Does this broker have the largest marketing budget?

Does this broker have the largest marketing budget?

Does this broker have the largest marketing budget? One broker who plans on spending $600,000 on marketing this year -- and has seen his business grow exponentially as a result -- believes the only thing holding his colleagues back from taking the same approach is fear.

“We’re converting from just being a mortgage brokerage to become more of a marketing company,” Shawn Allen of Matrix Mortgage Global told MortgageBrokerNews.ca. “That’s where we’re spending a lot of our money.”

Matrix Mortgage Global, which currently employs over 90 brokers, has already forked out $360,000 and with television and radio spots slated for the near future, Allen estimates the total marketing spend for the year coming in at $600,000.

 “We’re in the business exchange magazines, which are getting us a lot of commercial business.” Allen said. “We have flyers that go directly to homeowners; those people looking for debt consolidation or second mortgages or renovation loans.”

Allen says his business has grown exponentially since his company started focusing on its aggressive marketing strategy.

“In 2009 we did $280,000; last year we did $1.4 million and I attribute that growth to marketing, 100 per cent.”

When asked what he thinks is stopping others from implementing a similar marketing strategy, Allen said it’s all due to fear – understandably, because he, himself, dealt with the same worry when he first started.

“Because (brokers) are scared of losing their money on advertising,” he said. “I was scared when I first started; I put my money in, it was $2,000 and the first deal we closed paid for the advertising … and I just kept adding (to the marketing efforts).”


 
16 Comments
  • Ron Butler 2015-02-06 11:54:55 AM
    I agree with Mr. Allen that money for marketing and advertising is money well spent. As to the headline question of biggest marketing budget: $600K is not even close to the top individual brokerage marketing spend.
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  • George 2015-02-06 12:06:44 PM
    The math does not make sense. If he grossed $1,400,000, that is about $140m in mortgage production. The first question is what are the 90 guys doing?? That's less than $2m each.
    Second, to spend 43% of your gross on advertising is plain silly. Assume costs of the biz are another $200,000, they are left with $600,000. Over 90 guys, that's $6,000 net per broker. That's $3/hour guys. You call this a successful model??
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  • Hal Tagg 2015-02-06 12:25:04 PM
    I'll buy loonies for 50 cents each all day long. That is just what he is doing. Good for Mr. Allen.
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