I work at an insurance company. There are products that we sell all the time to commission-based advisers that we almost never sell to fee-based advisers. Why? Because those products aren't right for the customer, but with 5%+ commissions they sell like hotcakes.
http://www.investorclaims.com/Blog/2012/July/North-Carolina-...
http://www.adviserinfo.sec.gov/IAPD/Content/ViewIndvl/IAPD_I...
Yes, there is such thing as reputation, but it doesn't come into play unless you play on the same power level as them. That is, if you are a wealthy person with connections then by all means, find a reputable financial adviser, they'll happily work in your interest. Such clients are scarce, after all, so they need to care. But if you're a Joe or Jane Random, salesmen have little incentive to offer you a good deal - they have hundreds or thousands people just like you every month, and none of you can do any damage to them.