What Banks Should Learn from Playboy.

By
Real Estate Agent with Bill Cherry, Realtor 0124242

 

 

I asked in the question and answer forum of ActiveRain if it would be better for their customers if banks were to pay a salary to those who market the bank's financial products like mortgages and equities, rather than a commission.

 

Most of you said you thought it was better that they remain on commission.  And maybe you're right.

 

I worry about customers' interest taking a back seat to the bank officer's want of the commission.  I wonder how many inappropriate equity products and mortgages are sold to customers that wouldn't be otherwise?

 

There is a lesson here that Hugh Hefner figured out and taught when he was putting together Playboy's Playboy Clubs back in the late '50s and the '60s.  I think the logic might be useable to banks.

 

Mr. Hefner knew that if his clubs appeared or turned out to be dens of licentiousness, wives and girlfriends would stop their men from being members.  What to do?

 

He made sure that the "bunnies" earned so much money that they couldn't afford to chance losing their jobs.  You see, there was a line of pretty girls a mile long waiting to take the job of the bunny who didn't follow the rules.

 

Here's a link to the story that was written about me by KMOX in St. Louis.  I was a jazz pianist in the St. Louis Club. It tells my involvement and what really happened in the Playboy Clubs.  Click here.

 

Perhaps banks should pay high salaries to those who sell their products, then hold them to a written policy of proper dealings with the customers, just like Mr. Hefner did with his bunnies.  The banks could get better officers, and could, in general, be proud of  the banking experiences their employees were providing the bank's customers.

Bill Cherry
Realtor-Broker

Since 1966

Keller Williams Dallas Premier

Direct: 214 503-8563

BillCherryRealtor.com

 

 

 

http://activerain.com/blogsview/2524348/kmox-interviews-me-as-a-former-pianist-at-the-playboy-club

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Rainmaker
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Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Bill, You're dreaming. Bank emplyees have a first allegiance to the bank, not to the customer. Even the use of the word "customer" instead of "client" says it all.

Bill Roberts

Jun 17, 2015 12:44 AM #1
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Bill - Of course you're right. But that would require the banks to actually care, which they don't. Yet we still trust them with our money - go figure.

Jun 17, 2015 02:01 AM #2
Rainmaker
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BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

I actually made home loans and commercial real estate loans for about 10 years.  I was paid a salary as were all of the other loan men.  That's the way it had been done since the beginning of time.

I don't know when this commission stuff came into play, but I think it was a mistake.

I would have never, ever made a stated income loan.  Period.  And I wouldn't have done it had I worked on a commission.  But those who worked on commission took the chance, and they about drowned home lending in the process.

But then the temptation was great....if I make these loan, I get $xxx to feed my family, buy a new house and a Lexus.  Not a hard rationalization.

It also jams up the system with loan applications that any moron can see will never be approved, but "just what if this one works?"  So good loan applicants sit around waiting for the staff to have time to properly and expeditiously process their home loan.

 

 

Jun 17, 2015 02:31 AM #3
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Interesting idea, Bill. One would think banks have a fiduciary to their customers, but they don't. p.s. What a great history you have of playing jazz piano in St. Louis! 

Jun 17, 2015 04:57 AM #4
Rainmaker
195,769
Jill Moog
Coast & Country Homes and Estates, Inc. - Carlsbad, CA
Carlsbad, CA Homes for Sale

Very interesting Bill! I agree with you 100%.  As we all know. commissioned jobs can be unstable at times - people will do what they need to do when desperate.

Jun 17, 2015 05:39 AM #5
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

There are many salaried bank reps that give bad advice. 

 

Jun 17, 2015 07:09 AM #6
Rainmaker
680,255
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I like the principle that commission establishes; you get out of it what you put in to it. Salaried employees will generally get lazy over time and not work to their potential. They're incentive is to do just enough to get by and fly under the radar. Commission is survival of the fittest. You have to stay hungry and motivated when you're on commission. 

Jun 17, 2015 07:20 AM #7
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Thanks for your comments.  Nicole, you have a popular point, although I don't agree with it, thanks for posting it.

 

Jun 17, 2015 07:24 AM #8
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

BILL CHERRY It's rare that bank employee go above and beyond to help 'customer'!

I am sure they must have done the research and hence the existing model to pay the 'employees'.

Jun 17, 2015 02:43 PM #9
Rainmaker
2,845,500
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Well, it was your title line that grabbed my attention, Bill!  But, must admit I never knew that history of Hef's business plan with the bunnies.  How smart is that!

Jun 17, 2015 10:20 PM #10
Rainmaker
393,656
BILL CHERRY
Bill Cherry, Realtor - Dallas, TX
Broker & Wealth Coach

Hi, Myrl,  I've kept in touch with Mr. Hefner throughout the years.  The last time I heard from him was about 8 months ago. People would be surprised at how very bright he is.  Thanks for reading my post.

Praful, in some venues, commissions and bonuses ironically encourage bad behavior.  I believe this is one of them, and recent history seems to have proven my point.

Jun 17, 2015 10:34 PM #11
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