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Mortgage Broker News | 15 Aug 2011, 08:58 AM Agree 0
It may run counter to their competitors, but a number of brokerage heads have moved to downsize sales forces, instead of adding to them – a way of freeing themselves to grow their own sales as new home purchases slow.
  • @kiltedbroker | 16 Aug 2011, 01:52 AM Agree 0
    If you haven't read the book "Good to Great" by Jim Collins - you need to. I think by looking at the "bus principle" (as presented in Good to Great) we can figure out this whole article (and maybe even the quality problem in the broker channel).

    The Bus Principle is pretty simple, for a business to grow, there are three things it needs to do, first they have to get the wrong people off the bus, second... get the right people on the bus and third, figure out where everyone is going to sit.

    In the case of these businesses, I wonder if the people they had on their bus were "the wrong people"? If the "let go" brokers were quality brokers contributing significant volume with little to no supervision, would they have been let go? Most likely not! So... is it fair to bring attention to the fact that "Brokerages Downsize Sales Force", well... probably, because "Brokerages part ways with non-producing Brokers" just isn't as catchy an article!

    I like the end here, "but we would be very selective in choosing agents..." - isn't this bringing the right people on the bus? What ever made it a good idea to just bring on any warm body into the industry in the first place?

    Lets continue the conversation about raising the standards in the broker channel! Also, Mike Cameron at http://mymortgagerevolution.ca/ is a great resource.

    The Kilted Broker

    -
  • Contrarian | 16 Aug 2011, 03:50 AM Agree 0
    Chris Bisson is right on. If most managing brokers examined the liability and time spent on managing staff vs time spent marketing to their own clients they would see what a loser game it is. There is way more money in brokering than in providing cheapo management services and risk free income to the aggregators.
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