Laziness a key problem around salaries for new brokers: CEO

by AB01 Aug 2013

Laziness is a key problem around the issuing of introductory salaries to new brokers and, while attracting young people to the industry is important, offering a regular paycheque is not the answer, Outsource Financial CEO, Tanya Sale, tells Broker TV.

 “Sometimes it can breed laziness…because they don’t have to do anything; they don’t have to go out and hunt for their own loans. They know that that money’s going to be in their bank account every fortnight. This industry is known to be self-employed and it’s known to be commission. If someone wants a salary…go and work for a bank.”

Sale says that when some of Outsource Financial’s affiliate groups have trialled paying new brokers, the results were not productive – and left employers working harder themselves, as well as being out of pocket.

“A couple of our larger groups decided to go down that path to attract some newbies into the industry and it ended in tears because, when they interviewed the person, they came across really, really well…What happened was, they employed someone, [paid them a] salary, even supported them on a lead-generation side and the individual, they just didn’t have that fire in their belly. They had no desire to go out and really drive and look for new business.”

“So some of our groups went back, saying ‘ok, we’ll give you commission only, but we’ll also assist you in the lead side’. And that’s worked an absolute treat”

To view the full interview with Tanya Sale, CLICK HERE

COMMENTS

  • by Philthyo 1/08/2013 10:45:31 AM

    Why can't you look at a model where a retainer of say $4k a month is paid to new entrants. Each month the first $4k of up front commission is clawed back by the employer and the rest paid to the loan writer. To ensure that they have an incentive to go out and actively obain business a realistic sales target ( basically enough to claw back retainer ) can be included in the employment contract. If the loan writer is successful and has established a pipeline then they can opt out and go to commission only. Likewise if performance targets are not met the employer can opt out of retainer and revert back to commission only.

  • by NoTimeLikeTheFuture 1/08/2013 11:01:04 AM

    Spot on. This is why i refuse to work for salary..

    Without the fire - without the passion and the risk of starvation - this work becomes a chore.

    Right now it's a sport, and i love it.

  • by PeterT 1/08/2013 12:48:19 PM

    I think the comment of 'lazy' is a bit rough. The toughest task even an experienced broker needs to perform is often just picking up the phone. Marketing yourself is tough, lead generation is tough.
    I do agree with the sentiment however, I'm trying to expand and renumeration for the short and long term is a tough question. Employers also don't want to spoon feed leads to new brokers, they need to get out there and generate them themselves.
    @Philthyou: $4k/mth is way to high, it's almost the average after cost income earned by most brokers. That level of retainer would almost certainly breed apathy.