Franchises defend lead quality

by Adam Smith02 Mar 2012

Franchise brokers have defended the quality of leads handed to franchisees, and have argued franchisees have a "healthy balance" between self-generated and company-generated leads.

Aussie Home Loans has reported a 41% increase in leads for February, and general manager of marketing and product Stuart Tucker has claimed that the leads being handed to franchisees are high quality.

"I think we're providing very strong leads, and we've seen our lead to conversion ration increase over the last six months by 5%, which is significant," Tucker said.

Commenters on the popular Australian BrokerNews forums questioned the quality of franchise-generated leads, and argued that brokers should generate their own leads through referrals and client relationships. Tucker declined to comment on the company's specific conversion rations. However, he contended that conversion rations were high and that company-generated leads can prove a valuable supplement to brokers' businesses.

"We find even some of our most experienced brokers choose to participate in our model where they receive company sourced leads. They like the regular flow of customers, and they supplement that with their own activities," he said.

Tucker said brokers must strike a "healthy balance" between company-generated and self-generated leads, and said Aussie conducted training on sourcing leads from the community. Tucker also commented that Aussie had seen one of its best months "in years" for broker-sourced lead generation. He argued that brand recognition could give brokers and edge in converting these leads.

"I think the Aussie brand is a door opener. If you're calling from Aussie to your local network versus calling from Joe Blow mortgage broking, there's no doubt in my mind that people will be more open to what you have to say. I've seen independent market research indicating that Aussie is the number one most recognised brand in mortgage broking by a country mile," he said.

Tucker commented that brokers often tipped lead quality as an important factor in choosing broking groups or aggregators.

"I know for a fact that one of the primary reasons brokers choose to join Aussie is the consistent quality and quantity of the leads provided at a national level, particularly those who are new to the industry," he said.

Oxygen Home Loans general manager James Green also defended company-sourced leads. He said Oxygen provides leads for free, and claimed that 39% of the leads converted to settlement.

"We do this because we want the best brokers looking after our very important McGrath Estate Agent customers. We are always looking for top talent to partner with. To us it makes perfect sense to have the best brokers helping to increase the affordability of customers buying property from McGrath and making the buying process easier," he said.

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COMMENTS

  • by Broking/Planning 2/03/2012 3:18:35 PM

    No surprises here, of course Franchises are going to defend lead quality. As to their quality, well it's only their Broker's who can talk on that one, although it's not about having so many leads you're flat out, it's about conversions to settlement.

    Aussie won't discuss their actual conversion percentages and the 39% proffered by Oxygen doesn't light my fire either. Leads appear to be ALL the Franchises have to offer, as their income splits aren't going to do it, so they hang their hat on so called quality leads

    The comment "Tucker commented that brokers often tipped lead quality as an important factor in choosing broking groups or aggregators" isn't true for us. The big thing that impedes our ability to climb faster than what we're already doing is dodgy software that poses under the guise of Podium and poor backup to anyone outside of the Capital Cities.
    Although I'm interested in other Brokers thoughts on Tucker's comment, as if it holds weight with them?

  • by Tom 2/03/2012 4:34:15 PM

    Hilarious.
    These guys arguably are the biggest leaders that set the tone in our industry yet these blogs always look to the negative. No I don't work for them and don't need a brand however think their are a lot of green eyed monsters out there who wish they did..
    P.S. Love you new advert campaign Aussie as it's great awareness for the industry.