It’s no secret that the mortgage broker industry is booming. With so many people looking to buy a home, there’s never been a better time to get into this business and start making some serious profit! However, if you’re new to this industry or aren’t sure how to grow your mortgage business in the long term, here are some things you should know about how to grow your mortgage broker business in today’s climate…
5 Reasons Why a New Mortgage Broking Business Will Usually Fail
First of all, it’s important to know why new mortgage broker businesses fail. How can you avoid making the same mistakes as everyone else? Here are some things to consider…
- Lack of planning and preparation – How can you start a new business and expect it to succeed without putting together any kind of plan? How do you know where your market is, what the competition looks like, how much money you’ll need to get started or even who your ideal client is? It’s all about planning.
- Poor marketing and lead generation efforts – the most important ingredient of a great business, if not done correctly, will lead to failure. How can you expect people to work with your mortgage brokers if they don’t even know about you? How do you get new clients coming in the door and keep them happy once they’re there?
- No USP (Unique Selling Point) – It’s hard to stand out without a unique selling point. How can you expect your clients to choose you over someone else? How do they know that what you’re offering is better than the competition?
- Poor system and processes – Systems and processes are how a mortgage business can stay efficient and on top of things, which is crucial for business growth.
- Lack of capital – How can you grow your mortgage broker business if it’s constantly running out of cash flow? Not good!
After reading about the mistakes most new businesses make, you’re probably wondering how can I avoid these mistakes and grow my mortgage business the RIGHT way?
Your Mortgage Brokers Business Plan
Tony Robbins said “The quality of your questions determines the quality of your life”. It’s important that you ask yourself the right questions if you are going to grow your business effectively.
What is Your Target Market and Who is Your Ideal Client?
When thinking about who your potential customers are, you need to ask yourself – who is my ideal client? How old are they? What kind of income do they have and what are their spending habits like? How much can they afford to borrow and how long will it take them to pay off the loan?
Also try thinking about your target market in terms of demographics; age group, gender, location and income level. How many people are in this market? How big is the market opportunity for me to tap into? How can I reach my target audience with through marketing efforts, where do they hang out?
It’s also a good idea to go through your own customer list (if you have one) or think of past clients that could use your services again.
Which Location Will You Focus on First?
When it comes to your location decision, it’s a good idea to start with where you’re most comfortable. How much time do you have available and what area are you most familiar with? How big is the market opportunity?
You can either choose to focus on one location or multiple locations – but only if your business can handle it (and cash flow permitting).
How Big Are You Aiming to Grow Your Mortgage Business?
It’s great to aim big but at the same time, it’s important to be realistic about where you’re at right now. How big can your business realistically become? How much money do you have available for marketing and expansion efforts?
Do not underestimate yourself, but don’t bite off more than you can chew either! Keep in mind that growing a mortgage brokerage takes time so the best thing is to set realistic goals and keep working at it.
What are Your Plans for Long Term Growth?
In order for your business to be a breakthrough, you need to have a long term growth plan. How do you expect your mortgage business to grow over the next few years? How much money will it take for this expansion and what are the revenue projections like?
Measurable Data to Make Data-Driven Decisions
What steps are needed in order to achieve your goals? What activities can be planned that would help facilitate this process? KPI’s need to be set. How will you measure your progress and success?
Take a look at what steps need to be taken in order for this plan to come to fruition. How can each step be broken down into sub-steps or milestones that would lead up to achieving the bigger goal? How do these little goals add up so they help support your overall mission and vision for your business?
Marketing Your Mortgage Business the Right Way
To market your mortgage broker business you need to cut through the noise and reach the right audience. How can you make your business stand out from the crowd? How do you get customers to visit your website and choose YOU over the competition?
How will this be measured in terms of numbers (new leads, customer data, conversions etc.)? How does each step support making it easier for new customers to find you? These are all questions you should be asking yourself before investing in any advertising.
Top tip: look to get help from a digital marketing company that specialises in helping mortgage brokerages grow fast! They will know what works and be able to answer questions that you may waste a lot of time trying to work out yourself!
The Importance of Consistent Lead Generation for Mortgage Brokers
It’s great to have referral partners and word-of-mouth as EXTRA sources of leads, but they should never be relied on. You need to constantly network in your industry and ensure that new loan applications are always coming in and that there is a steady stream of potential clients. How are you going to get this? How can you be sure it’s consistent enough for your business model?
What will the lead sources be (website, social media platforms etc.)? How does each source help drive new people into your mortgage brokerage door and what steps need to be taken to increase their effectiveness? How will these sources support your overall strategy and be a consistent lead source for you?
‘Quality Over Quantity’ With Lead Generation in the Mortgage Industry
There are a lot of lead generation companies that claim to help with getting you more leads, but you need to know that they aren’t being sold off to other mortgage lender companies. How are you going to know?
The only way is to choose a digital marketing company that offers a personal touch, know how to generate quality leads and offer some kind of guarantee on your lead quality.
Maintaining Relationships With Current and Past Clients
You want to make sure that your customers know that you are interested in more than just a mortgage application process. How will you follow up with them to make sure that they are happy and satisfied? How can each step be measured in terms of client satisfaction, retention etc.?
How does this support your overall strategy for long term growth? How do these little steps add up so it helps achieve the overall goal? These are all questions that need to be considered. Relationships are the key to more referrals and for your business to be taken to the next level.
Nurturing Prospective Clients and Existing Clients
The more time you spend nurturing relationships, the longer they will last. How can you measure your success in terms of customer satisfaction and retention? This is especially important with investors as they are likely to come back to your company for their next property purchase.
Another important reason for building relationships with your clients is to find out more information that will help you with your messaging when creating content for your landing pages, website and other foundational assets.
Most people will be happy to share this with you as long as they know that it will only help improve your service and their overall experience. How can you best utilise this to support the sales funnel? How does each step contribute towards growing your mortgage brokerage business?
The better you know your clients, the more you will stand out as a trusted lender in your industry.
Standing Out to Your Customers With a Strong USP (Unique Selling Point)
When it comes to standing out in this industry you have to come up with something unique…you have a lot of competitors.
Of course, if you can be more of a one-stop-shop and go the extra mile in helping your clients with other problems too then this could be your competitive advantage. How will you do that? How can each step help to make the overall experience better for your client and create a unique selling point in an industry full of competition?
Make it Unique
Your USP should be unique to you and your business, it should clearly show property buyers that you are providing more value than your competitors. It should be clear how they will receive unique benefits by looking for mortgages with you. You will then have the ability to stand out amongst the crowd.
PROC (Procuration fees) are charged by the lender to a mortgage broker for the processing and lodgement of loans. Having low PROC is a great way to attract clients as you are lowering the cost of doing business and passing this on to your client. According to this article these fees are typically between 0.3% and 0.6% of the value of a mortgage.
Be the Go to Mortgage Expert in Your Area
When it comes to finding mortgages at the best price, you want to be seen as the expert in your region. How will you do this? Build a network of experience around you, partner up with authorities and form good relationships with banks. Use the tools available to you and don’t be afraid to ask for help from your digital marketing team. How will you make sure that people come to you whenever they need a mortgage?
Optimise Your Online Profiles
Optimise all of your online profiles; Google My Business, Facebook, Twitter, Linked In etc. The more exposure and authority you have online, the more people are likely to trust you when it comes time for them to apply for a home loan. This is all part of being seen as an expert in your region.
Be seen as the go-to mortgage broker when it comes time to find mortgages. You want people looking at you first before they start their buyers’ search. Be active and stay on track with your digital marketing strategy and you will be able to stand out from the crowd in your target location.
Leveraging Software to Provide a Better Service for Your Mortgage Clients
Choosing the right technology from the get-go is essential. How will this help you grow your business? How does it continue to serve the needs of organic referrals and provide a better service for your buyers overall?
LOS (Loan Origination Software Systems) What Are they?
A loan origination software is an effective tool for any mortgage professional. Its purpose is to streamline the mortgage lending process from start to finish and take care of all of the important data entry. How will this tech help you in your business? It will help improve each step of the mortgage process for both you and the buyer.
This is what a loan origination software does:
- It captures and tracks all of the important information that you need to ensure a smooth experience from start to finish.
- The software (although limited) will help you capture leads from your website, social media channels etc. allowing for better advertising practices as well.
- Ensures accurate data entry with automated checks and alerts built-in. This helps everything flow better.
- It helps to automate the loan procedure with workflows and task management.
- Ensures that you are 100% compliant with financial regulations. This is essential to client trust and safety, as well as ensuring a smooth lending process for everyone involved.
There are many other reasons why a LOS is an effective tool for any mortgage professional but these points are the main benefits.
Mortgage CRM’s (Customer Relationship Management Systems) Why Are They Better?
Using a Mortgage CRM over a LOS is a better option because CRM’s are able to manage a whole range of activities that the LOS can’t.
A CRM will give you and your team access to features such as customer touch-points, opportunities for referrals, deals, notes, sales pipelines, and so much more allowing you to build relationships with clients throughout their journey in real-time and collaborate with your team in a way you can’t with a LOS.
There is nothing better than knowing that your clients are being taken care of, full insurance is in place and they are being nurtured throughout the entire mortgage process. This is going to increase the likelihood of making them come back for more financial help!
Costs to Consider for Business Growth in the Mortgage Financial Services Sector
Primary costs to consider:
- Website Design/SEO – How can you be seen as an authority and expert in your field if you don’t have a website?
- Marketing (Lead gen/PPC/Advertising) – How will you be noticed in the crowded online landscape if you don’t dedicate a portion of your budget to digital marketing?
- Staff – Do you have the resources and staff to continue growing? How will your team help support new customers in becoming loyal clients?
- Office Space – How much space do you need? How will you grow into this space over time? Will you talk physically or just communicate to your network online?
- Content (Training Material, Blogs etc.) – How will you continue to educate and show your expertise in the field if you don’t write educational content? How are people going to know about it?
- Support / Software / IT Infrastructure – How will you keep your business running smoothly? Investing in the correct technology could be the backbone to your mortgage brokerage company?
- Insurance – How are you going to protect yourself and your business?
Remember, all of these costs should be considered if you want long term growth for building your mortgage brokerage business online.
Growing a business in any competitive industry isn’t going to be easy, however, if you dedicate yourself to the process, you will see results.
If you have a solid plan in mind for your digital marketing campaign and sales funnel then success is inevitable! How are you planning on growing your mortgage brokerage business? Let us know in the comments below!
If you are looking for a friendly team to help you attract more potential customers and grow your business without having to rely on referral partners then why not spend 15 minutes having a quick chat and see if we can help you…