Struggling Mortgage Brokers and Why We Love Them
In all industry sectors there are successful individuals and less successful individuals, and this is certainly so for the mortgage broking sector. The mortgage broking business is pretty well unique, as a large percentage of the brokers’ time in arranging finance for customers can go to waste because the customer simply does not complete the transaction for various reasons. Brokers not only need to allow for the fact in their financial planning that up to 70% of their work can fail, but they also need to allow for the delayed payment of the commission which is only made once the customer uplifts the loan. Brokers can easily wait 2 to 3 months for this to happen.
In a tightening housing market everybody involved starts to suffer, including the real estate industry and the mortgage broking industry. Obviously there are successful individuals that will always do well, simply because they are either work harder or smarter or both. In the mortgage broking sector there are a small number of large companies that totally dominate the market, particularly the Internet search market. These companies have a multi-million dollar marketing budget, and a large chunk of this will go towards making absolutely certain that their website ranks in the top 3 for all the major mortgage brokers search terms.
The advantage for these large companies is that they can capture 30% or more of the web search market, and so even in a significant downturn they will still have customers pounding on their door wanting service. These broking companies need to have specialist admin staff to pre-screen or callers so that only the most straightforward customers are passed through to the mortgage brokers.
All the other mortgage brokers who are not ranked in the top 3 four major Google search terms are left with the crumbs under the table in terms of market share, and they will all need alternative marketing strategies to make certain they have a continual inflow of new business. If you’re interested in mortgage brokers Wellington click here. These mortgage brokers will generally find it more difficult during a downturn, and will need to have careful cash flow management strategies to make sure that they get through any downturn unscathed.
Those brokers need to be careful that they don’t make mistakes and spend money unnecessarily to generate new business. They may be well aware that their website is attracting virtually no new business, but it would be a big mistake for them to invest in web development and specialist SEO, as it is almost impossible for them to break into the top 3 Google search rankings, which are the only rankings that matter. Web developers and specialist SEO companies can make a killing providing expensive solutions for companies that really have no hope of achieving what they really want.