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Real estate guru John McGrath has told brokers they should settle one deal per day and can realistically aspire to write $100 million per year.
Mr McGrath, who is the founder of Oxygen Home Loans’ parent company McGrath Estate Agents, said brokers should “get serious” if they thought one deal per day was too ambitious.
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“You’re working 12 hours a day … in a country like Australia where there is trillions of dollars worth of existing and new loans, all of which can be serviced and refinanced and looked after – and you really don’t think you can find a deal a day?” he said.
Mr McGrath also said brokers could book $100 million annually if they worked 200 days per year and settled one $500,000 loan on each of those days.
He said those 200 settlements would require 250 lodgements which in turn would require 275 qualified client meetings – or 1.4 meetings per working day.
However, brokers can’t hope to write large volumes unless they have excellent energy, attitude, organisation, persistence, focus and product knowledge, according to Mr McGrath.
“So let’s stop living the delusion that I can be a 6/10 energy kind of guy and I’m going to grow a massive business,” he said.
“Think again – you’re not. Or I can have 6/10 product knowledge and I think I’ll be pretty good. No, you won’t.”
Mr McGrath said one of the keys to organising daily client meetings is to overcome the fear of rejection that often prevents brokers from making enough calls.
During meetings, brokers need to avoid the common mistake of talking too much, because listening convinces clients that you care about their individual needs, he said.
Brokers then need to treat those clients like “royalty” so they create “raving fans” and end up generating 80 per cent of their business from referrals, he added.
“You should have people sending you emails and crawling over broken glass to give you referrals. Why? Because you looked after them like royalty and they referred you to their best friend and you looked after them like royalty,” he said.
Mr McGrath said there had never been a better time to be a broker, with broking ranking as one of Australia’s top industries alongside real estate, technology and banking and finance.
He was speaking at the Generation Next forum in Sydney last Friday.
[Related: Oxygen makes Top 25 Brokerages list]
