Why is lead generation such a persistent problem for brokers?
The whole-of-market research, conducted between 1 and 26 June among both mortgage brokers and independent financial advisers (IFAs), drew 114 responses from members and non-members alike. Despite the near-universal recognition of lead generation’s importance, 64.7% of respondents said it is either very difficult or somewhat difficult for their business, with only 17.6% saying they “do OK.” Lead quality proved similarly mixed, as 57.2% rated the leads they generate as quite good or very good, while 42.9% rated quality as only OK or poor.
Blackburn said the issue often stems from where advisers focus their energy. “Most brokers have a lead problem, which is – they want to scale, they want to do more, they want to help more clients and families, but there’s a block somewhere down the chain of lead generation,” he said. “Even if you were the best salesperson in the world, and you had a great brand and the best CRM in the world, but nobody knows about you, it doesn’t really matter, because if you’ve got nobody to sell to, it doesn’t matter how good you are.”
Social media is not optional for the next generation of advisers
Blackburn argued advisers targeting any client group – landlords, first-time buyers or high-net-worth individuals – need a presence where those clients already are. “The future landlords, the future first-time buyers, the future high-net-worth individuals are also on social media now, and they’re only going to be more so in the future,” he said.
However, he was careful to note social media isn’t compulsory. “Nobody has to do anything,” he said. “But I think it’s definitely preferred that the new generation of advisers – the younger ones – really should be on it. People buy people, don’t they? That’s why Elon Musk has got more followers than Tesla, and Branson’s got more followers than Virgin.”