The residential mortgage broking industry in NZ is largely divided up into two segments, a small group of large franchises and a large group of small independent operators.
Large franchises have without exception invested heavily in the marketing of their operation, including Print Media, television, radio and online marketing, with the sole aim to generate as much new business as possible. These companies rely to a large extent on new business from residential customers and on repeat business from investors, and unfortunately the new residential customers will not necessarily be treated that well because franchises understand that there was always new business coming in through the door if they have run their marketing campaign effectively.
In 2017 the single most effective way to generate new business has to be ranking #1 in Google search results for the main mortgage broking keywords. While this will require a very significant initial and ongoing investment in the franchise website and in the SEO necessary to gain the ranking, the return on investment can be enormous. In general for all Google searches around 33% of all Internet traffic goes to search result #1, around 18% to #2 and around 12% to #3. Any other mortgage broking website on page 2 and beyond will be sharing about 1% of the total traffic with all the remaining mortgage brokers Southland.
The decision by any new franchise to spend the money to get themselves ranked highly is a brave decision, because SEO is not an exact science and it is always very expensive. The marketplace is probably littered with many pretenders who have spent a lot of money but haven’t quite made it.
This does however present a unique opportunity or companies with specialist SEO skills to rank their own website within the top 3, and then to direct any traffic from their website to client mortgage brokers Otago who are otherwise not seeing any traffic at all from Internet. The challenge for such a company will be to deliver the leads as efficiently and as quickly as possible and to get paid for them in as simple a way as possible, but modern technology and modern applications mean that this can easily be done using online services and smartphones.
The end result is that such a company can pluck leads from under the noses of the highly ranking large franchises, and pass these on to independent mortgage brokers at a fairly healthy price. The value of these leads is very high for the mortgage broker given that the amount of time they need to process the mortgage is small.