A little help here
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I also have a start date of 2/2 with EJ. I’ve talked to probably 7 or 8 different FA’s in my area during my hiring process. The impression I get is that the Goodknight program is basically invitation only like B24 said. They also have the Legacy program, although very few people seem to know much about it. From what I gather, it is basically sharing an office with a vet but no assets are given to you.
One FA I spoke to is currently in a Goodknight...he says if he had to do over again he would rather have the Legacy or start new/new. The assets you're given are generally low quality/low producing assets that take up some of the time you should spend prospecting with servicing accounts and convincing people your as good as their old FA. Also the goals are much higher (some cases 3-4X higher) making bonuses (a large part of the "average" 1st year earnings according to EJ) more difficult to reach. Of course this is just one experience. Two separate veteran FA's (one 8 years, one 10 years) told me in no uncertain terms, that getting into an office could be a hindrance for a beginner. I thought it would lend credence and legitimacy to my practice, but their opinion is that it does more harm than good. You spend too much time in the office doing admin tasks or other BS (like "planning") rather than pounding the pavement to build your book. Two sides to every coin. If I were you, I'd assume I'm starting completely new/new and mentally prepare for that challenge. Good luck to you, maybe I'll see you in St. Louis.[quote=Fud Box]
Two separate veteran FA's (one 8 years, one 10 years) told me in no uncertain terms, that getting into an office could be a hindrance for a beginner. I thought it would lend credence and legitimacy to my practice, but their opinion is that it does more harm than good. You spend too much time in the office doing admin tasks or other BS (like "planning") rather than pounding the pavement to build your book.[/quote] They're still saying that. Drink it up man that's what Kool-Aid tastes like. I will admit that you could spend too much time in the office and not what you should be doing. But in my opinion the benefits outweight the negatives. Besides cold-walking in zero degree weather you could be cold calling on a 25 year FNMA bond.[/quote]
They're still saying that. Drink it up man that's what Kool-Aid tastes like. I will admit that you could spend too much time in the office and not what you should be doing. But in my opinion the benefits outweight the negatives. Besides cold-walking in zero degree weather you could be cold calling on a 25 year FNMA bond. [/quote] I hear you and I respect your opinion. Admittedly, I feel like having an office from the start definitely has its advantages. I can also see the other point of view. I'm brand new to this business, so I've spent a ton of time reading alot of these posts. I thank everyone that has offered a contrarian point of view, as it helps to balance the viewpoints of the Jones FA's I've spoken with on and offline. A recent article on this website says that approx. 80% of GK recipients "make it" and half that for new/new's. Whether those numbers are accurate or not, it's clear that GK recipients have a better chance for survival. However, as I mentioned previously it doesn't come with its disadvantages. I can't really control any of this, so the best I can do is work my tail off, try to find what works for me as quickly as possible, and learn as much as I can about the business.[quote=Fud Box][/quote]
They're still saying that. Drink it up man that's what Kool-Aid tastes like. I will admit that you could spend too much time in the office and not what you should be doing. But in my opinion the benefits outweight the negatives. Besides cold-walking in zero degree weather you could be cold calling on a 25 year FNMA bond. [/quote] I hear you and I respect your opinion. Admittedly, I feel like having an office from the start definitely has its advantages. I can also see the other point of view. I'm brand new to this business, so I've spent a ton of time reading alot of these posts. I thank everyone that has offered a contrarian point of view, as it helps to balance the viewpoints of the Jones FA's I've spoken with on and offline. A recent article on this website says that approx. 80% of GK recipients "make it" and half that for new/new's. Whether those numbers are accurate or not, it's clear that GK recipients have a better chance for survival. However, as I mentioned previously it doesn't come with its disadvantages. I can't really control any of this, so the best I can do is work my tail off, try to find what works for me as quickly as possible, and learn as much as I can about the business. [/quote] FUD, You did some good research. Good for you! I have to admit, I have been reluctant to speak with other FA's for fear of getting crapped out. I suppose I should go visit with a few. Other than the two that interviewed me (one 20 year guy and one 10 year guy both kicking some serious a$$), I have yet to talk with any others. I understand what others are saying about cold calling from the office. It was 25' today and I am in North Texas. I thought about what an a$$ whipping it would be to be knocking on doors in this weather. Then I remembered what I know about the car business: if they come out in shitty weather, they are buyers. No sane person would shop in the rain or snow. Conversely, the prospect just might think you have some awfully important news to show up at their door in freezing rain. Otherwise, you would call from your office, right? Here's the deal: they don't know you don't have an office. By the time they find out, you will already have built rapport. How do I know this? I sold insurance on a semi-cold call basis (ran leads) for years. Not one person asked to come to my office. This includes the $100K annuity clients. I am gambling. We all are. This market is the worst I have ever seen. I am 44 years old and I am convinced that this is a once in a lifetime opportunity. My conviction and excitement will breed conviction and excitement. The man or woman who looks the customer straight in the eye and says "Mr. Jones, I know how you feel. I felt the same way when I was laid off from my job back in September and found out my 401K lost all it's yearly gains in less than 2 weeks. But what I found out is that there is a silver lining around every cloud and the good Lord didn't bring us this far to drop us on our heads. With that being said, can I come in because I'm freezing my a$$ off out here?!" will win. And winning is why I came to play. Good luck and I hope I see you in St. Louis (or Tempe?).Here’s my take on the office thing. Taking over an office (a SMALL office) or getting a small Goodknight DOES hinder your performance (unless you are really structured). Here’s why…the first 6 months you are prospecting like crazy. If i were to have had an office with a BOA, and a couple hundred crappy clients, I would have spent FAR less time prospecting. You NEVER get those days and hours back, since your days just start to consume you after a while. I was lucky - I spent 6 months in my house, then was offered a GK. So I spent all the time prospecting, then got an office with a veteran and a few assets.
The best scenario would be to get a Legacy where it's not YOUR office and YOUR BOA and you don't have a bunch of $387.56 IRA's to deal with (or distract you with). BUT, you have the office to give you legitimacy and confidence without the headaches, and possibly a veteran FA to push you out the door. You CANNOT spend to first 6 months staring at the computer screen. You need to fill that pipeline.No Vet wants to hand assets over to someone who won't make it. Get in and start working. When they see you are still around after any sane person would have then you will get the offer. I hear the odds of success are much much lower for a new/new.
madmat, I would highly recomend that you walk into a few EJ offices and chat with as many FAs as you can. You won't get crapped out. you will get some good advise.
B24,
I agree with your last post 100% re: Legacy over GK's. I've also heard the same sentiments from some of the new FA's I've met along the way. I start studying in a week, so maybe I'm getting ahead of myself. But how could I go about getting a Legacy plan? Seems like every senior FA I meet is doing a Goodknight with someone. I haven't met anyone say their doing a Legacy. Any thoughts?[quote=Fud Box]B24,
I agree with your last post 100% re: Legacy over GK's. I've also heard the same sentiments from some of the new FA's I've met along the way. I start studying in a week, so maybe I'm getting ahead of myself. But how could I go about getting a Legacy plan? Seems like every senior FA I meet is doing a Goodknight with someone. I haven't met anyone say their doing a Legacy. Any thoughts? [/quote] You are a couple steps ahead of yourself. I would make sure that you get a bit closer to your can-sell, then approach your RL when you have proven that you can do the contacts, pass the exams, etc., etc., etc., then ask if there are any places to Legacy. I have a friend that busted his butt, got out of Eval Grad and asked about open opportunities, and was given an office with a small amount of assets. If you have a good RL, they will ask around for space for you, which is a bit more powerful than a trainee looking to move into a vets office. Just my opinion/experience...[quote=SometimesNowhere][quote=Fud Box]B24,
I agree with your last post 100% re: Legacy over GK's. I've also heard the same sentiments from some of the new FA's I've met along the way. I start studying in a week, so maybe I'm getting ahead of myself. But how could I go about getting a Legacy plan? Seems like every senior FA I meet is doing a Goodknight with someone. I haven't met anyone say their doing a Legacy. Any thoughts? [/quote] You are a couple steps ahead of yourself. I would make sure that you get a bit closer to your can-sell, then approach your RL when you have proven that you can do the contacts, pass the exams, etc., etc., etc., then ask if there are any places to Legacy. I have a friend that busted his butt, got out of Eval Grad and asked about open opportunities, and was given an office with a small amount of assets. If you have a good RL, they will ask around for space for you, which is a bit more powerful than a trainee looking to move into a vets office. Just my opinion/experience...[/quote] Makes sense. Appreciate the feedback.Hey Guys here some insight for you. I am with jones and will be attending eval grad first of Febuary. No matter how hard you think this job is, its worse. It takes alot of discipline to get up every day and go out and door knock especially after a few weeks you begin to see what everyone on this forum has been talking about. You know that out of the 100 doors you knock EVERY DAY many wont be home, those that are home are generally polite to start but you will know within 30 seconds what kind of contact this will be, as soon as you say EJ or FA many turn off right there because all they hear is how bad the market is, others have a broker and are happy, most older folks love thier CD's and would never consider equities or bonds, and of course the aholes (i kinda enjoy them myself, breaks up the day)... but if every day you can get one person who really seems to like you and you connect with those are the folks your looking for. It truly is a numbers game, you have to get your name out there to as many people as possible, out of these hundreds of contacts only a very few will every become clients. The bottom line you have to find people who connect with you, like you and you can gain thier trust. Its not about the firm or the mutual fund you have, it all comes down to "I like him, and fill good about him". So with that said, if your willing to pay the price, and everyone is till you actually are out there day in day out.. anyone can be successful in this IF your willing to pay the price... FA failure rates are alot higher than you may know, close to 90% so when your at KYC look around because only 1 out of 10 will there in Three years.
Not trying scare anyone off but seriously think about what it really takes to make it in the business before you jump in thinking how great things will be, it will be pure hell for several years. Also I highly recommend reading The New Financial Advisor by Nick Murray[quote=Mr. Jones]
Hey Guys here some insight for you. I am with jones and will be attending eval grad first of Febuary. No matter how hard you think this job is, its worse. It takes alot of discipline to get up every day and go out and door knock especially after a few weeks you begin to see what everyone on this forum has been talking about. You know that out of the 100 doors you knock EVERY DAY many wont be home, those that are home are generally polite to start but you will know within 30 seconds what kind of contact this will be, as soon as you say EJ or FA many turn off right there because all they hear is how bad the market is, others have a broker and are happy, most older folks love thier CD's and would never consider equities or bonds, and of course the aholes (i kinda enjoy them myself, breaks up the day)... but if every day you can get one person who really seems to like you and you connect with those are the folks your looking for. It truly is a numbers game, you have to get your name out there to as many people as possible, out of these hundreds of contacts only a very few will every become clients. The bottom line you have to find people who connect with you, like you and you can gain thier trust. Its not about the firm or the mutual fund you have, it all comes down to "I like him, and fill good about him". So with that said, if your willing to pay the price, and everyone is till you actually are out there day in day out.. anyone can be successful in this IF your willing to pay the price... FA failure rates are alot higher than you may know, close to 90% so when your at KYC look around because only 1 out of 10 will there in Three years.
Not trying scare anyone off but seriously think about what it really takes to make it in the business before you jump in thinking how great things will be, it will be pure hell for several years. Also I highly recommend reading The New Financial Advisor by Nick Murray [/quote] Why are you posting at 4:26pm? Shouldn't you be out doorknocking?[quote=Mr. Jones]
Hey Guys here some insight for you. I am with jones and will be attending eval grad first of Febuary. No matter how hard you think this job is, its worse. It takes alot of discipline to get up every day and go out and door knock especially after a few weeks you begin to see what everyone on this forum has been talking about. You know that out of the 100 doors you knock EVERY DAY many wont be home, those that are home are generally polite to start but you will know within 30 seconds what kind of contact this will be, as soon as you say EJ or FA many turn off right there because all they hear is how bad the market is, others have a broker and are happy, most older folks love thier CD's and would never consider equities or bonds, and of course the aholes (i kinda enjoy them myself, breaks up the day)... but if every day you can get one person who really seems to like you and you connect with those are the folks your looking for. It truly is a numbers game, you have to get your name out there to as many people as possible, out of these hundreds of contacts only a very few will every become clients. The bottom line you have to find people who connect with you, like you and you can gain thier trust. Its not about the firm or the mutual fund you have, it all comes down to "I like him, and fill good about him". So with that said, if your willing to pay the price, and everyone is till you actually are out there day in day out.. anyone can be successful in this IF your willing to pay the price... FA failure rates are alot higher than you may know, close to 90% so when your at KYC look around because only 1 out of 10 will there in Three years.
Not trying scare anyone off but seriously think about what it really takes to make it in the business before you jump in thinking how great things will be, it will be pure hell for several years. Also I highly recommend reading The New Financial Advisor by Nick Murray [/quote] I just did an un-scientific study of FA failure rates using the CLASS training system. In my class in early 2006 (actually, like a 6 week span of classes), there were 380 people in KYC (the first training class). Of the 268, 169 were still with the firm (it shows their current location). So about 44%. Not to say that those 44% will still be 44% a year or 5 years from now, but 44% retention after almost 3 years is not terrible. And of the 56% that left, some may have left to go to other firms, so that 44% may actually be like 50% in terms of staying in the industry. I also took a quick glance at a few classes in 2000, and the average was about 31% retention. So 90% washout is a bit over-stated.[quote=B24]
I just did an un-scientific study of FA failure rates using the CLASS training system. In my class in early 2006 (actually, like a 6 week span of classes), there were 380 people in KYC (the first training class). Of the 268, 169 were still with the firm (it shows their current location). So about 44%. Not to say that those 44% will still be 44% a year or 5 years from now, but 44% retention after almost 3 years is not terrible. And of the 56% that left, some may have left to go to other firms, so that 44% may actually be like 50% in terms of staying in the industry. I also took a quick glance at a few classes in 2000, and the average was about 31% retention. So 90% washout is a bit over-stated. [/quote] That jives with the figures that were presented in a recent article (Jan. '09) about Jones on registeredrep.com. It stated that approx. 80% of Goodknight participants "made it" and roughly half that number for new/new's. So, a 40-plus perentage retention rate seems about right. (http://registeredrep.com/advisorland/career/edward_jones_advisors_happy_0101/) Of course, I don't know if the figures RR got from Jones are 100% legit, or how accurate B24's numbers are. The correlation does seem to lend some credence to those figures though.I can tell you that my numbers aer factual, based on a small sample size (though I am sure it is roughly representative of the overall numbers through that time frame). I basiclly looked at the attendees (actual names) for KYC class, and it shows next to their name where they are currently working. So if they are blank, they are gone. So my numbers are true. However, as you state, many of those are Goodknights or took over offices, so it's obviously a blended average.
Retention numbers are interesting, but really kind of pointless. This industry as a whole is very transitory and chock full of attrition numbers that only tell part of the story. Of the original 60 in my KYC class, I’m one of 23 that have survived. At least at Jones. If I had the time…wait, a minute, I do…of the rest of them, through FINRA’s Broker Check, some others went on to other companies. LPL, WS, RJ, AIG, and Royal Alliance are some of the places. Some of them jumped around to two or three places before landing where they are currenlty. And that’s been just over six years ago. So, when reading retention numbers, take them with a grain of salt. Just because Jones may have a 50% attrition rate doesn’t really mean that the industry does too. After all, Jones does some of the best recruiting in the industry for LPL and RJ.
The other thing that was glaringly obvious to me, not that it's good or bad, is how few people stick with the same company throughout their entire career. A lot of the people I looked at have been with three or four companies in their selling career. Seems pretty stupid to me to build up a book, move, lose 40% of it, build it again, move, lose 40% again and then finally stay where you are. Think those moves are out of necessity or just looking for that greener grass?You may be right. It still seems stupid to me to jump around to 3 or 4 firms in a six year time frame.
Here's an un-scientific study for you. From my KYC class, from our individual classroom group there were two of us left. I've been gone for 4 years. Out of my roomates group, all were gone before I left and from a group of some other friends that I made while there only two were left before I left. I don't know how many of us are still in the industry.Very un-scientific but very high rates of attrition. I can't remember the group sizes maybe 10-12. I should go pull out the photo they took of us when we "graduated". The bars down there were a lot of fun though.