Does the remuneration you receive as an adviser reflect the value of the advice you deliver?
- Yes (55%)
- No (43%)
- Not sure (2%)
Loading ...Our latest poll asks you to reflect on the relativity between the value of the advice you deliver and the income you receive.
The poll stems from our report this week on a Focus Session at the recent MDRT Annual Meeting at which three Aussie advisers shared their experiences around increasing their advice fees to better reflect the value they feel their advice delivers (see: Advisers Reveal Strategy to Significantly Increase Profit).
In New Zealand, as in Australia, the vast majority of independent advisers are remunerated by fees or commission or a combination. Given the regulatory environment across the ditch, however, it would be a reasonable assumption that commission-based income for Kiwi advisers represents a higher proportion of overall remuneration than it does in Australia.
The question relates to whether what you’re paid represents a fair return for the value that your advice delivers…
For the purpose of this poll, however, it matters not whether you’re remunerated by fees or commission or a combination, nor does it matter what type or combination of advice you provide. The question relates to whether what you’re paid represents a fair return for the value that your advice delivers.
Do you feel you’re underpaid for what you do? If you mostly charge fees, are you in a situation where you set your fees at a level you think your clients will be prepared to pay, rather than at a level that represents the value you provide? If you’re mostly remunerated by commissions – the parameters of which are set by the insurers – does this level of income reflect the value of your advice services?
Tell us what you think and we’ll continue the conversation next week…