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Setting realistic expectations and taking actionable steps are the cornerstones of broker success, a broker-turned-broker-coach has said.
Ahead of the New Broker Academy 2023, Billion Dollar Broker founder Ross Le Quesne has stressed the importance of new brokers setting achievable goals during the first 12 months of their career, depending on their level of experience.
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A new broker who previously worked as a banker, built a reputation, and has a network of former clients can potentially gain traction faster than one with no experience, Mr Le Quesne explained.
During his session at the upcoming New Broker Academy in June, the former Aussie broker will provide a blueprint on how brokers can build a successful business from scratch, offer strategies to generate referral business, and unpack the five pillars of success for a new broker.
“The reason why there’s a high failure rate among new brokers is because they don’t budget for how long it takes to build their pipeline and start receiving settlement and commission payments,” Mr Le Quesne told The Adviser.
The next step is for brokers to set a settlement target and reverse engineer it, he advised.
For example, if a broker aims to settle $1 million a month in their first year, they would be required to write around $5 million a month, taking conversion rates of application through to settlement into account.
“If the average house price is around $600,000, a broker would need to write two loans a month. A new broker might only convert 30 per cent of their leads to write those two applications, which means they may need six to seven leads a month.
“So, if a broker needs around two leads a week to achieve that, they have to focus on how they’re going to generate those leads. That’s how you reverse engineer your goals into actionable steps.”
Referrals and repeat business are the bedrock of lead generation, Mr Le Quesne asserted, and as such, building a platform of referrals in their network would be key.
“This could be from people in a broker’s network that they know, like, and trust, like past colleagues and clients,” he said.
“They could then get warm introductions to people they know such as their accountants, property managers, real estate agents and financial planners, and create strong partnerships.”
Target your market
Establishing a broking career could be overwhelming but focusing on a particular market and understanding it thoroughly could ease the pressure, Mr Le Quesne continued..
“A lot of new brokers make the mistake of trying to be everything to everyone rather than narrowing down to one or two markets, understanding those segments well, and becoming the trusted adviser for clients.”
For example, if a broker were to target first-home buyers (FHB), it is vital for them to stay abreast of different FHB grants and schemes. To differentiate themselves further, they could guide clients with processes outside their remit including property purchase, making an offer, bidding at auctions, and understanding their contract, Mr Le Quesne said.
“If new brokers could choose their market and the clients they’ll serve well, it’ll allow them to cut through and add value ahead of some of the other brokers out there.”
Above all, Mr Le Quesne said that to succeed in broking, brokers need to “keep it simple, focus on their goals, and take actionable steps that are proven to yield results”.
To learn more from Ross Le Quesne on accelerating your broking career and building a brokerage with strong foundations, make sure you attend the New Broker Academy 2023.
The free event will be held in the following locations:
15 June at Rydges South Bank, Brisbane, Queensland
20 June at Crown Promenade Melbourne, Victoria
22 June at Montage, Lilyfield, NSW
Click here to register for free and don’t miss out!
For more information including agenda and speakers, click here.
[Related: FHBs coming back into market as mortgage activity rises]
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