Considerations when setting up as a mortgage brokergary
When setting up as a mortgage broker or any business in the post-recession era, it’s important to remember that marketing (we’re talking lead sources) are by far the most important element in the business.
Over the years I’ve seen successful mortgage brokers who struggle massively with product sourcing, technology, compliance and even a couple that could hardly put a sentence together but if you don’t have lead sources you’re pretty much doomed.
Having said that however, you don’t need to be writing £100k a year from day one to make it through the first year, you just need marketing ideas to work on to achieve your goal. It would be fair to call it a “marketing plan” but don’t let that scare you into thinking it needs to be something grand or highly technical. Typically you need to first consider any advantages you might have, sources of self-generated referral business. Do you know any estate agents, or solicitors, IFA’s or accountants, sources of paid referral business? Are you able to put up and promote a website or know someone who can? Have you got any contacts in large or medium organisations, who could maybe pass you leads or help you to get in touch with their staff to offer them a service?
These are all things that will help, but one thing you should remember is you need to be a bit resilient, especially in your first year. If we look at one thing a lot of people say they’ll do but usually don’t for example contacting local possible introducers. The way to do this is to use a spread sheet, trawl through the local newspapers, telephone directories, Yell and Google searches to make as comprehensive a list as possible. Then give them a call and introduce yourself, let them know that you know they might have someone doing mortgages and protection for their clients at the present time but you are dedicated and quality of service is your number one priority. If they’ve got a shop front premises, ask if they would mind if you just dropped off one of your cards the next time you’re passing and if you just gave them another call in a couple of months or so, just to keep in touch.
THEN DO IT!!! Don’t just call one and then leave it. It stands to reason that most established businesses will already have someone looking after mortgages etc., but fortunately the way humans work means that people inevitably fall out, maybe a mortgage broker who has a steady supply of work from an estate agency will eventually take them for granted, or alternatively an adviser with a number of lead sources won’t give a good level of service to the occasional lead they get from a local solicitor since they have bigger introducers?
Other sources of leads include, advertising, friend and family (but you won’t get more than the odd lead here), client bank (once it begins to build) and purchased leads. Purchased leads like any other commodity are of course very variable in terms of quality so it’s always best to try a small number of leads from a few sources to start with, keep a note of the results and then go for the seller whose leads give you the best results. By the way, I wouldn’t necessarily pay too much attention to anyone who tells you that you can’t base a business on purchased leads. In order to do so there is an obvious cost for the leads, you need to find the right provider and maximise every lead by which I mean if you can’t do the mortgage then what about a free insurance review, have they got family protection insurance, ASU? This doesn’t just go for purchased leads of course, you should be doing all of these things for all of your clients, read the magic matrix and remember to keep the door shut for competitors!