I Want To Make More Profit

My profit is not as high as it could be…”

What is the biggest cost in your business?
Is it your aggregation fees?
And are you getting value for money?

Profit is a matter of improving your revenue, and reducing your costs. However, brokers are giving up too much of their hard earned commission to their aggregator, and it is impacting their bottom line.

The introduction of NCCP and licensing requirements have brought with them significant amounts of red tape and raised the cost of running a broking business. At the same time, lenders have reduced commissions but increased the number of boxes that a broker must tick in order to get paid.

These developments have contributed to a much tougher lending market, and brokers need to be more aggressive and strategic in the way they conduct their business. They need to look for new ways to improve their bottom line, and find an aggregation partner who will support their growth.

The need for a fair model

The premise of a commission-split model is that the aggregator takes a cut of what the broker earns – therefore resulting in a seemingly mutually beneficial relationship. The truth, however, is far from it. With the commission reductions of 2008, brokers are feeling the squeeze and recognise the commission-split model as unfair and unreasonable.

It is key to point out here that under a commission-split model, your current aggregator shows you what you get at the end of each month - NOT what they take away!

If you have a great month – the amount of commission you pay to your aggregator increases, so how can you ever hope to get on top?