Broker course

I'm in banking too (credit). it's all or nothing. My contract has something about it, and also a very strict social media policy, would make gaining new business hard. Tbh, probably breaching social media policy now! (Tut tut).

When it comes to the courses, is Kaplan any good for RPL? I keep finding myself looking at doing the course when I find time.

 

+1 for AAMC correspondence course.

Had to look that one up. The 80/20 rule is everywhere.

Yes, mot lenders are fine with it and if not then get a colleague to lodge for you and redirect commissions back to you as a "referrer". Just got an application approved with the CBA for a retain and build development

I think a lit of people do think it is easy but the stats say differently. 70% do not last more then 2 years in the industry and 80% that do write less than 1.5 mill / month.

Its an all or nothing proposition imo and you bank wouldn't allow it anyway.

I had no banking background, referrers or clients when I started out and I made it. I reckon 1% would be in this category as most have a banking and finance background from what I can see.

Just do it!

 

The MFAA published an interesting report a few weeks ago regarding broker benchmarks. It covers income, volumes, growth rates, etc. It's very revealing and should be required reading for anyone considering entering the industry. A copy of the report is attached below.

Nationwide, the report states the average income is $83,000 in upfront commissions and $59,500 trail (page 21). Total of $142,500, but this needs to be put in context as it's gross, not net income.

Most aggregators will take 20% before the broker even sees it. Now the income is $114,000 actually delivered to the average broker.

Assume 20% of the income goes into marketing, $92,200.

Memberships, communications, compliance, training, travel, workcover. If this costs only $15k you're getting off lightly. $76,200.

You'll pay BAS on the remaining money. $69,273.

$69,273 is roughly the average broker income. Certainly there are the top 20% of brokers that earn a lot more, but for each of those, there's probably three brokers that earn less and one that earns about the average. I guarantee that if you approach it part time you'll be in the bottom 10% - those that earn nothing.


I have a client who works in a bank as a credit assessor. Her base salary is $91k + super. She also gets annual leave, sick leave, maternity leave. If you're thinking of joining the broker industry to make a heap of money, you'd better understand how you're going to get clients. Otherwise go work for a bank.

 

Working in a bank is a great start but taking the leap into small business is like going from grade 1 where everything is done for you straight to university where you have to make it all happen.