Are you considering the introduction of a 'fee-for-service' component into your business model for new clients?
- No (61%)
- Yes (29%)
- Not sure (10%)
This week we reported on two financial advice firms which operate in different ways (see: Charging For Advice Raised At Bounce Conference).
PH Wealth charges clients for its services while Logan Smythe & Associates, a risk-based business, relies on remuneration by commission. Both stand by their respective business models and both operate successful practices.
Debate over which model is more appropriate is only now starting to bubble to the surface in New Zealand, prompted by apparent concerns aired by the industry regulators.
…every advice business model has its own unique DNA…
But we know this isn’t simply a question of which model is more appropriate, because every advice business model has its own unique DNA. What’s ‘appropriate’ for one advice business, then, may not be the case for another.
In a changing regulatory environment serving a changing consumer world, do you remain confident in the remuneration model under which your firm operates?
For those advice practices for whom commissions are the dominant method of remuneration, do you see a future in which your business model could include a component of fees for advice – to supplement your commission stream? Or do you think there’s no prospect of moving in this direction?
As we’ve already observed, all advice businesses posses their own unique DNA, so tell us what you’re thinking – what’s right or ‘appropriate’ for your business – and we’ll report back next week…