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.
Keller Williams Dallas Premier
Direct: 214 503-8563