Edward Jones vs State Farm

Discussion in 'Getting Started Selling Insurance' started by magicmarker, Jul 24, 2008.

  1. magicmarker
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    magicmarker New Member

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    Hi All,

    Your prior comments about State Farm opportunities have been enlightening and now I'm reconsidering whether or not to follow thru on their recruitment process.
    I have a background in the P&C industry but am intrigued with financial services (and know some about this industry).
    I would like advice on opportunities with Edward Jones.
    Do they offer the support in which they claim for new financial advisors?
    About how much capital does one need coming into this opportunity? Do you need to buy a book?
    Considering our market, is this a good time to become a financial advisor?
    And finally, does anyone have anything positive to add about State Farm?
    Thanks kindly, I look forward to your responses.
    MM
     
  2. patch36
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    patch36 Guru

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    Be ready to exploit, I mean call, your closest 100 friends and family members. Most P&C companies don't sell books anymore, they assign them. I would not expect that unless you are in an area they are desperate for agents.

    Ed Jones hires a lot of new FA/agents and hopes a few survive. You will essentially be on your own to generate business no matter what they tell you. What few leads and customers you may be given will not support you or even pay your expenses.

    The only place I have come across that will hand you a book, pay for your licensing, schooling and subsidize you the first year is First Command. Great organization and people, but it is a very regimented process. Lots of support and training, but it comes at a cost, a cost you have already decided to endure, which is your independence. I would go there before I would consider the meat grinder at Jones or State Farm.
     
    Last edited: Jul 24, 2008
  3. xrac
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    xrac Guru

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    First let me say that I know nothing about EDJ first hand but only what I have heard from others. If you want extensive opinions go and visit RR. There is very little good said about them there and my opinion is that the general opinion on RR is probably right. But that being said they do offer some good training if you havent been in the business before. You can work there for a year or two get trained and licensed then move on to a real BD or go INDY. My understanding is that EDJ will make you cold walk residential neighborhoods the first year. If you join EDJ just be careful not to drink the kool aid too much.
     
  4. Delta76
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    Delta76 Guru

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    I can't speak for all the companies, but I can tell you Edward Jones doesn't make you exploit your friends and family. In fact, I'm friends with two Jones reps and they both said there was no emphasis in calling on family and friends during their training. You will be on your own after training, but they give you a system to run with, the rest is up to you. Yes, the system is heavily dependent on door knocking, but I can tell you both of my friends have been fairly successful starting in an area without many contacts.

    After you learn the business and build a clientele, you can always transfer to another firm. As much as people talk poorly about Jones, I have a lot of respect for the company and the reps I have come across.
     
  5. JRoot
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    JRoot Guru

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    In addition to the previous comments...you go to a week long training in "door knocking", knock on doors for 5 weeks and come back to training and learn to convert those prospects. You are not selling at the door...just introducing yourself. I know a girl who is doing awesome and is appoaching her 5th year and she attributes her fast start to this door knocking. I believe EJ has the highest success rate in the FA industry for newbies...just my opinion though.

    The forum that will give you the most insight on EJ is Registered Rep. Broker Forums (hopefully it's ok to post this)
     
  6. seadevil
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    seadevil Expert

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    I currently work at at a bank and the VP of the branch that I am at used to be an Eddie Jones Rep. He enjoyed it and said that sometimes he wishes that he hadn't of left. Received an offer for an excellent opportunity at the time. He is now getting ready to retire and is considering to supplement his income by being a fill in rep. Basically if someone is fired, quits or transfers, he would go to that office and run it until a new rep is trained and assigned.
     
  7. Winter_123
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    Winter_123 Guru

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    I think they have this routine, or at least some have done this, where you go out door knocking before you are licensed and just meet folks and tell them that you are just doing a survey and then you find out where they are at. Then when you are licensed and up and running you go back and sell to them or make them clients or whatever.

    I wouldn't do that and I think it is a securities violation but that is just my view.


    Winter
     
  8. magicmarker
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    magicmarker New Member

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    Thanks for your comments/suggestions.
    JRoot - I did go to Reg Rep and found more helpful insight on EJ.
    Now, I need to ask myself: do I play it safe or follow my passion? I guess life's too short to play it safe and I'm pushing 45...Mmmm...I've been playing safe for nearly a half century; time to through caution towards the wind....
    Thanks again!
    MM
     
  9. xrac
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    xrac Guru

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    If you are not licensed I don't see a violation. There was a guy calling Cramer's show on TV saying he was holding a bunch of Bear Stearn's stock and wanted to know if he should sell. Cramer tells him to hold it, it's poised for a jump. 3 days later Bear Stearns tanked. Because Cramer is not licensed and does not charge or sell his services he can give investment advice over the TV and not be held liable.
     
  10. Winter_123
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    Winter_123 Guru

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    Cramer's arrangement is not deceptive, not does it have the ultimate goal of soliciting sales so, arguably, it does not fall into the category of the solicitation and sale of securities.

    In the Edwards Jones scenarios that I have heard reported, unlicensed newbies go door to door under the guise of just doing a survey about what folks thing about this and that and what financial matters are of interest to them etc. Then they return later as licensed folks and try to turn those interests into business. To me, their "survey" is prospecting pure and simple and disguised solicitation or involvement in a process whose ultimate goal is the sale of securities. It is dangerous ground to try to avoid violating a securities license by not being licensed.

    Obviously Edward Jones would not agree but lots of marginal activities are ultimately prohibited so I dont assume that it is acceptable just because the SEC or FINRA have not stopped it yet. In addition, most states have laws that prohibit solicitation or contact with prospects where you fail to disclose that you are an agent or involved in the sale of insurance or securities. Why are they in the house?

    In addition, as noted, I still think it is unethical even if it is okay with the feds and the states. I dont want someone doing a "survey" with either a young and naive couple in their 20's not do I want them doing it with my elderly relatives or with anyone elses either. I don't equate moral and ethical with simply not violating a rule or law but acknowledge that this has become an outdated way of thinking.

    Winter
     

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