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By: Belinda Luc
Savvy brokers find word of mouth is still the strongest driver of business.
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According to The Adviser’s weekly straw poll, more than 50 per cent of brokers do not spend a cent marketing their business, while 9 per cent said they 'rarely' spend money on marketing.
Of the 488 respondents, 24.6 per cent of brokers said they frequently spend money marketing their business, while 15.8 per cent said they ‘sometimes’ invested money in marketing.
The Loan Arranger director Steve Marshall said he rarely spent money advertising his business, instead relying on his customer service and thus client referrals to market him and his business to new clients.
“I probably send out about 1,500 to 2,000 newsletters a quarter to existing clients,” Mr Marshall told The Adviser.
“Word-of-mouth referrals are the main way in which I generate my business,” he said.
However, some brokers do see the value in spending money on marketing.
1st Street Finance director Jeremy Fisher uses direct marketing strategies, such as newspaper ads, as well as non-direct marketing methods like sponsorships and charitable donations.
“I do like to spend money on marketing my business to new clients. That said, I have found supporting schools, sporting clubs and local community organisations have been more beneficial than say, letterbox drops,” he said.
“I would sooner sponsor the local sporting club or show my support for a charity than advertise through typical means, like a newspaper,” he said.
