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Diversification could mean taking 'eye off the ball'

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Australian Broker | 16 Nov 2012, 07:00 AM Agree 0
A NSW broker who expanded his services to include financial planning only to later 'throw in the towel', has urged brokers not to 'take our eye off the ball' in the scramble for diversification
  • 1martym1 | 16 Nov 2012, 09:46 AM Agree 0
    wise words, we have been sold a con business 101 = specialise
  • John Black | 16 Nov 2012, 10:11 AM Agree 0
    My blog posted on the 24th October ddresses this very issue. Refer to link

    http://jb0731.wordpress.com/2012/10/24/diversify-or-die-first-analyse-strategise-then-diversify-or-supercharge-your-specialise-with-relationalise/
  • Broker | 16 Nov 2012, 10:25 AM Agree 0
    Focusing on being an outstanding Broker can also delivers great rewards, I don't see Hairdressers becoming Butchers on the side!!
  • MortgageBroker.com.au | 16 Nov 2012, 10:26 AM Agree 0
    We are called mortgage brokers for a reason. The general public in Australia expect mortgage brokers to write home loans and associated products.

    We are pushing to be recognised as 'Professionals in our field' and I think that thought is now gathering momentum, we are being represented in a much better light than a few years ago.

    We can use professionals in other businesses to compliment ours. Lets work together and not blur the lines.

    Just an opinion.

    David
  • Positive Broker | 16 Nov 2012, 10:36 AM Agree 0
    Couldn't agree more with Rob. Definitely have referral relationships in place so you can cater for your client's needs but don't be a jack of all trades master of none. You wouldn't let your tyre fitter service your car. Broking is no different.
  • Country Broker | 16 Nov 2012, 10:41 AM Agree 0
    I really must agree here, we are trained in being Mortgage and Finance brokers, it is what we do and hopefully in the eyes of my clients do well.

    If I wanted to be a financial adviser I would have done that.

    I can still diversify BUT into areas I am well trained in and I have PI cover for.
  • Scott Beattie | 16 Nov 2012, 10:48 AM Agree 0
    Diversification doesn't mean that you have to do everything - it might mean that you need to establish a relationship and in my opinion, ideally in your own office and or brand, where a client can meet with a planner / risk adviser, property person, personal loan and or leasing, commercial insurance etc etc

    If you are solely relying on 1 form of income, you will probably be OK....for the moment.

    Creating multiple streams of income is longer a luxury, it's a necessity.

    2011 Mortgage Broker of the Year - Diversification
  • Incognito | 16 Nov 2012, 11:43 AM Agree 0
    I absolutely agree.

    Diversification is a fine theory for aggregators - but a recipe for sleepless nights for brokers.

    Even diversification into SMSF loans has been a stretch.
  • Coast Broker | 16 Nov 2012, 12:50 PM Agree 0
    Agree with Rob. I know of two Mortgage Brokers who completed their qualifications for Financial Planning only to realize that you cannot specialize in both. Also know a Financial Planner who is also trying to be a Mortgage Broker and the ongoing training requirements for both are hindering the actual running of the business.
  • Andrew Tan - Masters Broker Group | 16 Nov 2012, 02:45 PM Agree 0
    Agree with Rob Horner. Be the best mortgage broker you can be. Diversification can work - but it is a whole different business plan. Building a better value proposition on what you are good at is easier than starting a whole new business.
  • steve reid | 18 Nov 2012, 08:45 AM Agree 0
    Hi Guys
    Asic should look at the amount of Brokers
    Selling SMSF loans and talking about SUPER along the way like they know it all

    Its a bomb waiting to go off
  • SteveOz | 18 Nov 2012, 10:13 AM Agree 0
    Wise words from Rob for sure. Diversify absolutely, but as a referer / Introducer. Maximise your additional revenue and create a genuine FLOW of business at the same time. 7 Simple steps.
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