Advocates of 100% commissions answer back

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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.

“Using the commission split model, I had three agents leave because they thought they were losing too much in the deal,” Shawn Allen, owner of the independent Matrix Mortgage Global, told “After implementing a small transaction fee instead, they have now come back.

“In this environment, brokers can’t be greedy.”

The comments may raise hackles on the backs of many principal brokers and network execs concerned the move to slash their commission splits effectively compromises the industry’s health for the benefit of the high-performing agents.

More specifically, the reduced income for the brokerage erodes their ability to maintain the agent support and training programs they traditionally provide.

Allen, who leads a team of 35 agents in the GTA, disagrees.

“I truly believe that everyone has the ability to succeed, and if given the right amount of support and training they will,” he said. “The training at our brokerage is free of charge to agents, and new hires get instruction that expands on the material taught in the mortgage agent course.

“We also, like most other brokers, bring the lenders in.”

Much of that may be subsidized by the flat fees, about $475 per deal Allen collects from his agents. That is often adjusted downward for smaller transactions, he said.

"We are still getting a cut, but not so much that it acts as a disincentive to the broker to get bigger deals but also more business,” Allen told


  • John Bargis on 2012-04-20 2:24:19 PM

    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 on 2012-04-21 12:34:19 AM

    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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