Going it alone may not be for everyone, and even one of the country’s leading independent brokers admits the compliance and payroll systems offered by broker networks are enticing.
“Successful brokers who do well marketing and servicing their clients – both new and existing – don’t need anyone to teach them how to market or keep in touch with their clients,” Marcus Tzaferis of MorCan Direct told CMP in its February issue. “For these brokers, a good compliance and payroll system is all that is required. Having a brokerage network take over this part of the business can seem pretty attractive on most days.”
Independent brokers across the country admit to possibly being swayed to join a large network.
According to CMP’s latest Broker Sentiment Poll 42 per cent of independent brokers would consider joining a national network in the next 12 months.
“Increased compliance requirements and maintaining excellent lender relationships would be the two most challenging issues,” Tzaferis said when asked what the biggest challenges an independent broker faces. “Once you can overcome these issues, it becomes pretty exciting.”
However, he also credits independent brokers with helping to innovate and further the industry.
“Focused independent brokerages can add a great deal of value, through innovation and strategy, to the industry as a whole,” he said. “Being independent is part of what pushes us to be innovative and motivated.”
Yet, some high profile independent brokers are choosing to affiliate with the larger networks for a number of different reasons.
Former independent broker Lorne Rackel of Jayman Financial joined a major network last year. He explained his reasoning at the time.
“We got to the point in volumes where we needed a CRM,” he told CMP for last year’s Top Independent Brokerages issue
. “We needed a platform so we could contact and mine our database and stay in regular touch with our customers.”