Future's bright as new brokers purchase leads

26 July 2010

At a recent industry awards ceremony there was a notable difference in atmosphere compared with a year ago.

Attendees were more upbeat and happier than at any time in the past two years. In fact, the sense of optimism was palpable.

And it wasn’t just the wine flowing that made the room full of mortgage specialists so positive. There seemed to be a feeling that we’ve turned a corner and things are cautiously looking up.

Outside of industry events there heading in the right direction - the number of new advisers registering to buy leads has increased 300% compared with six months ago.

Brokers are registering every week in numbers not seen for several years, and what’s particularly encouraging is that a significant proportion of them are new to the industry.

Anyone running a brokerage knows that it has been a challenge to get new blood into the sector in recent years.

So it’s heartening to see that people have not been put off joining the profession by the credit crunch, and many are still prepared to become mortgage advisers and IFAs.

We are one of the first companies to encounter these new entrants to the market because many new brokers, or the firms they work for, buy leads to help them build up a database of clients.

It’s heartening to see that people have not been put off joining the profession by the credit crunch

As new advisers, guided by their firms, they can buy the types of lead they want, when they want. They can choose those that are easiest to place which should give them a kick-start.

These are typically remortgage leads with low LTVs, life insurance or telephone-qualified leads.

Meanwhile, among firms and individuals prepared to invest in building their client banks we are seeing an increasing amount of strategic lead-
In addition to quicker and easier to place leads, these latter advisers tend to buy a mix of lead types, including the less expensive purchase and first-time buyer leads, to build a pipeline of business for the future.

Of course, it’s not all sunshine and roses, and sadly we do still see people closing their accounts because they are leaving the industry.
The past couple of years have also seen a proportion of brokers reduce their lead-buying activity as they can’t place enough business with lenders. Some have even been forced to take second jobs to make ends meet.

But it looks as if even this trend is starting to slow, as advisers close their accounts because they are leaving one network or firm and moving to another where they can buy leads and grow their business under a new banner.

There’s still serious talk of a double-dip recession but I’m going to remain optimistic and point out that, while it’s likely to be a long slow resurgence, positive sentiment is a key driver of recovery.

And according to what I’ve seen in the past couple of weeks, things should keep improving.

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