Balancing Diversification and Specialisation as a Broker
In recent years “diversification” has been a buzzword in and around the 3rd party channel. Whether it’s insurance, financial planning, risk insurance or leasing, aggregators and funders are promoting additional products that achieved mixed results.
Let’s be honest. The number of successful mortgage brokers that transformed into a holistic business is not huge.
Certain well-known franchises that promoted a complete financial experience for customers have abandoned that strategy and moved back into a pure mortgage broking offering.
However, diversification in our industry does not necessarily mean moving into a completely different discipline. Over the years, smarter brokers have looked at certain markets within the broking sector and promoted these services to grow their client base and provide a more complete service.
The following are examples
- SMSF lending
- Construction loans
- New home buyers
- Reverse mortgages
- Or a mix of these!
At the time Covid-19 struck and lockdowns around the world became the norm, governments opened the purse strings and poured money into the economy and housing through increased grants and multiple special offers.
Smarter brokers redirected their marketing, increased their exposure to those clients and capitalised on these new opportunities.
To summate, being a specialised expert in an area, yet having an open mind and proactive attitude to new opportunities has been recently been a path to success for brokers.
What’s the next opportunity you can diversify into?