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Timing critical when charging a fee

by Staff Reporter10 minute read
The Adviser

Brokers that want to charge a fee for service should discuss the fee with their client early in the first meeting.

Intuitive Finance’s Andrew Mirmas, who currently charges a fee for service, says brokers need to have a fee discussion with their clients in the first five minutes.

“Generally people are referred to me, so they know I charge a fee anyway,” he says.

“But, for those that don’t realise I charge a fee, I bring it up with them in the first conversation.

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“When they call me I mention it straight away. There is no point having a loan discussion with a client if you haven’t told them about your fee. Often they will not want to pay it.”

Mr Mirams said his fee varies depending on the client.

“There is not one hard and fast rule when it comes to charging a fee,” he said.

“Each client is different, so why should the fee we charge be the same?”

Ray Hair, CEO of the ALI Group, who was part of a panel at Connective's annual conference agreed that timing was essential and said the first part of the meeting was an ideal time for a broker to introduce a fee for service.

“With NCCP in place, brokers are in a better position to charge a fee.”

“NCCP hasn’t made good brokers better, but it has helped position them in a better light in front of clients,” he said.

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