21 Questions (Series) 3. Do you participate in any sales contests or award programs creating incentives to favor particular vendors?

21 Questions to Ask Your Financial Advisor

 

3. Do you participate in any sales contests or award programs creating incentives to favor particular vendors?

Jason wants a “No” here.

No, at MARGIN we do not participate in any award ceremony for selling you things you don’t need.  

Advisors can “earn” trips for selling enough commissionable products. Where a product company will “sponsor” an awards trip, or, multiple providers will sponsor a trip in the hopes of more face time to push their product. Top-of-the-table, President’s Club, and Round Table events are vacations that could be paid by you.

Advisor “due diligence” trips, or vacations to exotic locations where advisors are “educated” (wined and dined) by product companies to research their products are also prevalent.  

Many times, these business trips are no more than an access bribe to taint objectivity and give the advisor a reason in their own mind that they “reviewed” the product. 

It’s not expectable for a physican to go on a trip sponsored by a drug company, but that happens all the time in our industry.

Does your financial advisor have pictures from their latest trip to Hawaii in their office with in a product provider logo frame? 

Does your financial advisor brag or include on their bio that they won a trip, or an award? 

Show note links:

(1) https://blogs.wsj.com/moneybeat/2018/05/04/the-free-trips-your-financial-adviser-takes-could-cost-you/