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Build your retirement income through RMA profit sharing!
At RMA, our Senior Consultants are encouraged to build residual incomes for themselves. We have several programs available to help you along the way.
- Profit-sharing Bonus
- Trailer Fee Income
When we did our survey of senior consultants in early 2006, one of the points that repeatedly came up was the lack of an “income safety-net” in the mortgage brokerage industry for consultants. Building equity in your mortgage business was extremely difficult. For example, as consultants, we arrange mortgages for clients through our lending partners. However, once that mortgage funds, the client now has 2 options available for any future mortgage requirements. The first option is to come back to you for refinancing and renewals or contact their lender for the same services. When those clients go back to their lender, the consultant had no further compensation. This means that, most often, you were constantly looking for new clients and new mortgages to create income for yourself.
The RMA Profit Sharing Solution
At RMA, we addressed the issue of the “lack of an income safety-net” by combining our need to grow with your need for on-going income. We have implemented a program whereby, if you, the Senior Consultant recruit another Senior Consultant to RMA, you receive 27.78% of the Payroll Processing Fee that is paid to RMA by that recruit. To put it into dollars, Senior Consultants pay $750/month for Payroll processing. Annually, this amounts to $9000. You, as the recruiting consultant get $2,500 from the $9,000 or 27.78% EVERY YEAR that Senior Consultant continues to stay with RMA.
This program is a fantastic way of establishing a safety-net for your income. Think about this…. If you recruit 4 Senior Consultants to RMA, you earn $10K per year ($2,500 X 4 = $10,000 annually). This means that own Payroll processing fee ($750 X 12 = $9000) is completely paid for by your profit-sharing. You could work with RMA, get 100% of the Finder fee and 100% of the Volume Bonus and your only operating costs would be your credit bureau charges! Do you know 4 other Senior Consultants that might be interested in earning 100% of finder fees and VB? If so, contact us asap.
Now, here is the best part, even if a few you leave RMA (and I can’t imagine why you would) you will continue to receive the $2,500 per year for as long as the Senior Consultant that you recruited, stays with RMA. This is a true, residual income. It follows you regardless of where you go….
Contact us for a confidential discussion about the RMA Profit-sharing program
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Trailer Fee Income
Over the last couple of years there have been a couple of lenders that have a compensation model that includes trailer fees. When we refer to trailer fees, we are also including payments made to the broker firm when the mortgage renews and residual payments on MORTGAGE LIFE INSURANCE. This form of compensation theoretically, allows mortgage consultants an opportunity to develop a long term income stream. However, many broker firms have abused this program and are using it as leverage to keep their consultants. “If you leave the firm, you leave the trailer behind” is a common philosophy that's maintained by many broker firms.
In our opinion, this practice shows a lack of consideration and respect for the consultants who are the primary reason for the organization being around in the first place. The correct answer should be a WIN/WIN for both the organization and the consultant. At RMA, we endeavour to create value in a working environment where consultants want to stay, not, forced to stay. Being forced to stay with an organization that you're not happy with, leads to de-motivation, burn-out and a host of other issues that will eventually destroy the whole organization. In effect, it's like a cancer that begins with a small tumor and then spreads to the rest of the body.
The RMA Trailer Fee Program
At RMA, we believe that Trailer Fees, similar to Profit-sharing income, should follow the Senior Consultant. That’s why, we establish right in our contract how the trailer fee income you earn, will continue to be paid to you, whether you’re with RMA or not. Contact us and we will email you a copy of our contract for you to review how we pay you, your trailer, residual and renewal income.
MacQuarie now has the option of selecting the trailer fee as an up-front payment on the initial term of the mortgage. Instead of the basic program of 75 basis points finder fee and 8 basis points annual trailer fee, you can choose to get the 75+25 basis points finder fee for a total of 100 basis points immediately. RMA has no restrictions on which program the senior consultants choose to participate in. An RMA senior consultant choosing to take the up-front program, at time of mortgage renewal, will receive the renewal commission and the ongoing trailer fee even if the consultant is with RMA or not. It's in our contract!
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