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Broker value proposition justifies fees: Intellitrain

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Australian Broker | 29 Apr 2011, 04:00 AM Agree 0
Brokers should not shy from fee for advice if they can demonstrate a value proposition above that of lenders, Intellitrain has claimed
  • cougars1 | 29 Apr 2011, 03:42 PM Agree 0
    Enough of this talk about Fee for Service. Intellitrain have an agenda to sell more training courses. The banks have an agenda to pay us brokers less money. The industry bodies really don't care either way as they are either in bed with the banks or will collect members fees no matter what happens and the aggregators just don't seem to be making enough noise as now a large number of them are owned by banks also. Yes we do provide a better service than the bank staff, yes we do offer our clients more and yes we are all professionals but to think you can justify charging a client a fee when they can go down the road and get the same deal for nothing is just plain ludicrous. Here's what will happen. You have an initial discussion with the client, say to the clients my fee is "X", they say thanks for your time and go to their local bank or the lender you have recommended. This happens now without a fee being charged. The alternative is the client says ok I will pay your fee. The lender then says you brokers are double dipping getting commission from us and fees from the clients so why should we also pay you and commission payments from the lenders disappear.To my fellow finance brokers we and not the lenders or the training companies need to decide which model we want. I am seeing far too much commentary about how we have to go to a fee for service model or perish. Lobby your aggregators to stop this now as if this proceeds there will be many more brokers leaving the industry and going back to work for the lenders on lower pay as they will be the only ones writing loans.
  • Ozboy | 02 May 2011, 10:53 AM Agree 0
    Been charging a fee for over 3 years now, have only had 3 people not pay out of an average of 12 settled loans a month. Didn't miss them. No one has ever complained about the fee charged and some have commented that it was too cheap, we charge between $300 and $1500 depending on the type of loan and complexity. I have no control over banks, aggregators or clients but I do have control over my business so I will operate how I see fit and as long as my clients are happy that is all that matters to me. If you believe (or offer) the same service as a bank then yes it is probably time to move out of the industry but I don't know too many brokers who do. No point asking anyone to lobby on your behalf if you believe that charging is wrong lobby yourself, put some money behind your beliefs and start a campaign or better yet why not join a "refund model" and give away your knowledge and skills for next too nothing. At the end of the day if you don't value your skill set neither will anyone else. I wish you all the very best for the future.
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