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​Merge or bust: The beginning of the end for the one-man band?

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Australian Broker | 08 Jan 2014, 08:28 AM Agree 0
Segmentation and running costs are forcing broking’s one-man shows to weigh up their options – and sending some out of business, says a top broker.
  • Old joe | 08 Jan 2014, 09:19 AM Agree 0
    Here we go again an outfit that has worked out that its easy to employ brokers join their outfit give them nothing and they will hang around and make them money. Sorry wrong decade.
    This is my advice
    If you have no experience join a large outfit. Work the leads establish referrals and see it like an apprenticeship. All of us did it and also you will have fun and learn on the way. Record EVERYTHING AND ANYTHING.
    When you are ready to leave the nest go to a large aggregator preferably one that is tied to a bank as they are well resourced and also wont tell you every week the issue of rising costs and that they have no money. Then stay as a one man band and instead of a shopfront spend the rent money and expenses on lead generation and there it is. invest in a nice computer desk at home with nice screens and you can run an empire..
  • Brad Quilty | 08 Jan 2014, 09:25 AM Agree 0
    I don't overly agree with that. Good service doesn't mean same day approvals, it means getting the right loan for the client first time. So being a diamond/flame/preferred broker doesn't make you a good broker. Its about looking after the client. As far as new entrants into the industry, then, it doesn't matter if they get an approval in 1 or 7 days as they can still make their mark by their reputation. Which always takes time. I'm relatively new to the industry, with no banking experience, and I think it is a positive that I had to prove myself, over time. It meant that I had learned my craft, rather than just submitting loans for fast approvals to my favourite lender. I don't think segmentation by the lenders effects a good broker getting the right deal done and isn't a hindrance to building a strong referral based business.
  • Fat Albert | 08 Jan 2014, 09:33 AM Agree 0
    It's always interesting listening to brokers or lenders about segmentation - it's all about what suits them best. Seems the customer/client gets lost in all of the debate. Why should one consumer receive a poorer service experience just because their broker doesn't give enough business to a particular lender? That's neither fair for the client or just - it's a form of discrimination. Segmentation achieves nothing more than channelling brokers in to giving more business to a particular lender. Well done to NAB broker who got it right & scrapped their system.
  • Country Broker | 08 Jan 2014, 09:36 AM Agree 0
    This to me is a smoke and Mirrors from Jeremy Fisher, New entrants and sole operators can exist and perform well by working with aggregators and sub- aggregators who provide mentoring programmes , all be it at a cost. Many brokers like being their own boss and running their own business , you do not have to "partner" or join a larger business the aggregator model does that for you
  • Todd | 08 Jan 2014, 10:13 AM Agree 0
    Wow is Jeremy looking to hire some brokers... that was an infomercial if I have ever seen one...
  • Positive Broker | 08 Jan 2014, 10:15 AM Agree 0
    Its not rocket science. Know your stuff, join a decent aggregator and deal with lenders and BDMs who will support you. Work your butt off, over service your clients and it can work as a one man band
  • chris P | 08 Jan 2014, 11:17 AM Agree 0
    Hi Joe,
    how do I get in contact with you.
  • Will_Perth | 08 Jan 2014, 11:19 AM Agree 0
    What a total crock of you know what. Its a fact that a good broker makes more money in the pocket when they are on their own and they don't have greedy broker groups gobbling up their commissions for little return. If you are a good broker, you dont need a group. If you are a bad broker, a group will not help you. Why do you even publish this stuff ??
  • Perth Broker | 08 Jan 2014, 12:07 PM Agree 0
    What a load of rubbish. Nothing more than a commercial to hire brokers. I have worked as a one man band for 15 years - with the support of a sub aggregator - and as far as I am concerned nothing could be better.
  • Brokers in dream land | 08 Jan 2014, 01:41 PM Agree 0
    With more and more real property groups and financial planners adding on broking, the stand alone model is doomed to the vast majority of new players. Established ones with repeat and referral business may survive but no hope for new comers and they shoudl joing a group.
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