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Fee-for-service fears unfounded

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Australian Broker | 19 May 2011, 06:00 AM Agree 0
Fee-for-service can be positioned to appeal to clients, and brokers should fight any moves by banks to market against it, an industry consultant has claimed
  • Broker | 19 May 2011, 12:35 PM Agree 0
    Given the majors recent collective profits (record profits yet again) a commission decrease cannot be justified , but I suppose justification in their eues has little do with it!
  • Lynne | 19 May 2011, 12:35 PM Agree 0
    What I do know is - the Banks wont be charging the clients a fee so it is natural that a person would go the the source where they are not charged.
  • Larry Terrance | 19 May 2011, 12:45 PM Agree 0
    Is this person living in fantasyland.
  • Cherl | 19 May 2011, 01:05 PM Agree 0
    Does anyone know if commissions will be reduced or will they be abolished completely and when will this happen?
  • Greg Cook | 19 May 2011, 01:11 PM Agree 0
    I feel there is better things to talk about than to talk about how we can charge the client and therefore convince the banks we should be free to them also. Lets talk about standards and working smarter with clients
  • Ray | 19 May 2011, 02:42 PM Agree 0
    Who is this guy? He definitely does NOT work in this industry. All theory no practise. Dream on mate
  • Melinda | 19 May 2011, 03:47 PM Agree 0
    Seriously people, some brokers have been around longer than what banks have been paying commissions...how do you think they used to get paid before bank commissions?? Brokerage fee...charging the client for services rendered.
    Do you honestly think you can get the same service from walking into a branch that you get from a broker? If that is how you view what you do then I suggest you stop being a broker and go become an employee with a financial institution as a loan officer.
    We are professionals (if that is how you see yourself)and should charge a fee for our intellectual knowledge, skills and experience. Do you take your car to a mechanic and pay them? Do you visit your doctor when you are not feeling well? Do you get someone to do your lawns and gardens or housework? Yes many things you can do yourself, but you choose to 'employ' someone to do these things for you due to expert knowledge and or lack of time...exactly why your client sort you out in the first place. They don't time or knowledge/experience to make heads and tails of all bank products, nor do they understand bank policies (or banks half the time). The client pays you to work for them, the lender pays you to say thanks for the deal and doing their data entry and supplying supporting documents.
    Larry and Ray, you will find that James has been in the industry and practised what he preaches.
  • Tanya | 19 May 2011, 03:48 PM Agree 0
    I agree with Greg Cook - let us move on from this topic - it has been exhausted
  • WayneBroker | 19 May 2011, 06:39 PM Agree 0
    I agree with James that "the days of the broker part-timer helping out friends and family, with limited other skills or value to offer, relying solely on finding a cheap loan in exchange for commission" are all but gone but I think he has missed the mark on the broking industry's ability to beat the banks in a Marketing war. They are coordinated and ruthless with almost unlimited resources. Brokers are a fragmented collective of small and medium busineses who can't even agree on a representative body. And please don't quote Aussie as a large brokerage who could lead the charge or Plan or Fast, as they are owned by CBA & NAB and aren't going to do anything to upset their corporate masters.
  • Timbo2 | 19 May 2011, 11:42 PM Agree 0
    It's completely unrealistic to think that people will pay for something they can easily do themselves. One or both of 2 things will happen - banks and other direct lenders will sharpen their skills and knowledge and compete with brokers on expertise or brokers will only get the impossible deals that no lender will pick up anyway. Also ant first home buyer who has struggled to get a minimum deposit together and pay LMI and legals will not go to broker because they simply could not afford it, and will just go to the bank they have saved with. fee for service is a complete nonsense whilst banks sell direct to the public and will not work. James Veigli also talks about marketing and convincing the public to pay for broker services. How many millions will this cost and over what period of time -10years minimum. Melinda, you are so wrong. Let's look at maintaining commissions by a new strategy that makes brokers as attractive as a distribution vehicle as a bank branch
  • Ozboy | 23 May 2011, 08:29 AM Agree 0
    Hi Timbo2 didn't realise you were such an authority. You say that someone is so wrong because they have a different business offering to you. How did you get to this insightful conclusion? What credentials do you have to make such a statement?
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