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Advocates of 100% commissions answer back

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Mortgage Broker News | 19 Apr 2012, 09:00 AM Agree 0
The tides have turned in the direction of 100 per cent commissions for agents, and the only thing brokers can do is go with the flow, argues one team leader, pointing to the success of his own flat-fee model in winning back associates.
  • John Bargis | 20 Apr 2012, 02:24 PM Agree 0
    I respectfully submit that Mr. Allen's comments are nothing short of window dressing.....At $475 a deal on an average mortgage size of under $400,000 in the GTA where his outfit is primarily situated, his model clearly charges a split of over 10% to his agents. So the math is the same whether on a flat fee per file, or on a split.....Like I said, no one works for free. The reality is, the margins are already razor thin, and regardless of how a comp model is structured or how it looks, it's less about greed and more about running a viable business....My advice to brokers is, review your checks and balances if you're loosing your stock.....
  • Bob | 21 Apr 2012, 12:34 AM Agree 0
    Most mtgs in the outlying GTA average just under $300k; so in essence, you are offering an 85/15 split... How is that so innovative? I wonder if your Firm is well run and does enough volume to qualify for those other less known comps.? Not simply volume bonuses. I am talking about the D&H/Filogix contributions to support company events, lender target Efficiency bonuses, lender company sponsorship events, etc. Are these sources of revenue factored into this innovative model and passed on to the consultant? Sorry but this is all smoke and mirrors! The bottom line is if you want Brokerage support that is of value, you and or someone has to pay it and if lenders and third party suppliers will help subsidize to off-set some of those costs that is GREAT. But to promote a 100% split with a flat fee with a reduced level of support and say this is better than an 85/15 or 90/10 split insults my intelligence!
    Agents, do your homework and find a Firm who has the tools to support you and treat each other as your partner holding each accountable. Done properly, both will succeed.
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