What The Industry Needs Today

[Secret!]

IN A NUTSHELL ... what we need is the absence of Fraud & Greed and the presence of Ethics & Integrity

[brendo927]

cheers to that....$#$%@% it up for us honest and upfront LO's.

[Erik]

There will always be bad eggs, but eliminating as much fraud and dishonesty as possible would be a tremendous benefit to the industry at large.

[carlo@CreditReportAtlas]

Fraud and Greed is something that will never stop. It's like telling a thief to start giving money to charity.

[Secret!]

There is an easy solution, because the industry is such a cesspool these days. Go back to the pay paradigm that was common prior to 1998 ... for AE's & LO's and that is NO Big gagging commissions - payroll/salary and modest bonuses occassionally - the shift that happened after Black Friday in 1998 brought us commisisoned front line people who work for their own self-interests, putting the customer's second to their commisison checks in MOST cases.

[Erik]

Good luck on that crusade. Might as well try reversing the effects of Katrina and that tsunami while you're at it.

[Secret!]

Originally Posted by Erik

Good luck on that crusade. Might as well try reversing the effects of Katrina and that tsunami while you're at it.

Actually Erik the industry ran just fine without paying originators far more money than their positions are worth; it's only been recently (recently in 'my' memory) that commissions (which brought into the industry hords of used car salesmen) and changed the job description of LO and AE ... and frankly I don't think there are too many people still around who even remember what they're for in the first place - I DO! ... and it AIN'T "sales"

[Erik]

I'm sure it did. I'm just saying I doubt reversing it is possible. The paradigm has shifted, and when that happens it doesn't shift back (not that I am aware of, anyway).

At any rate, the higher level of regulation and licensing requirements around the country effect fraud and the scummier sorts in the industry - things are improving, wouldn't you say?

I just don't think you're going to see drops in commissions anytime soon. And I'm not sure that's a bad thing.

[carlo@CreditReportAtlas]

It's funny how everyone wants to live in a perfect world; just like every single LOs want a perfect lead. Unfortunately life isn't that easy. If there aren't any challenges in life, life would be boring.

Originally Posted by Secret!

. for AE's & LO's and that is NO Big gagging commissions - payroll/salary and modest bonuses occassionally - the shift that happened after Black Friday in 1998 brought us commisisoned front line people who work for their own self-interests, putting the customer's second to their commisison checks in MOST cases.

Secret, as for this comment.. it's so easy for you to say that b/c you already have an established business and income. How about for the new generation that are just starting in this business? Unfortunately gas doesn't cost $0.59 cents a gallon anymore - things have changed and it will continue to do so. So, the payroll/salary just won't cut it. People work for a salary b/c they're not risk takers and they want that secure income weekly or monthly. Commissioned based individuals take the risk on not being able to make money if they don't close a deal to earn the Big Gagging Commissions.

I had two jobs when I started my first business in 2001. I was a bar back, naval reserves and working on developing our email marketing business 6 years ago. I was 23 years old and HAD NO LIFE. Men at that age in Southern California are partying and chasing girls. I was working my a$$ off at 16 hours a day. Thanks to making money through commissions I don't have to answer to anyone. As a matter of fact, I just got back from the gym and I don't have to worry about anyone breathing on my neck or asking me why I'm late. For those folks that work for a salary... too bad.. that's your choice. For the ones that are busting their a$$e$ to make that Big Gagging Commission... more power to you. I was there once and I'm sure Secret was there too so go ahead and get your money. Make as much as you can but make sure you spend it wisely.

[Secret!]

Originally Posted by Erik

I'm sure it did. I'm just saying I doubt reversing it is possible. The paradigm has shifted, and when that happens it doesn't shift back (not that I am aware of, anyway).

At any rate, the higher level of regulation and licensing requirements around the country effect fraud and the scummier sorts in the industry - things are improving, wouldn't you say?

I just don't think you're going to see drops in commissions anytime soon. And I'm not sure that's a bad thing.

A bit of a history lesson for you erik, the concept of paying commission to those people came about when nearly the entire subprime market crashed and burned, in the Fall of 1998. Those few left standing got a wild idea (to capture all the good unemployed works nationwide, and that was to attract them via "commissions." They themselves were seriously weakened, so they were scared to try and attract them with larger salaries (which they thought maybe they couldn't afford) ... so they went the commision way. There was NOT a feeling that commisions would breed better employees, just a method to attract new ones -- it turned out to be a mistake ... it DID breed something ... and that has been GREED and the easy road to Fraud for so many of them. Many of us never made that mistake however.

Thats how it happened in a nutshell.