Trail commission when used appropriately can improve client relationships
The significant advantage of trail commission from an adviser perspective is that it can provide a good income stream in addition to any initial commissions earned. As an adviser or firm"s client bank grows, this trail revenue can increase proportionately so can reach significant levels. It should also increase or decrease in line with the markets, depending on the type of investment recommended, so periods of good growth are likely to be rewarded. In turn, if used efficiently, the trail commission can be used to improve client service through training spend, systems updates and upgra...
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