Mortgage Broking and the Internet

The Internet is the source of a large volume of new business for those mortgage brokers that are smart enough to understand this and to know how to leverage it. While there is very definitely a sizeable market where good old fashioned practices like referrals and repeat business and good networks are what works best, there is a very large and rapidly growing segment of the market that prefers to do their business over the Internet.

This is true for all countries, and in New Zealand over 9000 google searches take place every month for mortgage brokers Hamilton. Only a few very large companies in New Zealand have been able to take advantage of this, because there is really only one way to take advantage of this source of new business. These companies have successfully managed to rank their websites so that they will be number 1 or 2 or 3 on page 1 of the Google search.

The tragedy for everybody else who does not get to be number 1 or 2 or 3 is that the top companies get to dominate at least 60 perhaps 70% of all the Internet business, and anybody on page 2 or beyond will be sharing only around 5 of all this new business, but with probably 95% of all the mortgage broking companies. It is very much a “winner takes all” market, and only those [companies with the deepest pockets and the smartest Internet and SEO consultants are the successful ones.

In spite of this, the sector is ripe for disruption, simply because SEO is largely an Arms Race, and very smart SEO companies able to rank pretty much any website for the major search terms. The opportunity for these companies is to create a homepage that drives users to fill out a form and submit it, and then get this home page ranked number one or two or three, and then have a number of mortgage brokers as clients who are happy to purchase these leads. Most of the independent mortgage brokers in Waikato in the large centres are very well aware that they are seeing a pitiful fraction of the total business that is being generated over the Internet, and they are only too happy to have someone tap into this massive market on their behalf and feed them quality leads.

Interestingly most of these brokers are also happy to take as many leads as they can get, because what they know full well is that it is very easy for them to scale if they suddenly see their business increasing by a factor of 2 or 4 or more. They also know that the more leads they get the more selective they can be as they can choose only the clients that are most likely to succeed in getting a mortgage, and they can also choose clients who are wanting much larger mortgages and will therefore be generating much larger commissions for the mortgage broker.