If jones wants to keep more of the "right" people, it could use LP the way coorporations use stock options. Put an LP out there for seg3's and 4's that are paid off by jones over a five year period. Show them a yearly statement showing the value of the LP each year, and the only way to recieve the full value(paid in full) is to stay for 5 years. Then repeat every 5 years.

[quote=B24]

[quote=gethardgetraw]

The problem with Jones is that while they're trying to become more like a traditional wirehouse, they'll never be able to achieve their goal. Jones needs to have a low payout to pay for the costs associated with taking anyone that can fog a mirror as an advisor. This costs them a ton of money. They need to raise the payout to 80-90% to keep the top producers on board. It's all about the money. No one cares about Ted Jones' farm and how he didn't take the firm public. The top producers stay on board b/c they're afraid to leave. If Jones raises their payout, they won't be able to pay for the costs of hiring new advisors and they'll go broke. They'll always be the WalMart of firms. Great place to start though.

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This has got to be the most un-informed comment i have ever heard.  Even the most ardent anti-Jones people on this board know that this is not even remotely feasible, at any captive firm.  So you're telling me that JOnes shoud pay someone that produces $1mm, 800-900K??  Soooo, that leaves 100-200K for BOA pay (average $1mm producer has three assistants), rent, all of the miscellaneous expenses, home-office overhead, and some profit to the firm.  Think about what you say before you say it.  Indy FA's don't even net that much after expenses, dopey.

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I think you're the one who forgot to think before posting. I stated what Jones needs to do, not what's feasible. You just laid out exactly how being independent is possible, because you pay for all of those expenses out of pocket.

Also, $200k for BOA pay? You're funny.

Listen hard-ly, when you get bitchslapped like that, better to rethink your response , learn and move on. As the thread stated, a successful seg 5 has 2-3 BOA's.  You're young. You are not supposed to know everything. Stop pretending that you do. We learn with our ears, not our mouths.

Navet, you've failed in this industry. You're old and not even that helped you. You're about to either be fired or quit. That must be a pleasant thought to have lingering in the back of your mind.

Oh dear. I must have hurt baby's feelings. Tell me junior, are you on the ground banging your hands and feet?

Are you two really going there?