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NEW POLL: Should mentoring be free for new brokers?

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Australian Broker | 20 Jan 2016, 07:00 AM Agree 0
Should mentoring be free for new-to-industry brokers or does a fee-for-service model deliver better value? Have your say in our online poll now
  • Brett Mansfield | 20 Jan 2016, 09:09 AM Agree 0
    There is no such thing as free mentoring. A successful mentor program is expensive to prepare and deliver, this cost is either charged as a transparent fee or it is hidden in other ways such as aggregation agreements, commission splits or exit penalties.

    If a free mentor program is offered one needs to ask why it is free. it is likely to be of very low quality or the cost is hidden. Same as any other service or solution you typically get what you pay for.
  • Peter Heinrich | 20 Jan 2016, 03:34 PM Agree 0
    As the author quite rightly points out, when broking was in its infancy most brokers were coming from Banks and at least understood the terminology or process and could quickly adapt. Now new brokers are coming from all walks of life and will take some considerable time to gain knowledge and experience and having a 'good' mentor is crucial. The big problem is (and will always be) how good is the mentor. There are some people who are naturally good at it - patient, knowledgeable and most importantly, want to do it. Some may possess the technical ability to be a mentor but don't have the patience or desire to do it. There is almost no doubt that having a mentor is the best way to learn the trade. Courses can provide the background but actually getting in front of clients with a good mentor guiding the way is where the good skills develop.

    I can hear the old timers saying now 'no one showed me how to do it, I learned by trial and error'. The big problem is the trials and errors were on real people and they deserve better. To have someone making sure there are no errors is much better than picking up the pieces later. I trust there are people in the future who have the expertise and most importantly want to mentor to guide the new entrants to the industry in the right direction.
  • SEQ Broker | 22 Jan 2016, 10:13 AM Agree 0
    Personally I have been in residential mortgage lending for 10 years now. In that time it has definitely gotten more complicated. I remember struggling to come to grips with whether my advice was the best for the client. I had a manager who simply did not care and no mentor at all. If i tried that these days I would no doubt unwittingly commit a crime of some sorts. Mentoring should be comprehensive and it should not be free. Quality advice should be respected, should be for the absolute benefit of the borrower and new broker, and further more it most definitely should not be free. Making quality advice free demeans all that us brokers do.
  • Brett of Brisbane | 25 Jan 2016, 09:20 AM Agree 0
    Mentoring is a must. Absolutely no doubt about that. Should it be free? It has been proven time and time again, that if people pay for something, they pay more attention to it and value it a whole lot more. What is the right mark though? Contrast 2 new to industry entrants. Mark is a Painter by trade; Mike is an Accountant by profession. Both of these individuals will have vastly different experience in terms of client face to face and engagement process experience. They should not be subjected to the same mentoring program. They should, however, be mentoring on the client engagement process, the application and settlement process and the ongoing maintenance process, to a level appropriate to their existing experience.

    They should see the cost of that mentoring program as a barrier to entry, which will make sure that they consider fully what they are doing before they enter the industry, in just the same way they originally entered their previous vocations. Mark completed a trade taking apprentice wages for 4 years; Mike completed 3 years at university, unpaid, and likely undertook a profession year training program in his first employment.

    Why should being accountable for providing quality advice which will affect a client for years to come be any different?
  • Regional Broker | 28 Jan 2016, 11:09 AM Agree 0
    I pose this question , if a young experienced banker, elects to say "buy into " and established brokerage over say a two year period and the qualified principals of the firm stay in to assist him and "mentor" him and accredit him as a credit adviser, and he does his Diploma course, why would that person need to pay for a mentor programme? Answer to me is common sense, they don't.

    I agree if 'new to the industry' are joining an aggregator and want to be a sole trader yes they need to join an accredited well structured mentoring programme with hopefully positive outcomes.

    Really there is no cut and dried answer here, I also think Brett Mansfield's comments are spot on for 'new to industry' entrants, as the GM? At Buyers Choice Home Loan Advisory, he has good insight for 'new to industry entrants'.
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