How It Works

Clarion – how it works

We meet up and talk through exactly why and how you might want to join Clarion.

The critical part to the success of the Clarion Hub & Spoke model is the financial and legal structure of each individual Spoke, their “investment” in other Spokes in the Hub and also their equity stake in Clarion.

We make sure this is clear, transparent and of real value to you. Otherwise our approach to business will notwork for you.

In essence

Once it is all explained, a right fit is determined, and both parties are agreed then:

1. Clarion buys an agreed equity stake in your business freeing up cash that you can use to pay down financial liabilities (eg, your mortgage) or to play with and fulfil some cherished dreams.

2. You remain a key part of your business – working with Clarion to grow that business and thereby increase the value of your interest in that business

3. There is agreement on the structure of the Spokes in the Hub and their inter-relationship with each other; in some cases this will be a mutual sharing of equity amongst the individual Spokes – to ensure your mutual financial self-interest and a reward for success; in other cases this will not be the preferred model…..Clarion will work with you and the other Spokes to work up the model that best fits the Spokes in that Hub.

4. You become entitled to an equity stake in Clarion and share in the value when it is sold (either through a trade sale or an IPO).

5. You join your Hub and we help integrate you with the other Spokes, helping you all work together and grow.

6. We work with you (and the other Spokes) to grow your businesses by using our specialised referral and marketing programs and the other proprietary Clarion services.

The pay-off

  • Release cash
  • Grow your revenues & business value as
    • You get more new clients through referrals; better quality referrals and successful marketing programs

    • Your clients become “stickier” - staying with you longer and advocating your services as the overall Hub better meets their needs. This grows the value of your Spoke business and of the Hub as a whole

    • You are entitled to an equity stake in a valuable asset – Clarion – that when it goes to market could be worth many $ thousands to you

  • You are happier as you are now part of a local team and a national team, all focussed on your success and the success of each other

$187,000 increase in book value in just 13 months

Before I joined Clarion I had a small financial planning business – just me and two support staff. Getting new clients would often be haphazard – random referrals from clients and a spasmodic one from a local mortgage broker. Getting other professionals to refer clients to me was just hard.

Within weeks of Forrest Accounting Partners joining our Hub, there was a steady flow of referrals back and forth between the Hub’s Spokes. By month 13 the value of my book had grown by $187,000, an increase of more than 20%

More than that, my clients were happier and giving me more referrals as well.”

Ben Bryant C.F.P.

Forrest Wealth

I thought he was mad – but it works

“Michael Nemeth and I have been firm friends and brothers in arms with our visionary approach to wealth creation for years. However I must admit that when he first mentioned the Hub & Spokes idea I thought (a) he was mad, and (b) here we go again.

After all, financial planners and accountants can often conduct ideological warfare against each other; and aren’t brokers just glorified salesman chasing commissions rather than offering service ?

Then on top of that, mutual referrals is not a new idea. Melbourne is littered with referral JV’s going nowhere.

Still I humoured him and listened. I knew that getting the right people is important but Michael made it work and the proof was in the numbers and in the happy clients. So, with support from Clarion and its systems and business practices, I became a convert and started my own Hub here in Richmond, Melbourne…..and it has exceeded my most optimistic expectations.

Stuart Hillier

HWC Group
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