Is the work difficult?
As you might expect, any career that offers the potential for financial success demands very hard work. This is a SALES position, and it is like starting a new business. In any successful new business, hard work and long hours are mandatory, but the rewards are well worth it. Edward Jones Investment Representatives consistently rank among the highest paid professionals in the retail securities industry. Plus, they enjoy the freedom associated with running a business. Potential for firm ownership and travel incentives are other attractive perks, not to mention the respect and leadership opportunities you'll enjoy as an Edward Jones Investment Representative.
This is not a part-time position! The first two years as an Edward Jones Investment Representative require you to invest tremendous effort in building your business. You work alone much of the time. You can expect to experience emotional ups and downs, as well as a fluctuating income. You'll be meeting and talking with people during the day and on weekends, and catching up on paperwork and writing thank-you notes at night. In addition, as with any sales career, you'll have to overcome many "no's" before ever hearing a "yes." The ability to deal with rejection will play an important role in your daily activities. Success requires self-confidence, dedication and persistence. Despite all of the information you'll receive, your family may be surprised at the great number of working hours required to get your business started.
In addition, it is important to remember that this is a highly regulated industry. While you run your own business, you are required to do so within guidelines set by the federal government, New York Stock Exchange and the National Association of Securities Dealers. The rewards of being an Edward Jones Investment Representative are great, but you must determine whether this career is right for you.
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Where should I establish my Edward Jones business?
Locating branch offices in places convenient for face-to-face contact with clients is one of Edward Jones' key business strategies. The number and location of branches within each community is determined by a variety of factors, including population, age of residents and investable assets. The process of location selection begins when you submit your application. You must indicate on the application where you wish to establish your business. The more specific your description, the better. Locations are not franchises or sales territories (which do not exist at Edward Jones) but are those areas in which you believe you can build a successful business. While you can do business anywhere you are properly licensed, this location will be the focus of your business-building efforts. Consider areas where you would feel comfortable knocking on doors and asking people to invest. In addition, think about where you want to be in 10 or 20 years.
Location selection is critical. Commitment to the chosen market and confidence in it are key elements for most Investment Representatives' success. Put as much effort into this process as possible. You should be certain the chosen market is a place you want to live for a number of years and that it provides the life style and amenities you and your family desire. Edward Jones has identified thousands of areas where we, one day, want to open offices. We will work to match where we want to be with where you want to be.
After you are hired, complete training and meet minimum selling expectations, we will do everything we can to get you into your branch office as soon as possible. However, prior to signing a lease on the branch office, we will review your progress and performance to ensure you are on track. Below-standard performance may result in a delay in opening your Edward Jones office. On average, Edward Jones Investment Representatives earn their offices within 8 to 11 months.
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What if I need to relocate?
We do not encourage relocation, but do permit it in cases based on sound business reasons. An example of an acceptable reason would be to take advantage of an opportunity to move to another branch with greater assets. In such cases, the Investment Representative must recruit his or her own replacement. In general, however, Jones' expectation is that the new Investment Representative will remain in the community for at least 10 years. Any relocation after hire should take place the week of Market Research during training. We recommend that you do not move while you are studying for the Series 7.
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Can I have a part-time job outside of Edward Jones until my business starts growing?
No. Edward Jones does not generally allow Investment Representatives to have second jobs, with the exception of part-time teaching positions. This includes the time period during which you will be studying for the Series 7 exam. A career as an Edward Jones Investment Representative requires hard work and long hours. Any outside employment, regardless of how minimal, must be disclosed during the hiring process and approved by our Compliance Department.
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What if I am currently licensed and am selling insurance?
If you are presently licensed to sell insurance and are receiving more than $5,000 per year in trail income from a non-Edward Jones vendor or have $2 million of annuity assets that meet the required quality standards, Edward Jones may sign a dealer agreement on your behalf. Although no additional policies may be sold, renewal income may be processed through Edward Jones with the standard commission payout schedule in effect. Such a policy is solely at our discretion. If you have outside renewal of life, health or property and casualty income, please discuss this with Sales Hiring. All other appointments not disclosed to Edward Jones must be canceled.
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I'm not sure I can wind up my current business before starting with Edward Jones. Is that a problem?
It depends. Industry regulations require you disclose all outside employment, business and investment activities to Edward Jones upon hire. To continue any such activity, you must obtain approval from Edward Jones. There are some things the firm will not approve. Typically, these include activities that involve selling other products or services or have some other aspect that could potentially raise the appearance of impropriety or conflict of interest. For example, Investment Representatives are not allowed to sell any product or service away from the firm. Can you continue to sell Amway or real estate as an Investment Representative? No. Every situation is different and will be reviewed individually by our Compliance Department.
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Do we have to sign a contract?
There is a contract that requires the return of all Edward Jones equipment in good condition; stipulates no customer information may be copied or removed if an Investment Representative leaves the firm, and requires the repayment of training costs on a pro-rated basis. After three years, the new Investment Representative is no longer financially obligated to Jones, but other clauses remain in effect. It is standard in the industry and protects Edward Jones if you decide to leave and go to another firm in the industry.
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Does Edward Jones offer benefits?
An Edward Jones Investment Representative's total return includes more than just a paycheck. Edward Jones provides access to a comprehensive package of benefits. Standard benefits, which are provided by the firm at no cost to you, include basic life insurance, basic accidental death and dismemberment insurance, income continuation plan for short-term disability, profit sharing and tuition reimbursement. Optional benefits include medical coverage, dental coverage, long-term disability, supplemental life insurance, supplemental accidental death and dismemberment insurance, dependent life insurance, long-term care insurance, heath care reimbursement account, dependent day care reimbursement account, 401(k) plan, after-tax plan, and investment savings plan. If optional benefits are elected, there is a cost to the Investment Representative.
As an associate of Edward Jones, most benefits become effective on the first day of the month following one month of employment. For example, if your payroll date is January 7, benefits would be effective March 1. If your payroll date falls on the first day of a month, benefits would become effective on the first day of the following month. Your payroll date is the date you start working, not the date you sign an employment agreement. If you join the firm, a detailed benefits package will be mailed to your home during your first week of employment with Edward Jones.
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As an Investment Representative, how will I be compensated? Does my compensation include more than commissions?
In your early months as an Investment Representative, you are unlikely to earn large net commissions. This usually follows from successfully making enough quality contacts and sales presentations to develop a customer base. Our special 12-month compensation package for new Investment Representatives provides a predictable base income plus incentive compensation for opening new accounts and earning commissions. After 12 selling months, Investment Representative income is entirely based on net commissions received from sales, new account bonuses and profitability bonuses. Investment Representatives are paid once each month, on the first Friday of the month. Payment is made by direct deposit, either to their Edward Jones money market account or to their bank.
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Should I be concerned about incurring significant expenses once I become an Investment Representative?
During the first year, your income will be earned from hourly wages up to your Can Sell Date. After your Can Sell Date, your income will be earned from sales commissions, new account bonuses and a monthly salary. However, you must realize that as a new Investment Representative, you will be starting a new enterprise from a zero base by calling on many people you have never met. If you do the work, your business will grow steadily, but many Investment Representatives have had to rely on savings and family income to supplement their income during the first two years. Therefore, it is critical that you plan ahead and accumulate sufficient savings to meet your needs.
Although we provide a furnished and equipped office for all of our Investment Representatives, there are several expenses you may encounter that are not reimbursed.
This includes office decor such as plants and pictures, and other office equipment such as a coffee maker, grease board and flip charts. On average, it takes a minimum of about $400 in expenses for personal items to set up an office. You can also expect to spend an additional $4,200 on non-reimbursable office expenses annually.
The amount an Investment Representative chooses to invest in developing and promoting his or her business ranges from several hundred to several thousand dollars per year. You are in control of these expenses, and how much you spend will depend upon your personal lifestyle, savings and individual business plan.
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What types of training classes will I attend?
To become licensed to sell securities, state and federal laws require that all Investment Representatives pass the General Securities Registered Representative Examination (Series 7) and a state licensing examination (Series 63). Some states, including Connecticut, New Hampshire and New Mexico, require the Series 24. In addition, you must successfully complete an Edward Jones examination prior to sitting for the Series 7 exam.
Preparation for these exams is provided by our proprietary Study for Success program. Edward Jones is a recognized leader in training new Investment Representatives. Study for Success is a home-study course that includes comprehensive study materials, practice tests, a laptop computer and printer, videotapes and a series of mailings. This course integrates information on investments, our customers and the Edward Jones philosophy, which is necessary for passing these tests. You can feel confident in the quality of your study materials.
At first review, the volume of information may seem overwhelming. Preparation for the Series 7 exam is challenging and must be taken very seriously. It is more difficult than the real estate licensing exam, but it is not the equivalent to sitting for CPA or bar examinations. Typically, trainees commit 45 hours of study each week over a two-month period in preparation for the exam. With an organized and committed study plan, you will find the information manageable. Historically, 90 out of 100 Edward Jones trainees pass the examination. You have one chance to pass the exam; failure to pass it is generally caused by insufficient study time. You must pass these tests to become an Edward Jones Investment Representative.
After successfully passing the Series 7 and Series 63, you will enter the firm's nine-week formal training program, designed to prepare you for a successful start as a new Investment Representative. This is the first step in Edward Jones' career-long training, designed to develop your understanding of customers, investments and the sales skills to bring them together.
INITIAL TRAINING
At the beginning of initial training, we will assign an academic training leader (ATL) to you. This individual will be dedicated to assisting you throughout our nine-week training program. This program consists of five separate training classes and activities: Know Your Customer, Market Research, Branch Training, Prospecting Week and Evaluation/Graduation. Their purpose is to: (1) Reinforce the concepts and information you learned in Study for Success; (2) Teach you to apply this knowledge to the development of customers (or a business); (3) Develop a thorough understanding of the critical activities required for success; (4) Develop valuable selling techniques: (5) Provide valuable hands-on experience in an existing branch office; and (6) Develop a detailed business plan to guide your initial efforts.
Know Your Customer (one week)
During this class, conducted at the Edward Jones Training Center in St. Louis, you will participate in a highly interactive program utilizing small group training led by ATLs. This class will help you develop a better understanding of the securities business, the firm, customers and their needs, and key investments. There is also an introduction to important applications of the Edward Jones computer-based information system. In addition, we will introduce you to key prospecting and sales presentation skills that you will refine later in the training program. Lastly, you will complete an individualized plan for the next step of your training, Market Research. Successful completion of KYC prepares you for Market Research. Travel and lodging expenses during Know Your Customer class are paid by the firm.
Market Research (three weeks)
During this time, you will be working in the market you have selected to develop your business. You will develop a more thorough understanding of that market and the people in it, and begin formulating your market research plan, which will guide you through your critical first 120 days following licensing. A key activity that is required for the completion of Edward Jones' training program is to make 25 first contacts per day. You should use this time to begin meeting local key referral sources who may be able to help you once you begin building your business. If you are relocating, you will do so at this time.
Among the investments Edward Jones offers, several, including annuities and life insurance, require you to be licensed to sell insurance in your state. Each state has different requirements, but this is the time you will start the licensing process. You should have passed your state insurance exam by the end of Market Research.
Branch Training (three weeks)
This part of your training is spent working in your mentor Investment Representative's office and observing the Investment Representative and BOA as they run their business and create and service customers. You will make prospecting calls with a branch trainer, make at least 10 first contacts each day, practice prospecting calls and basic sales presentations, and sit in on client appointments. By observing actual sales meetings, you learn how Investment Representatives interact with customers and prospects, how they determine appropriate investments to meet customer needs, and how they successfully sell these solutions. In addition, you will focus on time management and prioritization skills and office administration. During this time, you will complete a face-to-face oral exam with your regional leader. At that time, he or she will determine whether you need additional training before moving on in the training process.
Prospecting Week (one week)
You will spend this week in the market you have selected to build your Edward Jones business. You will complete a minimum of 125 face-to-face first and repeat contacts (25 per day) consisting of business owners and individuals, ask potential customers "open-ended" questions to obtain financial information, assess each contact and indicate the next action. To qualify for Evaluation/Graduation, you must schedule 125 prospect follow-up dates to take place during the week of Evaluation/Graduation. Note: 125+ contacts must be entered into your laptop prospect system before Evaluation/Graduation. Failure to complete these tasks and/or not showing up for Evaluation/Graduation by start time on Monday constitutes grounds for dismissal.
Evaluation/Graduation (one week)
This class, which culminates your initial training, is held at the Edward Jones Training Center in St. Louis. You will receive your can-sell date (CSD) the first day of this class. You will refine first and repeat face-to-face and phone contact skills, practice sales presentations and complete a 60-day success calendar. You also will officially begin building your business by calling prospects for orders and appointments. Additionally, you will develop a better understanding of the attitudes that lead to success as an Edward Jones Investment Representative and learn how to individually apply the skills of creating customers in your own market. You also will focus on compliance issues to help ensure good, ethical business practices from the start. Upon graduation, your initial training is concluded, and you will return to your community as an Edward Jones Investment Representative.
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