Other Voices

Fight club: Commissions vs. fees

Jul 13, 2014 @ 12:01 am

Fee-only advisers and commission-based brokers have been arguing for years over who has the best business model for clients. Reporter Mason Braswell's story about how and why some commission-based brokers are resisting the trend, even in their own industry, toward the fee-only model set off a firestorm online that revived many of the old arguments.

This article highlights the difference between a salesperson and a financial planner. Ms. Joseph isn't a financial planner because if she was, she wouldn't need to refer clients to an estate attorney for "broader financial planning questions.'” — Alan Moore

If you can get a client to pay you a fee on assets managed, you are a salesman. You are no better than the used-car salesman down the block. You are not that wonderful. Take a look in the mirror. You are not better than anyone else who gets paid to give investment advice. Grow up, Mr. Moore.” — Guest

Here's why the fee model doesn't work for her. She has 700 customers, zero clients. She can't charge a recurring fee because she doesn't have a relationship business. With 700 people, you can't. Not even close. She doesn't do jack for them, so she sure can't charge them as if she did.” — loneMADman

When anyone owns a business, you are a salesperson and a marketing person, too. You need to sell and market, no matter what type of payment you receive. I wish that people would get off their high horses and stop bashing registered reps or others who charge commissions. What matters is what's best in the eyes of the client and to be transparent no matter what you sell.” — Coach Maria

I don't think of myself as a salesperson. Neither do you. But guess what ... we ALL are. And your clients' best interests can come first whichever model you've chosen to employ. “ — P. Rogers

I'm a big cheerleader of the fee-only model but kind of understand the point of this article. Maybe that's where the robo-advisers can step in, seeing that some charge 0.25% of AUM.” — Marty Morua

Go to InvestmentNew.com/models to read the full story and reader comments.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

What's the survival threshold in the M&A landscape?

Dave DeVoe answers pressing questions about the M&A space and whether or not he believes the roll ups will get rolled.

Latest news & opinion

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

Senate committee approves tax plan but full passage not assured

Several Republican senators expressed reservations about the bill, and the GOP cannot afford too many defections.

House passes tax bill, focus turns to Senate

Tax reform legislation expected to have more of a challenge in upper chamber.

SEC enforcement of advisers drops in Trump era

The agency pursued 82 cases against advisers and firms in fiscal year 2017, down from 98 the previous year.

PIABA accuses Finra of conflicts of interest

Public Investors Arbitration Bar Association report slams self-regulator over its picks for board of governors.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print