In most industries the Internet has led to a decrease of the average man, with many companies able to use the Internet to sell directly to consumers. Instead, websites that offer price comparisons and tender applicants have flourished to shop around for the best price for accommodation, consumables and the like for a single window for price comparisons. Brokerage of financial products have also prospered and the reality is that in most cases it is better to go through an intermediary, which goes directly to a financial services provider.

Here’s why.

(1) Most work for free
How could this be true? Well, not entirely true, it is obvious that he is paid something at some point. What is certain is the general agent, not paid for his time looking for the best product for your needs. They do all the leg work. Financial institutions are not outsourcing the sale of its products – hence must have a large internal sales and support team. Such personnel is a fixed cost (infrastructure and salaries) the need to be funded from week to week, if sales are good or bad. It is often difficult to quickly scale up staffing levels (or down with it) when there is a rebound or a drop in the economy and the increase in sales of financial products and immersion.

Even after all the work is done, you pay no broker, financial institution and that’s saving by outsourcing much of its sales to intermediaries who are not paid a salary, financial institutions are more affordable and lower risk, so they can offer lower prices or offers on their products.

(2) Your agent can probably get a better deal in the very institutions you visit.
Some agents of financial institutions a greater discount on their products to dealers who your direct client, so it could end in a situation where a bank offers a mortgage at 5% if you go direct to them, however, may obtain the same mortgage through a corridor of 4.7%. 0.3% on a mortgage of $ 500,000 over 30 years is a lot of money.

Financial institutions know how much time and effort it takes to shop around for the best prices, then compare, even print all of the fine. However, agents have immediate access to many different products and prices, and are able to quickly compare them.

(3) Financial institutions can offer their products.
When you visit a lender and explain your needs, all I can offer is the product they sell, which best suits their needs. This product may actually be something like the best product for your needs or the best product available .. A broker is not so limited.

(4) If new products are offered by the network – expected to hear from your broker.
It is common for financial institutions to offer deals and special rates for new customers. These agreements are often not available to existing customers. Your agent knows, and that such agreements offer he or she is expected to review its customer lists to see who is able to take advantage of changes in financial institutions and take advantage of special offers.

As a runner myself, I’ve lost count of the number of times someone has come to me, because your financial institution lowered its prices, but not the fall to offer existing members. Many people never find and pay only for the increasing numbers, some of these people did not realize 10 years. That much of the additional payments

(5) When you are applying for certain products, sometimes you get one shot.
Your agent knows what to ask first, and the information to be provided. The problem is that once they have been denied certain types of financial products from these rejections may accompany their financial records and affect your ability to get others in the future.
If I went to a runner on first to ensure that policy applies to the most suitable for you in every way – suitable for your needs, but also those who are more likely to get what they do not stick with the insurance claim denied or living in your record.

(6) Your agent wants a customer for life – but not to maintain catches.
The same applies to financial institutions, but generally kept to a customer in a different way. They rely on your apathy to change financial institutions, or make it difficult to do with production rates, payment penalties, so early, your agent has more to earn more by finding new and better products every few years.

Thus, his agent is looking for products that have no exit charges whenever possible, giving maximum flexibility, if the financial institution selected to do the right thing for current members.

(7) The agent is paid regardless of the product you choose.
And usually, the amount they pay is more or less the same regardless of what product will sell for what your goal is to make the best possible product to keep you as a customer for life and also recommend to all your friends!

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