I’m sure we’d all agree that developing an advisory business, and bringing in clients, could never be described as ‘easy work’. In this day and age there are few firms who are lucky enough to sit back and watch the business walk through the door and therefore it requires a well thought-out ‘battle plan’ and a system in order to unlock the opportunities that undoubtedly exist.
And this is the major positive of today’s marketplace – opportunities do exist and, whether you are doing it on your own or with the support of a network or club, the important point is to make yourself visible, to have a high quality service and to knock on doors and network in order to put yourself in front of the right people. As stated, it would be a nice world if the business came to you however, for the most part, you are going to have to get out there and secure it yourself.
So, how do you do this? Well, clearly there are a number of options depending on what type of business you are seeking. At our recent conference we debated with three of our top performing AR firms on a variety of areas in which they worked and how they brought the business in. It became quite obvious early on that introducers (of all shapes and persuasions) were a crucial part of their business development and each outlined how they develop those relationships and the key introducers that can generate the most successful partnerships.
Estate agents are an obvious source of leads however some advisers think agencies are likely to have arrangements in place already or will have their own in-house advisers. However, this shouldn’t stop advisory firms from asking the question and, particularly when it comes to independent agents, they tend to be looking for a quality service that allows them to track the case all the way through the process.
In effect, agents want to know that their clients are securing the finance they need to purchase that property and therefore one of our firms has done this by treating the agent exactly as they would their client. This means keeping them totally up-to-date with the mortgage process – sending them, with the client’s consent, the details on the AIP, the mortgage, solicitor’s details and offering themselves as a point of contact to give the agent further peace of mind.
This has proved to be a winning formula because agents like to be kept fully in the loop, and they are able to track just how close to completion their client is. One point which advisers opting to target agents should be aware of though, is their capacity to handle the business that could come their way. If the agent believes they are on to a good thing, and you as the adviser are able to prove yourself, this could mean a significant increase in business. Your firm should certainly make sure it is in a position to handle these volumes because otherwise the relationship will fall at the very first hurdle. Our AR described it as a ‘chicken and egg’ situation whereby you form the relationship however you shouldn’t really take on the leads until you are able to service them effectively.
Another area which is sometimes overlooked is that around new-build business – developing introducers within the new-build sector that can provide leads has been described as a ‘hard nut to crack’. However, within most areas there will be new-build opportunities and those advisers that have the drive and perseverance, backed up by a quality proposition, should be able to make some head-way.
Certainly, we as a network, have supported our member firms a lot in this area, for example, developing joint pitches, and working with clubs like L&G and their lenders to develop an offering which appeals to those within the sector. To secure this business does require effort – one AR firm which is particularly successful in this area said it has to be driven from the bottom up. This means going onto new-build sites, talking to the developers and, at first, checking out who is currently servicing the site in terms of mortgage delivery.
Even if there is a relationship already in place, our firm suggests that everything currently going on is beatable and advisers can always provide a better service, which will be appreciated. This is all about offering something that is better to the house builders who, quite frankly, want speed, service and accuracy – something they don’t often get from their existing relationships. If the advisory firm can develop a proposition that, hands down, beats what is currently in place then it’s more than likely that the business will follow.
So, while no-one said securing new business was going to be easy, there are clearly avenues to explore and propositions to be pitched. If you are an AR firm looking for support in these endeavours then make sure you’re with a Principal that will actively help you develop your offering which has expertise in these fields. This can often make the difference between converting those leads into full-blooded introducer relationships or not.
Richard Adams is managing director of Stonebridge Group
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