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Consider salaries for new brokers, banker suggests

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Australian Broker | 26 Mar 2013, 08:30 AM Agree 0
An industry leader has said higher barriers to entry mean that the industry must think of new ways to attract talent, including starting new brokers on salaries
  • SIDBROKER | 26 Mar 2013, 12:19 PM Agree 0
    and who is going to share their hard earned trail to subsidise new people. Shortly afterwoods they go off in a differant direction.
  • Broker | 26 Mar 2013, 01:26 PM Agree 0
    Reality check required here, all a tad difficult on current commission levels for the vast majority of Brokers I would think.
  • Bruce Solomom | 26 Mar 2013, 03:40 PM Agree 0
    As a homeloan could reap in interest-revenue an amount equal to the original loan amount for a lender, and the NCCP risks are now substantial, the following remuneration needs to be paid to brokers by lenders/agregators:
    - existing experienced brokers should receive $100K base + upfront & trail commissions.
    - New brokers should receive $50k base + upfront & trail commissions.

    (Note that Real estate agents get up to 3% commission per sale! And there are many other industries where the frontline sales people earn loads more than brokers, for equal or less than the same amount of effort/skills.) )
  • John Cooper, AFB - NSW/ACT President of the FBAA | 27 Mar 2013, 07:59 AM Agree 0
    I agree with Vibha that the industry has to keep looking at new ways of incouraging 'new entrants' into the industry. Ofcourse some mortgage advisers are currently paid a salary, but most work for single loan product lenders, such banks, so they are not actually brokers. But the model has worked in other organisations in the past, like my own home lending business during 2005 -10, but I found it more difficult to motivate the broker to reach sales targets. I had better results by paying a smaller base salary and a higher commission rate. But the most important factor was to employ the 'right' person through a stringent recruitment process and sound training throughout the engagement. I am currently working with a number of people who are new to the industry by providing support and training while they earn income from broking. This is working well as the broker is earning and learning at the same time. If anyone is interested to find our more please contact me. John Cooper
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