Stop Promising to Split Commissions

Expanding on the thoughts shared above of never being the one to bring up splitting commissions, there is another reason that I would recommend you not go down this road. If, as an advisor, the only value you can bring to the relationship is commission, what's to stop the CPA from dropping you as soon as another advisor comes along offering to split a higher percentage? You see, when dollars are all you have to offer, you're replaceable. In addition, the CPAs that respond positively to the concept of commission splits are probably the ones that once you get them licensed and they learn how it all works, they will drop you in an attempt to become the advisor themselves. So either way, there's more risk than reward in my opinion when you get into commission splits.

But the following is probably the biggest reason to stay away from this conversation…

How Splitting Commissions Is Perceived By CPAs in Their Role As Fiduciary

Many advisors I've talked to who found themselves frustrated in trying to work with CPAs often overlooked the fact that their view on commission splits and a CPA's view are very different. In my experience, CPAs more than any other professional, really buy into the role of fiduciary for their clients. As a result, they put their client's needs ahead of anyone else's, including their own. As a result, many CPAs get uneasy at the thought of earning any income from the commission on products their clients may purchase. 

By accepting a commission or a referral fee as a result of helping their clients connect with you, CPAs generally feel like they are selling their clients out, which really runs contrary to how most of them think. On the other hand, most advisors I've talked to are quick to want to talk about commission splits simply because that's what they would want if they were in the CPA's position. However, it's important that you, as an annuity advisor, understand the mindset of the CPAs and tax professionals you want to work with before you offer something that you think is of value, when in fact it is seen as a negative. The desire of most CPAs is simply to make sure their clients are being taken care of. For most CPAs and accountants, a satisfied client is payment enough.

To help you apply this month's content, I've filmed a quick video addressing each of the most common mistakes I'll be coving over the next few weeks. If you'd like a copy emailed to you, send me an email at [email protected], along with any feedback on the Strategic Alliance Advisor blog, and I'll gladly send it your way. You can also visit our website at www.WinningWithCPAs.com.