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Mortgage Broker News | 20 Aug 2013, 12:00 AM Agree 0
The storefront is dying as more and more brokers are ditching them in favour of catching eyes online and not on the street.
  • @kiltedbroker | 22 Aug 2013, 07:20 AM Agree 0
    I leased a prime storefront location in Regina Sk (if there is such a thing here...) on the main drag for 3 years. In that 3 years, I received 2 walkins. The first was a complete nightmare of a file, the second was looking for directions to the Travelodge. I have since moved sold my brokerage to First Foundation and now work from home.

    You have to ask yourself, with the way business is moving online and clients are able to access information like never before, do you actually trust someone who just walks in off the street? I think it is fishy and red flags go up immediately.

    The year before I sold my brokerage, I actually stopped taking cold calls on the phone. If the client didn't come directly from a referral partner or another client, I was not interested in even taking an application.

    Now just so you don't think I am crazy, I spent a lot of time looking over my previous files and studied the numbers. I found that clients with no previous connection to me (cold clients) were (almost) 4 times more likely to bail on me half-way through the process for a lower rate or because of a previous bank relationship. This is the profile of your typical rate shopper.

    I figure let the banks or other brokers like Dan (who I think has a great business model) deal with these guys while I will spend my time working with clients who have a higher chance of being happy with the service and product I provide.
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