A new service is being launched for advisers wanting to learn how to transition their advice practice from one that is commission-based to one that is structured around a fee for service model.
In what could be seen as a pre-emptive response to the anticipated outcome of the Ripoll Inquiry, the Leading Minds Academy is releasing a 16-step program designed to assist advisers ‘master the art of advice’.
Called ‘The Price of Advice’, the training program takes advisers through the journey that is required in order to renew their practice under not only a different remuneration model, but also a different service proposition and mindset.
Leading Minds Academy Principal, Brian Boggs, is one adviser who re-shaped his very successful, commission-based business into a business he says was based around the value he would bring to his clients.
I would position myself as the price maker and I would control the cash flow and profitability of my enterprise
Mr Boggs said his renewed business was founded on a fee based concept which placed him in the drivers seat: “I would now be independent of the financial remuneration provided by product manufacturers. I would position myself as the price maker and I would control the cash flow and profitability of my enterprise. I adopted a new ‘success mindset’,” said Mr Boggs.
The Price of Advice program analyses a number of key factors involved in the transition process from commission to fee for service, including:
- Understand that there is a cost of advice for every client you take the responsibility for, eg rent, wages, support staff, software, research, plan preparation and delivery etc.
- You don’t have to take on every client if you have decided that your business model is one of the project manager (carefully select who you will share your time with)
- Having clearly identified your base costs, decide the profit element to be included in your fee
- Offer and deliver value in your proposition that you can articulate very clearly
- Educate your prospect that they will be receiving solutions to their lifestyle goals and that will be delivered in a way that is unique to you and your business model
By way of promoting its Price of Advice training program, Leading Minds Academy will shortly be releasing an interview it conducted during the AFA Conference in October, which features Bernie Ripoll MP, Chair of the Parliamentary Joint Committee Inquiry into Financial Products and Services in Australia, Jim Minto, CEO TOWER Australia, and Robbie Bennetts, Head of Professional Investment Services, who debate the issue of commissions versus fee for service. Advisers can click here for a preview of this 15-minute interview.
Presented in video format, the Price of Advice program is only being made available to the first 100 advisers who commit to the service. Those interested in registering their interest can do so by clicking: The Price of Advice Training Program.
