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The Successful Adviser by James McCracken

The Successful Adviser is a podcast created for the mortgage and finance professionals who wants to become the preeminent advisor to their clients. James McCracken interviews some of the most successful advisors, influencers and suppliers in the mortgage and finance industry to share expert insights and real-life stories so you can achieve your goals and enjoy more success in your business.
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Now displaying: 2022
Nov 7, 2022

To do more deals, you need to have more clients in your practice. Improving client retention is the easiest and most cost-efficient way to make this happen. 

Many brokers spend a lot of energy and money on new client acquisition. The idea behind this mentality is simple: You can grow your mortgage broking practice faster if you have more clients.

However, some brokers deprioritise how to retain their current clients.

Why?

Partly because ‘new money’ is more appealing than existing money.  A new client expects a quick response.  An existing client might patiently wait for weeks or longer for the broker to come back to them. 

It’s not ideal, but sometimes, when you’ve got conflicting priorities and limited resources, you’ve got to pick your battles, right?

Equally, if you believe your book will experience run-off, there’s a constant focus on replenishing what’s being lost at the other end.

This mentality can get exhausting and limit your practice’s growth. 

Having a clearly defined client-retention strategy can minimise run-off and support your goal of growing your book & your trail income.

So, it pays to take a closer look at your churn rate and figure out how to reduce it. 

To find ways to get this done, I had a chat with Adam Grocke. Adam is the CEO of Sherlok, an online platform that helps businesses retain more clients. And in this article, I’ll share with you the insights he has when it comes to retaining more clients.

Let’s kick things off by addressing the elephant in the room. 

Why Do Mortgage Brokers Lose Clients?

Several years ago, Adam discovered that the larger his book became, the loans that had been on his book longer had a higher propensity to churn. 

He investigated the matter and he found two major reasons why this was happening.

Based on his personal experience, client care programs such as birthday cards, anniversary messages, etc, were no longer effective in retaining clients. They weren’t as potent as they used to be.  

And the primary catalyst for churn was that after several years, some clients become dissatisfied with a lack of ongoing service and felt they could get a better rate but wouldn’t necessarily return to the same broker.  

As they say, out of sight, out of mind.

So, they start researching their options, invariably ask a friend or family member for a recommendation to a broker, and once they refinance, the loan drops off the original broker’s book. And just like that, they’re gone. 

Retain Clients With Structure & Strategy 

For Adam, client retention starts with being proactive. This means retaining and growing your book (and asset value) by having a plan.

For full disclosure, Adam is the founder of Sherlok, which is a broker-specific software solution designed to help brokers proactively support clients in terms of repricing and retention.  I recently interviewed Adam as a guest on our podcast, which you can check out here. 


In the meantime, I’m going go to suggest some structural and strategic actions you can take to support your clients ongoing.

The benefit being that instead of being reactive, constantly putting out fires or doing ‘unplanned maintenance’, the idea being that you have a more collaborative & predictable relationship with clients ongoing.  

  1. Think forward: When delivering your advice or loan recommendations, let the client know that a function of the service is the ongoing access to you and your support
  2. Book the task.  If you’ve put them on a fixed rate, set a task 90 days before expiry to reach out to them.  Most CRM’s will have the feature available
  3. Reprice.  Some brokers will proactively reprice their clients and offer the good news after they’ve delivered the result.  If you plan to do this, tools like Sherlok are fit for purpose
  4. Reach out.  Despite opinions to the contrary, most people welcome a proactive call designed to look after their wellbeing.  Not all calls will result in a refinance, and occasionally, might result in ‘running some numbers’, though compared to losing the client off the book, arguably, it;s a worthwhile component of delivering value that reminds them of why they choose to re-engage your help.  As your book matures, invariably, the role of repricing and even reaching out may be delegated to a client service manager or a firm with specialist phone skills.

We know that over the next 3 years, $500 billion worth of home loans will be expiring from the ultra-low fixed rates - which presents both a risk and an opportunity.

The more structure you introduce into your service deliver - from the initial consultation to the ongoing relationship, the easier it will be for clients to return to you, to remark about your service and invariable, earn more referrals.

It’s Time to Stop Losing Clients

Virtually all brokers invest effort into attracting new clients into their practice.  That’s because getting new clients brings an upfront and grows the trail.  

When combined with a clear, purposeful and effective retention strategy, you will invariably see your book grow and increase your asset value in the process. 

Jun 17, 2022

Having interviewed over 160 podcast guests and had extraordinary conversations with many incredible people, it’s a big call to say this is the most important podcast I’ve done, particularly since it has nothing to do with broking.

It does however have everything to do with how and why we perform and function in the world the way we do through our unconscious biases.

It was spurred on by some friends of mine, females, who have had vastly different experiences of people whom I’d refer to as ‘good blokes’.

And knowing my friends were having these experiences, the more important I felt it was to unveil why we, like people, have unconscious biases that influence our behaviours, decisions and actions.

On occasions, these biases contribute to our growth and well-being, and at times, can dimmish our capacity to be the best version of ourselves.

To help piece things together and provide some perspective around this, I asked a friend of mine and one of Australia’s leading authorities on unconscious bias, Wendy Lundgaard to share her knowledge and insights.

I’ll be the first to raise my hand and there’s still a long way journey ahead of me in terms of building more awareness around my biases, and I hope this conversation provides you with further insights to assist you in your professional and personal well-being.

 

Jun 2, 2022

Operating a broking practice can be challenging, especially if you’re just starting out. It’s even more so if you used to work as an employee in one. Transitioning from employee to owner can be tricky… but not impossible. 

Keith Caine joins me for this episode of The Successful Adviser. He moved from England after the 2008 recession to build a life in Australia. He joined Mortgage Choice and worked his way up. But today, he runs the firm. 

Keith shares his story of how he started from scratch and went on to become one of the top brokers in Australia. It’s an inspiring journey with lots of insights for all mortgage brokers. 

The key questions:

  • How can mortgage broking business owners deal with imposter syndrome? (16:00) 
  • How can you transition from employee to owner of a mortgage broking business? (18:31)
  • What is the highest form of leadership? (22:52)
  • How can you engage better with staff and create a high-performing work environment? (25:30)

What you’ll discover:

  • The inspiring story of how Keith kick-started his mortgage broking career in Australia (4:19)
  • The primary motivation of most employees (12:07) 
  • The mentality Keith used to smoothen his transition from being someone’s colleague to being their boss (14:06) 
  • The objectives Keith focused on that sustained the growth of his mortgage broking business(20:40)

 

Apr 1, 2022

The sole operator mentality can only take mortgage brokers so far. At some point, brokers will need to delegate key responsibilities to their team members. This will allow them to focus on the strategic and operational decisions and actions that keep their broking practices moving forward. 

Marissa Schulze, the director of Rise High Financial Solutions, joins me for this episode of The Successful Adviser. She and I discuss common growing pains and how she grew from a practice of one to a thriving practice of more than 30 team members.  Tune in to discover how to maintain a cohesive working culture and how to maintain a great client experience as your practice expands.  

The Key Questions:

  • Why do many mortgage brokers hesitate to hire more staff? (9:17)
  • How do you know when you should hire an additional team member? (11:13)
  • How do you maintain a great company culture while growing your team? (20:30)
  • How can you maintain a great client experience after leaving the trenches? (26:03)

What You’ll Discover:

  • How Marissa achieves work-life balance as a mother of two (7:29)
  • Hiring employees vs. subcontractors (12:51)
  • Marissa’s approach to team-building exercises and events (23:04)
  • The importance of trust in broker-client relationships (29:23)
Mar 18, 2022

There’s been a subtle paradigm shift in the mortgage broking industry in recent years. More and more brokers are embracing the idea of being a broker AND a business owner. It’s no longer about being a one-man-band. Instead, it’s all about structure and substance – building a team and growing a business. 

Anthony Landahl of Equilibria Finance sat down with me for this episode of The Successful Adviser. 

We discussed how brokers can best equip themselves and their businesses for this ongoing transition. Brand-building, hiring, systemising… There are many practical insights for the industry leaders of tomorrow.

 

The Key Questions:

  • Why is it crucial to define your business’ value proposition? (7:52)
  • How can you think of your business as an asset? (14:32)
  • What is the key to growing a mortgage broking business? (19:23)
  • What’s the best way to incorporate automation tools? (21:18) 

 

What You’ll Discover:

  • How Anthony capitalised on his business management background as a broker (2:17)
  • The roadblocks Anthony faced in getting his mortgage broking business off the ground (6:37)
  • The ongoing paradigm shift within the mortgage broking industry (15:53)
  • How Equilibria Finance’s systems and processes evolved over time (18:11)
Mar 4, 2022

Should you earn 90% commission as an independent broker or base salary + 40% as a PAYG broker? The numbers might suggest that the answer is obvious. 

However, just like loans, there are different scenarios and different wants and needs that might influence what is the right structure for each person.  

Being an employed broker can be a fantastic opportunity to build a long-term career, build confidence, and be well paid by doing the technical aspects of the role that most brokers seem to enjoy.  

Craig Vaughan, the co-founder of BrokerEngine, joins me for this episode of The Successful Adviser. We discuss nuances of the skills that brokers need to succeed and we explore how to find the right balance between personal aspiration and professional capacity.

 

The Key Questions:

  • Should you try to convert friends and family into clients? (9:02)
  • How do you identify your niche? (9:54)
  • How can brokers prioritise effectively? (20:43)
  • How do brokers find the right balance between being a broker and a business owner? (25:02)

What You’ll Discover:

  • The cost-benefit analysis of being an employed broker vs. an independent broker (7:27)
  • How Craig got into software development for mortgage brokers (12:18)
  • The challenges Craig faced in hiring and managing other brokers (23:37)
  • Craig’s two software recommendations for brokers (26:54)
Feb 4, 2022

When it comes to the attributes of successful brokers, often, it can be easy to focus solely on those most visible, like great process, capable staff, high-quality client base, etc.

A less obvious, yet powerful aspect that influences consistent and ongoing success is how we see the opportunities around us.  Is there an abundance, or are they scarce?

Over the years, I have noticed some brokers develop a scarcity mindset.  Perhaps this is influenced by the number of brokers and seeing them as competition, and it might also be influenced by recent challenges. Whatever the reasons, it is not a sustainable way to operate as a mortgage broking business owner. 

In this episode of The Successful Adviser, I sit down with Michael Arbon of Keylend. We discuss what we can all learn from the most high-performing brokers out there. Tune in to learn about various critical mindset shifts and practical strategies. These insights will help you create a more productive, efficient, and rewarding mortgage broking business. 

 

The Key Questions:

  • Should brokers discuss interest rates with clients right away? (5:54)
  • How should brokers say no to potential clients who don’t fit the criteria? (14:42)
  • How can a broker take over a retiring broker’s clients? (20:32) 
  • What’s the difference in mindset between average and high-performing brokers? (27:26)

What You’ll Discover:

  • The similarities between being a mortgage broker, a banker, and a fitness coach (4:31)
  • Two ways to consolidate relationships with your clients (8:26)
  • How to add a personal touch to your communication with clients (10:03)
  • Michael’s formative learning experience (24:53)
Jan 28, 2022

There are many nice, polite, pleasant, and well-meaning brokers out there. But sometimes their communication style often doesn’t result in the number of conversions, income or lifestyle  they want to achieve. 

Instead, because of their generous nature, they can be weighed down by carrying other people’s stress and occasionally have clients or staff walk all over them, which causes them to work harder, but not necessarily have more to show for it.

In this episode of The Successful Adviser, I sit down with Sofie Chapman, a veteran finance and mortgage broker based out of Adelaide. We discuss how brokers can reassess their communication strategies in high-stakes situations. 

After all, mastering the art of effective communication will help every broker seize the outcomes they’re after.  

The Key Questions:

  • Do “nice brokers” achieve the results they want? (7:25)
  • What’s the difference between communicating effectively vs. authentically? (9:35)
  • How can brokers ensure that their communication is crystal-clear? (10:38)
  • Does being stubborn in the right contexts pay off? (24:46)

What You’ll Discover:

  • The importance of projecting confidence (9:10)
  • A tip on working with first-time buyers (11:35)
  • A tip on communicating with clients when things aren’t smooth-sailing (26:35)
  • Why having a continuous improvement strategy is so important (28:29)

 

You can listen to this episode right here.

To your continued success,

James.

Jan 21, 2022

At age 20, when most young adults are figuring out what they want to do with life, Kim Davie became a property owner.

With an avid interest in property investing, Kim turned her back on corporate in search of a more rewarding and flexible role, and naturally, broking became that profession.

With an abundance of life and professional skills to support her vocation, 6 years on, Kim is relishing the decision.

Like many respected brokers, her business is based on trust, relationships and service, which in and of itself, has been a catalyst for growth.

Though, as is always the way, Kim has experienced learnings disguised as mistakes that have helped her become clearer on her business model and how to find the balance between work and life.

Over the past year, Kim has introduced new tools, staff and structure to provide workflow efficiencies, save on travel time and enhance service levels.

These days, not only is Kim nearing capacity and in search of her next team member, she has earned the trust of lender BDM’s who refer their own family for Kim to look after.

If you would like to continue the conversation, you can reach Kim via email.

 

Jan 14, 2022

When it comes to a broker’s subconscious or unconscious beliefs, the issue isn’t whether these beliefs are right or wrong. It’s their real-world impact that ultimately matters. Are those beliefs serving that broker’s personal and professional goals? Or are they getting in the way of their key objectives?

In this episode of The Successful Adviser, I talk with Jane Slack-Smith, the founder of Your Property Success. And we discuss how brokers can identify and iron out the kinks in their belief system, build a more rewarding business and have a bigger impact on more people. 

Tune in to discover how brokers can work through their limiting beliefs and sustain new versions of themselves. 

The Key Questions:

  • What can brokers take away from marketing research on consumer behaviour? (3:29)
  • Is collaboration just as important as competition? (4:57)
  • Can you get rid of your beliefs? (11:27)
  • What can a mindset of abundance achieve for your business? (16:22)

What You’ll Discover:

  • The subconscious and unconscious factors that influence property-buying decisions (4:53)
  • The differences between cynics, dreamers, gamblers, and achievers (8:13)
  • The key to sustainable progress and continuous improvement (14:27)
  • Why many people build their businesses with a negative vision (15:02)

 

You can listen to this episode right here.

To your continued success,

James.

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