My Father, who taught me this industry did a lot of great work for his many clients of 39 years. He was a Broker and an Insurance Salesman. He cared deeply for his clients and did well for them. Yet, his solutions were solely based on how much product he could sell to consumers, and commission he could receive. This was and is LARGELY how the Financial Services industry operates.
My Father entered me into the industry and I began selling products to make a living. Dad retired, I advanced my career and once I got out from underneath his wing, I noticed that a lot of the industry didn’t care about the client as much as he did.
Many professionals in the industry have a majority or a bulk of their solutions tied to commissions they receive from selling Financial Products/Services to consumers. The main problem with this model is that the advisor too easily can have the wrong incentive; commissions over good advice. Many Financial salespeople and executives have amassed huge sums of wealth off of commissions from products sold to consumers, because product sales were all or the bulk of their solutions while consumers were no better off.
Suggesting products because of high commission levels, not offering the right solution for the client because higher commission could come with something else, inappropriate sales of products to clients that are far from their better interests but occur just because that’s the advisor’s only offering, -are a few of the perverse incentives financial sales professionals have when they are mainly commission-based for most of their business. I’ve been there, I lived it.
Clients deserve better; better advice, better service, better results, stronger feelings that someone is actually working for them, much more confidence, & much more resolve. There is a much better method that centers the advisor’s focus to be only on the clients’ best interests, happiness, and contentment. It begins when the advisor's success is dependent upon clients' satisfaction each and every year. It is when the advisor must work hard enough and show the client continual value year in and year out because that is the basis of the advisor's continued success, -client happiness and client satisfaction year in and year out.
We're Advice-Based advisors. And we’re thrilled to be put to the test.