Do you pay trainees a salary while they learn? Here are some compelling reasons to do so.
Starting a new job without the security of a full-time salary is something many mortgage brokers are all too familiar with.
But one mortgage broking firm has seen the benefits of avoiding this trend.
eChoice has developed a graduate program which offers trainees the opportunity to earn a full-time salary while they learn.
The program involves the graduate being accredited and progress from learning how to qualify, manage, book and sell a phone appointment, to going out and making deals to the tune of about $2m to $3m a month.
During the training process, the salary figure they earn depends on the experience of the broker, but it usually ranges between $45,000 and $50,000.
“But on top of that, as they are setting appointments they get commission on that as well,” says Peter Andronicos, GM at eChoice.
“So the OTE for them during that period would probably be a pro rata salary of probably $60,000 to $65,000.”
Transitioning from the salary to commissions
In the first three months of actually going out and doing deals, the graduates don’t get a commission on any deals they make. They then progress from the salary to commissions in the fourth month.
“But at the end of the three month period they should have a pipeline of $2m to $3m that should settle in month four,” he says.
“They will no longer need their salary because they will actually make more in that next month with the pipeline they have built up in that three month period.”
Andronicos believes that the security of the salary is not a barrier for graduates being hungry for business success, because they are made aware of the process and timeline from the get-go.
“They are aware that after that three month period they are out on the road and they are on their own,” he says.
“If it comes to a point where it was a bad time of the year and the consultant needed an extra month, we keep them on for an extra month.”
The results
The top graduates of eChoice’s program can make between $140,000 and $160,000 in their first year, says Andronicos.
“We’ve already got a couple of them who have been voted the new broker of the year, rookie of the year, by different industry bodies and by different lenders,” he says. “So the process works.”
Andronicos believes this program not only helps new brokers, but the longevity of the business's brand.
What are the best ways to attract and train quality brokers? Share your thoughts below.
But one mortgage broking firm has seen the benefits of avoiding this trend.
eChoice has developed a graduate program which offers trainees the opportunity to earn a full-time salary while they learn.
The program involves the graduate being accredited and progress from learning how to qualify, manage, book and sell a phone appointment, to going out and making deals to the tune of about $2m to $3m a month.
During the training process, the salary figure they earn depends on the experience of the broker, but it usually ranges between $45,000 and $50,000.
“But on top of that, as they are setting appointments they get commission on that as well,” says Peter Andronicos, GM at eChoice.
“So the OTE for them during that period would probably be a pro rata salary of probably $60,000 to $65,000.”
Transitioning from the salary to commissions
In the first three months of actually going out and doing deals, the graduates don’t get a commission on any deals they make. They then progress from the salary to commissions in the fourth month.
“But at the end of the three month period they should have a pipeline of $2m to $3m that should settle in month four,” he says.
“They will no longer need their salary because they will actually make more in that next month with the pipeline they have built up in that three month period.”
Andronicos believes that the security of the salary is not a barrier for graduates being hungry for business success, because they are made aware of the process and timeline from the get-go.
“They are aware that after that three month period they are out on the road and they are on their own,” he says.
“If it comes to a point where it was a bad time of the year and the consultant needed an extra month, we keep them on for an extra month.”
The results
The top graduates of eChoice’s program can make between $140,000 and $160,000 in their first year, says Andronicos.
“We’ve already got a couple of them who have been voted the new broker of the year, rookie of the year, by different industry bodies and by different lenders,” he says. “So the process works.”
Andronicos believes this program not only helps new brokers, but the longevity of the business's brand.
What are the best ways to attract and train quality brokers? Share your thoughts below.
