1300 to become top advertiser

by Ben Abbott,BN24 Oct 2011

John Kolenda has stated his 1300 Home Loan business will be among the top advertisers in the mortgage category, once its advertising campaign is launched early in the new year.

Speaking with Australian BrokerNews, managing director Kolenda said the 1300 Home Loan business had so far been 'misunderstood', and that it promised to significantly increase broker business value.

The business is set to launch a $4m advertising blitz beginning in January -  including TV, radio and billboard advertising - which aims to build the brand among prospective home loan customers.

Under the 1300 Home Loan model, brokers buy post code or geographic areas for between $700 and $2000 per month, and leads generated are pre-qualified and routed to the local broker.

Kolenda said the broker then 'owns' this customer, with all following calls automatically routed to the local broker, who can also maintain their own independent brand as well as utilising 1300's.

Out of 1040 locations available, 400 have so far been purchased, with Kolenda saying that some brokers had chosen to lock in their ownership of more than one post code area.

Kolenda said the recent RAMS acquisition for $140m by Westpac demonstrated the value inherent in brand, and that brokers would build value in their business by having equity in the 1300 brand.

He said this was in addition to the value generated through leads and ownership of the customer, meaning that higher than normal exit multiples could be achieved by 1300 Home Loan brokers.

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