Why brokers fail

Nobody is going to tell you this. So let me do the honours.

Your competitors, at the end of the day,?benefit when you fail.

If?your clients go to them, if your?reputation takes a hit, and if your business shuts down forever ...

Your competitors win.

So read carefully.

Whether you're a new or established, there are three main reasons brokers fail.

They are:

1. "Death?leads"

2. "Race tracks"

3. "Egg?traps"

Let me explain what these are (and how to avoid them).

1. "Death Leads"

You know these "death" leads. They?aren't strangers.

These leads are former clients who you used to rely on for business, but who no longer do deals with you anymore.?

They were good clients - all the way up until last year, when the RBA raised rates to the point where your clients can no longer borrow funds.

Traditional lenders today simply won't look at them like they used to. As such, they've become "death leads".

It is incredibly important to identify these leads - because if you send them off to a traditional lender, you will be very unlikely to secure a deal for them.

2. "Race Tracks"

The broking business is a race track. Everybody is out to win - dashing for the finishing line.

And the track is getting larger.

According to research institute CoreData, there were over 19,683 registered credit representatives in Australia in 2020. This number has gone up since.

The track is getting fuller and fuller.

This increased competition is why so many brokers end up failing.

They just cannot keep up with the rest of the cars.

3. "Egg Traps"

The number one reason brokers fail is that they put all their eggs in one basket.

This is in the infamous "egg trap".

Brokers who?specialise in residential loans only do residential loans. This accounts for 90% of brokers today.

While those who specialise in commercials loans?only do commercial loans.

This is inherently dangerous - because you become subservient to the whim of one industry.

If the residential market crashes, you crash.

Without diversifying your product range, your eggs are much more likely to crack.?

How to Win on the Race Track, Diversify Your Eggs and Convert "Death" Clients into "Angel" Clients

Private lending is one of the best ways to achieve all of this.

Partnering with a solid private lender will help you:

*cue angels singing*

- Provide an alternative to those clients who can't get loans from traditional lenders anymore

(converting "death" clients into "angel"?clients who keep coming back)

- Give you access to a broad range of products, whether that's construction, residential or commercial

(dramatically diversifying your eggs)

- Give you something to offer your clients that no other brokers can

(helping you win on the race track)

If you want this for your business...

... give us a call and get in touch with Archer Wealth right away.