The key to building a stronger, more valuable advice business

1 Dec

Westpac’s recent announcement that it will end all trail commission from 30 June 2026  is a big moment for the advice industry. Creating a challenge for some advisers to build long-term income, it’s a powerful reminder that no one can afford to rely on a single revenue stream. Advisers need to think strategically about how to protect and grow their income. Diversification and referral partners are the key to making this work.

Building sustainable long term businesses

A successful advice business isn’t built on one-off deals, it’s built on lasting relationships with your clients. By diversifying your service and offering support throughout their financial journey, you can assist your clients in more ways, while strengthening your business at the same time. This approach helps you create steady, ongoing revenue that continues to flow even during quieter periods or when you step back for a break.

Recurring revenue provides stability and peace of mind. Without it, you’re constantly chasing the next deal, creating a business that’s stressful, unpredictable, and harder to grow or sell.

And here’s the real kicker, recurring income isn’t just good for cashflow, it’s an asset. When it comes time to sell your business, recurring revenue is often the biggest factor in determining value. Many advice firms are now being valued at two to four times their annual trail income, meaning every extra dollar of recurring income could add several dollars to your business’s worth.

Diversification: The smarter way to grow

Westpac’s move highlights the importance of not putting all your eggs in one basket. If your recurring income depends on a single product or provider, your business is vulnerable to policy or regulatory changes.

Diversifying across multiple products makes business sense. As we all know, different products are correlated to different parts of the economic cycle. For example:

Mortgages are picking up again.
Life and health insurance is facing cost challenges.
KiwiSaver and Fire & General insurance continue to grow steadily.

By referring across a range of financial services, your business benefits from whichever sector is performing best, creating resilience and balance.

But you can’t do it all

In today’s highly regulated world it’s challenging for advisers to offer every type of service. Most advisers typically specialise in mortgages or insurance, as it is very difficult to be all things to all people. The training and compliance requirements for each new product are significant, and clients prefer to consult with experts rather than generalists.

This is where referral partners become invaluable. Within the NZFSG network, you have access to a variety of experts who can provide excellent services to your clients. This allows you to leverage your existing relationships and trust, enhancing your reputation in the process.

Make every client conversation count

Finding new clients is often the toughest part of running an advice business, so it’s vital to make every interaction worthwhile. When you can help a client in multiple ways, you’re both deepening the relationship and boosting revenue for your business.

Maybe a client starts with a mortgage, but also needs help with KiwiSaver, insurance, or general insurance cover. By broadening your offering, you’re not just meeting more of their needs, you’re building trail income that continues to pay long after the initial deal.

Mortgage and insurance referrals are now well established in the industry, though far too many are missing out on the potential for general insurance and KiwiSaver. A growing number of advisers within our network have built significant financial safety nets for their businesses through strong recurring income from Kōura and general insurance.

How we can help

Through MyCRM, you have access to a wide range of referral partners, covering everything from foreign exchange and personal or asset finance to general insurance and KiwiSaver. Every partner has undergone thorough due diligence and carries the NZFSG seal of approval, so you can refer your clients with confidence.

Being part of New Zealand’s largest mortgage and insurance network, you have access to unique opportunities to connect across advice streams. If you’re looking to connect with a risk or mortgage referral partner, your Relationship Manager can match you with like-minded advisers who share your client-first approach.

Great businesses don’t happen by chance. They’re built through thoughtful strategy and deliberate action, with customers at their core. Diversifying your revenue streams and building reliable, recurring income is the foundation of a resilient, high-value advice business. Start now, and you’ll be setting yourself up for long-term success, no matter what changes come your way.