New Business for Mortgage Brokers
Mortgage broking can be a very lucrative career, as the commissions paid by banks at 0.65% bear almost no resemblance to the actual amount of physical work required for the broker to arrange that mortgage. For any broker the amount of work required for a $100,000 mortgage can be the same as a $1,000,000 mortgage, but the commission will be 10 times more for the latter.
For a well organised broker with good systems and a good administrative team or capability, the total amount of work may involve no more than 2 hours, especially if they deal entirely by telephone and Internet with their client. Hence a $1,000,000 mortgage that generates a commission of $6,500 can produce the equivalent hourly rate of $3,200.
For a favoured broker in a large mortgage broking firm, this can make them very wealthy if they are fed most of the high value clients.
The independent broker will be very unlikely to be picking up $1,000,000 clients regularly, and while they may get the occasional very lucrative payday most of their time will be spent on making sure they have new business coming in through the door. For these mortgage brokers Wanganui the most reliable strategy for new business is to build and maintain extensive networks with real estate agents and builders and developers and banks to make certain that they get a regular supply of referrals and repeat business.
This can be an excellent career for those people that enjoy this type of networking, but it can be hard work and it can result and lean times and a boom and bust experience. For these brokers every new viable client they get is to be worshipped because they may be generating their only income for that week.
The brokers working in the large companies generally don’t have to worry about chasing new business because the company will feed it to them. The large companies are generally heavily invested in promoting their brand and their business, and in 2017 are particularly careful to make sure that the company website is ranking in the top one or two of all Google searches. It is unfair but a fact that 95% of Internet search business goes to companies that pop up on page 1, and 30% of all Internet search business goes to the company that occupies the number one slot. The return on investment for heavily investing in a top website and top SEO is massive if the company ends up in the top three of Google search, as from that point they pretty much do not need to be worrying about winning anymore new business. It will simply be flooding in through the door, and all they have to do pre-screen for dreamers and hopeless cases and then pass the leads on to their mortgage brokers Wairarapa.