A Mortgage Broking business, in fact, any business, consists of four main components or systems that you need to move your clients through.
Initial Marketing, Sales, Operations, Post Sales Marketing
Every client you will ever do a loan for will move through these four steps. It may be that other people may perform parts of this for you (usually you have educated them on how to do so), or you may do it all yourself. Either way, if you fail at any step they will not get to the next step and will drop out of your business.
- Initial Marketing — generating inquiries from prospects
- Sales — proving to these prospects that they should use your services
- Operations — helping your new client to get their next home loan
- Post-Sales Marketing — generating future inquiries and referrals from clients and ensuring they remain loyal customers and advocates.
As you can see, Initial Marketing feeds clients into the business and then it’s up to you to keep them in it. The better you do each step, the easier the next step is, and at each step you need to be preparing them for the next one. The most successful Mortgage Broking businesses do a great job at each of these four steps and work at improving them.
Helping you to master them for your business is the purpose of this book.
I did not come into the mortgage industry with this knowledge, nor did I obtain it overnight. It took a great deal of trial and error in building my own business and in particular educating myself on everything I could get my hands on about real-world marketing of a small business.
My personal story is that in 2000 I was completing a three-month work placement in the Management Consulting Division of Ernst and Young as part of the Masters of Organizational Psychology at Curtin University that I was doing. This was following on from graduating with an Honours Degree in Psychology from the University of Western Australia.
One of the senior Management Consultants I was working with was consulting to a Mortgage Broking firm, which introduced me to this emerging industry. I saw a lot of potential in this industry so when I finished my placement I started my own company, Mortgage Australia.com.
Why the ‘.com’? Well it was the year 2000 so it seemed every new company had to be a ‘dotcom’ and be internet focussed. It also allowed me to secure the domain name of www.mortgageaustralia.com.au. That company name was relevant for a time and it directed my marketing approach, but a few years later I changed it to Mortgage Australia Group Pty Ltd, as it is today.
It seemed to me when I started as a Broker, and still does now, that there aren’t a lot of businesses like Mortgage Broking where your interests are so clearly aligned with your customers.
Most businesses are based on the principle of creating your product or service at the lowest possible cost to you and then selling it at the highest possible price to the consumer. That is simply how you maximise your profit and stay afloat.
There is nothing wrong with that, but if you sell cars, swimming pools, TV sets, magazine subscriptions, haircuts or self-help seminars, natural market forces require you to produce your product or service inexpensively and charge as much as your competition allows you to. If you don’t your business will not survive against your competitors who do.
Consumers are very aware of this fact and assume that all business operate in this way, which is an educational challenge Mortgage Brokers face.