Your Fee Income Is Way Too Low
Chances are you have tens of thousands, hundreds of thousands or even millions of unclaimed/unearned revenues sitting on your books right now. Why? You likely haven’t answered this question from your client:
“What is the ROI on the fee we are paying you?”
If you knew that number (and could demonstrate the positive impact on a buyer’s EBIDTA, margins and other Key Performance Indicators), wouldn’t the buyer be willing to pay more to continue to receive it? Absolutely! But, until now, you’ve never had the capability to validate your fee.
Analytic Brokerage™ (powered by TCORCalc®) opens the door to tremendous fee-based income that is blocked inside your current and future accounts. It is already there and you are missing it. Without the proper tools you can’t prove your full value and financial impact to your clients.
Here are several recent examples of fee-based income created by Analytic Brokerages™ across North America:
- A risk manager agreed to a fee of $350,000 when the regional broker demonstrated their quantifiable value. The risk manager had planned to negotiate and chop the fee down 20%, but agreed to the fee once he saw the ROI to his business.
- An upper middle market broker retained an account yielding $400,000 in fee income even though a competitor offered a fee of $250,000. The CFO agreed that the broker was delivering a return (ROI) in excess of $1,000,000.
- A regional broker obtained an $80,000 fee for their program placement and service. They also negotiated an additional gain share that will add approximately $40,000 of income. Based upon the quantifiable ROI they will provide, they are well on the way to earning it.
So, ask yourself this question: “Are we being fully compensated on our fee-based book of business?” If you can’t demonstrate the ROI you have for your clients, the answer is no.
For an analysis of the unearned revenue currently residing in your fee structure, contact us today about the Analytic Brokerage Platform™ (powered by TCORCalc®). Chances are it is a very substantial amount.
Best Regards to Analytic Brokers™
Rob Ekern, CAB (Certified Analytic Broker™)
TCORCalc® is the only tool available for middle and upper middle market brokers that quantifies a broker’s financial results to clients. TCORCalc® uses data and benchmarks collected from middle and upper middle market accounts and CFO’s across North America.