Written By: Karen Deis - Thanks to all the loan officers who shared their unique commission split structures. If you want to keep the conversation going, please email me your commission structure - Karen@LoanOfficerMagazine.com.
I recently read an article about a “network” of people (within the same industries) who consistently share their income, negotiating strategies, bonuses, benefits, incentives, and commission splits with each other.
But here’s the astounding part…one of the groups (whose income was earned thru commissions) earned an average of $200,000 (each) more in income (over a 2-year time period) just by comparing notes and negotiating tactics.
So, I conducted an informal survey with loan officers and company owners, who shared how they got paid.
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Just a quick personal story here about what I mean: One of the benefits with the company that I worked for was reimbursement of seminar fees and expenses. I had to pay for the seminar out of my pocket and then the company would reimburse me. BUT – and here’s where the rub came in—I found out that some of the other loan officers DID NOT HAVE TO PAY for the seminar upfront (and be reimbursed later). The company issued a company check. While my money was tied up for several months (waiting to be reimbursed), their money was not! Yep, sharing just this one “inequity” made me hundreds in interest income because I did not have to advance my own funds or any credit card interest!!
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Some are complicated—others are really simple. Some have huge commission splits—others do not. For example, I compared 2 commission structures, using $500,000 in dollar volume, representing just 2 closed loans, and there was a difference of $3,050 MORE (in commission) with one versus the other. However, one had company paid benefits, the other did not!
And here’s your challenge. Take a look at last year’s income. Using some of these commission models, figure out how much more you could have made by knowing what others are getting paid. You could give yourself a raise, based on exactly the same production level, if you only knew how others are getting paid!
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