Assistance to Black Brokers

05 May 2006 Angelo Coppola

Dear Editor

*  Your math makes no sense . it is actually 1.71 FNA's or two per adviser per day.

*  I havent a clue where your reader comes up with figures like those I just read in the online FA news article.

If it takes 12 18 months to build up 300 clients, each providing you with R2000 per year in fees / commission, etc that is R600,000 per year  (R50 000pm) nothing wrong with that for a new entrant into the market.

Where the hell does this chap come up with needing 49000 clients on the new as and when basis. No wonder it took him so long to build up to 300 clients, he seems to have an extremely poor understanding of how as and when commission works and maths is obviously not his strong point.

If you have 49000 clients giving R2000pa, that is a staggering R98 million per year. I dont know too many advisors earning that.

As Fiona on the weakest link would put it, I would say to this chap, you are the weakest link, goodbye

Bring on as and when commission and let those who dont like it leave ! ! !

*   I read your article on assistance to black brokers and would like to know how your reader gets to 49000 clients needed for a sustainable business? I have been working on a fee basis for 5 years (investments) and would strongly disagree with this notion.

*  In the Broker House that I am broking for, there is now a general rule FNA or nothing. In other words, there is no more such thing as a single need. Even if it is a single need, you will do a FNA. Ok. Now the joke with this:

This motor vehicle owner drives to the gas station to pump the for wheels of his car.(single need). The driver ask the attendant to  please pump the wheels. The attendant reply by saying: that is fine sir, but we are going to overhaul your engine. So the driver replied that is ok, you can overhaul the engine, but I am not going to pay you for that.

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