I was interested to read Douglas Jones' stakeholder article (Money Marketing November 8) which highlights the new opportunities for IFAs to write stakeholder business with non-earners. But I think it misses the point.
The problem is that there is very little money in stakeholder for IFAs, so why would anyone want to chase up non-earning partners of clients in the existing client bank – or, bizarrely, “establishing links with some carers' help network” (that one must have looked good on the flipchart when they brainstormed the opportunities).
However, if you think about cross-selling potential, it quickly becomes apparent that developing the client bank by signing up stakeholder clients makes absolute sense. Provided, of course, that you set up the processes to ensure that you make those second and third sales. And cost-effective systems to identify stakeholder prospects in the first place.
Stakeholder is a great product for IFAs if it is treated as the beginning of a productive (and profitable) relationship.
PMP Marketing, Cheltenham,