New Broker Academy 2022: Event wrap up

It is during these times of change that the instrumental role of the broker channel in providing mortgage advice and gentle reassurance is amplified. And if the turnout was anything to go by, there is certainly clear interest in the industry.

The events saw a huge turnout across all three states, welcoming almost 200 delegates to Rydges in Brisbane on 6 September, 300 guests to Montage Sydney on 8 September, and more than 300 to the Crown in Melbourne on 13 September.

The roadshow aimed to equip new and prospective brokers with the strategies, skills, and knowledge to grow and succeed in their first three years of becoming a mortgage broker.

Alongside this, it provided solid sales fundamentals and tips on how to attract and convert a high percentage of client inquiries. 

As well as providing informative sessions and Q&A discussions, the New Broker Academy 2022 enabled brokers to network with fellow brokers and industry professionals during allocated networking breaks.

Commenting on this year’s event, NextGen head of broker partnerships Renee Blethyn said the first two years in this industry are the “hardest” so initiatives like the New Broker Academy are a “fantastic avenue” to educate and empower new entrants right from the start.

“In order for the industry to be robust and sustainable in the long term, we need to support new brokers. By helping them set up best practices and efficient systems, they can reach their revenue point faster, submit more applications and build a thriving business,” Ms Blethyn said.

The morning session informed emerging brokers of the role associations and aggregators play, inviting managing director of the Finance Brokers Association of Australia, Peter White, who has more than four decades of experience across the industry. 

While setting up a small business as a broker is undoubtedly a challenge, Mr White told MC and senior content producer at The Adviser, Kate Aubrey, that the rate of success in the first two years was improving. 

It was previously reported that almost 50 per cent of new brokers fail in the first two years, however, Mr White said that was “closer to 30–35 per cent” these days. 

Mr White explained brokers are better positioned and well supported to succeed with the support and backing of associations such as the FBAA and aggregators, which provide education, training as well as lobbying government for industry changes such as best interests duty.

After the FBAA provided insight into the challenges for new brokers and available resources, three leading aggregators, Lendi, Mortgage Choice and Yellow Brick Road, explained the importance of aggregators and the various models available in the market, the associated costs and remuneration structures (fee v commission split), and how to choose a model that meets their requirements.

Following a morning tea networking break, the second part of the day was all about how to build a strong brokerage. Delegates heard from industry specialists who networking their recipes for success and practical advice.

First up, with 20 years in the mortgage and finance industry, Broker Profits Vault chief executive and founder James Veigli offered brokers the blueprint to building and launching a successful business.

Although brokers write almost 70 per cent of home loans in the industry, Mr Veigli said 50 per cent of all brokers write less than $6 million, which was “less than minimum wage” and only 7 per cent write more than $50 million, which he said he was determined to see change. 

He started by shining a light on six traps most brokers fall into, and then discussed a formula to achieve desired “numbers” by working “smarter” rather than “harder”, before discussing three areas of business that brokers “need to master”.

“Like many brokers at the start I struggled, but what I did was I invested in myself. I invested in business strategies, I invested in learning about marketing...and really dived into that world about how to run a business,” Mr Veigli said.

“By initiating some of those things as a broker, I went from struggling to put five dollars into my car to very quickly earning a pretty solid six figures and I took three months’ holiday a year.”

The importance and power of effective marketing and having a strong web presence were driven home by marketing specialist Dilek Saticieli, founder and CEO of Attraction Marketing, who also drummed in the “power of niching”. 

Mr Saticieli explained marketing strategies are essential to generating more leads and maximising return on investment. 

From getting a professional bio to utilising videos to promote your brand and ensuring the bones of your business — your CRM — is up to scratch, Ms Saticieli told delegates to “take control of your online presence”.

Critical to a good website was ensuring information is relevant and informative by using engaging videos, she said and shared tips on how brokers can create impactful marketing that reaps returns.

“Videos are the top thing you can do in marketing,” Ms Saticieli said, adding that Google My Business is under-utilised, particularly in terms of ensuring the visibility of raving client reviews. 

Finni CEO Paul Glossop then provided delegates the tools on how to diversify their leads funnel by forming strong referral partnerships with financial professionals with similar goals and brand alignment (while avoiding common mistakes when establishing these partnerships).

If the importance of referral partners hadn’t sunk in yet, Success and Broker business coach Ruan Burger outlined the key steps needed to build a strong brokerage, which included how to form key relationships and partnerships. 

From making key connections to streamlining duties, Mr Burger said brokers need to “make a pitch” so referral partners know how to sell you. 

They can’t sell you if you don’t have an elevator pitch on who you are and what you are selling, he said. 

New brokers were also shown how to capitalise on opportunities, avoid common pitfalls, and incorporate essential systems and processes to maximise efficiency.

Mortgage broking platform Effi’s CEO and founder Mandeep Sodhi expanded on ways to maximise efficiency through the use of its lead management platform, which removes processes and generates leads through innovative technology. 

Mr Sodhi explained Effi has partnered with comparison sites to help get new broker profiles into the marketplace. 

He said over 80 per cent of borrowers go to a comparison site to start their journey and in the past they would not go to a mortgage broker. Through Effi, however, brokers gain more exposure. 

In addition, the platform uses artificial intelligence to learn from you and can generate messages and book appointments.

With the growing demand for specialist lending, brokers got a taste of what leading non-bank Pepper Money has to offer and how they support the third-party channel, which makes up over “95 per cent of its distribution”, by providing an “effective alternative” to getting a loan rather than from a bank. 

Head of mortgages retail broker Siobhan Williams explained how non-banks differ and are able to give people more choice and often a chance they might otherwise not have.

She explained the “wide range of products and services” that are available and suited to different market niches.

For example, Pepper Money’s home loans were available for all sorts of borrowers, from those with full documentation to those working with “alternative documentation”. 

“We’re really closing the gap on a typical Australian borrower that’s looking to realise their Australian dream,” Ms Williams said.

Calling themselves a “cool club for brokers” director at Purple Circle Financial, Michael Stephens, explained how brokers can scale their business and “wow clients” by harnessing their exclusive network of like-minded brokers and becoming a member. 

Leading brokers share their experiences 

Leading brokers across all three states showcased how they run their successful businesses, the challenges they encountered in the early days and how they overcame them.

Recommendations such as ensuring their aggregator and franchisor had ongoing support, to specialising in writing one loan before increasing your portfolio, the brokers navigated the world of broking from a personal perspective. 

Summing up the day, Mr Mentor took to the stage to drive home the importance of finding a good mentor to guide you through the early years of becoming a successful broker.

Having just received Mentor of the Year award at the Australian Business Awards, founder of Mr Mentor, Pauline Ryan, explained four programs on offer that can guide new and emerging brokers to long sustainable careers. 

She explained 13 industry mentors were well equipped to provide new brokers the tools for success.

“We teach over 14 modules… and after the 14 weeks you are broker ready,” Ms Ryan said.

“Yes, [brokers] have to be able to get the business, but we at Mr Mentor believe you have to be able to do the business.”

Drawing a close to the events, guests were invited for final networking drinks with sponsors and speakers who were more than thrilled to keep the flow of information going.