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'As mistrusted as dodgy car salesmen': Brokers too quick to diversify

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Australian Broker | 24 May 2013, 08:00 AM Agree 0
Brokers who diversify for the wrong reasons risk coming off slimy, says top industry figure
  • Brado | 24 May 2013, 09:23 AM Agree 0
    Couldn't agree more
  • SIDBROKER | 24 May 2013, 09:25 AM Agree 0
    Me think we have to many industry experts and not enough Indians.
  • Simon Wood | 24 May 2013, 09:28 AM Agree 0
    I agree completely. Bolt on the additional services so you can fulfil the client's needs, but focus and specialise on your core capability.
  • John | 24 May 2013, 09:43 AM Agree 0
    Mr Borg, in short you have no idea and are out of youre depth! By the way what is wrong with car sales people, are you that much better a person! Diversification should never be about revenue, it's all about the client and making sure all the clients key needs are met, so that they are in a better financial position. Your example about a a person getting a car and then tinting that they didn't needs further shows your lack of understanding. You must have worked for a bank as you seem to think its a cross sell stratgey rather than an advice and needs based strategy. The correct example would be getting the car with a baby seat included that protected the persons child more effectively than an afrer market option a key need all parents have. I suggest you keep selling just home loans and leave the advice to real professionals.
  • Andrew Gardner | 24 May 2013, 09:43 AM Agree 0
    You're right on the money Mario. Only do what you are a specialist in and then only when that service is clearly required or you will look like you've 'loaded them up" and that is a business killer.
  • Steve | 24 May 2013, 09:45 AM Agree 0
    Good point Mario. These comments are so refreshing.
  • Rex Wood | 24 May 2013, 10:00 AM Agree 0
    What's critical is to start with the right engagement conversation and framework to position your being able to provide best options for people, rather than just sending them off to referrals with no central overarching strategy.
    Otherwise it's just handing a lead off to increase revenue, rather than providing best outcomes for clients.
  • Ray-Perth | 24 May 2013, 11:13 AM Agree 0
    This guy is absolutely spot on. If we keep focused and do what we do best, making the clients a best friend,then business keeps rolling in from their referrals. The moment you treat them as some form of multi stream profit avenue they loose trust in you stop referring.
  • Andrew | 24 May 2013, 11:25 AM Agree 0
    This article hits the nail on the head...IMHO:
    a) There are already too many idiot brokers that don't know enough about their core products let alone peripheral offerings and are just accidents waiting to happen. These kinds of brokers wreck the industry for the rest of us, especially when encouraged to spread themselves thinner in a bid to survive.
    b) Being a Jack of All Trades = Being a master of none. If a broker is no master than their client may as well ask a friend or use the internet. There is a reason why we have ENT and Oncology Drs...the same should apply to financial services.
  • Old Broker | 24 May 2013, 12:13 PM Agree 0
    Well Mario maybe when you are out of business in the next few years or your revenue drops and you chuck in your calculator maybe you will think again at what you could have done better. To compare us to selling cars just shows what your internal thoughts are of our industry. We are in such a great position to help clients either by offering more products ourselves to our clients or by referring them off to a partner who we work with. Just have a look at what we know out of the mortgage, asset positions , Super situation, accounting , family life , etc etc! And brokers think that just by refinancing clients every few years is servicing our clients and when we lose them to an accountant, Financial planner or other competition we scream blue murder. Diversification has been proven that the client needs are either identified or attended to in the long run, sending them out the door and saying "see ya next Refi" is not the way of the future. I tell you buying a car to get to A to B is a little different in showing someone asset position and how far they are away from their nest egg size or showing them how to pay off their mortgage a little quicker with some wise budgeting and also savvy loan products.
  • John Ruddick | 24 May 2013, 12:45 PM Agree 0
    I agree. The brokers I know who try to do everything have a faster than usual drop off rate on their trail book.
  • Edwin Moses | 24 May 2013, 12:54 PM Agree 0
    Mario is a top broker who has articulated what I have thought for 10 years. Bravo Mario, I couldn't agree more.
  • Lorenzo | 24 May 2013, 02:32 PM Agree 0
    A good article and sound advice for most brokers. I for one, am sick and tired of being told to diversify by people sitting in their ivory towers who have never written a loan.
  • Terry | 27 May 2013, 09:15 AM Agree 0
    they thought the Titan was unsinkable. guess what?. maybe if it had made a few course changes along the way it might not have sunk. doesnt hurt to have more than one offering to a client.
    Yes it is important to have the clients best interests at heart but we are also taking on a huge risk by being self employed and that requires sufficient financial reward. We aren't social workers.
  • mac | 28 May 2013, 09:25 AM Agree 0
    +1 for the specialist approach. Business 101 is to specialise and find a niche. Why is suddenly up for debate? Good luck to those who want to diversify it may work for them but it only makes my specialist USP stronger
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