Here's a thought for the Kool-aid drinkers. Edward Jones is not a benevolent society. It exists to generate returns on GP equity just as a public company exists to generate shareholder equity.

Recently, the GP's got caught with their hand in the cookie jar. Ironically, this was at the same time they were wagging their fingers at other firms(full page ads in WSJ).

While Jones is not a non-profit service organization like some would like to believe, it is a very good firm.  And for those who get to be GP's it is a financial windfall.  For those who for whatever reason do not get to be GP's it makes sense to own your own business and build your own equity.

One last note.  A broker at a regional meeting I attended was in front of the region talking about how he would like to be a GP some day. He was dead serious. He was a guy in his late 50's at the time and would need to triple his production to even be considered.  No one had the courtesy to tell him that as a GP he would have to retire in about 6 or 7 years at age 65.  They just let him go on deluded in a thoughtless haze.  This is classic Jones. Keep dangling that carrot out there hoping the brokers don't stop and look around at their other options.

Gpwanabe:

You make a great point.  The GPs are owners.  That's why they want to stay at EDJ.  I recently heard from a GP who grosses around $750,000 and he figures his payout with all the benefits at around 70%.  Not bad eh...

Using their reasoning, someone who isn't a GP should also want to become an owner.  If not at EDJ, then somewhere else.

Exactly....

Fees top commissions at A.G. Edwards

By Jack Naudi

Of the Post-Dispatch

06/24/2005

With a general downturn in stock brokerage business, analysts expected that A.G. Edwards Inc.'s revenue for the first quarter ended May 31 would not be very impressive. And they were right.

Nonetheless, the St. Louis stock brokerage made history. For the first time in any quarter, A.G. Edwards collected more revenue from asset management and services fees, $250 million, than from commissions, $247 million.

The change reflects a nationwide trend away from commissions, where brokers make money when securities are bought and sold. Commission revenue fell 11.7 percent from the first quarter last year.

Customers are moving instead to fee-based accounts, where brokerages take a percentage of assets. A.G. Edwards' asset management and service fees rose 14.3 percent over last year.       

"While revenues overall were more challenging to come by during the quarter, we were pleased with our asset-management revenues reaching another all-time quarterly record thanks to continued growth of our fee-based programs and services," Robert Bagby, A.G. Edwards' chairman and chief executive said in a statement.

Overall, A.G. Edwards reported lower revenue for the first quarter. Profit rose, but that was due primarily to one-time revenue gains this year, and one-time expense items last year.

Despite a downturn in business nationally, A.G. Edwards' numbers were markedly better than one of its peers, Morgan Stanley. The New York firm reported Wednesday a 9 percent reduction in revenue and a 23 percent drop in profit for the quarter ended May 31.

Bagby gave partial credit to a light-hearted national advertising campaign centered on people's "nest eggs."

"We believe our branding effort, along with our other key initiatives, are continuing to improve shareholder value," Bagby said in his statement.
Reporter Jack Naudi

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

What, I wonder, does this bode for that other unnamed St. Louis firm?

Doug "3" Mil Hill

We will never do fee business............................

I'd imagine it is harder to get those seperate account managers to pay the revenue sharing dollars and send the IR's & GP's on trips too.  I guess the 80-90 million Jones receives each year from it's vendors based upon assets on the books is NOT fee based revenue.....OH--but that doesn't count...lol!

FYI: Im about 30-35% fee based after 18 months as an indy.  I am counting trails from A, B, & C shares in addition to fee based programs through RJFS.  By next year I will have all my office overhead and home expenses covered with fee based revenue.  I wish I had done this years ago.

I like that way of doing business--and so do the the clients.

If jones is so great, how many independant reps hung it up last year to go work for big Ed?

How does that compare to the number of jones reps that went indy?

Zacko- If you are adding trails to your fee based and are saying that total is 30-35% of your base, I will probably at that level in another year. It seems that I do a lot more C shares than i did when I first started. if client doesn’t make a 50K BP then it makes sense to look at C’s in my estimation. The other part that you talked about covering your office overhead with your fee based business, that is a MAJOR milestone. Good luck to you in that pursuit!

CLONES IT IS ABOUT EQUITY!

Any 2bit clone can sell ICA as a good long term investment becuase it represents ownership in a portfolio of growing businesses.

At the same time many who would be better off to leave continue to "RENT" their books from 3Mil and his band of thugs.

THEY EVEN SAY LP IS LIKE A BOND!!

Thanks Noggin--Anything that pays a recurring revenue stream counts in my book.  Even A share trails count as do Annuity trails.

It's a long term process with occasional setbacks but I am sticking to it.

Zacko & noggin,

When you have enough recurring revenue to meet all your expenses, is it easier or harder to do "What's right for the client"

I mean, if you dont HAVE to generate a certain amount of commissions every month, isn't it easier to asses each clients situation and recommend investments regardless of how much they pay you.

How do the Jones clones argue against this.

Maybe, just maybe, every client does not need 3 net I mean 30 year bonds right now.

Brokerbob- I agree with you. I think it is much easier when recurring revenue is meeting your expenses to make a decision based on individual merit of the investment.

Like everyone else who has gone indy, it really boils down to a test of your faith that it is better on the other side.  We (three of us) left Jones in April, and it is amazing how quickly my opinion has changed about Jones.  Everything they told me about the other side of the fence is wrong.  It was said to keep me there, plain and simple.  And you should have heard the scare tactics used by Jones within the region to keep everyone else there.  So you Jones reps that are contemplating leaving, pull up your pants and do it, but only if you can really handle running your own business.

re the above-I left a wire and my impressions/experiences are
similar.  Those I left behind can’t believe it might actually be
that much better to be indy…so they’re afraid to make the leap…

Jones Drones & Clones

If you can handle being INDY, go for it today

I don't hate the IR's I hate the leadership, they betrayed the IR's, BOA's and a great tradition, that is what I hate, the arrogance of the Leadership..........and so should you?    Read on.......pilgrims   

Every comment I have made on here has been toward the Leadership Doug "3 Mil" Hill is the worst of the bunch of greedy GP's, they live off the efforts of good IR's , just look at how much they charge you monthly for your computer system?

Many of us asked for months about the SEC investigation, and they would never tell us the TRUTH, would they?   

Then when I saw some of the IR's they were bringing into St Louis and making into GP's, it made me sick , and what finally did it was when I herd them calling these IR's Top Producers  when they got to St Louis, and IR's out in the field knew it was a LIE ......That just kinda ruined the whole Jones ethics thing for me.

When you are a Top Producer you have pride in being one, and if your FIRM decides to start calling every GP that was an IR, a Top Producer, there is a ETHICS PROBLEM......so I left....Jones changed, I didn't........case closed

Look around St Louis and you will see I am telling the TRUTH......

[quote=Player]

Jones Drones & Clones

If you can handle being INDY, go for it today

I don't hate the IR's I hate the leadership, they betrayed the IR's, BOA's and a great tradition, that is what I hate, the arrogance of the Leadership..........and so should you?    Read on.......pilgrims   

Every comment I have made on here has been toward the Leadership Doug "3 Mil" Hill is the worst of the bunch of greedy GP's, they live off the efforts of good IR's , just look at how much they charge you monthly for your computer system?

Many of us asked for months about the SEC investigation, and they would never tell us the TRUTH, would they?   

Then when I saw some of the IR's they were bringing into St Louis and making into GP's, it made me sick , and what finally did it was when I herd them calling these IR's Top Producers  when they got to St Louis, and IR's out in the field knew it was a LIE ......That just kinda ruined the whole Jones ethics thing for me.

When you are a Top Producer you have pride in being one, and if your FIRM decides to start calling every GP that was an IR, a Top Producer, there is a ETHICS PROBLEM......so I left....Jones changed, I didn't........case closed

Look around St Louis and you will see I am telling the TRUTH......

djtrader,

Glad you agree.....................

Another one leaves,big big big producer,ex gp,ex regional leader,goes rja,bye bye edj. ir in michigan top 15 at edj

Free,

whereabouts in MI? near motown or near the Soo?

motown