The unexpected clarity and comfort of a fee-based practice

When facing regulation, it can be easy to focus on what seem to be difficult changes and a wide variety of moving parts.

In fact, adapting to a regulatory environment can bring with it a great deal of growth and prosperity. During a panel discussion about fee-based practices at the 2017 Annual Meeting, Kenneth E. Davy, Cert PFS, FCII; Gregory B. Gagne, ChFC; Gino Saggiomo, CFP; and moderator and MDRT Past President Caroline A. Banks, FPFS, discussed how part of the benefit of regulation that leads to a transition to a fee-based practice is greater transparency and trust with clients, and more consistency in revenue.

“They told me, ‘I finally will understand how you get paid,’” Gagne recalled. “Every one of them was ready to do it, and they did. And once I made the move over to the fee-based model, I could wake up on January 1 knowing exactly what was coming in the door in a few short days because most of my billings were done on a quarterly basis. It made it much easier for predictability of cash flows, budgeting and strategic growth opportunities.”

The panel also discussed how to demonstrate your value, re-evaluate your client base and communicate the changes to these clients. Hear more from their conversation in “Tips for switching to fees.”

Plus

— Learn more about preparing for the rule with this regulatory change checklist.

— Hear how advisors from the U.S., U.K. and Australia adapt to regulation in episodes one, two and three of our DOL-related podcast series.

Written by Matt Pais, MDRT Content Specialist