Note: This article is courtesy of Iris.xyz
By Stewart Bell
Who made the rule that advisers only get paid after the work has been done?
It’s likely a hangover from commission days. Here’s why you should consider changing.
- Lag. Ever since FSRA, the work required to onboard a client has sky rocketed. In many cases, there’s now 3-6 month lag between starting and getting paid. That’s a pretty big cashflow credit your firm has to bankroll.
- To rush or not to rush? No one needs the added challenge of rushing through advice to serve a commercial requirement. Anyway, why does holistic advice need to be given as one chunk? If there’s complexity, surely it makes more sense to stage the advice out?
- Skin in the game. There are two decisions a client needs to make. One is the moment they say yes, the second is when payment time arrives. The second is the real decision. Plus, clients can be more motivated if they know the meter is running.
In such cases, it makes sense to look at alternatives, and I’ve got five for you.