Thanks for taking the time. I would like to know if this scenario is fair/reasonable: I recently landed a marketing agreement with one of my areas top teams to work their leads/buyers that are sourced through an online lead generation website. Projections for leads converted to loans through this source is approximately 7-8 units at roughly $185,000 avg. loan amount. My company has agreed to foot the cost of the marketing agreement and give a 10% haircut on our commission for loans sourced through this systerm. It is important to note that I have previously worked this system/team w/ another company. Is it fair, since I sourced the relationship/marketing agreement to ask for 10% of the two loan officers commission for loans converted through this system? Is this too much?
If it were me as a LO, and my employer handed me this relationship and leads but asked for a 10% haircut on commissions, I would be jumping for joy. I think the bigger issue may be the compliance aspect of it, and that's a matter I am not qualified to give legal advice in.
I think what you are getting at is that you want a "finder's fee" as well for arranging this agreement. Since other LO's are benefitting from your work you would like an override as well? Is that right?
I'm not sure on the legality of things here, but if your company is footing the bill for the arrangement then they are definitely entitled to clip the commissions to recoup their investment. That is par for the course. From your perspective, you feel like you deserve some extra consideration since you did the legwork in making the arrangement. Not sure if the over-ride is permissible, however under your individual comp plan you could ask not to be clipped on loans that you personally originate. I would think that would be fair.
Good question and let us know what happens!