Insurance
Changing channels
Friday 3rd of June 2011
Mehernosh Kotwal says the group is guided by one question, "What would I want from a group that's earning 20, 30% off me, what do I want them to do for me?"
Using that question he has launched the new group with the aim of taking on rivals such as Newpark and TNP head on.
"I would like to make us the biggest group in New Zealand. That is what my goal is," he said.
Kotwal believes his new group will be enticing for advisers as he aims to offer more, and charge less than the other groups.
"The difference compared to other groups is all they do is charge advisers for everything. I'm putting the money back with the brokers, reinvesting it back with them."
"For example, I give members free application processing."
As well as free application processing, The Advisor Channel offers member advisers pre-qualified leads (once the adviser writes $10,000 worth of business), telephone answering services, Business Development Credits, a free Professional Compliance Audit conducted by Barry Read (once $30,000 worth of business has been written), marketing programmes to generate leads and access to a website with personalised pages to promote each member.
Kotwal is critical of some of the other groups, especially around charging for leads.
"Why does a broker need to pay me for leads because if he or she writes business I'm earning anyway."
He says a point of differentiation is that The Advisor Channel won't be charging fees for application processing and providing phone answering services.
"What we're saying is work with us and we'll be giving something back to you."
Kotwal says he may limit the number of advisers who can join the group to ensure that it can continually give good service.
Comments (12)
andrew smith
I'm surprised that Mehernosh has decided to try and be a dealer group but from what he is offering it sounds more like a Managing Agency.
By processing applications, answering phones, supplying leads it sound more like a managing agency to me. So if I don’t need leads, don’t need an answer service, don’t need application processing and I am already compliant this group will give me what? Nothing?
Sounds like this group is targeting small advisers who need a whole lot of help just to survive because they can’t afford to buy leads, pay for someone to answer their phone (why not themselves), post in a prop and follow it up. That sounds like the cream of the crop. I’m not sure the insurance companies will be welcoming this group with open arms.
Not all providers support groups like this so if the free leads go to non supporting company where are you going to get the income to survive.
It’s not easy running a dealer group, why do you think there have been mergers with some of the smaller ones?
Good luck to anyone who joins up with this group because I think you will need it.
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13 years ago
Michael Loghmani
I am v interetsed in joining this group as i am also not getting any value for being part of Newpark and have been thinking about leaving for months on end.
where is the website and when do you plan on starting it Meh?
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13 years ago
Craig Knox
How about this for an idea ... why doesn't someone just open a dealer group that works on thin margins say 7.5% and all they offer the broker/advisor is the best commission terms or at least equivalent to Newpark or TNP - that way we would get the the remaining 22.5% of commission in our pockets. Based on $10 million of API that $750,000 in revenue - all the person would need is a great PA and could work from home... sounds like a great gig for someone who is looking to retire. As a TNP member all I joined for was the improved terms - the rest of the stuff is largely worthless to our practice. Go on someone have ago we would join you in a heartbeat.
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13 years ago
Jim Dowsett
Interesting to read the comments on the various groups represented here. Certainly some friction building up around the current dealer group offerings. I know others who are looking to cut their ties to all of these groups as they are disenchanted. I belong to SHARE and can with hand on heart say that no one clips the ticket on my production. Every member of SHARE is treated in exactly the the same manner - no hidden commissions, backhanders or any other nonsense. Our dealings are completely transparent and every member is kept up to date. What's more important is that I OWN a share in the business as does every other SHARE shareholder. So, no one is using my production to create an entity that can be flogged off at some point down the track where a very few people reap the benefits of the work that I have put in. I believe that this is the end game of these other groups while taking a nice slice of the pie on the way through. Check out SHARE's offering. It won't suit everyone and we are selective so not everyone who wants to join has been able to. But if you want to belong to a group where you really do own a share of the business, earn absolutely top dollar, where no one clips your ticket, has the most compliant processes available, has a brilliant succession plan and has a valuable future then you may be intereted. Let me know.
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13 years ago
Mike O'Neill
This is getting beyond a joke - this ramble has simply turned into an advertising forum for the Groups.
My suspicion is that the heads of each of these groups - Jeff Page, Darren Gannon, Bronwyn Shanks, etc, etc - are simply asking their supportive advisers to extoll the virtues of their respective group.
The heads are probably even drafting the comments for their pet advisers to put on the blog.
Come on guys - get real.
Good on you Mehernosh - hope it goes well for you, but I suspect you've missed the boat.
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13 years ago
Jim Dowsett
Just a quick thought around Scott's comment on being a member of Newpark. I understand that he believes that Newpark supplies everything for free (apart from paid leads) and doen't receive anything from the buisness he puts through them. And apparently their conference is free as well? Really, where does he think the funds come from to run Newpark and all of it's activities, staff and owner's salary etc. The Tooth Fairy? Perhaps Newpark are doing this out of the kindness of their hearts? Time to wake up and smell the roses! Of course they're clipping the ticket on his production. Perhaps Scott should find out what Newpark actually does earn on his production in order to supply these FREE services. Also, what will he get from Newpark when the owners eventually flog the whole thing off to another party? I'm really keen to have some feedback on this.
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13 years ago
andrew smith
Several of the people who have commented seem to think that those people who are supporting their groups (and good on them for doing so) have their heads in the sand about how the groups get paid. I’m sure everyone understands what happens there.
They were just saying, I’m sure, that a lot of the money received by these groups goes back to the members via services. They don’t come free, someone has to pay for them.
And comrade, do you really think that the over ride increases the cost of the insurance? So would that mean that my clients should get a cheaper premium because I’m not in a group? Wake up.
Also Craig, if it was that easy to start up a dealer group then why don’t you do it? Let’s see how Mehernosh is going in a few months. Now that would be a good follow up article.
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13 years ago
Jim Dowsett
Hi Comrade. Thanks for your question. I think that there is a level of misunderstanding here that I need to clarify. SHARE doesn't clip my ticket because I am a member and owner of SHARE. Yes SHARE receives overides just as the other groups do. Difference is I know exactly what they are and I recieve my share of the proceeds according to my production. No one else clips the ticket on my business. We all pay exactly the same fees to run SHARE so it's all fair there. If and when SHARE is sold then I will recive my fair share of the full value from the sale. It's totally transparent and it's totally different to all of the other groups but there you go, it's why I chose to join SHARE. Mike, sorry to burst your conspiracy bubble but I made these comments off my own bat. I just don't think that a lot of the advisers that belong to these other groups really undestand what is at stake in the end game and how much these groups are actually clipping off their hard won sales.
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13 years ago
Jim Dowsett
Hi Comrade. Thanks for your question. I think that there is a level of misunderstanding here that I need to clarify. SHARE doesn't clip my ticket because I am a member and owner of SHARE. Yes SHARE receives overides just as the other groups do. Difference is I know exactly what they are and I recieve my share of the proceeds according to my production. No one else clips the ticket on my business. We all pay exactly the same fees to run SHARE so it's all fair there. If and when SHARE is sold then I will recive my fair share of the full value from the sale. It's totally transparent and it's totally different to all of the other groups but there you go, it's why I chose to join SHARE. Mike, sorry to burst your conspiracy bubble but I made these comments off my own bat. I just don't think that a lot of the advisers that belong to these other groups really undestand what is at stake in the end game and how much these groups are actually clipping off their hard won sales.
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13 years ago
Jim Dowsett
Good luck Mehernosh. All the best and I hope you do well with your plans.
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13 years ago
Tim Anderson
I have thoroughly enjoyed this dealer group banter. Sure some of it appears to be shameless self promotion, but that didn’t stop me following the full blog.
I personally LOVE Craig’s idea of a streamlined version of a dealer group. Stick to aggregation of commissions and flag the rest of the value add proposition. Many of us AFA’s don’t want/need development days, compliance assistance, conferences, discounted CRM tools and all the other benefits that most dealer groups offer.
Don’t get me wrong, dealer groups are fantastic for the industry and of great assistance to many/most advisers. Upon my recent shopping around, I found there offerings to be quite generic. (Despite how they package their fee/override structure and tell you how different they are!).
As a broker I have 6 BDM’s calling on me offering training, compliance guidance, CRM assistance, conference opportunities, development days etc etc
So if someone was to set up a streamlined dealer group, focusing on the core business of commission aggregation, without the duplication of value adds, surely their cost structure and offering would be attractive to some of us! (Not for everyone – but surely a big enough niche to be profitable!)
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13 years ago
Satish Kamath
Good luck Mehernosh!
Do it inspite of all the brickbats that are hurled your way.It's always good to see someone stand up and attempt to bring in a point of difference.It won't be easy....but what is easy these days? You have shown spirit.
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13 years ago
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