Earning $150,000+ in your first year is possible, but there are a few essential elements needed to make it happen.
Following comments made by eChoice’s GM Peter Andronicos about the company’s training program, some brokers responded with scepticism that top graduates could settle/earn as much as was claimed.
Andronicos said that new graduates from eChoice’s training program can settle more than $2m or $3m a month and potentially earn between $140k and $160k in their first year.
In response, two eChoice graduates commented that the numbers stated were accurate and that they themselves were able to consistently settle more than $3m a month.
They did this through receiving 20-30 pre-qualified leads per month and converting these at a strong conversion rate. Additionally, they factored in that there's the chance to pick up further income through the company's referrals programs.
Apart from the eChoice brokers, MPA contacted two of our Young Guns from 2013. Both settled in excess of $35m in 12 months, during their first two years as a broker.
They confirmed that it is possible for hardworking brokers to make more than $150,000 in their first year, but it comes down to being in the right place at the right time, among other things.
“Some brokers do it, but not all,” says Callum Kerr of Aussie Home Loans.
“Someone who is already well-connected in the right circles can do it or somebody who is joining an established business with leads,” he says.
Mortgage Choice’s Fab Mastro says it’s paramount to realise being a successful broker means going beyond treating it as a typical full-time profession.
“Broking isn’t a 9am – 5pm job, it can really consume everything you do, especially if your goals are financially/numbers driven,” he says.
“But once you get through the first 24 months in the industry, you learn how to ‘master your craft’ and maximise your output from the time you put in.”
The importance of strong support
Having strong support and mentoring is the most important ingredient to being successful, says Mastro.
This includes having a successful mentor, administration team, and referral network etc., right from the outset. It comes down to aligning yourself with a team who have a proven and current track record of meeting similar numbers themselves, he adds.
“I would advise anyone new in the industry to take a pay cut and go and work for a successful broking business, as opposed to going out on their own first up and being blinded by the potential returns,” he says.
“The lessons you can learn far outweigh the extra income you could earn and once you’re confident enough, you can then chase the right opportunity.”
Kerr adds that a new broker would struggle to even survive without strong support.
“You can learn bank policies easy enough, but it is all the other day to day items that we do to ensure loans are approved and make it to settlement,” he says.
Paying brokers a salary
Offering brokers a wage works well at the Aussie Home Loans office, but may not for others, says Kerr.
“Wages ensure stable staff, but it has to be the right staff to ensure they are consistent in their work load and settlements,” he says.
“It also improves our customer support, as we assist with other staff member’s customers if there are problems.”
Mastro says that he was comfortable starting life as a broker relying only on the commission, though he acknowledges this may not be for everyone.
“Not only did it accelerate my learning, as I never had a wage to rely on, but it ensured I continued to stay hungry to maximise my results,” he says.
“On top of that, it taught me good habits from day one – no loan is too small and you’re always looking for another opportunity, as opposed to maybe only realising that 12 months into your role.”
Related:
Why paying new brokers a salary works
Do you have any advice for brokers looking to settle in excess of $3m a month? Share your thoughts below.
Andronicos said that new graduates from eChoice’s training program can settle more than $2m or $3m a month and potentially earn between $140k and $160k in their first year.
In response, two eChoice graduates commented that the numbers stated were accurate and that they themselves were able to consistently settle more than $3m a month.
They did this through receiving 20-30 pre-qualified leads per month and converting these at a strong conversion rate. Additionally, they factored in that there's the chance to pick up further income through the company's referrals programs.
Apart from the eChoice brokers, MPA contacted two of our Young Guns from 2013. Both settled in excess of $35m in 12 months, during their first two years as a broker.
They confirmed that it is possible for hardworking brokers to make more than $150,000 in their first year, but it comes down to being in the right place at the right time, among other things.
“Some brokers do it, but not all,” says Callum Kerr of Aussie Home Loans.
“Someone who is already well-connected in the right circles can do it or somebody who is joining an established business with leads,” he says.
Mortgage Choice’s Fab Mastro says it’s paramount to realise being a successful broker means going beyond treating it as a typical full-time profession.
“Broking isn’t a 9am – 5pm job, it can really consume everything you do, especially if your goals are financially/numbers driven,” he says.
“But once you get through the first 24 months in the industry, you learn how to ‘master your craft’ and maximise your output from the time you put in.”
The importance of strong support
Having strong support and mentoring is the most important ingredient to being successful, says Mastro.
This includes having a successful mentor, administration team, and referral network etc., right from the outset. It comes down to aligning yourself with a team who have a proven and current track record of meeting similar numbers themselves, he adds.
“I would advise anyone new in the industry to take a pay cut and go and work for a successful broking business, as opposed to going out on their own first up and being blinded by the potential returns,” he says.
“The lessons you can learn far outweigh the extra income you could earn and once you’re confident enough, you can then chase the right opportunity.”
Kerr adds that a new broker would struggle to even survive without strong support.
“You can learn bank policies easy enough, but it is all the other day to day items that we do to ensure loans are approved and make it to settlement,” he says.
Paying brokers a salary
Offering brokers a wage works well at the Aussie Home Loans office, but may not for others, says Kerr.
“Wages ensure stable staff, but it has to be the right staff to ensure they are consistent in their work load and settlements,” he says.
“It also improves our customer support, as we assist with other staff member’s customers if there are problems.”
Mastro says that he was comfortable starting life as a broker relying only on the commission, though he acknowledges this may not be for everyone.
“Not only did it accelerate my learning, as I never had a wage to rely on, but it ensured I continued to stay hungry to maximise my results,” he says.
“On top of that, it taught me good habits from day one – no loan is too small and you’re always looking for another opportunity, as opposed to maybe only realising that 12 months into your role.”
Related:
Why paying new brokers a salary works
Do you have any advice for brokers looking to settle in excess of $3m a month? Share your thoughts below.
