Servicing and Commissions
One of the harsh realities of the life business is that you take on servicing existing clients and don't pick up service commissions in most cases. (Some exceptions with medical providers).
This creates a situation in which the new servicing adviser has to approach the old one and buy the trail/renewal commission if they are to get paid.
The problem here is that the new adviser is taking the punt on the client, keeping their cover and paying upfront to buy that client, often in the face of not earning anything with that transaction, which doesn't make for good business either. Maybe for the long term, but that's also a punt, and often, that new servicing adviser is also recent to the industry, building their book.
The new adviser has taken on the client because they haven't received the expected service. Before the trolls say that's the adviser's choice and the client should have remained with the originating adviser, that client wouldn't have been talking to the new adviser if the old one had provided the expected service level.
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