[quote=Mr.Blonde]

 I can believe riding oil and killing it, also I know he went into the home office 1 month before shit really started to fly in 08. Employees telling the green machine what to do, not so sure about that.

[/quote]

Jones probably would have told him to take a hike.  They've let big producers who were too big for their britches go before.  BTW, what's up with the David Gunn reference in the middle of this thread? 

[quote=careerFA]

I have reviewed the FA guide prior to my screening interview, and I wanted if someone can asnwer this question for me:

If I already have 200 local contacts, will that meet the guidelines for KYC, FF, contact entry stuff?

Will the RL or mentoring FA press me hard on doing the DK as well in my area?

(PS:  I have assets and clients ready to make the move)

[/quote]

It's really going to depend on how they categorize you when you hit the pipeline.  You will either go through the producing transfer broker training or the new FA KYC training.  If you're lumped in with the latter, then you will need to do some doorknocking.  200 names is a good start, but nowhere near the number of contacts Jones is going to want to see in your system.  If you figure the average selling month is 20 days, then they're going to want to see 500 or more prospects in your system.  At least that's the way it used to be.  I'm confident the number will be higher than 200. 

Your RL and mentor will only press you if they think you're not working hard enough.  Bring over the assets you say you're going to and put some commission dollars in your pocket and nobody will bother you.  Fall behind on either of those and you'll have either your mentor or your RL, probably both, telling you that you need to keep prospecting. 

[quote=careerFA]

I have reviewed the FA guide prior to my screening interview, and I wanted if someone can asnwer this question for me:

If I already have 200 local contacts, will that meet the guidelines for KYC, FF, contact entry stuff?

Will the RL or mentoring FA press me hard on doing the DK as well in my area?

(PS:  I have assets and clients ready to make the move)

[/quote]

CFA,

The bottom line is that you will need to show that you can consistently bring in prospects and clients.  They will MOST LIKELY pressure you to doornkock and fill your pipeline.  HOWEVER, they will NOT fire you if you have production.  So the bottom line is that you should play along with their game, and jsut make sure you produce.  As soon as your production falls below expectations, and you stop producing, you will get a big "I told you so".  And then they will show no mercy on you.  In their defense, there is a considerable investment they make in each new FA, brand new or veteran, so they need to make sure that person is going to at least TRY to perform.  They try to teach you the best way THEY know how to prospect.  Their assumption is that unless you have a better method, you should do what they suggest.

Honestly, they don't know where you get the prospects from.  But they CAN see your CRM database, and know how many prospects you have.  A newbie with no experience and no connections is most likely going to identify 750-1000 prospects in the first 3-6 months to start working on.  If you only have 200, you better HOPE that those are a productive 200.  Most on this board would agree that 200 prospects (unless they are pretty warm) is not a lot starting out.

So again, bottom line is that you should go through their motions, learn their methods, maybe try some doorknocking (residential, commercial, or both), but focus on getting those clients over and converting some of those prospects.  And yes, you can enter them as prospects, regardless of how you got them.

Did I read it correctly that if a husband has a trad IRA, Roth, and wife has same..open 4 accounts..that's really only considered one account?

I find it hard to believe DK for 6 months will produce 500 leads, but you all state its realsistic?

500 leads should take you about 20 days of doorknocking.  Jones says you should make 25 contacts a day.  They'll figure that as a new FA you'll be meeting new people all day long and not doing anything else.  So, if you concentrate your first 20 days on meeting 25 new people a day, that's 500.  In a 6 month span of time you could easily get 1500 - 2000 new prospects in your system, work with your existing book and on the 200 contacts you already have, and make repeat contacts on the new prospects you create. 

Doorknocking only sounds awful until you've actually done it for a while.  Once you realize the possibilities it becomes a less daunting task and more of a challenge.  If you consider that out of those 1500-2000 prospects is a group of say 500 people with $250K or more, that's at least $125 mil in assets that you've touched in 6 months.  If you figure the rest, call it 1000 people, have just $50,000 then that's another $50 mil.  You're up to at least $175 mil in 6 months.  So the question is can you do something you don't really want to do like doorknocking for 6 months to give yourself a shot at that $175 mil?  

well stated spiff....The hurdle for me is the DK, but I guess its the same as cold calling, but more presonal and immediate.

I can cold call all day and prospect, agree to meet, then move forward..DK is the just a different approach going for the same results

I know I could get up to 25mm from my 200 contacts, but the problem will be satisfying the DK and new contacts requirements..b/c I also believe I could referrals from those 200 clients, so 50 mm from estalbished relationships is definitely possible..all my contacts/clients have at least 500k in retirement assets alone

CFA, if you want to cold-call you can.  You might get an earful from your trainer, but if you are putting up the numbers, they'll leave you alone.  Don't let the doorknocking be an obstacle unless you really don't have as many clients or prospects as you say.  If you start putting up big numbers, that'll shut them up.  If you could put those 10mm AUM into advisory relatively quickly, you won't have anyone from training talk to you ever again.  At an average of 1.25%, you would be doing 10K per month gross.  It would take a few years before you slipped below expectations.  In that time, you would certainly be adding more clients.  At 25mm in advisory, you'd be pretty close to segment 4 numbers just by opening your doors each month, and be netting 125K.

[quote=careerFA]

I know I could get up to 25mm from my 200 contacts, but the problem will be satisfying the DK and new contacts requirements..b/c I also believe I could referrals from those 200 clients, so 50 mm from estalbished relationships is definitely possible..all my contacts/clients have at least 500k in retirement assets alone

[/quote]If this is TRUE, why would you choose to be an employee? Many FAs with books like these work easy hours pulling in 6 figures as an independent advisor. I would search for RIAs in your town, share your story and start building your business. For a little off the top you should be able to make it happen and never worry about DKing.

On the other hand, at EJ the bare minimum, two years ago, was I believe ~500 names in your prospecting log and a MINIMUM of 125 phone appointments sceduled that you can call from EVAL/GRAD to pitch a stock or bond to. If you have these two things and a guarenteed sell at E/G then you will barely get by. After that it does not really matter as long as you produce. If you do not produce then they will ask you why you are not DKing and all that jazz...

I would talk to the following places just to see other options...

Cambridge, Cantella, Commonwealth, Harbor Financial, LPL Financial, Raymond James, TradePMR and share your story. Ask them if they have an advisor in your area that would be interested in adding another advisor. Also check with invesmentadvisorsearch.com for RIAs in your area looking for the same opportunity.

If your story is true, we would defenitley speak to you. And you would not have to worry about Jolly Green Giant breathing down your neck. Even though it is not that big of a deal. If you can sell, you can BS your way through the EJ system.

Good luck and feel free to PM me any other questions!

ND,

Thanks for the head slap. I came to the same conclusion last night. I'm looking at all my options, starting with TradePMR and Commonwealth. The DK stuff to me is a waste of time, you grow your business through referrals, so I'd spend the time with my clients, and then propsect of a targeted mailings and group participation locally.

I was stunned to see EJ had 100 advisors just in one of the first city where I live.

[quote=careerFA]

ND,

Thanks for the head slap. I came to the same conclusion last night. I'm looking at all my options, starting with TradePMR and Commonwealth. The DK stuff to me is a waste of time, you grow your business through referrals, so I'd spend the time with my clients, and then propsect of a targeted mailings and group participation locally.

I was stunned to see EJ had 100 advisors just in one of the first city where I live.

[/quote]

You must live in a small town. 

Spiff,

Actually the metro area has 1.1 million people, four distinct cities. So I would guess there are at least 500 EJ FA's competing for the dollars. Just seems ludicrous to me, and supports why EJ has a bunch of top producers, and small all the other small shops struggling to survive.

There are 2 Merrill, UBS, and MSSB, Schwab branches. 1 Fidelity....A lot of small FA firms.

That's probably $200-300B in assets just in that metro area.  That's more then enough $$ to go around.  And remember, a certain % of clients will live outside that metro area for all FA's, so your opulation is actually larger than JUST your metro area.

I have about 100,000 HH's in my entire county (750 sq. miles), like $30B in assets, and we have like 14 FA's (along with every wirehouse, tons of banks and CU's, a couple of huge indy firms (over $1B AUM each), lots of small indies, several Ameriprise offices, and tons of insurance guys).  And there are PLENTY of assets to go around.

The "small shops" are not small due to lack of assets in the market.  They are small due to lack of proper effort or inability.  That's not a dig at them - this is a very difficult career to be successful at - it is just simply the truth.  I have seen people be wildly successful in crappy markets and people be wild failures in great markets.  You can't just open your doors and expect peopel to walk in.  It's NOT a level playing field.  You have to know your market and know where and how to find the money, how to bring them in, and how to close them.  Tall order.

Good example, friend of mine that I trained with took over an EDJ office in East Bumfukc Wisconsin.  No other brokers (Jones or otherwise) for 25 miles.  The guy before her just gave up after 5 years.  Left just under 10mm AUM.  She said he probably never did more than 15K gross in a month.  He claimed there was "No money" in that area.  He is probably half right.  She got in there and within a year was averaging 20K per month.  She was doing the "coffee shop" thing, the "seminar" thing, doing rate postcard mailings.  She said virtually everyone in town were CD buyers, as the bank (with no brokerage office) was the ONLY place nearby for "investments".  So what did she do?  She sold them what they wanted.  CD's.  She was bringing in $1mm a month for the first few years just advertising CD's.  She turned some onto muni bonds, and started using mutual funds for some people.  She wasn't making a killing (by my New England standards), but for her, she was now making more than her husband who is in the union running phone lines.  In her 2nd full year at Jones, she netted over 100K, took 2 trips, and was earning bonuses.  And she had never made more than $9.00 per hour in her life.  She did all this because she knew her market, and new HOW and WHAT to market.

For every Jones office you see, figure there are at least $750 million investable dollars.  That's the number they use as a metric for whether an area will support a Jones office.  My county has over 125K households and about  $44B in assets up for grabs.  Just like B24's area we have BAC/Merrill, Morgan, Stifel, banks, CU's, lots of indy offices, and a lot more I can't even think of off the top of my head.  We've only got 60 Jones FAs to cover it.  And only a  4% market share.  I'd say the average office in my area isn't struggling, but they're also not at $100 mil AUM either.  Average is probably in the mid $30 mil range.  We've got lot's of room to grow. 

If  you shoot me a PM I'll tell you how many liquid assets and households Jones says your area has.  I think you'll find there's some method to the Jones madness. 

ok, I got some details...You need 20mm in assets and trailing 150k in revenue to be considered for transitioning advisor role. Otherwise, you start as a new advisor and go through the training as any new hire would.

[/quote]

I know that situation pretty well. There's always more to the story. First, production was closer to $1 million, not 2. Second, Daddy was/is a lawyer, and sent many settlements to Junior, who promptly locked it up in what you would call B shares. Third, great location, almost downtown - kudos to Gunn for picking it. Fourth, his wife worked for some big firm in Calgary, and he was awarded what you would call the the 401K for that firm. Lots of employees, big coin coming in every month, with little effort beyond the initial sign-up.

The firm was desperate to have a local leader. It was a split region, with half the IRs being in Northern Montana, and the other half being in southern Alberta - a HUGE territory for the RL at the time to cover. I once got invited to some type of top producer meeting for the region - 600 miles, ONE WAY. As I say, the firm was desperate to have local leadership for the region, and this guy gave them what they needed. Former car salesman, pushy, young guy, successful, good golfer, a proven liar (I have several personal experiences to back that claim) - in other words, a PERFECT regional leader.

He served a year or so as RL - the firm invited him in as a GP a couple of years ago, and sent him to Mississauga (CDN HO). Don't know what they did about RL status after that point...

On a personal level, I had little interaction with him. He was successsful in monetary terms, as was I (not like him, but half of his production was still pretty good). I cheer on other people's successes, and have zero animosity to others who are more successful than I am. Been gone from EJ for several years, have stayed friends with guys I met there, and I am eternally grateful for the start they gave me (despite some raw dealing I saw). But I always disliked how Jones would imply "this too, can be you, if you just follow the recipe" - the guy was productive, yes - but he was The Chosen One, and had a TON of help.

There is always a story behind ALL big producers, not just at Jones.  Funny thing is, the ONLY person I have met that is a big producer (only 850K) that actually got there from scratch, and through doorknocking and hard work, is in my region.  He worships that guy from American Funds - the one that used to be at Jones.  That little militant SOB.

Anyway, this guy doorknocked straight for 3 years.  He is so fukcin driven.  He's a nice guy, thinks pretty highly of himslef, but always willing to help someone.  I hate his business model (very transactional, "old school", on the phone selling pretty much 6-8 hours of every day).  I wouldn't want to be chained to the desk like that after 20 years and $180mm AUM later.  But I guess he likes it.  He nets around $500K most years (other than 2009 since bonuses sucked), but also receives like 250K in LP/SLP returns (former RL/GP) each year.  He said in his best year (I think 2006 or 2007) he netted close to $1mm including bonus and LP/SLP returns.

BUT, as you pointed out, there's a story behind most big producers.