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What are the key challenges new Mortgage Brokers face?

New to industry Mortgage Brokers face three key challenges when starting their businesses.

Firstly – Not investing in the right level of training and support.
Every new entrant brings to their business the skills and knowledge gained through their career to date. Each individual will require a level of training to reach competency within a desired timeframe depending on their existing skills, type of structure (Self employed or Salaried broker) and financial expectations of the new business.
An investment in professional, industry body recognised training is an essential success factor, as the old saying goes “Pay Nothing – You get Nothing.”
New mentees have come to us after trying the wrong training program and unfortunately by then they are often under financial pressure. The Mr Mentor program provides new entrants with access to a professional team who are there to teach, support and navigate them through the complexities of being a professional Mortgage Broker.

Secondly – New Entrants do not commit the time and effort to Mortgage Broking that is required.
Starting a new business or becoming a PAYG Mortgage Broker takes time. As we all know the statistics on starting a new business are quite staggering – almost half will fail within the first 2 years – Mortgage Broking is no different.
Even the fastest starters will experience a period of months before the first revenue flows are received. It is vital for a new self employed broker to have sufficient capital to launch their business and cashflow to cover living expenses for up to 12 months.
The Mr Mentor program delivers the knowledge, skills and tools to build a solid foundation and the structured learning to grow a successful business.

Thirdly – New customers will be easy to find, so I can be up and running in no time.
On average, consumers require home loan finance every 4 – 5 years, so even those new entrants who have an extensive network will find that enquiries take time to flow.
The early days as a mortgage broker requires a consistent application to networking and prospecting. This activity then needs to be supported by a level of marketing to maintain the broker as front of mind with prospective clients.
It takes time to build referral networks, such as accountants, financial planners, real estate agents and builders. Online generated leads deliver a low conversion rate, making them an inefficient and potentially expensive lead source.
The Mr Mentor program provides new brokers with a series of tips and training on how to generate new prospects.