It’s a trap seasoned brokers are trying to steer young agents clear of, and now one of those newcomers is offering the same warning, pointing to the need for training and support and not just high commission splits.
“It’s a fine line for new agents – they’re looking for a high commission split because they need that money but they also need training and support,” said agent Mariusz Lasocha, who entered brokering in June. “I think it’s important that they don’t just focus on the high commissions, but make sure they are going to be getting that support.That’s really important.”
It’s the kind of broker assistance, through training and guidance, that Lasocha, based in Caledon, Ont., now draws on. it’s increasingly important in a market where home sales have started to slip and preapprovals are getting harder to convert as clients wait for a price correction.
That tougher environment has encouraged many brokerages to up their agent commissions as a way of attracting new talent and the new clients those mortgage professionals bring to the table.
Still, many other brokers have objected to the focus on monetary compensation, arguing it erodes the brokerage’s ability to provide agents the kind of support Lasocha enjoys. It also threatens the bottom line.
“This has been a growing problem for a long time and it should come as no surprise to anyone who owns a business in this environment,” said Gord McCallum, principal broker and owner of First Foundation Residential Mortgages. “We only have to look at other models of sustainable financial services to see that none of them pay even close to 85 per cent commission splits. The biggest mistake our industry made was copying Realtors.”