Cash flow disruption due to commission freeze, the debate over the need for professional indemnity run-off cover (why was I in the network if I am suddenly liable for everything?), and then all and sundry fees taken from the account on closure – the list goes on.
However, even if all the things above are deemed to be correct legally, what galls many with whom I speak to is the attitude of most networks when a customer deems to have the audacity to leave.
When a firm exits a network, the network should ask itself what it has changed since the firm first joined or simply accept that the firm no longer needs their service for quite valid business reasons. The firm once made a decision to join, so it should have equally the same choice to leave. Invariably, the network attitude seems to be that members should be beholden to network membership ad-infinitum.
It should be easy to leave – why? Because if you are running one and have happy customers then they are not going to move on. Having a model that says: “We only manage to keep customers because it is pretty impossible to leave” is great from a business perspective, but I would rather be able to sleep at night.
Ian McIver is head of sales at IFA Compliance
