Turning grandfathered commissions into fee-for-serviceBY HANS EGGER | FRIDAY, 26 JUN 2020 12:59PM Financial advisers will have one meeting to convince their disengaged clients to become fee paying. Time spent developing a first-class client engagement process is crucial as ... Upgrade your subscription to access this article
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MAGDELINE JACOVIDES
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Hang on here. Grandfathered commissions were designated "fee-for-service" ages ago. That's why fee-for-no-service has been the issue. Where have you been?
If you have waited this long to re-engage with grandfathered commission clients I would suggest it's too late!
I have spent the past 2 years attempting this exercise.
My results hav been relativly poor, in that I was able to convert 15 clientsout of 150 that I approached.
My client list of clients form whom I recieve renumeration has reduced from 900 to70.
the people whom I have lost are the Mum & Dad, battler investers with under $150,000 who were happy to have the product pay me a commission but couldn't be bothered making a decision to pay a fee.
When a client thinks so little of his super that he fails to update address changes, or if he has fails to react to the fact that his life cover is going to get cancelled . Maybe he thinks he wont be out of work. A lot of the time they change jobs and pick up what ever the new employer offers and the cover goes.
What this situation has high lited is these people are no longer clients for the purposes of charging a fee keeping compliance records which for the most part are bull dust at this level.
They mostly have no idea what kind of investor they are, just dont want to loose money.I have lost clients as the above contributor and according to the industry, they are not clients,
only suitable for my super.BUT most are perfectly compliant and happy to implement any thing i suggest if i can find them, to others it is just too hard.
John Gale that is an incredible story of client attrition, thanks for being so candid! I wonder how many more advisers out there have had the same experience but the rest of us haven't heard about it. I hope you are able to continue beyond December 31?
Really, its all too late isn't it. If they haven't engaged by now, why waste your time. Direct your energy to more important matters. There are certainly many Adviser-less clients out there to make contact with. Its certainly not make or break time. Good title but the article content doesn't live up to it.