The program works, Kingsbery says, because the accountants know that a veteran planner such as himself has paid his dues, too. "We (both) understand how important it is, long term, to create a solid client relationship. Therefore they feel like we're on the same side of the table and that I'm not just there to be selling something," Kingsbery says.
Furthermore, many tax practitioners are afraid of losing market share to other accountants offering financial services. "So they're very anxious for help from people who can take them to the next level," Kingsbery says.
Terra officials call the RD program "reasonably successful" but are quick to point out their limited ambitions. "It wasn't done with the idea to have hundreds. We really are looking for the right type of person," Mindel says.
The ideal RD candidate has a squeaky-clean compliance record, probably earns six figures, and is highly experienced. According to Reedy, Terra has about 30 regional directors so far. "We would like to be represented in every major city in the country," he says, adding that large metropolises may be able to support several.
Currently, approximately 800 of Terra's 2200 representatives are located in the Midwest. There are also significant concentrations in California, Florida and the Northeast. Mirroring the industry trend, Terra reps are increasingly migrating to fee-based compensation. At present, about 15% work partly or entirely for fees.