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Jessica Darnbrough
Brokers who are looking for a new service to diversify into should look no further than the communications and energy industry, one stakeholder has claimed.
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Speaking to The Adviser, Money From Home Bills’ Michael Ryce said while there are many ways for brokers to make additional income on top of their home loan commission, one area that has not previously been targeted is the energy and communications industry.
“I believe diversifying into energy and communications is a natural fit for mortgage brokers, as these are services that everyone needs and everyone wants,” he said.
“Writing a home loan for a client puts a broker in the ideal position to offer additional services.”
According to Mr Ryce, brokers who become a member of the company, Money From Home Bills, are then in a position to offer their clients access to discounted energy and communication services.
“Everyone knows how difficult and time consuming it is to deal with the energy and communication companies when you first buy a home. If a broker can sort all this out for their client, they will be building a much stickier relationship,” he said.
Mr Ryce said brokers who do diversify into energy and communication services can expect to earn additional revenue of approximately $50 a month per household.
“Brokers can earn up to a 10 per cent residual on every service they offer. If you write 200 loans a year, you could earn up to $10,000 per month,” he said.
“Diversification is critical in this industry. Not just because it helps brokers earn additional revenue, but also because it helps them build sticky relationships and clients for life.”
