don't need to be touched as often as I do right now.  Once you get the plan in place, which can be time intensive, how much time do you really need to spend on each account every month?  Let's say 15 minutes, just to look over everything and make sure nothing drastic has happened in the last month.  It doesn't take all that long to take care of those people.  There are plenty of hours in the day, you just have to use them wisely. 
I'm going to respectfully disagree with your comments about outgrowing the transaction based model at a mere $40 million.  Most successful Jones guys are just hitting their stride at $40 million.  You can probably make that a better arguement at the $100 million mark.  
 
My question for you is what kind of planning needs did your clients require of you at $40 million that took so much of your time that you felt you had to go fee based in order to get it done properly?  Or was the real arguement if I've got $40 mil, wrapped at 1% with a bigger payout, how much more do I really need?    

lady_trader's picture
Offline
Joined: 2007-05-12

Ok, this whole P/L thing. I just don't understand it?
Can someone please explain and use real world, actual what you made?
Not to start an arguement, but I have heard veterans call Ed Jones a "rep sweatshop". Is that really true? Are the office costs so much that you don't make any money?
 

DrakeMK3's picture
Offline
Joined: 2007-07-09

This thread has some interesting arguments for both sides, and judging from the past histories witnessed here, it is easy to see why the points of view are as they appear.

Broker24's picture
Offline
Joined: 2006-10-12

lady_trader wrote:
Ok, this whole P/L thing. I just don't understand it?
Can someone please explain and use real world, actual what you made?
Not to start an arguement, but I have heard veterans call Ed Jones a "rep sweatshop". Is that really true? Are the office costs so much that you don't make any money?

It really depends where you are in the business.  It's great for Newbies (Jones loses money while bankrolling them), it's great for big producers (say, $500K and up), as your capture goes up due to profit sharing & office profitability bonus.  However, it really sucks for the guys in the middle (most of the advisors).  You aren't really making much of a bonus due to the overhead, and the office costs are rather fixed.  The underlying problem with the Jones model is that the overhead structure is pretty much the same for a $200K producer as for a $750K producer (some things go up, but by and large this is the case).  They have to keep the structure uniform, otherwise it gets out of control.  As an example, I know a $650K producer in my region, and his net, after office expenses, including bonus & profit sharing, is around $350K.  I know a $500K producer that takes home about $250K.  The incremental take-home at that level is very high.  Once you hit the highest bonus bracket, your incremental payout is around 75%.  Much lower than an Indy, but not slave wages. 
Keep in mind, I believe there are only about 500 advisors in the firm (maybe just U.S. based) that gross over $500K, so by and large, most advisors are falling somewhere in the middle.

GoldCaddy's picture
Offline
Joined: 2007-02-16

I left Jones after three years.  That was three years ago.  Since that time I've become:
Happy
Out of Debt
The first three years at Jones I was like a frog being slow boiled.  I didn't realize til I jumped out of the pot how much cooler it is outside.  I do a bit more annuity business than I did at Jones, other than that I do things much as I did them before.  Oh yea, my first year out I made four times my best year at Jones.  That was the result of increasing my payout and having more clients.  I can't imagine why anyone would stay at Jones.  Life is SO much better now that I'm gone.
 

troll's picture
Offline
Joined: 2004-11-29

Broker24 wrote: As an example, I know a $650K producer in my region, and his net, after office expenses, including bonus & profit sharing, is around $350K.  I know a $500K producer that takes home about $250K.  The incremental take-home at that level is very high.  Once you hit the highest bonus bracket, your incremental payout is around 75%.  Much lower than an Indy, but not slave wages. 
Keep in mind, I believe there are only about 500 advisors in the firm (maybe just U.S. based) that gross over $500K, so by and large, most advisors are falling somewhere in the middle.That's an incremental payout that is nothing to sneeze at!

IndyEDJ's picture
Offline
Joined: 2006-12-13

haidesu wrote:
have yet to be answered.  Is all you anti-EJ simply based on the relatively low 40% payout?  It can't be due to our FA or client satisfaction... 
As a 16 year ex partner of Jones, let us try research or lack there of, the communication system or lack there of ,or placing ten offices in my town that I was told that was my own.  I left when Douggie Hill started running things and 170 Million later the rest of the street saw what I saw.   Everyday as an INDY is a picnic compared to my last days at Jones.

lady_trader's picture
Offline
Joined: 2007-05-12

broker24-
Thanks for the explaination. I understand better, but are some of these fees monthly fees, one time charges, what?

Broker24's picture
Offline
Joined: 2006-10-12

lady_trader wrote: broker24-
Thanks for the explaination. I understand better, but are some of these
fees monthly fees, one time charges, what?

Lady,
Not sure I understand the question. Which fees are you referring to? Are
you talking about the ongoing operating expenses or client related fees?
Just want to make sure I am addressing what you are asking.

Please or Register to post comments.

Industry Newsletters
Investment Category Sponsor Links

 

Careers Category Sponsor Links

Sponsored Introduction Continue on to (or wait seconds) ×