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BUSINESS OPP Industry debate
be about affordability, affordability,
affordability.”
Y
Introducer incentives
The issue of fees and commissions
INDUSTR
is something that both developers
and introducers had strong opinions
on. “We would prefer to pay a one
off fee, and we have worked with
finder’s fees before, but IFAs are not
interested in them,” said Stuart Law
of Assetz. “If the first question from
an IFA is size of commission I tend to
switch off,” said P&V’s Nick Leach, to
which Law replied: “But for the mass
PEOPLE
market IFA it’s about commission,
commission, commission.”
“That’s because the only way
to tempt someone into selling a
product they don’t understand is for Offers on the table
|
Commissions are important to all introducer types, but marketing support and prompt payment more so
it to be worth the time and effort to
learn,” added Axelrod. for the product, commitment and “You need a packager who can In the financial services
Not all introducers focus solely on activity. We evaluate our agents pre-qualify clients on whether they world, introducers have
TION
commissions though, as Intelligent every 3 months to see whether the can afford to buy,” emphasised a day job offering wealth
Partnership’s Lee Smith observed: product is right for them, how they Axelrod. “A value add distributor management services, and
“In our experience, commissions are using their database, etc.” in the middle is better because of tend to have a database
are third down the list behind Pure lead generation is rarely packaging, mediation and service of what are usually one
DESTINA
product and support. They want enough, says Golamy. “We’ve sent - active distributors looking for the off clients. Unless they are
marketing material. On some of leads to developers who think they best product for agents,” added Law. actively buying or selling
my old projects, we offered low can cut out the agent but struggle to “Big distribution networks are the there’s not much business.
commissions but provided lots of sell. The consumer expects customer future but it’s some way off. There is This means they are even
support so our introducers were service and foreign developers room for 100 distributors who can more protective of their
happy.” don’t always have someone on the do due diligence on developers and clients and disinclined to
“Some IFAs offer to cap other end of the phone. Even if projects and add value for agents. cross-sell.
commissions and even give rebates they do, there is a language barrier. “Agents going direct to Michael Axelrod,
to the client,” ventured ROPUK’s Developers need someone strategic developers will become harder Conti Financial Services
Maddison. “That’s because they to close sales for them. Someone and more rare. They need to be
BUSINESS
are happy to generate some extra close to the buyer and sales process educated. The industry needs people buying often know what they want
revenue but more interested in in the given country.” who can qualify developers and and where, but persuasive agents
adding value for the client and There was general agreement agents.” and introducers often influence
enhancing the relationship.” among the panel that early them to buy something else. That’s
Many introducers, particularly investment in process and Don’t be too ambitious when it’s a poor referral.”
those in the financial services packaging was the best solution. Defining the extent of the This led to discussion about
industry, put their client’s interests “The challenge with IFA distribution introducer’s involvement in the sale, managing disputes, with Axelrod
Maddison pointed out that they observing that there was still very
OPER
The real mis-selling scandal on the horizon is SIPPs and many shouldn’t be too technical, or too little real redress in the industry.
VEL
IFAs just don’t understand them. Developers don’t either. They ambitious. “Some IFAs want to sell “You need a ‘noisy man’ to bring
forget that there are costs to manage a SIPP that need to be every destination but be master people together,” said Maddison. “We
DE
factored in. of none,” he said. “It’s best to focus have client clinics to help mediate
Kevin Maddison, ROPUK on a core market, and we prefer disputes and it usually saves people
Europe because there is a blanket of wasting money on lawyers.”
before their partners; so developers is how the product is packaged, not protection for clients and it’s easier While this is easier for networks,
need to be clear on expectation. how it is sold; it’s about a consistent to manage risk. We’ve terminated Law felt there was a danger of over-
“Foreign developers don’t message,” said Maddison. “When contracts with some IFAs who have complicating the sales process. “It’s
understand the local buyer market the agent, developer or introducer become too ambitious because they dangerous to add too many layers to
TING
so rarely know what to ask the starts mentioning guarantees on are too much of a risk.” the process because one partner in
agent or introducer,” observed Law. income or rental period that aren’t “Relationship is everything – IFA the chain can collapse it,” he said.
ARKE
“Developers realise they are not in the agreed package that’s when with buyer and developer with “People want the whole solution,
M
masters of sales and marketing so problems arise. If there is a clear IFA,” added Smith. “There are fewer but not conversations with 10 different
work with us to build a network and package and process, then there is emotional second home buyers advisers,” said Axelrod. “Packaging and
package it properly,” added Smith. an audit trail and clients can’t claim because it’s seen as a luxury that’s investment in the process is key – a
“They should be asking for respect to have been mis-sold anything.” harder to justify. Those who are one stop shop.”
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