I dont understand the Edward Jones hiring process
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[quote=SometimesNowhere][quote=voltmoie]Seems to me Edward Jones business model was profitable last year while other brokerage houses were selling, going out of business, or changing names. They were also hiring while others were firing or too scared to grow their sales force.
Sooooo, that begs the question ... WTF do you guys know? Have you ever run a business the scale of Jones? I'm guessing they know it takes 1000 hires to produce 100 profitable advisors and that at a certain point those 100 advisors profit covers the recruitment and training costs of the 900 that failed. .... but hey, the guys running guys are probably just St. Louis rednecks guessing at this sh!t.[/quote] I know that a guy driving the Mystery Machine around a neighborhood blasting the Macarena out the windows will probably get fired. [/quote] Jones knows that 900 will fail but 100 will make it. They don't know which 100 and don't care ... they just know that three years out they will be making the firm money. Mystery Machine or not. It just happens to offend guys that think they are intellectually superior to guys that used to sell tractors. Their egos are fragile ... Jones dosn't have an ego, they just have a bottom line.[quote=voltmoie][quote=SometimesNowhere][quote=voltmoie]Seems to me Edward Jones business model was profitable last year while other brokerage houses were selling, going out of business, or changing names. They were also hiring while others were firing or too scared to grow their sales force.
Sooooo, that begs the question ... WTF do you guys know? Have you ever run a business the scale of Jones? I'm guessing they know it takes 1000 hires to produce 100 profitable advisors and that at a certain point those 100 advisors profit covers the recruitment and training costs of the 900 that failed. .... but hey, the guys running guys are probably just St. Louis rednecks guessing at this sh!t.[/quote] I know that a guy driving the Mystery Machine around a neighborhood blasting the Macarena out the windows will probably get fired. [/quote] Jones knows that 900 will fail but 100 will make it. They don't know which 100 and don't care ... they just know that three years out they will be making the firm money. Mystery Machine or not. It just happens to offend guys that think they are intellectually superior to guys that used to sell tractors. Their egos are fragile ... Jones dosn't have an ego, they just have a bottom line. [/quote]It may SOUND like kool aid but its TRUE. All the Jones bashers can hate all they want but the model obviously works for them. I personally don’t see how some guy in a little cubicle begging for business over the phone is professional in the least. At least the mystery machine guy has the balls to get out there and help people and earn a dime while doing it, and most of my prospects respect that.
Look...I am not saying that the model is flawed from a profitability standpoint. That's a tough argument considering it is pretty much a constantly profitable enterprise. What I am saying is we all have sat in one of our meetings with someone that you just cannot believe ever made it through the interview process. I am sure that happens everywhere for different reasons. But you never hear of MSSB hiring some hair dresser from a small town that has no sales experience, or the deli guy, or the dry cleaner, etc.
Trying to see if those people "stick" is expensive. Not saying they are bad people or they are not smart or not motivated or don't have a right to make a great living. I just wonder how many profitible FA's clenched their jaw after missing on a bonus period because the firm was aggressively trying to grow by hiring just about anyone that made it through middle school and doesn't have any felonies on their record. I just think we can do a better job of screening candidates.Thats a great point. I wondered the same thing about my company until they completely changed the entire company model over the past year. It may be profitable to the company's bottom line when everything's said and done, but to say theres not a significant amount of collateral damage left in the wake is naive.I just wonder how many profitible FA’s clenched their jaw after missing on a bonus period because the firm was aggressively trying to grow by hiring just about anyone that made it through middle school and doesn’t have any felonies on their record.
What’s the knock on Edward Jones? Seems like everyone on this board has it in for this firm. Someone give me the short story.
The short story is that the wirehouse guys that are here bashing Jones can be likened to the Birthers in politics. They state that Jones does a horrible job and is unqualified to be a top tier firm however all the evidence is to the contrary and in fact these guys are just puss hurt because they are constantly losing clients to the Jones model (primarily windy) and they want their “old america back”.
No kool-aid drinking just defending their business model. It works. It works VERY WELL. Not sure I fit in it but you can't deny the truth. I don't pass judgements on who they hire. Just because you did hair before this does not mean you can't be excellent at this job. If they take and apply the training they get and use the resources that are out there the avg. 25-50k account they will service will benefit. It get's scary when a guy like Windy lands a big account and thinks he knows what he's doing - that client MIGHT be better served elsewhere. (i lump myself in there with Windy) Jones is a genuis model for their target client .. can't deny that. BTW: Weddle get's the big bucks to make tough decisions. He could have not hired anyone and hid his head in the sand. Sure some Vets would be happier but I'd rather have a leader make the hard decision than the easy one. ALLLLLL DAYYYYY LONNNNGIt does sound a little like Kool-Aid drinking. Surprising, coming from volt.
I’m not a wirehouser. My opinion is not that it doesn’t work. But I will argue for days that it doesn’t work VERY WELL. It is inefficient and could be improved.
Everyday, someone that didn’t workout at EJ walks into my office asking for an application. And to answer your question, 70% is 70%.
[quote=SometimesNowhere][quote=voltmoie]Seems to me Edward Jones business model was profitable last year while other brokerage houses were selling, going out of business, or changing names. They were also hiring while others were firing or too scared to grow their sales force.
Sooooo, that begs the question ... WTF do you guys know? Have you ever run a business the scale of Jones? I'm guessing they know it takes 1000 hires to produce 100 profitable advisors and that at a certain point those 100 advisors profit covers the recruitment and training costs of the 900 that failed. .... but hey, the guys running guys are probably just St. Louis rednecks guessing at this sh!t.[/quote] I know that a guy driving the Mystery Machine around a neighborhood blasting the Macarena out the windows will probably get fired. [/quote] Best Ever !!Looking at it purely from a business perspective, I think it works VERY well for the firm. I think the only reason we still exist is because of our model. If we were a publicly traded firm with multi-FA offices, we would have died a slow death long ago. I won't get into ALL the reasons, but it works. Now, does it work for the FA's? Only the ones that buy into the model and can outlast the grueling nature of the model requirements (prospecting forever, commission-based, etc.). If you "make it", it's a fantastic model. It's great for competitive workaholics. Seriously. If you are the guy who is going to prospect and grow your business for years and years, it's great. Why? Because at the high-producer level, your payouts (with gross, bonus, and profit sharing) are well over 50%, which would be close to where they would be in the same environment as an indy. How's that? Because if you are that driven, you would do the same thing as an indy, but would need to add staff, infrastructure, systems,etc. so the cost would likely be much greater than at Jones, where much of the support mechanisms are included in that 50% you pay to the firm. Now, if you are a small or medium-sized producer, it's just tough to make a good living at Jones getting 40% +/-. The major financial perks come above 500K in production. And unless you feel like waiting 10-15 years, or inherit some huge book, it's very tough to have the fortitude to get to 500K and above before burning out. Most guys that I have seen do it from scratch started MANY years ago, and/or at a very young age (like early 20's) when they could work like crazy for years.I’m not a wirehouser. My opinion is not that it doesn’t work. But I will argue for days that it doesn’t work VERY WELL. It is inefficient and could be improved.
Thats a great point. I wondered the same thing about my company until they completely changed the entire company model over the past year. It may be profitable to the company's bottom line when everything's said and done, but to say theres not a significant amount of collateral damage left in the wake is naive. [/quote] bingo i think its safe to say that AT LEAST 33% of new hires I see at jones wouldnt even get an interview at most other places[quote=SometimesNowhere]I just wonder how many profitible FA’s clenched their jaw after missing on a bonus period because the firm was aggressively trying to grow by hiring just about anyone that made it through middle school and doesn’t have any felonies on their record.
[quote=utcheachea]
bingo i think its safe to say that AT LEAST 33% of new hires I see at jones wouldnt even get an interview at most other places[/quote]Please sure with us all your background in recruitment at other brokerage firms. Or are you just throwing BS numbers out to impress us?
Thats probably why people leave Jones. Once that 33% finds out that Momma moved the trailer next to a pond and bought that brand spankin new 4 year old matress with minimal stains on it, there is not need to work! Hell they have the Hilton at home! Swimming pool and all!i think its safe to say that AT LEAST 33% of new hires I see at jones wouldnt even get an interview at most other places
Is this forum full of ex Jones guys whom for one reason or another may use this forum as a means of venting their frustrations?
Excellent Post IceCold…Great summary…now back to the bitching…
I think Jones is making a smart move being extra aggressive in hiring while their competitors are hurting; but, with a model based on “community” and “volunteerism”, they will certainly end up straining their resources.
I believe this happened in early '00’s when they had plans to expand to 25,000 branches by 2010…experienced reps became overwhelmed with the amount of training they were forced to do, which led to a mass exodus from the company…
If this happens again, we can say Weddle is a schmuck…
ice the peacemaker.
To answer your question Leverage - I will speak for myself. My Edward Jones experience was a learning one. I learned that I wanted to be independent.
The bill of goods you are sold is not the one you get (in my case - there are others here who will disagree). I had a horrible regional leader, a crappy field trainer, was lied to repeatedly, was told I could do whatever I wanted as long as I was being ethical, legal and profitable (another lie).
I don’t b!tch as much as I used to, mainly because I realize that my experience isn’t the same as others. However, having been there, I have seen the flaws up close of the firm. And I think it is important that before someone jump into a career at Jones, they understand the pros and the cons.