this publication as PDF

Broker’s Guide
June 2012
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why Social media iS a top
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The power
of a brand.
Company Profile
Being independent no longer means being on your own.
INDEPENDENCE AND SCALE
PHONE TECHNOLOGY
1300 HOME LOAN is a marketing business
that gives the best independent brokers the
power to compete with the large franchises
on TV, cable, radio and print without
giving away any upside as it’s a flat fee
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five settlements per annum. Brokers from any
aggregator can join us. Eighty per cent of all
licence fees are guaranteed contractually
to be spent on marketing, making us one
of the largest advertisers in the home loans
category from day one.
Brokers subscribe to exclusive access to the
postcode(s) of their choosing. All enquiries
to 1300 HOME LOAN (1300 466 356) are
answered by a call centre based here
in Australia, 24/7. Initial calls are routed
to a broker based on the consumer’s
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Existing databases can also be uploaded
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BRANDING AND CUSTOMER PROPOSITION
DIGITAL STRATEGY
From the outset, we have strategically
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brokers through using stringent selection
criteria. As a group, our brokers have
achieved the highest accolades in the
industry, including #1 Broker at LoanMarket,
induction into the AFG Hall of Fame, CBA
Diamond Brokers, and the list goes on. These
achievements reflect volumes, business
expertise and commitment to the industry as
well as the quality of service provided to
consumers. Consequently, we are in the
market today with a consumer proposition
based on trust and experience.
To supplement our above-the-line marketing
campaign, we have invested heavily in
search engine optimisation and marketing
strategies to support each of our broker
partners. Web-based leads are prequalified by our outbound team first before
being dispatched to our broker partners.
P 02 9248 6900
E info@1300homeloan.com.au
W www.1300homeloan.com.au
editor’s letter
High-quality leads – and their conversion –
are crucial to the growth and success of a
broker’s business
Whether leads are
purchased, generated by a
broker’s web presence or referred
via a professional partner or
client, they are a broker’s bread
and butter.
In fact, in a recent straw
poll conducted by The Adviser,
more than 40 per cent of brokers
said they would happily switch
aggregators if it meant they
would receive a greater number
of leads, while just 10 per cent
said they would switch to receive
greater business support.
Without leads, brokers don’t
have a business.
But what are the best ways to
generate leads and how can you
ensure they are then converted
into business?
In this Broker’s Guide,
The Adviser looks at the different
ways brokers can obtain leads,
using social media, websites and
client and professional referrals,
as well as buying from a provider.
We also look at how brokers
can successfully convert leads
into business.
For example, brokers
who meet clients face-to-face
immediately gain the edge when
it comes to lead conversion. It is
hard for brokers to build strong
client relationships by email,
says Finsure’s chief executive,
John Kolenda.
“Brokers that meet face-toface with their clients, tend to
have higher conversion rates,”
Mr Kolenda says. “Even if the
lead isn’t hot when you meet
them, that client will remember
that you took the time to meet
with them early on in the process
and they will reward that gesture
with business down the track.”
Statistics from Loan Market
suggest brokers who call clients
within 24 hours of receiving the
lead dramatically increase the
chances of converting them into
a business client.
And of course, there are
plenty of other ways for brokers
to successfully convert leads.
As always, I would love
to hear your thoughts. For
example, how do you ensure the
leads you receive are converted
into settled loans?
You can email me at
editor@theadviser.com.au.
Jessica Darnbrough
Editor
unlocking lead generation / 01
WEDON’T
OFFERYOU
LEADS.
WE INTRODUCE
YOU TO
BORROWERS.
• Customerenquiriesarepre-qualifiedby
industry-trainedprofessionals.
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recordingofinitialborrowerenquiry.
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everyborrower.
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• Leadingaggregatorforcommissions.
1300 FINSURE
FINSURE.COM.AU/BROKERS
follow my leAd
How to succeed by converting
that lead
clienTs for life
Strategies to get clients singing
your praises
The righT connecTions
es
l
i
f
pro
13 / loAnkiT
locAl
25 / my
broker
How to generate leads from your
business relationships
business for sAle
Having trouble sourcing leads? Why
purchasing them is a viable option
A sociAl service
How to grow your client base
through social media
geTTing leAds online
Why a strong website is an
effective lead generator
unlocking lead generation / 03
w
o
l
l
o
f
introduction
Story / Emily
McLean
Lead generation is a core part of
a broker’s business, while lead
conversion is crucial to success. So,
where do the best leads come from, and
what do you do once you have them?
For a broker, a reliable source of leads is
as essential for growth and survival as is
water for a fish. Leads come from a variety
of sources – client referrals, professional/
partner referrals, the internet and social
media – and their quality can sometimes
make or break a broker’s business.
John Paynter of JP Loans knows
something of this: “Referrals make
up 95 per cent of my business,”
Mr Paynter says.
Julian Mattatia, joint managing
director of moneyQuest, says that
without leads or referrals you end up
rewriting existing business, which means
your company can’t grow.
04 / unLocking Lead generation
In addition, creating strong
relationships with referral partners can
provide business stability during times of
market fluctuation. Having an accountant
or financial planner refer you clients
also guarantees you an extremely high
conversion rate as the client is usually in a
position where they’re ready – or close to
ready – to purchase.
typeS of lead
The quality of the lead often depends
where it comes from. Getting leads
from the internet is the toughest nut to
crack. This is because potential clients
have often already researched a range of
lenders although they may not yet have
been in a position to buy.
Converting this type of lead,
according to Mr Paynter, is all
about acting as quickly as possible.
“Getting onto them quickly stops
clients from looking elsewhere on the
internet and finding other solutions,”
Mr Paynter says.
While the conversion rate may be
low, Mr Mattatia believes the online and
mobile device audience is currently the
strongest source of referrals.
“According to Neilson Online
Ratings, in January 2012 there were
16.4 million Australians online spending
a total of 28 billion minutes in the
online sphere. Mobile browsing has also
increased seven-fold over the last two
years,” Mr Mattatia says.
With property and financial
research online now a crucial part of
most borrowers’ lives, using the online
space to generate leads should be high
on every broker’s list. Consumers now
spend six to eight weeks online before
getting along to an open house – another
telling indicator.
Direct client referrals, meanwhile, are
music to a broker’s ears. “Nothing is better
than word of mouth from a personally
trusted source,” says Patrice Sullivan of
1300 Home Loan. “Providing a customer
with an exceptional experience means
they’re compelled to talk about that
experience to their friends and family.”
The best way to guarantee business
and a high conversion rate, however, is to
get leads via referral partners. “There’s no
doubt the conversion rate here is higher
because the trust factor is built into
the referral,” says Tanya Sale, CEO of
Outsource Financial.
Professional referrers are also aware
how well positioned a client is when
they are trying to access a loan and
predominantly refer clients when they are
ready to buy.
“Accountants and financial planners
already know the assets, liabilities
and where the client is situated,”
Ms Sale says.
Converting the lead
The single most effective way to covert
a lead into a settlement is to have a
face-to-face meeting with the prospective
client – and the anecdotal evidence for
this speaks volumes.
unlocking lead generation / 05
introduction
“Providing a customer with an
exceptional experience means
they’re compelled to talk about
that experience”
06 / unlocking lead generation
Simon Dehne, CEO of LoanKit,
cites one standout example: “One of
our brokers got an internet lead and
it took him four weeks to contact that
customer,” Mr Dehne says. “Once
he did, he promptly went to their
property to meet them and ended up
signing a deal for four million dollars.”
Mr Mattatia believes face-to-face
contact is so important that brokers
must be persistant in trying to get in
front of the client.
“I’ve heard brokers say a lead is
no good after calling once and giving
up,” he says, “but brokers should call
several times or more if they must in
order to establish contact.
“Trying to qualify a client over the
phone is a big mistake. It’s all about
getting yourself in front of them.”
Mr Dehne says you can bump up
your conversion rate by doing the
little things that show you are willing
to go the extra mile.
“Brokers could, for example,
provide an RP Data valuation on
properties the client is interested in
and send it to them at no cost. That
creates a lovely rapport and places you
above your competitors.”
Director of Finsure Finance
and Insurance, John Kolenda, says
brokers with a deep understanding
of products, solutions and their
benefits stand a much better chance of
securing a conversion.
“You need to be at a point of
mastery,” Mr Kolenda says. “If
you’ve spent years learning,
understanding and
improving on your mistakes
then you should start to
become a master at what
you do.
“These types of brokers
are converting in the 90 per
cent range.”
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Kim (VIC/SA/TAS) 0403 382 321
Barry (WA) 0400 887 769
www.loankit.com.au
feature / Client referrals
Story / Emily McLean
the best leads a
Client referrals are arguably
n you ensure your
broker can receive, so how ca
out?
customers put the good word
EvEryonE
Enjoys receiving
once said, “It’s
about
doing the
Client
referrals
are arguably
the
best
a genuine compliment and there’s
ordinary in an extraordinary way”.
leads a broker can receive,
so how can
nothing more complimentary
“Being approached by a client
you
ensure
your
existing
clients
putto you
theis one
than a client referral – plus it
who’s been referred
comes
with
a
business
benefit.
of
the
most
powerful
types
of lead
good word out?
Unlike professional referrals,
available,” says Patrice Sullivan of
client referrals are personal;
1300 Home Loan.
frequently spur of the moment
“People feeling propelled
(e.g. the BBQ or water cooler
to talk about your exceptional
conversation); and often
service is quite rare in today’s
genuinely enthusiastic.
business environment.”
Everyone also loves sharing
This type of referral can boost
an exceptional experience and if
a broker’s confidence in what they
you can provide that exceptional
do, while providing that extra
experience as a broker, then word
burst of energy that will allow
will spread. As a successful broker
them to go the extra mile.
08 / unloCking lead generation
“It’s a great feeling to know
that you’ve looked out for
your clients and that they have
enough respect and trust for you
that they pass on your details,”
says Outsource Financial’s
Paul Dossetto.
Becoming a talking
point
Providing a client with
customer service they won’t
forget is the best way to generate
an enthusiastic referral.
Focusing on exceptional
product knowledge, building a
genuine rapport and going the
extra mile will work wonders
in gaining an edge over
your competitors.
Mr Sullivan firmly believes
that brokers shouldn’t chase the
dollar, but rather the complete
satisfaction of servicing a client
based on their knowledge
and experience.
“It’s by good and
conscientious service of a
customer’s needs that any
business gains continuing
patronage via reputation or
referral business,” she says. “I
“It’s by good and conscientious service of a
customer’s needs that any business gains
continuing patronage via reputation or
referral business”
feel it’s the responsibility of any
person in any field of knowledge
to use what they know as a gift
to the consumer and let the
inevitable rewards of such good
conduct and intention come in
their own time.”
Doug Mathlin, director
of FrontRunner Consulting
Group, agrees that phenomenal
unlocking lead generation / 09
feature / client referrals
service means referrals. He does,
however, also advocate educating
clients on how a referral
programme works through
contact management.
A broker’s success boils
down to the client recognising
how powerful their referrals
are, Mr Mathlin says. “A broker
should always explain that all/
most of their business comes
from referrals, and that they
intend on doing an excellent job
so the customer feels compelled
to recommend them to others,”
he says.
Mortgage Choice’s
Andrew Russell says referrals
come when brokers are able to
articulate a strong proposition
on how they can help clients find
specific financial solutions.
They benefit when they have
the presence of mind to present
themselves as professionals in
unrelated environments. “It’s
about being able to market
yourself and displaying those
characteristics, whether it be at
a social event, down at the local
pub or when people are visiting
your office,” he says.
Having strong links to various
associations and community
groups can also create a strong
platform from which brokers can
generate leads, he adds.
“It’s about having as many
touch points as possible – to be
known and respected – and it’s
well seen in our networks that
that creates strong referrals,”
Mr Russell says.
Learning from the best
The traditional practice of
asking clients for the names of
prospective referrals is on the way
out, according to Mr Mathlin.
“Rather than just asking for
client referrals:
nuts
and boLts
Conversion rates are high as the trust factor is already built
into the referral
Providing exceptional customer service will encourage
a client to chat about you ‘doing the ordinary in an
extraordinary way’
Acting the part of a professional broker in unrelated
environments creates referrals
Rather than asking for referrals, educate your clients on why
referrals are so vital to your business
Asking clients for referrals around the time of settlement is
the best time since that’s when they’re at their happiest
10 / unlocking lead generation
names, you can educate them on
how to refer,” he says. This should
always be done face-to-face, to
remove any ambiguity from the
process, he adds.
Director of Property Planning
Australia, Will Foster, has
employed external consultants to
advise his company on what he
calls a ‘vexed issue’.
Previously his company
had sent out questionnaires to
clients asking them to name
three people to whom they could
be of service. “This didn’t work
too well and we didn’t get many
responses from that,” he says.
“Nowadays, we make a
settlement call and tell clients
that we’re looking for new
customers because that’s when
clients are usually at their
happiest and they’re more likely
to give you a wrap.
“We also put the statement to
them in a more light-hearted way,
saying something like ‘don’t keep
us a secret’.
“When we started doing this
we noticed an increase in our
customer referrals,” he says.
John Paynter of JP Loans
says clients are often unaware
of how vital good referrals are.
Like Mr Foster, he waits until
after settlement before broaching
the subject, but knows the value
of the maxim, ‘Those that ask,
shall receive’.
“I never used to state the
obvious to a client, but merely
by adding in that statement I
was able to generate around ten
per cent more business,” he says.
“People just don’t think about
it until you put the thought into
their mind.”
feature / PROFESSIONAL REFERRALS
Brokers who can build strong
relationships with other
professionals can be assured
of having business to write
Story / Emily McLean
It’s not difficult to network and get connected –
many brokers will have several hundred connections
in their LinkedIn network – but when it comes to
professional referrals, it’s about quality, not quantity.
“If you concentrate on five good sources and
love them to death, then you’ll get all the business
you need out of them,” Jaci Smith, CEO of
My Local Broker, says.
Nurturing those relationships is crucial to
generating business, as leads from professionals
generate the highest conversion rate for brokers.
Loansmiths’ director, Hayley Smith, says the
professional relationship channel will by nature
provide a greater volume of opportunities.
“They refer more as they make it their business to
do so,” she says.
Director of Property Planning Australia,
Will Foster, says brokers have the chance to secure
higher quality referrals in this way, with a greater
likelihood of conversion.
“A professional knows a client’s current
financial situation and won’t refer them to you for a
mortgage unless they know that client can afford it,”
Mr Foster says.
12 / UNLOCKING LEAD GENERATION
LoanKit / profile
Simon Dehne
chief executive officer
Meeting brokers’ differing needs
through its flat-fee commission model to simple web-based
software, LoanKit caters to brokers’ diverse needs
Simon Dehne
As A broker, you have your own
unique requirements – as do your
clients – and at LoanKit, we are well
aware of that. It’s reflected in our
service offering.
We offer non-exclusive
aggregation services, with a flat
fee commission model, as well as a
range of services that includes lead
generation and our straightforward
but innovative software.
Backed by Australia’s largest
independently-owned mortgage
broker, and staffed by a team full
of enthusiasm, LoanKit is all set to
help make you successful.
With the power and security
of a public company behind us,
LoanKit is able to operate as a small,
boutique aggregator that can
provide you with a personalised
service – including advanced
broker, NCCP and CRM tools – while
ensuring you enjoy security for
your loan book and business.
LoanKit was built by a broker
for brokers.
We fill a gap in the aggregation
market by catering to SME brokers
who need business systems that
just work – great support and
advice, without being handcuffed
to an aggregator’s lender panel.
Specifically, LoanKit offers two
superior options: First, aggregation
services that feature a wide range
of simple yet superior resources
provided by an in-house team.
Second, a technology platform
that we lease to help you run your
business operations, and that
includes maintaining relationships
with lenders, referral partners
and customers.
Here are some of the benefits:
Innovative software that
allows you to carry out simple
negotiations with any lenders
and aggregators you already deal
with, as well as with the lenders on
LoanKit’s extensive funder panel;
Lead generation – helping you
find your next customer. This is
paid in arrears, which assists in
providing a cushion for downturns
and in accelerating business
growth during upturns;
Uncomplicated but superior
software tools that help make
attracting, nurturing and retaining
your clients simple;
Three compliance options:
manage yourself as an ACL holder,
be a LoanKit credit representative
and have us manage your
compliance needs, or be an ACL
holder who chooses to have us
manage them for you;
Missing commissions reporting
and the ability to implement
multi-level split payments to loan
writers and referrers, which saves
time, money and confusion while
providing peace of mind;
Referral management system
that enables easy email and
SMS communication between
you, your customers and
referral partners;
Our brokers are experienced,
professional and backed by
Australia’s largest independentlyowned mortgage broker,
providing you peace of mind.
unLocKing Lead generation / 13
LEAD FACTS VS LEAD FICTION?
FINSURE MANAGING DIRECTOR JOHN KOLENDA BREAKS
DOWN THE MYTH AND UNVEILS THE SECRET TO SUCCESS
BEHIND LEAD GENERATION.
Lead generation can often be a hot yet
sensitive topic within the mortgages industry.
An opinion poll from brokers today on this subject
will no doubt unveil a divided perspective due to the
mixed results that have transpired over the years.
Brokers are often attracted to the promise of high lead
volumes and an aggregator that will help support their
business to improve the bottom line.
“
“
At Finsure, our objectives
for lead generation go beyond
the industry norm.
John Kolenda
Managing Director
1300 FINSURE
info@finsure.com.au
FINSURE.COM.AU
In reality, the results tend to heavily favour the
aggregators whilst the brokers are left to do battle
in a tough business environment dealing with poor
quality leads and a tight profit margin due to unfair
commercial split on commissions.
Sponsored Editorial
So can lead generation services actually deliver
on its promise? Or is it just fool’s gold?
Yes, it can work if it is planned and executed correctly.
A key measure of lead generation success is conversion
to application to settlement ratios. Historically and
with most practices in the industry, low conversion
rates can be attributed to the source of consumer
enquiries and when the initial point of contact to the
consumer is conducted. It is an industry myth that real
estate domains, loan calculator and rate comparison
sites generate the best leads. Whilst traffic volume
may be high within these domains, brokers are often
wasting time in contacting consumers who are not ready
to proceed with their finance and are generally nongenuine home loan applicants.
Traditionally the focus from the industry players has
been largely focused on generating volume only whilst
compromising on lead quality and conversion metrics
for the broker.
How is Finsure different?
The core business fundamentals at Finsure have been
built around our most important stakeholder, that is
our broker partners. We value every broker at Finsure
more than just a client but a business partner for the
long-term. It is from this mindset that we had developed
a more superior and holistic leads model to our
competition in the industry.
We offer the highest lead commission splits in
the industry and reward our brokers for increasing
settlement volumes as their business grow with us.
At Finsure, our objectives for lead generation go
beyond the industry norm and that is we do not provide
just leads, we introduce borrowers to our brokers.
The driving force to deliver quality starts with our
team of fully trained professionals to qualify leads and a
cutting edge call recording technology.
Every consumer enquiry received through Finsure is
qualified and vetted against stringent lending criteria
by an outbound call to ensure every lead dispatched
is given the best chance of success to convert to an
Sponsored Editorial
application. All our call centre operators are fully trained
in loan writing and provide a customer loan summary
with a call recording for every lead distributed to our
broker partners. The initial call with the customer
includes a warm introduction to the broker and educates
customers on the benefits of utilizing the services of a
mortgage broker.
The management team at Finsure is highly experienced
and includes industry-leading minds within the lead
generation sector. The overall marketing strategy
is dynamic and targeted towards Search Engine
Optimisation (SEO) and Search Engine Marketing (SEM).
To date, we have acquired some of the largest and most
valued online assets in the home loan market. This is
further supplemented by public relations efforts and
above-the-line opportunities to generate consumer
enquiries in specific markets and demographics.
Along with generating quality leads we also have the
highest state business managers to broker numbers
ratio in the industry! We are serious about helping our
partners to grow their business and it is important that
we give all the support they need to get there.
To find out how you can gain access to the best
commissions, the best leads, and the best sales support,
call us or visit our website today.
Broker Checklist to join an Aggregator
leads channel
· What are the commissions splits available?
· How are the leads sourced and distributed?
· How many leads can I expect?
· Who will support my business and help
me grow?
Measuring the impact to your bottom line
For example, a broker is paid 80/80-commission split (available under
Finsure leads channel) from its aggregator, receive 8 leads per month,
converts 50% to appointment and 50% of those appointments to
settled loans, the earning potential is:
Revenue = 80% x 8 x 50% x 50% x Average Upfront & Trail Commission.
feaTure / PROFESSIONAL REFERRALS
professional
referrals:
Remember, professional referrals
have the highest conversion rate as
clients referred are well positioned
to buy
Quality over quantity – it’s better
to build a relationship with four good
referral partners than with 14 poor ones
Like any relationship, establishing a
referral partnership takes time
When seeking new referral partners,
first think what you can offer them, then
what they can offer you
Establishing a business plan together
is a great way to understand one another
Keep in touch with your referral
partners – regularly
16 / UNLOCKING LEAD GENERATION
With this information at hand, much of the initial
leg work has already been done.
The connecTion
A good referral partner is gold for any broker.
But establishing a new connection with a
professional, like any relationship, takes time and
some work.
“The quick relationships – as in quick to dive
into – often end up as one night stands,” says Doug
Mathlin, director of FrontRunner Consulting Group.
“Good relationships are built over time and require
ongoing care, reviews and planning.”
As with a marriage, it’s imperative for brokers to first
and foremost ask themselves what they can offer the
referral partnership, as well as what they can gain from it.
Mr Foster advises brokers to find out what the
referrer needs and to give that to them. “If it’s a real
estate agent, then find some people looking to sell
or if they’re a big AFL fan, then get them tickets,”
he says. “It’s only when you give first that people will
give back.”
“Compatibility, skills and a
desire for the relationship
to succeed are the most
important attributes”
provide brokers with the best referrals, they can
often wear blinkers and forget to think of the broker
during the meeting.
Jaci Smith also warns brokers who might be
keen on establishing relationships with lawyers.
“They’re more than happy for you to send business
their way, but they’re not into reciprocating,” she
says. “That’s because recommending the services of
anyone else is often seen as advice.”
Tanya Sale, CEO of Outsource Financial, says the
best way to approach any new referral partnership is
to sit down with the prospective partner and go over
both your own and their business plans.
“It’s the little things like that that go a long
way with regard to professionalism,” Ms Sale
says. “It’s got to be about the referral partner, and
if a broker thinks a professional won’t want to be
compensated for their services then they should
think again.”
The righT ones
“When it comes down to it, there’s no one
profession that ensures better referral partners –
compatibility, skills and a desire for the relationship
to succeed are the most important attributes,” says
Mr Mathlin.
Jaci Smith agrees, but also recommends
IT professionals and even landscapers and
conveyancers as particularly good referral partners.
Like everything in life, however, there are pros
and cons. Mr Mathlin says while accountants
Leveraging your asseTs
A referral partner is effectively an asset and you need to
monitor and look after it if you are to get the maximum
return possible. Often, it’s a case of keeping in regular
contact – but not to the point that you become an
addition to their ‘to do’ list, says Hayley Smith.
“Your presence should be complementary and fuss
free,” she says.
Jaci Smith has established a network group to keep
her partners as informed and up-to-date as possible.
“We meet every fortnight and everyone goes around
the table and talks for two minutes,” she says.
Mr Mathlin makes the most of his professional
relationships by helping partners to identify
opportunities. “You can train professionals on
how to refer people to you,” he says. “I also provide
scripts and point of sale materials, like brochures
and testimonials.”
Ms Sale adds that ultimately, brokers need to realise
they’re not dealing in the finance world, they’re dealing
in the professional business world. “Professionals are
regulated and require certain qualifications, and their
expectations of brokers are in line with that,” she says.
Finally, Hayley Smith has a favourite quote which
she believes should be one of every broker’s: ‘Thank you
for the referral – our goal is to make them thankful to
you for the referral to us’.
UNLOCKING LEAD GENERATION / 17
feaTure / PurcHasIng leads
Having trouble sourcing leads,
despite your best efforts? It could be
that buying them is a better option
story / Emily McLean
Purchasing leads can
prove to be an extremely effective
strategy for brokers who are just
starting out and who are without
a large client database or strong
referral partners.
Buying leads effectively
buys you a starting point for
a database, says Finsure’s
John Kolenda. “Leads give you
an opportunity to provide a
solution to a client and generate
repeat referral business from
them, so you’re actually
broadening your net and adding
more customers to your database,”
he says.
Doing your homework in this
area, however, is crucial as the
quality can vary dramatically.
Outsourcing call centres have
been known to sell a lead to more
than one client, while many leads
are not vetted.
But if the revenue generated
from the leads is more than the
amount you pay for them, then it’s
a worthwhile investment.
18 / unlOcKIng lead generaTIOn
1300 Home Loan broker
Mark Winter says the conversion
rate from his qualified leads sits
at around 75 per cent. “We do
broking for the love of the job, but
obviously you need to be making
sure you’re making money too,”
Mr Winter says.
The basics
Outbound call centres, which buy
generic databases, ring consumers
to see whether they would be
interested in having their finances
reviewed. It’s this type of call
centre that is selling large volumes
of leads to brokers.
On the flipside, Mr Kolenda
believes that leads from these
types of company typically
have poor conversion rates.
“You’ll only get one in ten
clients that you may possibly
have the opportunity to interact
with,” he says, “and from there,
there’s an even lower rate for
the percentage converted into
an application.”
This is quite simply because
outsourcing companies have
a focus on volume but do not
provide the care and attention
needed to produce a quality
vetted lead.
cosTs and benefiTs
Brokers who are interested in
purchasing leads should first
look at the various options and
scrutinise them closely. The
numbers are key. “You need to
marry up the cost of acquisition,
“a lot of the
leads i receive
are vetted and
qualified, so it
takes a lot of the
leg work out”
then taking it to settlement, and
understand what it actually will
cost you,” says Mr Kolenda.
Mr Winter adds that it’s
important to know whether you’re
buying qualified leads or cold
leads. Both require a very different
approach. “A lot of the leads I
receive are vetted and qualified, so
it takes a lot of the leg work out,”
he says. “This means I have a full
understanding of the client when
they come to me.”
While qualified leads
generate the best conversion rate,
Mr Winter says any lead – cold
or otherwise – is beneficial as it
serves to broaden your network.
“If you’re not able to help them out
straight away but you’ve taken the
time to go out there and see them,
then they’ll refer two or three
friends, which leads to repeat
business,” he says.
Broker Patrice Sullivan
is extremely happy with her
decision to make 1300 Home
Loan her lead generator. Unlike
UNLOCKING LEAD GENERATION / 19
feature / Purchasing leads
“ensure that what
you’re paying for is
actually converting
into real dollars at
the end of the day”
the key
points
Purchasing leads is a
good starting point for
new brokers without large
client databases or strong
referral networks
Do your homework –
the quality of leads can
vary greatly
Vetted leads have the
highest conversion rates
Avoid any upfront costs
Evaluate the quality of
your leads based on one
thing – how many you can
convert into appointments
and settlements
20 / unlOcKing lead generaTiOn
many lead generators, the
clients initiate the contact and
their enquiry is handled by a
knowledgeable broker which
nearly guarantees a higher
rate of settlement.
“I have seen their
professional approach –
enlisting and hand picking
the best brokers in the
industry – coupled with their
advertising strategy which
doesn’t try to sell anything but
just states clearly what they
do,” she says.
This is in stark contrast
to many generators who,
Ms Sullivan says, rely on
telemarketing, where contact
with a potential client is made
via a cold call and clever
words used to induce and
promote interest.
“Often those leads result in
dead ends because it doesn’t take
much time for people to realise
they are being taken for a ride for
a price,” she adds.
Buyer Beware
Examples of companies selling
the same lead to several different
parties have caused some
brokers to be extremely wary
when purchasing. Avoiding
this can be as simple as buying
from a company with brokers
who ensure the lead is of a much
higher quality.
Mr Winter also advises
brokers to be wary of any
upfront costs that the company
may demand.
“That, and the track record
of the company, are two things
to keep in mind to ensure
that what you’re paying for
is actually converting into
real dollars at the end of the
day,” he says.
Brokers should base their
buying principles on one key
thing – the number of leads
you get that translate into an
appointment, says Mr Kolenda.
“That’s the fundamental thing,
the bottom line,” he says.
FEAtURE / SOCIAL MEDIA
Social media is fast becoming a mainstream source of business
and brokers are waking up to how it can help generate leads
Story / Jessica Darnbrough
Social media’S various channels have
experienced phenomenal growth in just a few years.
Facebook, launched in February 2004, boasts
more than 700 million users worldwide. More than
two million Australians use LinkedIn, while more
than one million have a Twitter account.
Despite social media’s popularity, however, more
than one third of brokers do not take advantage of its
channels to generate business leads.
According to a recent social media survey
conducted by The Adviser, just 58 per cent of brokers
incorporate social media into their business strategy.
Of those that do, only 30 per cent said their use of
social media has directly improved their bottom line.
Home Loan Experts’ director Otto Dargan
says these results are unsurprising, as many
brokers do not know how to engage with social
media effectively.
While they understand they ought to be using
it as a way to generate leads, the ‘know how’ is
often lacking.
Mr Dargan believes much of the information
that brokers have shared to date is often too dry to
be included effectively on social media platforms,
discouraging potential borrowers from sharing it
with their friends.
“A lot of brokers never ask the question, ‘Do my
customers actually want to see this?’” he says.
22 / UNLOCKING LEAD GENERATION
Being able to share not just relevant but also
interesting information is crucial if social media
is to be used as a marketing tool that will generate
convertible leads.
Brokers should also bear in mind demographics –
social media users are not exclusively, but frequently,
a younger, more tech-savvy group and what’s on offer
should appeal to them.
Mr Dargan says he recently gained
400 Facebook followers after giving away
three $100 iTunes vouchers.
“We have had some profitable success from
Facebook, with limited bank offers, give-aways and
anything around property values,” he adds.
IN YOUR FACEBOOK
Greg Hearn, owner of Greg Hearn
Financial Solutions, agrees with Mr Dargan and
believes brokers need to connect with users in a
personal way if they want to generate business from
social media.
Mr Hearn himself does not use a specific
company page; rather, he prefers to communicate
with potential clients via his personal Facebook page.
“People don’t deal with my business, they deal
with me,” he says, “so I don’t differentiate on my
Facebook page between myself and the business,
because I am the business.”
UNLOCKING LEAD GENERATION / 23
FEaTurE / SOCIAL MEDIA
Mr Hearn says his status updates are often
personal, rather than professional, because this helps
his clients connect with him on a “casual level”.
“I often say, ‘Went for a surf and now hard at
work’,” he explains. You need to be yourself on
Facebook as people don’t want to be sold to – they
prefer a genuine connection.”
This “personal rather than professional” approach
has helped him generate a significant volume of
business leads.
Mr Hearn’s Facebook posts earn him two or three
converted loans every month – not a bad result given
that Facebook costs the user nothing.
Moreover, he only spends about 10 minutes each
day on Facebook, so the amount of business generated
with such little effort is “overwhelming”.
INVESTING THE TIME
While some brokers are enjoying bottom line benefits
from using social networking channels, like any
marketing tool they require the right investment.
Aussie franchisee Tom Mewing says brokers can’t
just open a Facebook account and expect the business
to come rolling through the door.
“At the beginning, it definitely takes a lot of effort,
concentration and time,” he says. “I didn’t receive any
leads from Facebook for the first 12 months. However,
that has changed over the last three months and I am
now receiving two to three leads a week.”
According to Mr Mewing, the change only came
when he began to understand exactly how to engage
with the medium.
“For me, I found the trick was to alternate my posts
between personal and professional,” he says. “I also
24 / UNLOCKING LEAD GENERATION
“I often say, ‘Went for a
surf and now hard at work’.
You need to be yourself on
Facebook as people don’t want
to be sold to – they prefer a
genuine connection”
joined [online] groups that shared similar interests to
my own – like triathlon groups.
“From there, I found it easier to start up
conversations with people, because we already shared
some common interests.
“You have to be prepared to put a lot of effort in at
the beginning to get your social networking site off
the ground and running, but once it is up and going,
the rest is easy.”
Mr Mewing updates his page every day, a process
that only takes a couple of minutes.
“I have allotted time each day to it,” he says. “It is
really easy to do and, in fact, it is quite enjoyable.
“But my advice to brokers is this: Do not get
involved with social media unless you are willing to
expend the energy on a daily basis, or more often.”
For brokers who are prepared to make that
commitment, however, social media can be a great
way to build brand awareness and generate those
vitally important leads.
My local Broker / profile
Jaci smith
chief executive officer
A revolutionary path to lead generation
My Local Broker has harnessed the power of social media
through its groundbreaking broker profile application
There are applications that
make social media time easy,
and effectively allow a broker
to log in once a week and fill
up an inventory of comments
that can be released at a
specified date/time.
Jaci Smith
My LocaL Broker has created
an entry level opportunity
for brokers wishing to branch
out and engage with social
media as part of their everyday
marketing strategy.
A number of brokers
have Facebook, Twitter and
LinkedIn, but merely having
these accounts will not deliver
successful marketing for a
broker or brand. Just as brokers
schedule appointments with
clients, the scheduling of ‘social
media time’ is vital to their online
marketing success.
Utilising technology
My Local Broker harnesses
the technology of Twitter,
Facebook, LinkedIn and YouTube,
all within a user-friendly
profile format.
A broker’s unique profile
introduces customers to their
brand via insights available on
a live Twitter feed running on
their profile.
This allows profiles to be
continuously updated with
fresh data, making the profile
more engaging with every
new tweet.
Scheduling software and
the My Local Broker platform
create a comprehensive social
media solution that is easy
to manage.
It’s the aim of My Local
Broker to create a seamless social
media process that won’t take
up large amounts of time that
are best spent outside, meeting
new people.
Social media is not
designed to replace face-to-face
interactions entirely. Rather, it
is complementary and it offers
a way to develop long-term
client relationships through
engagement via social
media platforms.
referral generator
My Local Broker has revolutionised
the way brokers will ask for
referrals in the future.
Every broker who signs up
to the platform has Facebook
integration,a and they are
encouraged to ask every customer
to visit their My Local Broker profile,
to hit ‘Like’ and to leave a comment.
This Like and comment
remain on their My Local Broker
profile, as well as sending a direct
link to the customer’s personal
Facebook page.
If the customer has
200 Friends on Facebook, those
200 Friends will see the Like and
comment on their newsfeed.
Find out more at
www.mylocalbroker.com.au
unlocking lead generation / 25
feature / websites
websites can help brokers
generate quality leads, but they
need to be easy to find – and worth
finding once you get there
Story / Vivienne Kelly
Potential clients are
increasingly seeking information
online and for many, the web is
their first port of call. Generation
Y, in fact, expects financial
service providers to have a strong
online presence.
An easily found, easy
navigable website is therefore
a must if a broker is to stand
a chance of generating
leads online.
While many brokers have
solid business models based
on referrals and face-to-face
contact, online leads can
boost the profitability of your
26 / unlocking lead generation
business even further as well as
your credibility with the next
generation of homebuyers.
Benefits for Brokers
The value of a strong online
presence, underpinned by a good
website, is beyond question,
according to Finance Made
Easy’s director, Tony Bice.
According to Mr Bice, these
benefits can be summed up in
five words: credibility, exposure,
professionalism, client comfort.”
“If you’re going to have a
strong online presence, the
benefit to you as a broker is that it
“Unfortunately, the market at the
moment has a lot of brokers with very
outdated websites”
gives you credibility,” he says. “It
gives you the exposure to be able
to grow your business.
“If you don’t have an online
presence, you don’t have
exposure. If you don’t have
exposure, you don’t have a
business that’s going to grow.”
John Kolenda, director
of Finsure Finance, says that
having a website is important
but that brokers also need to
have a strategy.
“Having a website is
paramount for brokers,” he
says. “If you have an end to end
unlocking lead generation / 27
feature / websites
solution and you understand this
space, then it can be quite a costeffective way to generate leads.
“The stronger your online
presence is, the more likely
borrowers are to take you up
on your professional services,”
says Jaci Smith, principal of
My Local Broker.
“By having a strong
online presence, your website
becomes a confirmation point
for your customer. It creates
a confidence level for them to
engage you further.”
Building a strategy
Many brokers are already online
but aren’t using their websites to
generate leads.
According to Mr Bice, websites
that simply act as brochures and
confirm a broker’s existence are
fine – if a broker is satisfied with a
referral-based business.
But those who want to
generate leads online and who
have a comprehensive, up to
date website also need to be
found easily.
“No one’s ever going to search
through to page 255 of Google to
find you,” Mr Bice says.
Indeed, with people
increasingly pulling out their
smartphones to find information –
whether it’s to settle an argument
at a family barbeque or search for
a home loan – many brokers are
already being left behind, he adds.
To ensure his own site can be
found, Mr Bice has outsourced
his search engine optimisation
(SEO) strategy, so the site ranks
highly on Google.
“I outsource an SEO strategy
to a company that specialises in
28 / unlocking lead generation
“if you don’t have an online presence, you
don’t have exposure. if you don’t have
exposure, you don’t have a business that’s
going to grow”
this sort of work,” he says. “That
way, I can continue to do what I
do, which is being a broker and a
financial planner.”
Mr Bice concedes that his
strategy, while effective, isn’t
cheap. However, he insists
that brokers shouldn’t be put
off investing in their websites
because of that.
“This is where a lot of brokers
fall into a trap,” he says. “They’re
tentative about spending
money and question where the
payback is.”
Ms Smith says there are,
however, affordable alternatives
for those who are wary about
spending too much money.
Brokers can sign up to My Local
Broker, for a monthly fee, and
be reachable and accessible,
she says.
“If brokers don’t have a
website, getting on My Local
Broker is the start of a web
presence for them,” she says.
“They get a very detailed profile;
it has their social media links
right there; it has their videos;
it has their photos; it has a
blurb on them; and people can
leave testimonials.”
“Unfortunately, the market
at the moment has a lot of
brokers with very outdated
websites – not just outdated
in looks, but outdated with
content from 2008 and 2009,”
Mr Smith says.
“People aren’t going to
take that seriously; they’ll
question whether you’re still
in the industry.”
A website’s appearance and
content need to be functional,
relevant and up to date if the site
is to be used to generate leads.
As Generation X and
Generation Y take over the
housing market, Ms Smith says,
brokers without a strong online
presence will find themselves
being left behind.
“There’s a generational
shift at the moment,” she says.
“When people are looking for
professionals to engage, they’re
going to Google. If they don’t
like the look of your website,
and you haven’t been personally
recommended to them, they’ll
say, ‘Who’s next?’”
Mr Kolenda estimates that
more than 80 per cent of people
use the internet as their starting
point for research when looking
into home loans.
“If that’s increasing year on
year and people are choosing
to do that research before they
engage or make a call, then you
have to have a strong [online]
presence,” he says.
Being
independent
no longer
means being
on your own.
• O
neofthebiggestadvertisersinthe
HomeLoanscategory
• E
litegroupofAustralia’sbestindependent
brokersandhighachievers
• F ullmarketingsupportthroughbranding,
leadsgeneration,onlinestrategiesand
PRcampaigns
• Y
ouremainindependentandstaywith
youraggregator
• Flatfeemodelandyoukeepallcommissions
P
E
W
02 9248 6900
info@1300homeloan.com.au
www.1300homeloan.com.au/brokers
1300homeloan.
Our brand
Join Australia’s first broker-owned brand today
DOMINIQUE BERGEL - GRANT –
SHANE SMITH – NEW START FINANCE
LEAPFROG FINANCIAL NSW
GROUP WA
The leads I have received to date have all
been well qualified and more importantly
have turned into excellent clients who have
gone on to refer other clients. Clients I never would
have the marketing spend to access individually are
now finding me through the 1300HOMELOAN brand.
It is an investment getting quality leads today but also
enjoying the benefits of being linked to a brand for
many years to come that is built with Australia’s best
mortgage brokers.
The call recording is a great feature and
really gives us as the broker an insight into
what the prospective clients are looking
for. The qualifying process has been excellent and
professional. I can see multiple opportunities also for
my other parts to my business of Vehicle and
Equipment Finance and Financial Planning.
1300HOMELOAN will open up many more
opportunities to earn additional income to add to the
bottom line.
JOHN PAYNTER – JP LOANS QLD
When compared to other lead programs
such as buying or bidding for internet leads,
1300HOMELOAN leads are much better
qualified. I personally have a number of
great leads and opportunities, many quite advanced
in terms of reaching settlement. Being able to
advertise that I am the chosen 1300HOMELOAN
broker for certain postcodes has definitely helped
with my credibility.
JAMES PIBWORTH – INDEPENDENT HOME
LOANS WA
We are so pleased to have chosen
1300HomeLoan as our first choice partner
in lead generation. We cannot believe the
quality, diversity and how primed they have been
having come through the 1300 Call centre. With the
ability to listen to each call we are fully aware of
the customer’s situation and what type of borrower
they are.
DEAN PIETERSE – BPI FINANCE VIC
The quality of 1300HOMELOAN leads has
been outstanding; they are mostly coming
from middle to upper socio-economic
clients and are ready to proceed with
an application. The phone technology is cutting
edge; as soon as the first phone call is directed to
me, I am assured that at any time in the future, when
that customer uses that same phone line to call
1300HOMELOAN, the system automatically directs
the call to me.
BENJAMIN FUSCO – RED FINANCE SA
The advantage of using the national brand
has been to add credibility to your own
via a dual branding option. The web leads
have been surprising as they have all been
qualified. We have dealt with a few lead generation
services in the past; however what we had found was
that most of them just provide a name and number,
rather than a qualified borrower ready to go.
PATRICE SULLIVAN – ACCREDITED LENDING
SERVICES QLD
It is very innovative for the mortgage
broking industry to allow brokers to cobrand their existing business with a branded
phoneword under a confident national advertising
campaign. It is refreshing to work with a brand that
allows the broker to own their own clients and have
full control of how they manage their own database
and systems. The 1300HOMELOAN call centre is the
most professional I have experienced in the industry.
P
E
W
02 9248 6900
info@1300homeloan.com.au
www.1300homeloan.com.au/brokers