Embed Size (px)
DESCRIPTION
overview of a method of re-positioning financial advisers client work, with a view to using a mixed revenue model of fee's and commissions.
Citation preview
Future–proof your business
Tony Vidler – CFP, CLU, ChFC
• Professional Development Manager, Fidelity Life Assurance
• Director IFA(former Chair of Insurance College, and Chair of Professional Development Committee);
FAANZ spokesperson; number of directorships in and outside of industry … and ex-broker
I have some idea of what is happening,and what will work in the future.
“Tony has the best insight into how the new regulatory regime will work in our industry of
anyone I've met at a life company. His clear thinking and relentless focus make him a
great asset to Fidelity Life” ~ Russell Hutchinson, February 1, 2010
DISCLAIMER – This presentation consists of Tony Vidler’s personal views, not necessarily those of Fidelity Life.
Future–proof your business
Building an Advice Business
Approximately 40 minutes, covering four things
– 75% of our time will be spent on points 3 & 4
1. Compliance?
2. Professionalism?
3. Building an ADVICE business
4. What are Fidelity doing to help?
Questions at the end please, if time permits
Future–proof your business
Who wants “compliance”?
Compliance
n. submission;
a. yielding; acquiescence;
consent.
Compliant
a. yielding; obedient; civil.
Future–proof your business
Does Professionalism have value?
Professionala. Pertaining to a profession or calling; engaged in a
profession; engaged in an artistic calling as a means of livelihood
Professionalismn. The principles of professional persons
Future–proof your business
New paradigms…
1. Pure “Sales” businesses in financial services have limited future growth or value
2. Pure “Sales” businesses in financial services have higher than necessary business and regulatory risk
3. Pure “Sales businesses in financial services will not be valued by consumers
We are living in a period of reformation and militant consumerism. Everything has changed.
Accept these “truth’s” …
Future–proof your business
What is an “Advice business”?
An ADVICE business:
• Is positioned at leading edge (not bleeding edge) of trends
– it must know stuff before consumers do.
• Has no “naked advisers”.
• Leverages know-how … success is not hours worked or billed to consumers.
• Knows what it’s clients really want:
- peace of mind, no worries?
- convenience, ease of business?
- choices, options?
- results?
Future–proof your business
Life Advisers Core Problem
• Life advisers often give great technical advice, but do not value it themselves. Or value themselves.
• Other “professionals” are often great technicians who value their knowledge, but are not very good at selling it.
• Life Advisers problem generally is low confidence in their own technical expertise and value to consumers. Although they are experts.
• Consumers trust and follow the advice of the confident expert.
• The barrier to building an ADVICE business is YOU. Or, your belief in you and the value you provide.
Future–proof your business
Beyond reform
Average Adviser’s view of the future …
Future–proof your business
Beyond Reform
• Once advisers move past reformation, better times will come for “advice businesses”. Possibly BOOM times…
• To thrive, advisers need to define, then believe, in their self-worth and the value and expertise they provide.
• Advisers need to figure out how to get paid for that without resorting to the “product” to pay them.
• Product or price sellers are in commodities.
Future–proof your business
An Advice Business
Break what you do down into three distinct phases:
1. Planning
2. Implementation
3. Monitoring and servicing
Future–proof your business
Value chain
PLAN
Future–proof your business
PLAN IMPLEMENTATION
Value chain
Future–proof your business
PLAN IMPLEMENTATION MONITORING
Value chain
Future–proof your business
PLAN IMPLEMENTATION MONITORING
$(Fee)
Future–proof your business
PLAN IMPLEMENTATION MONITORING
$(Fee)
Clientcan walk
Future–proof your business
PLAN IMPLEMENTATION MONITORING
$(Fee)
$Commission and/or Fee Agreement
Clientcan walk
Future–proof your business
PLAN IMPLEMENTATION MONITORING
$(Fee)
Clientcan walk
Clientcan walk
$Commission and/or Fee Agreement
Future–proof your business
Advice relationship
PLAN IMPLEMENTATION MONITORING
$(Fee)
$Renewal
Commission +/- ?
Clientcan walk
Clientcan walk
$Commission and/or Fee Agreement
Future–proof your business
What to do?
• Take the lead – maximise personal qualifications and expertise – create a premium for YOU
• Focus marketing efforts & budgets on fostering long term client relationships and the right COI’s
• Specialise in complexity, but deliver simplicity
• Focus on excellence in 1 basic sales transaction attribute – access, experience, price, product, or service – which is most valuable to your clients?
Future–proof your business
How will Fidelity help you?
• Sustainable commission that rewards ongoing service
• Leading, innovative solutions
• Practical tools & templates
• Technology platform
• Business & Professional Development expertise
• Commitment to “independent advisers”
• Commitment to providing QFE solutions for independents
Future–proof your business
Whatever you do….
EF
FO
RT
little
late
TIMING
Future–proof your business
Whatever you do….
EF
FO
RT huge
little
late
TIMING
Future–proof your business
Whatever you do….
EF
FO
RT huge
little
late
early
TIMING
Future–proof your business
Whatever you do….
EF
FO
RT huge
little
late
early
TIMING
Future–proof your business
Any questions !Do we have time?
