Once we have a rough idea of these 3 factors — loan size, loan term and commission rate — we know what a new client is worth to us in a single transaction – $4,766. But as I said, these are the basic questions, there are other, more complicated questions we need to answer to get to the potential Lifetime Value. How you answer those questions will determine the long term value and viability of your business, and also potentially give you a huge advantage over your competition because your clients are now worth more to you than they are to them.

As I said earlier, the Lifetime Value of your clients is a direct reflection of the lifetime value of your service to them. To maximise the Lifetime Value of your clients, focus on maximising your ongoing value to your clients.


  • Are you getting repeat business?

There are a few aspects to this, but at this stage I want to focus on whether you are capturing all of the future loans your clients will do — that you must, at the very least, have pro-active systems in place which maximise the chance that your clients will come to you for their next loan.

A question I find very interesting, and that you should ask yourself, is ‘What can I do, so that if my clients ever want another home loan, I have a 100% certainty they will use my services?’

Is it even possible? – I don’t know.

But I know if you put your heart and soul into building a business with that as its goal, you will get a lot more repeat business than most Brokers – because most Brokers just think ‘I’ll do a good job and they will come back. Doing a good job is a starting point to getting repeat business, but in a highly competitive finance market it takes a lot more than that to make clients remember you over a period of years and sustain you as the only choice in their eyes.

The concept of maximising repeat business is a major topic in itself that I will cover later in this book, but at this stage we need to accept how it tremendously affects the Lifetime Value of our clients, and therefore how much we are prepared to spend to get new clients. So if your client upgrades their home 3 times in their lives and we do those loans for our client — we can earn $19,604 from that single client.

One of the central themes you will identify from this book is that the importance of building a client base is more important than what you initially earn from doing loans from those clients. In fact, for us as Brokers, even if we don’t do a loan for someone we can still make them our client with the intention of getting their future loans.

A ‘client’ is not just someone we earnt a commission from, it is someone we have helped in some way. Then it is reasonable for you to add them to your client database and start marketing to them in the ways I describe later in the book.

Anyone we help in any way should be added to your CRM – usually this means we have given or done something of value to them, such that in return we get permission to market to them on an ongoing basis. For example, we may negotiate a cheaper loan for them with their current lender but get no commission from it, but we ensure they now understand that they get a better deal from their own bank if it is organised by us, and that we are their future point of contact for their loans. So we will keep in touch with them to reinforce and remind them that we are going to take care of their loans from now on.

I said above that the better the loan we get for our client the longer, on average, the client will remain in that loan as they will have no incentive to refinance, thereby maintaining our trail for longer. That was our first indication that doing our best by our client is also in our best interests.

Now, our second indication is that the better the job we do, the better we are creating the foundation for repeat business, particularly when it is followed by top quality post-sales marketing.