View more on these topics

VouchedFor.co.uk’s lead charges under fire

Money

An adviser has criticised IFA referral website VouchedFor.co.uk’s charging structure, saying he has been charged for leads where clients are not in a position to pay for advice.

VouchedFor launched in June 2011 and has over 500 registered IFAs. Advisers are charged a £10 monthly subscription and introducer fees for leads that result in a meeting.

Introducer fees start at £79 for advisers who do not require clients to have a minimum level of assets. This moves to £99 for clients with over £50,000 to invest, £199 for clients with over £100,000 and £299 for clients with over £250,000. VAT must be added to all introducer fees.

The website introduced a £30 admin fee last week where a client informs VouchedFor.co.uk of a meeting before the adviser.

Suttons Independent Financial Advisers IFA David Shirley says he has received seven leads from VouchedFor.co.uk and has paid for three. Of those three, only one has resulted in him writing business, while one was in financial difficulties and could not pay for advice.

He says: “From a spend of over £290 on leads, I earned an income of £500. After my company expenses and tax, I am actually out of pocket. I like the idea of VouchedFor, but the execution needs some fine-tuning.”

VouchedFor founder Adam Price says: “The leads are not vetted, VouchedFor.co.uk passes the client query in full to the adviser for them to decide whether to meet the client.

“We feel charging by appointment is fair but we are reviewing this and looking to introduce a more manageable system.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. In my experience, lead generation services are a waste of money. All we got from the last one we tried was people wanting to know the best rate of interest available on cash deposit accounts.

  2. It doesn’t sound as if David Shirley has properly vetted potential clients before agreeing to meet them. I have had quite a few leads where I couldn’t help the client, chose not to meet them and wasn’t charged. However I can also report that three of my best clients have come from VouchedFor including one with investable assets of £3m! Sounds as if Julian Stevens needs to sign up to VouchedFor if he has not already!

  3. Never use such services. All our work is word of mouth recommendations or referrals from accountant / solicitors. Just my view, but such services are fine for double glazing sales but not for financial advice. FSA / FCA / MAS should re-jig FSA register to have a ‘find an adviser’ function in the same way the law society has ‘find a solicitor’ and other professions similar arrangements.

  4. The only one who benefits from lead generation are the generators themselves. It’s about as good as going to a casino. With time, the house always wins. Save your time and money and do some real marketing for free….

Leave a comment