Men At Work

Glenn Lees: Our success reflects our strong growth in broker numbers over the past 12 months. We now have more brokers, but more than that, we have more brokers writing more loans. In particular, we are seeing a material uplift in the settlements of those brokers utilising our marketing tools via My Marketing, and across the board have seen an increase in the number of loans written per broker.

 

Murray Lees: Strong growth isn’t a new phenomenon for us. Over the past 10 years growth has been spectacular, and particularly over the last four or five years we’ve been seeing figures that consistently surpass our previous record – it’s records on records!

MPA: Are there any regions or segments of the market that are seeing an increase in settlement activity?

 

GL: We are witnessing strong growth in all markets. The established eastern seaboard continues to perform, and we’re gaining traction in strategic locations, such as South Australia and particularly Western Australia, where we’ve experienced 67% year-on-year growth over the past 12 months.

 

ML: Despite NSW already being our strongest state, demand from NSW brokers continues to increase year on year and we see more growth in NSW than anywhere else.

 

MPA: What do you think the issues are that brokers are facing today? Do you have any advice on how to deal with them?

 

GL: Compliance is always going to be something that brokers need to contend with. There is a clear necessity from brokers in our industry for a software platform that houses and supports their compliance processes, one that makes compliance part of the day to day running of their business – not just an afterthought. Software is always a hot button, as increasingly brokers are relying on their software platform to get ahead of their competition and deliver exceptional customer service. Of course, my advice: just join Connective.

 

ML: Brokers need to continue to focus on being business owners, rather than just loan writers. They must choose activities and make decisions that will help to build their business into the most valuable asset it can be down the track. Success is about longterm growth, not just short-term gain.

 

MPA: Connective operates under a fee-based model. What advantages does this system present to brokers?

 

ML: The advantage is obvious – our brokers enjoy a fixed cost of aggregation each month, providing certainty and transparency. Most importantly, our flat fee-based model means that brokers are not paying their aggregator a disproportionate percentage of their hard earned commissions. This is what brokers want, and is the resounding feedback we get from brokers who have made the switch to us from an old-school commission split model aggregator.

 

MPA: What are Connective’s other core value propositions?

 

GL: Our core value proposition is simple: the risk of non-performance is ours. If we don’t deliver on what our brokers demand, then we don’t have a business. Because our agreement allows our members to leave without restriction or penalty, we need to prove ourselves every single day. Our brokers stay with us because they want to, not because they have to.

 

ML: As an extension to Glenn’s response, our business is built on fairness and transparency. Our brokers enjoy a simple flat fee and our fees are published upfront. We don’t hide anything, we reward the broker who is doing the work, and most importantly, our agreements with members are not predicated on their ability to negotiate a better deal with us. It’s open and honest, and that is key to our business success. The final pillar to our success and what sets us apart from other aggregation groups is choice. Our brokers have real freedom when it comes to the loans they write. Other aggregators may push certain products, but we don’t do that because it’s their business and who are we to tell them how to run it?

 

MPA: Is there anything else that sets Connective apart from other aggregators?

 

GL: Accessibility and accountability. Despite our size and growth, we as directors have an open door policy. We are available to our brokers, and we listen and act on their feedback. We understand that our brokers make the business, so we focus on staying in the business and forming relationships. Our brokers also influence change in our business, for example – if brokers want to see developments made to Mercury or our My Marketing offer that will improve their business – we act!

 

MPA: What would you say are the key services brokers are calling for from aggregators?

 

ML: Software, compliance support, marketing... and software. Lately it seems it is all about the software, but we like to think a little differently about our platform. Via Mercury we deliver a complete business management tool to our brokers that houses everything they need to run their business – marketing, compliance, commissions, accreditations and support. Aggregators today need to deliver more than just commission and accreditations. Brokers are looking for someone to partner with, to help their business grow and deliver them real business support that they value.

 

MPA: What type of broker would suit joining Connective?

 

GL: Anyone. Any broker who is looking to build the most valuable asset they can. As our brokers have the right to 100% of their commission, it makes their business a more valuable investment for the long term.

 

MPA: You launched Connective Socialise this year to enable your brokers to engage their audiences through social media channels. How important is social media to brokers nowadays?

 

ML: Our industry is seeing more and more borrowers going online to research their lending needs before they make contact. Social media provides a point of validation and helps to provide a reputation trail, so visibility online is key. In fact, if you’re not online you are invisible in the digital world and risk losing business – no matter what kind of business you’re in. It’s that simple. Social media also allows for another means of engagement and communication to foster stronger relationships with clients. It not only provides a launching point for brokers to generate exposure of their business name, services and brand. It’s a great way to reinforce existing relationships and demonstrate ongoing value. This inevitably leads to increased client retention and more future business.

 

MPA: Where do you stand on the issue of making trails transferable between aggregators?

 

GL: We absolutely support it. We believe that moving your trail is a fundamental right for all brokers. It can be done, it is done, and it should be an option for all brokers, not just Connective brokers. It’s remarkable that some aggregators who have been saying, “It can’t be done”, are currently being paid trail from Connective brokers who elected to transfer their trail in the past.

 

MPA: Are you noticing an upswing in the number of brokers trying to diversify their business? Do you have any advice in this area?

 

GL: Yes, definitely. Just one example is that our own Connective Plant & Equipment has experienced significant growth with a sustained upward trend in settlements, indicating an increased demand for this type of diversification opportunity.

 

ML: We give our brokers more choice about how to grow and diversify their business and offer support for whichever business model they choose. With Plant & Equipment for example, you can create a referral agreement, move into a joint venture or employ and train a specialist to do it in house. We support the broker no matter what way they choose to expand and diversify. My advice? Decide how you want to run your business, then talk to your aggregator about how to make that diversification option work for your business.