Ep #55: Shifting from Commissions to Fees – With Mike Grinnell and Kirsten Tudman

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Commission compression is causing advisors to rethink their business model – especially looking a few years out. One option is to shift to a more consultative fee-based motif. Our guests, Mike Grinnell and Kirsten Tudman of CPI-HR, are among the handful of advisors at the forefront of this shift.

They join us today to discuss the impetus for the change as well as some lessons learned along the way. They also take us through what the employer conversation sounds like and what kind of questions and objections advisors can expect. We also explore some of the current state regulatory barriers and how those might change. Listen in to learn more and to kickstart the fee-based discussion in your practice or agency.

What You’ll Learn From This Episode:

  • Mike and Kristen’s background as traditional commission-based producers.
  • Their “Aha!” moment.
  • How ACA affected their practice.
  • Their typical client.
  • Whether the shift to fees work with all clients.
  • How the state statutes and regulations play in the process.
  • Whether they have a written agreement and what is included.

Featured On The Show:

Listen To The Full Interview:

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Comments

  1. Caution – agents moving from commission to fee from a legal perspective need to check their state laws…..liability could be much great for tort and regulatory duties much higher. They should consult with an attorney who specializes in this area before moving forward with this idea. Fees versus commissions may increase your duties.

    • Great comments, Bob. Thanks for weighing in and thanks for listening!

      Looking forward,
      David

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