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Laziness a key problem around salaries for new brokers: CEO

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Australian Broker | 01 Aug 2013, 06:00 AM Agree 0
New brokers who are offered a salary fail to ignite the 'fire in their belly', according to Outsource Financial CEO, Tanya Sale
  • Philthyo | 01 Aug 2013, 10:45 AM Agree 0
    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.
  • NoTimeLikeTheFuture | 01 Aug 2013, 11:01 AM Agree 0
    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.
  • PeterT | 01 Aug 2013, 12:48 PM Agree 0
    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.
  • Broker | 01 Aug 2013, 01:38 PM Agree 0
    Way too many headaches attached to this model. It takes a very committed individual to work for commission only. and for good reason.

    I did the hard yards and so can any new entrant as far as I'm concerned, 110% support yes , base wage -no way.
  • Steve McClure | 01 Aug 2013, 02:37 PM Agree 0
    And this being the consensus, how on earth do we attract an advanced diploma or degree qualified broker on a commission only basis? The current characteristics (commission structures, clawbacks, lender inefficiencies) of mortgage broking are barriers to us becoming a recognised profession.
  • John Black | 01 Aug 2013, 03:10 PM Agree 0
    I have one question for Tanya Sale. Is she remunerated by salary or commission or perhaps a combination of both?

    Quite often people who sit in their ivory towers and express views of laziness of salaried personnel often enjoy the benefits of a salary themselves. Not to say this is the case here.

    After nearly 20 years in this game I think it is fair comment to say many players who consider themselves owners of viable companies would cease to exist if they had to pay fair and reasonable wages to employees for effort given.

    Fair enough for people to comment about the virtues of commission only remuneration if they are remunerated in the same way.
  • Suspicious | 01 Aug 2013, 04:04 PM Agree 0
    The cons of offering a salary are noted . The problem of not having a salary for new entrants into the industry is that few younger players have the 6 to 12 months of living costs in reserve to sustain them in the ramping up of their commissions . If there isnt a retainer of some sort , very few new younger entrants will surface and the industry will continue to be dominated by middle aged men that are already established financially to some extent . Treat mortgage broking like any other sales professional- base salary plus commission. If you produce you stay otherwise you move on . The risk is borne by the employer like any other industry . simple
  • MarkS | 01 Aug 2013, 05:03 PM Agree 0
    We have over the years tried straight commission, straight salary, base and bonuses, retainer and commission splitting, and anything in between. If you want someone to work for you rather than be an independent broker, then you have to do give them something, and usually that is leads, support and a security blanket, (meaning a base salary/retainer). The problem with commission only is that they don't settle loans, they don't eat, so it can get to the point where desperation and temptation could get to a loan writer/broker to cut corners. I prefer for employed loan writers to have some of the temptation removed, especially if they are working under our credit license.
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