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).”