Low cost product

COMMENT POSTED IN MY BLOG:

Agents who sell low-cost product obviously won’t earn much. They’re honest, but, definitely not Million-Dollar-Round-Table stuff. Smart, ambitious advisors won’t go around selling term insurance for long. The best protection for a client is still to educate himself.

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REPLY:

An adviser (agent) who sell low cost product can still earn a modest rate of commission. By increasing the volume of sales, the adviser can earn an adequate leve of earnings. If the adviser sells good products (ie good value for customers), the future customers will come to them (usually referred by existing customers).

This is a better business model. Many other businesses are successful in applying this model. It can work for financial services as well.

I agree that the best protection is an eduated customer.