Mortgage broking can be a very lucrative business, simply because of the high level of commission fees that banks pay, in New Zealand around 0.65%. The mortgage broking sector in New Zealand is fairly tightly regulated, and is largely made up of competent qualified and registered mortgage brokers that are largely focused on doing a good job for their clients.
While the traditional approach to winning new business is to maintain good networks around the property industry including real estate agents, developers, builders, banks and independent financiers, the modern successful mortgage broking firm is intent on leveraging the Internet for new business to the highest extent possible.
The Internet and in particular Google search is the go-to resource for any first time buyer or for any new client who is dissatisfied with their bank or does not know any brokers that they can trust. There are lots of searches for mortgage brokers Tauranga every month, and most of these searches will be valid potential clients serious on obtaining a mortgage. A particular quirk of Google search is that almost all of the search traffic ends up going to the websites on page 1, and only about 5% of the search traffic is available for everyone else. Even more peculiar, around 33% of the total search traffic will go to the website in the number one spot, and by any measure this is a massive advantage over the competition.
Companies who succeed in getting their website ranked number 1 are simply going to be flooded with new business on a daily basis, independently of whether or not they provide a good service – provided of course that their service is not so bad that it becomes widespread public knowledge. The truth is for these companies that if they do provide poor service then they don’t need to worry because new business will keep on rolling in through the door.
There are only a small number of large companies in this very valuable position, and they have had to make a major investment in web development and SEO development to get there, but the payoff for this investment is massive. Littered in their wake are large number of companies that have made a similar investment but have failed to get the #1, #2 or #3 slot.
All remaining mortgage broking companies must resort to the traditional methods of generating new business, and can only look enviously at the large companies that have a lock on the Internet generated business. The good news is that this business model has the potential to be significantly disrupted by new entrants with the SEO capability to rank their own websites in the top 3, and therefore pluck business from under the nose of the big mortgage broking firms.
The ideal business model is where an SEO specialist company links up with mortgage brokers Timaru and passes the leads directly to them in real time. These leads would be incredibly valuable to the broker, who would be only too happy to share a massive increase in income with the SEO company that was delivering the leads to them.