Aggregator announces new referral program for brokers

by Julia Corderoy30 Apr 2015
A major aggregator has announced the launch of a new commercial referral program for brokers, which it says will help brokers diversify their business and keep their clients sticky.

At the Vow Financial mini-conference held in Sydney yesterday, Tim Brown, the chief executive of Vow told Australian Broker that the commercial referral partnership will allow brokers to service the commercial needs of their clients, without having to take time out of working on their core residential business. 

“[The commercial referral partnership] means [brokers] can access someone who has the necessary commercial expertise who can complete the deal,” he said.

“What we don’t want is our brokers getting tied up on corporate commercial deals that they don’t understand, spend a lot of time on, then loose the deal and potentially take the focus from what they do best which is writing residential.”

“Commercial funding and lending is a very different proposition to a residential loan. You’re getting into balance sheets, cash flow statements and other things generally not required in the residential space.

“We’ve had brokers who have worked on a commercial deal for six months, which has taken the focus off residential. But then had the deal fell over and then they have no income because they haven’t been focussing on their core business.”

The commercial referral partnership, which it set to be launched in about one month, will also offer brokers a referral fee for referring the client to Vow Commercial. 

“What we are doing is giving [brokers] the ability to access that expertise and still earn something from the transaction,” Brown told Australian Broker.

“Brokers are great at identifying the client; they find the client with the need. The question is: can they execute on it? Vow is allowing them to get the execution of the loan done by the experts so they can stick to the residential stuff,” Yellow Brick Road executive chairman, Mark Bouris added.
 

COMMENTS

  • by Coast Broker 30/04/2015 9:45:11 AM

    Nothing new here. Other Aggregators have been doing this for quite a while. Vow and YBR promotions department working overtime.

  • by Deena Janes 30/04/2015 9:55:23 AM

    Fantastic support for your brokers Tim.
    Good move.
    It will also help support the commercial guys out there at the moment while times are a little tougher for them.
    Win win for all.

  • by Rob 30/04/2015 11:34:01 AM

    I can't believe it's taken some aggregators so long to do this. My aggregator has been doing this for more than 5 years, ensuring the clients can be well looked after and their total business retained within the aggregator group.