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Top brokers still earning a fair crust

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Australian Broker | 02 Jul 2009, 11:55 AM Agree 0
Despite a reduction in commissions, top performing brokers are still outperforming their counterparts in the banking sector when it comes to remuneration, latest salary figures suggest.
  • Patrick | 02 Jul 2009, 01:13 PM Agree 0
    This comparison is irrelevant. Bank staff have the security of salary with paid holidays and super. Most brokers are self employed and carry all the business risks associated with that status. They typically work long hours, out of business hours and weekends to generate a living. Wake up Larry!
  • Robert Krol | 02 Jul 2009, 01:28 PM Agree 0
    Another typically ill-informed set of comments by members of the "waste of time brigade" - analysts, and survey conductors.
  • Martin Beanland | 02 Jul 2009, 01:32 PM Agree 0
    I think Peter White's $50,000 to $60,000 broker salary estimate is probably pretty accurate, which is terrible for how hard brokers work. Let's not get too excited about the ??5% of brokers who earn over $150,000. I think Martin North's comments as attributed are a quantum level incorrect; surely can't be an average of $150,000, no way. With changed commissions, the broker industry will struggle to be viable in 3 yrs when old loan books have run down to under 40% of how much they pay now. If you as a broker are not making over $100,000 pa now you will not be viable in 3 yrs time; start planning your new job, maybe working as a bank lending officer because they will need more by then when they have crushed the brokers !!.
  • Robert Krol | 02 Jul 2009, 01:37 PM Agree 0
    Why are we constsntly made out to be members of the "jet-set" income level. Most brokers run their own business, commonly with 3 employees or less, and work very long hours, often 6 to 7 days per week, to make their income (as do most other small business people). Have any of these analysts and survey conductors ever been self-employed ??? I'd suggest not, which is why they think our turnover is our personal gross income. They forget that we have a myriad of business expenses to pay, from our turnover (like any other small business) before we get to take some income for ourselves.
  • Ned Flanders | 02 Jul 2009, 01:38 PM Agree 0
    I couldn't agree more with the comments by "Remuneration". This is a total waste of good editorial space. The comparisons are pointless. Good brokers or those that are self employed will ALWAYS work FAR harder than PAYG staff and genuinely earn EVERY penny they get... Every morning you wake up knowing that if they don't get out of bed and create a sale... you do not get paid... Holiday pay... sick leave... superannuation etc... what on earth are these luxurious things?!?!?! Getting paid to go on holidays?!?! Might do the same myself... now... who is going to pay the bills/generate the income/sit on hold to the banks/service my customers when I'm gone?!?!?! I don't think so!!!
  • James | 02 Jul 2009, 01:42 PM Agree 0
    Stop wasting time posting comments and complaining and get back to work... then you'll lift your income!
  • Ben | 02 Jul 2009, 01:49 PM Agree 0
    articles like this are poor journalism. I'm sick of implications that brokers are overpaid. It's just not right. Let's see some balanced journalism that looks at the whole situation (including responsibility, service, work hours, super, holidays, etc) without sneaky implications that give the banks ammunition to cut commissions. This article is full of "weasel words" and short on facts. Bottom line is brokers work very hard and are paid (on average) poorly, with their earnings "at risk" on a monthly basis. Does average income include the large numbers that fail and lose money?. There's no safe buck here.
  • Ian Jervis - Paradime Home Finance - NSW | 02 Jul 2009, 01:59 PM Agree 0
    I read in a broker newsletter (it might have even been this one) that the average monthly settlement amount for an Australian Mortgage broker was $750,000. If this is correct then the gross upfront commissions are closer to $50k plus trails. You would need to have a few years of consistent performance at this level to achieve a $150,000 gross income and then you need to deduct your expenses. On this basis a broker entering the industry who isn't settling at least double the average $750k should be looking for another line of work. It will be interesting to see how many brokers are left when the new regulations are in full swing come 1/1/10 and the costs and regulation of being involved in the industry force many part time brokers or those who were contemplating retiring soon anyway , out of the market.
  • Ned Flanders | 02 Jul 2009, 02:00 PM Agree 0
    Dear "Get back to work"... please leave this discussion to adults... thank you.
  • PC | 02 Jul 2009, 02:00 PM Agree 0
    A more accurate way of measuring would be on a $ per hour basis. As pointed out brokers work 6 sometimes 7 days a week, day and evenings.
  • Greg Mortgage Broker | 02 Jul 2009, 02:01 PM Agree 0
    Maybe Martin North should return to England. From his past comments he hates Mortgage Brokers and is only trying to make a name for himself away from his motherland. I agree with Peter White on his estimates. Obviously Mr North does not realize that self employed brokers have alot of expenses to take out of commissions. And lets face it if we are sick we do not get paid. Bank Staff get paid even if they are sick and I bet they are not working late at night submitting applications to lenders who have shocking turnaround times
  • Bart Simpson | 02 Jul 2009, 02:07 PM Agree 0
    Agree with Ned Flanders.....absolute dribble......factory workers earn more than the ave broker on a hour for hour comparison.
  • Timbo2 | 02 Jul 2009, 02:47 PM Agree 0
    Sure Martin North's comments are rubbish. I'm sure he and Fujitsu Time Wasting Pty Ltd are spruikers for the banks. Every time he opens his mouth he just puts the boot into brokers. But would you want to work for a Bank? I've been there in the last 12 months and I can assure you that it's not fun. Crap pay, unrealistic expectations, pushy bosses and the fact that everybody hates you made me go back to full-time broking, as hard as it might be. As we say every morning, back to the salt mine. But at least it's my salt mine
  • Mr Burns | 02 Jul 2009, 02:53 PM Agree 0
    I agree with Ned and Bart...why be a broker when you can earn more in a factory working less hours?
  • BB | 02 Jul 2009, 02:59 PM Agree 0
    Yes the Bank Johnny is generally over paid for the work they do. If they were forced to do a brokers lot they would really struggle. There is no comparison with PAYG and SE remunerations. The sad part is the Johnny think they are underpaid. It is a fact if you are not neting 6 figures at present in your own business you should look for a job. The work involved in making it a success has been covered by many others in this discussion. If you are not making enough from your efforts then there are other options. It is not a matter of being paid more or less then PAYG bankers. It is a matter of making enough income to make you happy.
  • Broker | 02 Jul 2009, 03:10 PM Agree 0
    Irrespective of what the average Broker earns, please do remember we have many of the normal business overheads such as rent, staff wages , superannuation, accountants fees, advertising, electricity, IT related costs, massive phone bills(largely due to all the banks levels of incompetance), stationary , postage and other fees and countless more to name here.

    Then we pay the likes of MFAA , FBAA, COSL, PI Insurance , and soon ASIC which just rip additional profit away without adding any real value to our business.

    No holiday pay, sick pay, annual leave, super, on call pretty much all the time and thanks to the commission cuts our wages have gone in REVERSE at 10 to 15 times CPI within the last year, yet our overheads and expenses remain largely the same.

    If I didn't have a decent size trail book behind me (which the banks will get their filthy claws into over time), I would not survive in this industry, and I tend to settle 2-2.5 mil most months.

    Anyone thinking of entering this industry as a newbie would have to have rocks in their heads, but that's exactly how the majors want, so now more than ever everyone must take their blinkers off and start supporting ANYONE OTHER THAN THE BIG 4, as we all know it's only going to get worse if you continue to feed them.
  • Steve | 02 Jul 2009, 03:47 PM Agree 0
    Where are you from?
  • apples and oranges | 02 Jul 2009, 04:03 PM Agree 0
    The above survey has nothing to do with brokers - why do I care what bank mobile lenders earn?
  • Keith Bridges | 02 Jul 2009, 04:14 PM Agree 0
    It never ceases to amaze me how PAYG based desk bound executives can make projections on commissioned based brokers. What is often forgotten by these "smart" individuals is the associated mandatory costs to run a business, ie rent, telephones, support staff, licences fees, PI Cover, etc experience has found that most of these "smarter than the average bear" executives, have never made a sale in thier lives...need I say more and as such do not undertand the commitment, time and effort required to run a succesful business?
  • Zoidberg | 02 Jul 2009, 04:51 PM Agree 0
    Having once been a Bank Johnny, I can tell from experience being a broker is MUCH harder, with far more pressure and yes, greater rewards. However this is a choice and as far as I can remember, we still live in a kind of free society. (Although it is becoming less free by the day!) The Banks cutting our commissions is disgraceful and smacks or sour grapes / poor business planning. The reason we get paid by the banks is because it costs less for them to originate loans through us, than their wasteful branches. They need to remember this next time they review commissions. Perhaps they can review their Lending Managers at the same time? Surely the credit assessors are over friggin squillians!
  • Xerxes | 28 Jul 2009, 05:39 PM Agree 0
    Martin North P.O.Q.

    $150,000 average broker salary. What planet do you come from? Why don't you tell us what your salary is?

    You clearly are a bank stooge. Every comment you make about brokers oozes hostility.

    A little bit of accounting 101 for you mate.

    Business turn over does not equate to profit (salary payable to directors). Depending on the brokers' business model 30-80% of commissions will be spent on business costs (rent, staff, advertising, marketing, aggreagator fees, etc, etc, etc).

    I can tell you for sure, any broker turning over more than $200K in commission / year has considerable expences (50% or more of gross comm's). Generally, the higher the gross turn over the higher the cost expenditure %.

    Why does this uninformed man continue to get print space????

    He must read all the comments we make about him. Clearly he hates us and this hatred simply feeds his antagonism, leading to more and more outlandish hostility towards us hard working brokers.
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