Detailing our Fees-Based Model and Upfront Fees

Members in the financial planning and advisory industry have two different means of earning an income.


The industry standard – appropriated by most financial planners – is a commission-based model. With this, the financial consultant meets with the client, assesses the client’s needs requirement and then suggests and sells various policies to them. As the financial consultant works on a commission-based model, they will not earn an income in the event that no sale is made on behalf of the client. With this, there is a more aggressive approach to the selling of policies, and more often than not, the client will be heavily encouraged to buy a policy.

What many people do not realise is that the salesperson or financial consultant will earn an income according to the size of the premium: the higher the price of the premium, the higher the commission and income generated. A premium of R900,00 per month will usually double the earnings of that consultant when compared to a policy of R450,00 pm.

My questions to you, the client, are as follows:

  • How exactly do you know that you need the R900,00 pm policy?
  • How do you know that there is not a cheaper alternative which will do the same job?

At Northwood Financial Services, we work on a fees-based model. This means that we charge a flat rate for services rendered per annum, discussed upfront before any business dealings commence.  We do not earn a commission on the sale of a policy, and as we are not salespeople, our focus is not to sell you a policy but rather to offer advice. During our consultations, you pay for our advice and expertise alone, and it is this earnest advice that ensures a competent financial plan.

When we advise on a particular policy, we do not claim commission and no insurer pays us an additional sum. Not only does this mean that you’ll be paying a lower premium, but there is also the peace of mind that there is no third party paying us or pressurising us to meet sales targets.

Our vision is to create financially savvy clients who have multiple income streams. Based on our fees model and genuine advice, we consider ourselves to be holistic financial coaches. Our staff are highly qualified, and our CEO and Founder Nico Kleynhans is a Certified Financial Services Professional. Our advice is always objective and will never be influenced by payments from insurers.

We work with your goals, not our agenda.


We meet our clients five times per year, and these meetings could be virtual, via Skype, or face to face. If you are looking for sound financial planning advice, contact Northwood Financial Services cc and set up a consultation.
For more information regarding the differences between commission and fees based financial planners, read more here.

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