Business Accelerator: The hidden cost of chasing volume

·19 min·1 clip

Jason warns that celebrating a $100 million loan book can trap brokers in stress and unprofitability.

The episode begins by reflecting on historical milestones in mortgage broking, such as Wendy Higgins and Ross McCain achieving billion-dollar loan books. Alex Whitlock introduces the topic of volume chasing, questioning whether big numbers equate to success. Jason, a co-host and consultant, immediately challenges the idea, stating that volume can be a dangerous KPI that traps brokers in stress and unprofitability. He notes that profitability is not linear with volume, and many high-volume brokers are stuck or unprofitable. The hosts draw a parallel to real estate, using property manager Alistair Shearer's focus on attrition before growth as a lesson for brokers. Alex describes volume as a vanity metric that hides problems like thin margins or chaotic operations. They discuss how loan complexity, market differences, and file profitability vary widely, making volume a misleading measure. Jason explains how complex files, such as those involving trusts or multiple properties, can have the same profitability as simple loans but require far more time. He highlights the risk of applications falling through after significant effort, citing an example where a big bank rejected a complex loan at the last minute. The hosts emphasize that volume without systems leads to burnout and unscalable businesses. They note that at $100 million, brokers must transition from loan writers to coaches and managers. After a break, the discussion shifts to practical steps for scaling. Jason advises brokers to map out the activities needed for $100 million, including leads, appointments, and settlements. He stresses the importance of shaving inefficiencies, such as using tools like Quickly for research. Alex asks about typical business structures, and Jason outlines that a $100 million brokerage with a $500,000 average loan size requires 200-230 settled loans, 300 appointments, and 4-6 staff, including analysts and admin support. He contrasts this with a $50 million operation, which might have only 1-1.5 FTE, highlighting the significant jump in complexity. The episode concludes by urging brokers to consider their personal goals and sustainability rather than blindly chasing volume.

As heard by us

Strong broker volume can hide the harder math of complexity, failed applications and time.

A billion-dollar loan book can sound like the cleanest measure of success for a broker or office, but this Business Accelerator episode is more interested in what that number leaves out.

Read the full review in PlayNext →

Why you'd press play

You want to know whether a bigger loan book is actually making your broking business stronger.

Read the full recommendation in PlayNext →

Listen to the show on

Apple Podcasts Spotify

Play clips from this episode More from Broker Daily Podcast Network