Why my first 7 brokers missed out on over $1M in up front and trail commission…

Now I am sure most of you have heard my story that over the last 20 years I have bought 10 properties and used 8 mortgage brokers to get me those loans?

If you do some rough sums on the upfront and trail commissions you’d be sitting on as my first broker, you’d calculate a six figure upfront commission experience and a trail income that is more than the average Aussie wage.

Not only have I used brokers for my own finance, I have referred hundreds of clients to brokers (when I was a real estate agent) – including my friends and family.

If you add that up we are now talking about a seven figure commission and trail experience!

So even though I enjoyed meeting and gaining finance from all of the brokers I used and referred clients to, only 2 of them ever stayed in touch with me.

One of them, I purchased this business from, and the other I sold our marketing program so she would stay in touch with me (or her other clients at least).

So if someone like me – who started out as a high school teacher in Adelaide – can end up buying 10 properties (after a few career and location changes) and referring hundreds of people to brokers, then how many people are in YOUR loan book who have lost your details and have gone back to the bank or moved on to other brokers?

My guess is perhaps a few?

So what could John, my first broker, (or any of the others) have done to keep my business and get all of my referrals?

1.    At our first appointment make sure I have added his mobile phone number into my phone. (Yes, we did have mobiles back then!)

2.    Asked me at our first meeting what my future plans were… and that was to keep buying properties as often as I could afford to, so I would have a financially secure future. Then…

3.    Call me once a year for a review chat OR just a call to see how my plans are going.

4.    Keep me updated on investment opportunities or educate me on how to invest, pay down my mortgage, use my equity or many other useful tips for getting ahead.

5.    Introduce me to a great accountant (it took me nearly 20 years to find one of those) who understood property investment, structuring and tax minimisation.

6.    Make sure I had adequate insurance to cover my debt in the event of illness or injury.

But… essentially all he had to do was stay in touch and be top of mind when events and circumstances changed in my life. Sounds easy doesn’t it?

Well you know what? It’s not as easy as it sounds. I now understand that.

Being a broker these days is such an all-consuming job with enormous amounts of administration, regulation, changes and updates that it is really, really hard to also stay on top of your education and contact with your clients.

That’s why most brokers outsource their marketing and client communication.

Now if you were to consider outsourcing this component of your business, then who can you trust to understand what your clients need to know such as:
•    what events are happening in your clients lives that will trigger them to call you, and
•    how to get referrals from all your clients?

Being a smart business owner/operator, you would expect to only trust a team of people:
•    from all age brackets and demographics
•    who have used banks and brokers
•    who have events happening in their lives every single day that require finance solutions
•    who understand what it takes to be a broker and how hard it is to do everything yourself, and
•    are trained in the art of exceptional customer service

AND
•    Who work for the best marketing company in Australia specialising in marketing and client communication for the finance industry?

We are hoping the decision is quite clear.

If you are:
•    concerned about not staying in touch with your clients and referral partners, or
•    have a poor or a less professional communication program than your business and your clients deserve

OR

If you are:
•    overworked
•    time poor
•    customer centric
•    needing better results and engagement from your efforts

then it would be a great idea for us to have a chat.

We understand what you need, because we ARE YOUR CLIENTS.

Call for your FREE client marketing health check today on 1300 926 000. We will give you an honest appraisal of your marketing and lead you in the right direction for effective improvements for your clients and your business.

After all,  doesn’t YOUR CLIENT deserve the best?

Looking forward to hearing from you…

Deena and YOUR YCM MARKETING TEAM

 

The young diamonds of the industry

YCM has been working with many new entrants to the industry over the last 2-3 years. Those we meet aren’t necessarily ‘young’ but they are ‘young’ in the world of finance. What we LOVE is that they are full of optimism, enthusiasm and open to ideas. AND they work hard. What can we ‘veterans’ of the industry learn from our new colleagues?

I’d like to introduce to you Carl Violeta from Violeta Finance.

I met Carl last month at an AlphaBroker Mentoring (mentee) PD day. Carl was recognised as the top achiever for the year so I was interested to find out what made him tick. What does he do that is different to other new entrants (AND existing brokers)? How can we all learn from this motivated and energetic young man?

Carl has been a broker for under 2 years and is nearing completion of his mentoring. He worked full time running a sales agency in the rag trade during his first 12 months – he spent that year learning about the finance business and what he needed to do to become a GREAT broker. In the second 12 months he developed his ‘sales system’ and is now enjoying the lucrative and personal benefits of being a broker.

“My career change was triggered by events in my previous business in 2013. My clients were closing their premises. It was becoming harder to service clients. I could see the business was not sustainable long term so I started looking for other business opportunities and came across mortgage broking.”

Your biggest challenge entering the finance industry?

It was really hard running another business while trying to learn and build a mortgage broking business. There was a lot of after hours’ activity and weekend commitments in my first year just to keep up.

If you had your time again, what would you do differently?

Bite the bullet and jump right into it full time. I did this in February 2015 and I wish I had done it earlier. With 100% focus on your broking business you build momentum a lot quicker and see results sooner. When you commit to full time, you can build the relationships you need to gain referrals and respond to emails and calls in a timely manner. Overall you present better as a broker and that’s important.

What stopped you from doing this sooner?

Cash flow. I had to make sacrifices when I decided to go full time. I didn’t have an established pipeline or any referral partners and I really didn’t know the finance industry that well so I was very apprehensive. When I decided to just do it, from then it was full steam ahead.

So what did you do differently?

February was good timing for me – it all fell into place. I joined a 28 day challenge with my mentee group to meet one new person every day. It was really hard but through that challenge I met an accountant with a shop front. She asked me to move in to her office so I left my home office and did so. I did lots of networking and met many people including real estate agents (now some of my biggest referrers), solicitors and conveyancers. I worked hard, got my name out there and went to many open houses on weekends. I usually get 1-2 good leads on a Saturday.

Carl, most brokers tell me you can’t work with real estate agents. What would you like to say to them?

For me, success came from targeting smaller boutique agents. They were similar in age and attitude to me in regards to customer service and helping people. Other agents just selling product would end up stuffing me around and wanting me to work onsite and get leads FOR THEM. I’m into adding value to the client – not just selling them something.

Having a record month in November, what was the real key to your success last year?

It was 2 main things really:

    1. Just getting out and meeting people. Get out of the office was my mantra. You don’t meet people sitting at your desk waiting for the phone to ring. I’ve participated in a few community events, sponsored a local dance school open day and handed out lots of balloons (with my business name on it) to many kids. I’m a big fan of charity.

 

  1. Consistency and discipline. I consistently attended open homes, meeting 50-100 people every Saturday. These people were all future prospects for home loans. Some already had pre-approvals or were using other brokers but many still didn’t know how much they could borrow or even the process of borrowing money.

The Melbourne market kicked into gear after winter with more buyers in the market. I also attended auctions and was disciplined in my commitment to meet new people every day – I consistently meet at least 300 new people per month. I’m not only getting leads for now but also for the future. There are many facets to being a broker but you can’t write business without meeting new people. I love talking to and helping people. If you can do that, the sales will automatically follow.

Any final tips for our readers?

Outsource what you’re not good at.
(YCM likes that one!)

Get some affiliate partners to help you with referrals.

Focus! Get out of the office.

What an outstanding example of what it takes to succeed as a broker. I think there is a lot for ALL of us to learn from your story. Thank you for sharing Carl. Congratulations! We look forward to seeing your name up there in the industry awards.