Let me paint you a picture of the perfect world. A world in which you'd have all the clients you could ever want. You'd be able to pick and choose the clients you'd work with. You don't have to work on every loan deal that comes along just to make a buck. In this world, every loan closes, your client is happy, and you take home 100% of the commission. Did I mention they give you a referral the very next week! Don't we wish it worked this way?
In reality, you work hard for every loan deal, and they are far from perfect. Then there's the issue of who gets paid what out of your commission. Usually you lose money every day because of commission split, so you must charge your clients more to make up the difference. The higher fees offset the experience and knowledge a broker brings to the deal and that makes it less beneficial for a borrower to use a broker.
While there is no true "industry standard" for how commissions are split, what we know is that it is industry standard to split commission. The split may be 25%, 30%, 50%, or more. Maybe it's a point here or a point there. The split may be with the lender, a referral agent, a brokerage house, or a number of others. When it comes right down to it, the split costs you money and therefore costs your client money. There must be a way to provide the best service with the best loan product and charge the client a reasonable fee.
What does it look like when someone takes a percentage of your commission? Most brokers know it all too well, but take a look at the table below for a look at the hard dollars lost from a potential commission split. In this example, the loan value is $1,000,000, the commission is 3%, and the split is 50%.
LOAN VALUE- $1,000,000.00
ORIGINATION POINTS (3%)-$30,000.00
SPLIT (50%)-$15,000.00
BROKER COMMISSION-$15,000.00
HARD DOLLARS LOST-$15,000.00
If you didn't have to split your commission you would have the opportunity to charge a little less commission and still make more money. That would result in a happy client and happy clients give referrals and I don't have to tell you that referrals mean more money. On top of that, if we make it cost effective, that client may just come back to you for the refinancing and for the loan on their next property. Sounds like a win-win for everyone.
The question is why do we split commissions? You remember the guy in high school who didn't participate in group projects and still got the A? How did it make you feel for someone to do none of the work and still get the credit? Commission split is the same thing. Trust me the people you are splitting commissions with make a lot more money from other sources. Your commission may be your only source of income. It's how you feed your family and put gas in your car. If you do the work, you should get the reward. I remember my years waiting tables and bartending. I would split my tips with the bus boy, but at least he cleaned the tables. What are you paying for when you split commission: referrals, overhead expenses, marketing? I don't know about you, but I already split my paycheck with someone and they take a big enough piece of the pie. That is good ole Uncle Sam. The difference is that he provides a service called freedom and the American Way of Life.
Examine your business and determine how much of your earnings you're sharing with others. What can you do this year retain more of your commissions? If we can minimize or eliminate the need to split commissions we can better serve our clients without being forced to charge a high commission. The next time you have to give away your hard earned dollars to a commission split, ask yourself what you are getting for the money and how much more you have to charge your client just to make an honest dollar. Being a broker is about serving clients and providing solutions for fair compensation. Without them I would be back waiting tables.
Showing posts with label hermes kelly sale. Show all posts
Showing posts with label hermes kelly sale. Show all posts
Saturday, February 11, 2012
Thursday, February 2, 2012
Be Realistic - Will -money Make Money- For You-_39302
If you write articles for your website, try not to include the affiliate links in the body of your articles: it will give the impression that you have a vested interest in recommending them. You want your visitors to trust your advice, so don't turn your article into an excuse to promote products and make a commission.
Christian home based business called Disciple's Cross. With Disciple's Cross, you make beautiful crosses and send these crosses back to the company. The company will pay you for the crosses it accepts. It has been a lot of fun to participate in this business opportunity and wonderful ministry.
Instead of buying links, get one-way links from blog search engines and directories, as well as getting your RSS feed content displayed at other sites.
Does Money Make Money?
If it is your goal to accumulate wealth, believing the fallacy that money makes money, will hinder your progress to no end. This belief stifles many to a life of failure, and misery.
The goal setting theory of motivation means that you need to be positive - and realistic - to be able to reach your goal, especially if that goal is to make money.
How many times do we hear that "money makes money." Money can make money just as easily as Ferrari can win the Grand Prix without Schumaker in the driver's seat.
"Ferrari is the Grand Prix world champion." Do we say that? "Microsoft invented Windows." Do we say that? Or do we say, "Schumaker is the world champion." And "Gates invented Windows."? Of course we give credit to the person, or people. And that's because that is the reality.
Money is an innate, lifeless thing.
To illustrate...
Let's say we want to make our money grow, then we place a $100 note in a tin and bury it, and a year later we return and dig it up. How much money will there be? Only our $100 note we placed in the tin. There is no way, on God's green earth that there can be one cent more than the original $100.
Before spending a lot of time and money marketing an affiliate program, always check it out first. There are a number of ways to do this.
If you want to have more money and free time, you must work for it consistently and persistently with
I kept reading over and over again to get your own domain name and create your own web site. Then incorporate all your affiliate links into your new web site. Create a theme and join affiliate programs related to that theme. But I knew nothing about creating a web site. And what the heck is HTML?
the right opportunity until you reach success.Winner will never quit until they are successful.
People make money! And people lose money!
Certainly, money can earn interest, but the person (or rather the person's intelligence) is required to invest the money to earn that interest. In this regard, a person can make a bad investment, and not earn as much interest, or can lose money.
On the other side of the coin (no pun intended), a person can indulge in a business venture, and this way make money. Or lose it!
Whichever route is taken, it is the intelligence of the PERSON that either makes money, or makes more money. This is the way it has always worked, and always will.
Even in the event where someone has a big windfall, like winning the lottery, this money can be squandered, or made to multiply. Whichever it is, it is up to the person, to either invest wisely, or to spend endlessly. The history books are full of tales where enormous fortunes were won, and then lost.
Therefore, if it is your goal to make money, don't fall into the trap of believing that "money makes money"; it is a lifeless object, that cannot possible multiply without the intelligence of a human being. Rather...
Make it your goal to...
... learn about money, and how to invest and use it to multiply.
I do not remember how I got started but after a while I started searching for money earning opportunities on the net. I would sit and search for long hours every day. I would search till my eyes get sore. I was wasting my time but I did not know. Everyday I would search and click new sites. Making money ideas by Victoria, Duvet Dollars. See my Duvet Dollars review here!
With Google Adwords advertising program, you can make your ad show-up when somebody types in these terms... and you don't even need your own product. There are thousands of retailers that offer you up to 70% commission for every product you sell.
With so many ways to make money online, what is the best way to work from the comfort of your own home without breaking a sweat?
Christian home based business called Disciple's Cross. With Disciple's Cross, you make beautiful crosses and send these crosses back to the company. The company will pay you for the crosses it accepts. It has been a lot of fun to participate in this business opportunity and wonderful ministry.
Instead of buying links, get one-way links from blog search engines and directories, as well as getting your RSS feed content displayed at other sites.
Does Money Make Money?
If it is your goal to accumulate wealth, believing the fallacy that money makes money, will hinder your progress to no end. This belief stifles many to a life of failure, and misery.
The goal setting theory of motivation means that you need to be positive - and realistic - to be able to reach your goal, especially if that goal is to make money.
How many times do we hear that "money makes money." Money can make money just as easily as Ferrari can win the Grand Prix without Schumaker in the driver's seat.
"Ferrari is the Grand Prix world champion." Do we say that? "Microsoft invented Windows." Do we say that? Or do we say, "Schumaker is the world champion." And "Gates invented Windows."? Of course we give credit to the person, or people. And that's because that is the reality.
Money is an innate, lifeless thing.
To illustrate...
Let's say we want to make our money grow, then we place a $100 note in a tin and bury it, and a year later we return and dig it up. How much money will there be? Only our $100 note we placed in the tin. There is no way, on God's green earth that there can be one cent more than the original $100.
Before spending a lot of time and money marketing an affiliate program, always check it out first. There are a number of ways to do this.
If you want to have more money and free time, you must work for it consistently and persistently with
I kept reading over and over again to get your own domain name and create your own web site. Then incorporate all your affiliate links into your new web site. Create a theme and join affiliate programs related to that theme. But I knew nothing about creating a web site. And what the heck is HTML?
the right opportunity until you reach success.Winner will never quit until they are successful.
People make money! And people lose money!
Certainly, money can earn interest, but the person (or rather the person's intelligence) is required to invest the money to earn that interest. In this regard, a person can make a bad investment, and not earn as much interest, or can lose money.
On the other side of the coin (no pun intended), a person can indulge in a business venture, and this way make money. Or lose it!
Whichever route is taken, it is the intelligence of the PERSON that either makes money, or makes more money. This is the way it has always worked, and always will.
Even in the event where someone has a big windfall, like winning the lottery, this money can be squandered, or made to multiply. Whichever it is, it is up to the person, to either invest wisely, or to spend endlessly. The history books are full of tales where enormous fortunes were won, and then lost.
Therefore, if it is your goal to make money, don't fall into the trap of believing that "money makes money"; it is a lifeless object, that cannot possible multiply without the intelligence of a human being. Rather...
Make it your goal to...
... learn about money, and how to invest and use it to multiply.
I do not remember how I got started but after a while I started searching for money earning opportunities on the net. I would sit and search for long hours every day. I would search till my eyes get sore. I was wasting my time but I did not know. Everyday I would search and click new sites. Making money ideas by Victoria, Duvet Dollars. See my Duvet Dollars review here!
With Google Adwords advertising program, you can make your ad show-up when somebody types in these terms... and you don't even need your own product. There are thousands of retailers that offer you up to 70% commission for every product you sell.
With so many ways to make money online, what is the best way to work from the comfort of your own home without breaking a sweat?
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