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Assuming it stays with the same lender, in most cases Broker B gets an up front commission on 10k plus any trail on the full $1.01M. Broker A retains the upfront on the original $1M. If you move to a different lender, Broker A gets a claw back for the $1M, the loan's closed so they'd get no...

Broker B will likely set things up to get all the trail for all loans. Broker A will no longer receive any trail. Why should broker A continue to get paid if you're going elsewhere? It's nice that you do all your stuff through the same broker. They get to provide an ongoing service and they...

The loan might last 25 years or even longer, but not in its original state. How often do you do a top up or a refinance? If you do this via another broker or a branch, the first broker no longer receives the trail.

You're over estimating the trail income, it's usually 0.15% (so it's more like $300 per year, not $500). It's also based on the amount owing, not the original loan amount. The funny thing is, home owners have this habit of trying to pay off their loan, so the trail income reduces. Slowly at...

It's not residual income at all. Most trail books run off within 2-3 years if unattended. Probably 60% of the work and 80% of my paid marketing goes into maintaining my trail income. You might also want to consider what the drop out rate is. It is massive, most new brokers pour a...

I think what Rolf is saying is that you can't judge income by settlements volume. If your marketing costs are low, you have a good arrangement with your aggregator, you can keep your general costs down and you run your business efficiently, $34M can generate a substantial amount of net profit...