Taking the plunge

Some brokers assume branded businesses only suit new-to-industry brokers who are looking to quickly build their business. These brokers, it is assumed, will then leave the ‘national’ brand once their own ‘personal and professional’ brand is strong enough.

In addition, many assume the branded business model is at the more expensive end of the spectrum because with all the additional support and services they provide, how could they not be?

“Brokers assume that joining a branded business will cost them far more than going out on their own,” says Mr Moore. “However, this is just not the case anymore. There are models around that cost significantly less than brokers would typically expect.”

Mr Moore says many brokers need to reconsider their opinions of branded businesses.

“There is also an assumption brokers have to sacrifice their independence and there is no way they canintroduce their own ideas into the business,” he continues.

“That again is wrong. A good branded business provides the best of both worlds. They provide strength and consistency when it comes tobrand experience and thereis also scope for brokers to embed their own ideas and best practices into the business.

“A number of very senior brokers are looking to join branded businesses for that reason in particular – they know they are getting the best of both worlds.”

Making the switch

Brokers do not take the decision to switch groups lightly. There are a number of considerations and factors at play, but Mr Moore says brokers also need to weigh up the benefits.

“The first piece of advice I would give is for brokers to understand what they need to do to realise their full business potential,” he says. “Brokers need to understand what theircore skill set is and where they need a trusted partner to provide business support.

“We are seeing a number of successful brokers looking to join branded businesses. They see the value in a brand and marketing and they also see importance in having scalability.

“We hear a lot of brokers saying they want to bring someone on board but they simply don’t have the time to recruit the right person who has the level of skills required to make good in the job.  Branded businesses can help brokers recruit, train and retain the right people. In addition, we can provide them with a guide on best practice.

“Branded businesses help brokers set up the support they need to take their business to the next level.”

Bradley Beck, who has been with Choice Home Loans for over a decade, says brokers need to investigate their options and find the right branded partner for their business.

“I think every broker, or potential broker, needs to really work out what they actually want and then find out who matches that bill. If they join a group who doesn’t offer what they’re after, they will be continually frustrated,” he says.

“It’s like anything in life – you’ve got to know the outcome you want and be able to work out the way to get there.”

The costs

Costs and expenses will obviously play a huge role in a broker’s decision to switch groups or join a branded business.

While Mr Moore says brokers should definitely weigh up their options, he says they need to remember that being a broker, and building a business, will cost money.

“Costs vary dramatically from business to business,” he says.

“At Choice Home Loans we are on the lower end of the spectrum in terms of joining fees and ongoing costs.

“My advice for brokers is that they need to weigh up the costs against the benefits of being associated with a branded business. With a branded business you do get a lot for your money, including online marketing, sales support, qualified leads, practice management and business coaching – everything you need to run a successful business.

“The harsh reality is, if you do become a broker, you will need capital. As a guideline, you need at least six months’ worth of income, but ideally 12 months as this will give you the time you need to establish your business in the best way.”

In addition, Mr Moore says Choice Home Loans offers both office and mobile broker options, which can help brokers to tailor their business to their own needs and reduce costs.

“It is very much about the broker’s choice,” he says. “The beauty of a branded business is it offers brokers all the support they need and a brand they can bank on, without taking away their independence.

“At Choice we continue to stress to our brokers that whilst they may be part of the Choice Home Loans brand, they are running their own business and can do so in a manner that suits them.

“Traditionally, branded business models were for those brokers who needed help with lead generation. Over time, however, branded businesses have evolved and what we are seeing now is recognition that these businesses can provide brokers with a better outcome.

“Brokers who recognise they want to focus on the advice side of the business and building strong relationships can see the value in partnering with a group that can provide all the other support.

“We are seeing platinum brokers joining Choice Home Loans and that is because they see merit in having good business support, good business systems and, most importantly, tailored assistance that can help them take their business to the next level.”