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The boutique aggregator is exploring various initiatives aimed at enhancing the value for its broker members.
At the Purple Circle conference held at Opal Cove in Coffs Harbour on Thursday, 9 November, Frank Paratore (pictured on the right), who serves as co-director of Purple Circle along with Michael Stephens and chairman Greg Pennells, shared valuable insights regarding the company’s strategic direction during an interview with The Adviser.
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Mr Paratore highlighted Purple Circle’s intention to continue on the current path, given its recent record settlements.
“October has been an all-time record for us again,” Mr Paratore stated, following five consecutive record settlements.
He emphasised that they are likely “outstripping other aggregators in terms of organic growth”, primarily due to the substantial number of brokers they are onboarding in relation to the settled volume for their members.
Mr Paratore attributed some of this success to the company’s boutique size, with around 141 brokers currently under their wing.
Looking ahead, Purple Circle is considering several initiatives, including the exploration of a “retail concept”.
They are also deliberating ways to add more value to their members, such as by introducing additional white label products.
However, Mr Paratore cautioned against being overly focused on change, emphasising that their business is strong and their primary focus should be on enhancing their existing offerings.
He stated: “Let’s not change what doesn’t need to be changed. There’s been a lot of consolidation in groups, and once again, you’re just a number among thousands. It’s challenging to maintain a personal approach on such a large scale.”
The group intends to continue recognising its members with shares, with a closed group shareholder update scheduled at the end of the conference day.
Mr Paratore explained the criteria for becoming a shareholder, stating: “Once you join Purple Circle, you must be with us for 12 months and have settled $12 million worth of business. When you achieve both, you become a shareholder.
“The idea is to have as many of our members as shareholders in Purple Circle.”
Mr Paratore noted that their largest demographic of broker members consists of those new to the industry.
Over the last 15–18 months, there has been a significant focus on attracting new members, with around two-thirds being newcomers and one-third transitioning from larger corporate groups.
He mentioned that many brokers are drawn to Purple Circle due to its unique share-based, co-op-style offering.
The personalised service offered by Purple Circle, where brokers can easily reach out to the business’ directors, is another key factor attracting brokers.
Perry Walton, a broker based in the Gold Coast who started his own brokerage called Illuminate, reiterated that it was his conversation with Mr Paratore at Purple Circle that ultimately convinced him to choose them.
“He simply asked me about my business and what I was doing, compared to other aggregators that told me about them,” Mr Walton said.
[Related: Purple Circle reveals record settlements]
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