"But from the article it appears that both his upfront and trailing commission is based predominantly on recent loans written. This essentially converts the franchisee into a door to door salesman, whereby his income cheque is only as good as his most recent sales. "
Remember that most loans are refinanced after a couple of years. The trail commission stops when the loan is discharged which means that brokers will receive about two years of commission on a given loan, or thereabouts. This isn't really the fault of MOC, and given that brokers do very little after the loan is written the fact that they get a couple of years of passive income after the fact is actually a pretty sweet deal - at least until you factor MOC's cut of the profits.
MOC Price at posting:
$1.50 Sentiment: None Disclosure: Not Held
