Contract admin builds business
dealergroupsare overlooking contract administation as a business strategy and income stream, according to Investor Group Investor Financial Planning chief executive Tim Townsend.
Announcing its latest six month results last week, financial consolidator Investor Group stated it has more than $800 million of clients’ funds under contract administration coming from its three specialist financial planning firms. This sum is in addition to $200 million in its wrap product, WealthWrap.
Under a contract administration agreement, a client signs a contract to pay their fees, which are a percentage of total assets, through a monthly direct bank debit, ensuring a regular reliable income stream for a dealer group.
Townsend says it is important for businesses to concentrate on different ways of earning regular income streams, and entering a contract relationship with clients ensures this.
He says contract administration is a strategy practiced by more mature businesses that have recognised risk and put strategies in place to deal with it.
According to Townsend, contract administration is a win win situation.
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