Compensation Model Limits. High-Costs. Profit-Focused. Conservative-Tradition Based. Slow to Adapt. Brand Recognition.
The firm may eventually change -as of this review, you earn long-term compensation via Asset Management Fees + Commissions. You can receive pay-back through trips, partnership offerings, bonuses, or NewAsset Comp depending on your season of advisory. Go somewhere else if you want Hourly/Annual $ Fee models. Also, focus is only on hiring experienced FAs -partially because other firms prioritized headhunts EJ FAs with at least 3 years of experience.
Starting off, the other FAs are essentially subsidizing your business. Even if you get a less-than desirable book of business to start, they're forking over money to make sure you can put food on your table while you build your business. You'll get a paycheck, but you'll miss out on 90-60% of the revenue you generate because of it. It's fair. Don't want that "cost"? Go independent or somewhere else. Once you're "profitable", your business will change. Bonuses, trips, higher income, etc.
Edward Jones is adapting slowly but surely to newer technology and a more "open" model of giving advisors independence INSIDE the partnership. Want a community office? The firm is still focused on single-FA offices. Want to easily relocate your clients and business? The firm subsidizes a lot of those office costs and you'll like lose part of your book or need to leave the firm depending on your relocation distance and what you want. Nothing changes fast here -when it does, it's meaningful and valuable change.
Brand recognition. While the firm emphasizes client-advisor relationships, the brand recognition is strong. Plenty of clients are brand loyal -the advisor is just the icing on top. That's not universal but is a common theme. If you eventually go independent, expect the worst for moving clients out -especially if they were inherited or transferred between FAs.
