Selling your C’s and D’s

Thirteen years ago I doubled the value of my recurring income in a matter of weeks. After attending a Boot Camp on Financial Planning I was convinced that if I doubled my trails and provided a service to my FP clients equal to the increased trail, I would have a better business. I increased the trails from 0.375% to 0.750% and wrote out to all the clients explaining why. Naturally, I had a few phone calls but only lost one client. Actually it was a client who always complained about fees anyway, so I was quite relieved to see him go. My annual FP trail income moved from $100,000 to $200,000 overnight which allowed me to provide a lavish and pampering client service program. More referrals followed and today that business has $300M of FUM. The FUM in 1994 was zero. If you’d like to read further, I have one other tip on making life easier as a planner.

Getting rid of your C’s and D’s

The same Boot Camp Conference suggested life would be a lot easier if I didn’t have to deal with the C and D grade clients. I might add here that my definition of C’s and D’s can be quite different to the industry’s definition. The speaker said to hire a bus, load them all on and drive them down the street to the nearest planner and give them away. I understand what they were saying but it seemed a bit graphic. These days you can sell the Cs and Ds, and sometimes, for quite good money. When I sold mine in 1995 it was such a relief. I could now concentrate on those As, the one’s who pay me the most, appreciated the service the most and referred like minded people. Allowing for execptions D’s refer D’s and A’s refer A’s.  So how do you do it – get rid of your C’s and D’s? It’s all about finding the right buyer and that’s how we can help.

Finding the Right Buyer

Firstly, by having your C’s and D’s professionally valued, you’ll then know what price to expect. At least a ball park figure without spending any money – just a few minutes of your time. Radar Results uses many criteria when valuing C’s and D’s, all explained on our website under the Selling a Financial Planning Business tab.

It’s a free service and takes about 4 minutes to complete the online Valuation Questionnaire. We also supply the right buyer and there’s no fee to sell using our service. Any other questions just give me a call on 02 4384 5670.