Adviser Insights
Making the right choice of network isn’t just important; it’s a strategic decision, as much as it is structural one.
It’s a decision that will have a huge bearing on the service you’re able to deliver, the way in which you’re able to operate your business, and the amount of control that you’ll have.
And yet, despite the significance of the decision, it’s far too easy to run in to joining a network without having properly researched them.
Not all networks are created equal. The wrong choice of network will not only limit your growth, your independence, and your value, but it will also limit the service that you’re able to deliver and the business that you’re able to build.
So, whether you’re at the very beginning of your journey, whether you’re thinking of breaking away, or whether you’re simply thinking of a new long-term home, the five questions that follow will help you establish whether the network you’re considering is a partner, or simply a principal.
What are the terms like in practice?
What’s the role of compliance; support you, or control you?
Does the technology really make a positive impact on your day-to-day?
What if I want to leave?
What is “support” really meant to mean in this context?
It’s worth putting these questions to AI as well as the network, never hurts in validating answers.
Network Terms & Conditions
It’s easy to get caught up in the shiny promises of the percentage split, the support services, and the technology. However, the fact is that the terms of a network are rarely simple. Considerations to ask:
Are the fees simple, transparent, and easy to understand? Or are they complex, layered, and confusing?
Do the fees increase as your business grows, or are there commercial constraints on the way you operate your business?
A good network doesn’t have to be complicated – it’s simple, transparent, and scalable with your business. If it’s complicated, it’s complicated to operate.
A good network will provide you with clarity and confidence, allowing you to grow a profitable business on your own terms.
Is Compliance a support or a control?
Compliance is meant to be the source of your comfort, your security, your confidence.
The culture it creates can shape how you feel. Do you feel like a partner, a team, a team player, a financial planner, a business owner, a risk taker, a risk manager, a risk, or are you someone they need to manage?
Is compliance proactive and pragmatic, or reactive and restrictive?
Do the people providing guidance feel empowered to apply it with common sense?
The ideal approach to compliance is one that helps you manage risks, freeing up more of your precious time for what really matters; clients, growth, and success.
The ideal network is one that doesn’t act as a parent company, it’s one that acts as a partner, providing you with the confidence to operate independently.
Being clear on Tech offering
It’s easy to say that a network has “great technology.” It’s another thing entirely to say it’s great technology that really matters. To get a better understanding, ask:
Is it really making running my business more efficient and less complicated?
Is it user-friendly, integrated, and evolving, or fragmented, outdated, and stuck in the past?
Are they considering AI as part of their future technology stack?
The right technology infrastructure should be making running your business more, not less, efficient. When it’s working well, it’s a competitive advantage, not a source of ongoing frustration.
Modern, adviser-led technology should be making your business easier to run, more effective at engaging with your clients, and more scalable with confidence – not holding you back.
How does my exit work?
This is a question that financial advisers often fear to ask themselves but regret not having done so if they leave it too late. Think about:
The exit strategy and cost
Do you really own your clients and your data?
How easily can you take your business elsewhere?
If a network really believes in the value that it’s providing to its members, then it shouldn’t need to lock them into a contract.
You will stay with them for years and years because of the value that they provide to you – not because you’re tied in.
Because true independence means having control – not just when you join a network, but throughout the entire lifecycle of your business.
Support is a broad term, what’s offered?
Support is one of those magic words that everyone offers but very few actually have the ability to give. Let’s dig a little deeper:
Is it individualised support, or do they try and fit all members into a box?
Is it strategic support or day-to-day support?
Are they a collaborative community, or are you alone?
The environment is one where you feel like you are in a partnership and have the infrastructure and support needed to build the business of your choice. The best networks are those that offer the infrastructure of compliance, technology, training, and operational support – the infrastructure needed to launch and grow your business with confidence.
Conclusion
You are no longer just deciding where you are going to sit. You are deciding how your business is going to grow. The best networks are those that offer independence – the infrastructure and support needed to grow your business without taking control. They are transparent regarding costs and are confident enough in the value they are bringing to the table that they are not afraid of being scrutinised. And that’s where the rubber meets the road. If they are comfortable with these questions and are transparent regarding the answers, then it’s no longer just a structure. It’s a partner that is here for the long term – a partner that has the infrastructure and support needed for your business to succeed.
