If you don’t know already, Planlogic follows a transactional pricing model where you only pay for the advice documents that we create for you. As the Head of Partnerships, I spend a considerable amount of time with advice businesses to unlock their true potential, and the question of dedicated resources is one that comes up quite often. In my opinion, both models have their benefits – but it really depends on what you require as an adviser / practice owner.
I have outlined some of the questions I raise and the reasons for asking them below.
Do you have a steady stream of work?
When looking to pursue a dedicated resource model, a key question to ask yourself is “Do I know how many advice documents I will require in a specific month?”. If you don’t have a clear-cut answer to this, you will find yourself in a situation when your paraplanner is underutilised – while you still continue to pay full price for the service. On the flip side, you can have too much work (which is what we all hope for!) while your paraplanner doesn’t have enough hours to get it all done.
With a transactional pricing model, this is not something you need to consider – you will have multiple paraplanners on-call and your partner firm will manage all your workflows for you. The only thing you need to worry about is booking time with your clients because we guarantee our turnaround times!
Do you have a Plan B?
Do you have a clear understanding of how you will pivot if your dedicated resource is ill or has to take a holiday? If you don’t have a backup plan, these situations can result in significant disruption to your daily workflows and potentially jeopardise any upcoming client meetings that you have planned. This is a key advantage of a transactional model – your partner firm can easily substitute your resource with another; leaving you with fewer headaches and more time to do the things that matter the most.
All good in theory – but does it really work?
A great example of the points above can be explained through a recent review of a client that raised the dedicated resource question at the onset. Nine months down the line and 27 SoAs later, this single adviser practice has spent approximately $9,000 under our transactional pricing model.
Now let’s assume that they went with a dedicated resource model. Assuming a flat fee of $3,000 a month, this same client would have spent a whopping $27,000 during this nine-month period! The numbers don’t lie and the proof from this practice is difficult to ignore.
Am I seeing the bigger picture?
There are other costs associated with a dedicated resource model that you don’t have to shoulder under a transactional pricing model. Adopting a dedicated resource model requires significant investment – both in terms of time and energy – on your part as an adviser / practice owner.
For example, if you were to pursue a dedicated resource model, you would also need to take into account the cost of training your resource. With a typical training period spanning 1-3 months, you are looking at paying up to $9,000 ($3,000 a month) without realising any return on your investment. Additionally, also consider ongoing costs such as Xplan logins and other subscriptions that will roughly add up to $1,000 a month throughout the lifetime of your dedicated resource contract.
This also still excludes the effort required on your behalf to manage this operation. A dedicated resource model is not a turnkey solution, and in many ways requires much of the effort required to run an in-house paraplanning operation in terms of oversight and constant training. You can read more about the true cost of running your own paraplanning operation in our article here.
What we have learnt
With more than a decade of experience in the industry, we have sound knowledge on how to achieve optimum production levels from our team. Because of this, you don’t have to worry about giving us a heads up on your pipeline – production starts only when you send through the request. You also don’t have to worry about how many other documents are in queue – we will make sure to meet our specified turnaround times so that you have a seamless experience.
Our solutions are tailored for the businesses that we partner with. Before commencing work with your practice, we will take a deep-dive into your business to better understand your processes. This allows us to develop a robust operating procedure, ensuring that we deliver effective and compliant advice documents within the timelines required.
We would love to hear from you, and help you run your practice in the most efficient way. Schedule a chat with us or reach out to me (email@example.com) and I will be happy to get in touch.