{"id":62697,"date":"2022-09-20T13:06:46","date_gmt":"2022-09-20T03:06:46","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=62697"},"modified":"2025-03-14T12:02:25","modified_gmt":"2025-03-14T01:02:25","slug":"latest-poll-revenue-increases-or-falling-costs","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2022\/09\/20\/latest-poll-revenue-increases-or-falling-costs\/","title":{"rendered":"Latest Poll \u2013 Revenue Increases or Falling Costs?"},"content":{"rendered":"
\n
\n

Adviser interest this week was drawn to our latest poll, which raises the question of the merits – from a small business perspective – of the impact associated with a reduction in operating costs relative to an increase in business revenue…<\/h3>\n<\/div>\n<\/div>\n
\n\t\t
A 20% increase in risk commission caps will mean more for my business than an equivalent reduction in the cost of providing my advice services.<\/strong><\/div>
    \n\t\t
  • Agree (66%)<\/small>
    <\/div><\/li>\n\t\t
  • Disagree (26%)<\/small>
    <\/div><\/li>\n\t\t
  • Not sure (9%)<\/small>
    <\/div><\/li>\n\t\t<\/ul>
    <\/div><\/div>\n\t\t\n<\/div>\n\n

    The purpose of this poll is to address the question of whether reducing expenses has the same impact on an advice business as an equivalent increase in revenue.<\/p>\n

    For advice businesses \u2013 or, indeed, for any small business – it\u2019s often acknowledged that \u2018cash-flow is king.\u2019 In other words, the life blood for any small business is cash flow \u2013 and while reducing the cost of providing a service technically has the same impact on bottom line profitability, small business owners would almost invariably opt for increased revenue over an equivalent reduction in costs.<\/p>\n

    This perspective represents the argument that increasing hybrid life insurance commission caps from 60% to (say) 80% would deliver a better outcome for most or possibly all advice practices, compared with a scenario under which the practice\u2019s costs reduced by an equivalent amount.<\/p>\n

    reducing …red tape …may ease the commercial imperative advocated by many for an increase in hybrid commission caps<\/p><\/blockquote>\n

    The reason for this conversation relates to industry conversations in the lead-up to the finalisation of the Quality of Advice Review recommendations, in which it appears there has evolved a school of thought that reducing the red tape around delivering advice \u2013 and therefore the cost \u2013 may ease the commercial imperative advocated by many for an increase in hybrid commission caps under the Life Insurance Framework reforms.<\/p>\n

    Where do you sit on this question? For some \u2013 probably many – advice practices \u2018doing it tough\u2019 at the moment, there is a critical need for both to occur, that is, to experience both a reduction in the cost of delivering advice and an increase in the maximum revenue they are allowed to earn.<\/p>\n

    If you\u2019re working in a small business, as is the case for most financial advisers, does increasing revenue mean the same thing to you as reducing costs?<\/p>\n

    Tell us what you think and we\u2019ll report back next week\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

    Adviser interest this week was drawn to our latest poll, which raises the question of the merits – from a small business perspective – of the impact associated with a reduction in operating costs relative to an increase in business revenue… The purpose of this poll is to address the question of whether reducing expenses […]<\/p>\n","protected":false},"author":3,"featured_media":62702,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270,8291],"tags":[],"class_list":{"0":"post-62697","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-compliance-regulation","8":"category-polls","9":"category-remuneration","10":"category-story-of-the-week"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/62697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=62697"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/62697\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/62702"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=62697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=62697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=62697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}