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Jessica Darnbrough
The commission only model could be seen as a barrier to new entrants joining the broking industry according to one major brokerage.
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Speaking to The Adviser, Bernie Lewis' chief executive Stefan Lipkiewicz said if businesses were serious about attracting new blood to the industry, then they need to make the industry more appealing to a broader range of people, particularly graduates and young professionals.
"About two years ago we introduced a salary model as we were finding it difficult to recruit quality people into our business," he said.
"Many of these people were working in banks or other advice businesses and were being paid a salary and were hesitant to take a commission only move"
"Today, we have a really healthy mix. Approximately 40 per cent of our advisers are paid a base salary.
"The base salary is really competitive and we offer unlimited bonus potential for performance against balance KPI's. We think it is a key component of any model of the future."
Mr Lipkiewicz said few industries offer commission only positions.
As such, mortgage broking needed to evolve with the times and offer salaried positions.
"Ultimately, there will always be businesses that attract people on the commission based model. But if you want to enhance your ability to attract young guns to the industry, you have to be prepared to support them in the early years with a salary"" he said.
"In the long term we have found that the salaried brokers understand that we provide them with significant establishment support and they look forward to being strong contributors to the business in the longer term".
