That’s on things I think most of us would universally agree upon.  It would take some very special circumstances to go indy from day one…I’m confident that I could not have done so.

[quote=Broker24]

This is a great point.  Very few of those that are Indy could have done it cold with no mentor, no book, no training, etc.  There is always a starting point and some time to learn, adjust to the business, and establish a book.

Babs, do you really think you could have gone Indy without ever having done that first?

[/quote]

I've never said that.  In all of my previous posts I have stated that I would never have been able to do Indy even directly from a bank brokerakge.  I was basically being a smart a@@ about the potential gems in the rough that are passed to the goodnight rep.  Unless the new guy is fortunate enough to be related to the Goodnighting rep or related to someone with some juice, the accounts that are spun of are usually all poop and no pony.

Still something is better than nothing.

What are the “must knows” before taking a GKN plan?  Questions that have to be asked?

I'm an outsider, but I can't think of much downside to accepting free clients.  Whatever servicing you give them is probably more than they were getting.  If you find out they are not worth keeping, there are all sorts of ways to encourage them to leave...

I just can't see much of a downside to this kind of deal...there may not be much positive, but really...the obvious negatives that I can see can all be dealt with pretty easily...JMO...

I generally agree something is better than nothing.  But there are three potential downsides as I see it:

1)  You are associated with a vet.  This could be good or bad depending on their reputation in the community.

2)  I believe your sales quotas are higher than if you started with no assets.  (If you don't like the term "sales quotas" then substitute "meeting expectation levels")

3)  Wasting your time on problem clients.  You can ignore the accounts, but they might not ignore you.

[quote=vagabond]

I generally agree something is better than nothing.  But there are three potential downsides as I see it:

1)  You are associated with a vet.  This could be good or bad depending on their reputation in the community.

2)  I believe your sales quotas are higher than if you started with no assets.  (If you don't like the term "sales quotas" then substitute "meeting expectation levels")

3)  Wasting your time on problem clients.  You can ignore the accounts, but they might not ignore you.

[quote=vagabond]

I generally agree something is better than nothing.  But there are three potential downsides as I see it:

1)  You are associated with a vet.  This could be good or bad depending on their reputation in the community.  Agreed, but I'm guessing that more often than not, it's a good thing.  For some of the garbage I've seen out of some veterans I know, for the most part, they are still generally very well thought of in their respective communities.

2)  I believe your sales quotas are higher than if you started with no assets.  (If you don't like the term "sales quotas" then substitute "meeting expectation levels")  That's one I wasn't aware of, but it would make sense in my opinion.  On the flip side, someone receiving a goodknight SHOULD be able to produce more, so I'm guessing this is mostly a push.

3)  Wasting your time on problem clients.  You can ignore the accounts, but they might not ignore you.  True, but there are still ways to deal with problem clients, such as putting them at the bottom of the list for returning calls, and/or telling them that you are very busy and it may take 3-4 weeks to take care of their request.  You can also put simple requests on your BOA's rainy day project list.  It isn't hard work to gradually lower the expectations from these people through inaction.  Odds are, they weren't well served to begin with.  I've successfully done this in the past...you just put them at the bottom of the priority stack and take care of them when there's nothing left to do.  If they insist on rapid service, that is an opening to tell them that you are swamped and suggest they take the request to someone who can give them the service they deserve...

[/quote]

You've made some good points, but I still think that on balance, a smart rep can work these things to their advantage over time.

Some may consider the tactics referred to above as questionable, but sometimes you gotta do what you gotta do.  I'm not fond of just flat-out telling somone that I don't want their business once you already have it, although in some instances, I have.  My point is...sure, you may waste some time on these accounts, but if you're smart about things, you may find some real hidden gems.  We prioritize our clients and act accordingly all the time.  I see no reason why you can't familiarize yourself with the new clients received and intelligently work the book to good advantage.  Again, these clients probably aren't used to service anyway.  I transferred a Jones client last week who had just been goodknighted and he told me that his former rep never called him.  Between what I already had, and the transfer, he'll be about 150K and within the next few years, will probably be selling land valued at close to a million dollars.  That kind of potential makes up for a lot of crap in my mind...

The other thing about the GK program is that while he is not officially a "branch manager," I can see the vet becoming just that.  When I finally got in my office (not because of lack of production, but because of a lack of decent space in my town), it was just me.  If I wanted to come in at 10am, and stay until 8pm calling, that was fine.

I had a friend who did a GK, and the vet always wanted him to do things "his" way.  My friend didn't have the freedom that I did, which is a big part of going with Jones.

That being said, being handed a $5M book vs. more freedom is not an easy choice.

Remember, it's only for your first year.  If you are talented and established, a GK does not make sense.  But if there is a chance that you might not make it on your own, why would you not do it??  I don't know many people that started in this business from scratch that were a "lock" to make it on their own.

Suck it up for a year, take the gems (not all $5mm+ is junk), and move on.  If nothing else, you get to see a much bigger picture early on your prospecting days.

I think you all have to think back to day 1 in the business and decide if you would have taken it if you had NOTHING else, a car and a bedroom to work out of, and an empty book.

Is it true that very few Jones brokers last more than 1 year if they do not Goodknight or take over an office? 

Is it also true that to get a Goodknight or take over an office worth taking, you need to be connected in some way to an established broker?

Ultimately if a vet does a GK, and who they do it with is the vets decision, and in many cases it is someone that they personally recruited.  There are times when it is strongly encouraged for the vet to do a GK and a recruit may be suggested by another vet. 

Taking over an office is somewhat more of a timing issue.  First dibs on larger offices usually goes to entice transfer brokers, although I haven't seen this happen to often.  More often a recruit or new IR in the pipeline in a nearby community is asked to fill the office.  Larger offices then have the assets split among a few of the area reps.  All this is done by the Regional Leaders recommendations so they will tend to offer opportunities to reps/recruits that they know, like, and/or think will succeed.

Like anything else in life, who you know (in this case the Goodnight vet or the Regional Leader) gives you a big leg up.  If you are coming from the outside it is much more difficult and more a matter of luck and timing.

If you are new to the industry and are interested in Jones, they will encourage you to apply and get accepted.  They won't want to talk about open offices because by the time you've become licensed everything will have changed.

As far as how long people make stay at Jones, I don't know any real statistics, however, my personal experience is that if people leave in the first year it is usually in the first few months when they realize that door knocking is not what they are cut out to do.  After that I think that in the third year resignations pick up again, either due to lack of livable income and/or other offers from competitors.

I’m tempted to take an offer from Jones.  I’m just not convinced that I could go door to door for very long without feeling like a complete loser.  Also, it seems like all of the non-senior brokers drive 10 year old Hyundais.  Whats up with that?

[quote=RecordGuy]I’m tempted to take an offer from Jones.  I’m just not convinced that I could go door to door for very long without feeling like a complete loser.  Also, it seems like all of the non-senior brokers drive 10 year old Hyundais.  Whats up with that?[/quote]

Because they aren’t making any money…

How many rookie brokers at any firm are driving Lexuses? 

Not rookies....brokers several years in. 

I met with a broker who has been with Jones for 6 years.  Met him at a restaurant.  He gives me the usual spiel..."$100,000 income in 3 years, two trips a year."  Walk outside and the dude gets in his 10 y/o Hyundai.....WTF?  lol.

The questiont of how long it takes to ramp up an income is an interesting

discussion. Our industry doesn’t have much of a professional apprentice

model that allows a commensurate income in the first several years.



ReocrdGuy–your arrogance is interesting. You are not up for building a

business from scratch yet apparently use the care someone drives as a

measure of their success. If you enter this business, hopefully you’ll come

to understand that one’s vehicle indicates how much one is spending, not

necessarily how much they are earning. EJ guys seem to be particularly

insensitive to style points–some are undoubtedly scraping by, but others

are the millionaire next door types.

I would argue that most of the millionaire next door types are men (and a few women) over 50 who have been with Jones at least 15 to 20 years. 

I would also not listen to anyone who is spouting the 3 years to $100K crap.  Most Jones guys who have been out less than five years are not netting $100K, UNLESS they took over a decent office (over $20M) or they are the only brokers in a small community.  I said most, there are a few exceptions.

The new/new Jones broker who opens an office in a metropolitan location two miles down the street from another Jones office is lucky to still be there five years from now, much less netting $100K.

Agreed on all counts above.  I just meant that as a new broker you can’t afford to pass up a PROSPECT just because he or she is driving a old car, even if it is a Hyundai.  However, a smart new EJ guy may drive the old car just so they can afford to start in the career, which doesn’t pay all that well no matter where you are.  A 10 yr old Lexus or Caddy or something may be better because it implies quality (vs. a Hyundai eg) and perhaps frugality without hopefully looking as much like the owner is struggling financially.

I agree with you Cowboy.  One of my decent clients (about $600K with me) lives with his mom (he’s over 50) and doesn’t make over $40K/year, but he has almost NO expenses so he socks it all away.  Looking at this guy and his car, you would not think he has over $500K in mutual funds.

A 6 year vet is considered "starting his career?"  YIKES.