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The challenge of lead generation remains top of mind, but industry experts said that many brokers are focusing on the wrong problem.
According to Broker Essentials’ founder and director, Jason Back, brokers often believe they have a lead generation problem when, in reality, they have a conversion problem.
“Generating interest is one skill but turning that interest into settled loans, they’re not the same,” he said.
What’s the difference?
The first step to solving this challenge is understanding the fundamental difference between a lead and a prospect.
- A lead is top-of-funnel awareness: A lead is simply a point of contact – a name, phone number, and email address. This is someone who has responded to an advertisement, downloaded a guide, or filled out a form on a website after seeing above-the-line marketing. They represent potential, but with little to no qualification.
- A prospect is a qualified opportunity: A prospect, on the other hand, is a lead that has been vetted. They have the capability and the time frame to take action. They are not just curious – they are “buy-ready.”
Back warned that the market is flooded with low-quality leads from companies using “dodgy tactics” to capture contact information with minimal questions. These unqualified leads can be a massive time sink, taking just as much effort as a qualified prospect, but with no chance of conversion.
The Finni case study: Quality over quantity
A real-world example highlights this distinction. Alex Whitlock, who supports the brokerage Finni, noted that the team initially said they “needed more leads”. However, upon closer inspection, their definition of a “lead” was actually a pre-qualified prospect.
Finni’s marketing funnels customers directly into booking a Calendly appointment. Before the meeting, potential clients provide a significant amount of data. The result? An impressive 80 per cent conversion rate from these appointments.
The key to efficiency is to move away from chasing sheer volume and instead focus on qualifying leads into prospects as quickly as possible. Back’s top tip: qualify hard and qualify early.
This means implementing “gates” or detailed questionnaires before an initial meeting. A broker might require payslips, details on employment, or answers to 15–20 key questions before committing their valuable time.
The motivation for the client is clear: providing information upfront leads to a more productive and valuable first conversation.
Generate and refine
So, how can brokers apply this? Back and Whitlock suggested a multi-pronged approach based on your experience level.
For established brokers – mine your existing relationships. A broker’s greatest asset is their current database. Back recommended three core strategies:
- Existing clients: Don’t ignore your back book. A simple, consistent effort like “10 calls before 10 am” can uncover refinance opportunities or referrals.
- Past “almost” clients: Reconnect with people you’ve spoken to, but who never settled. They likely got a loan elsewhere and may be ripe for a review.
- New client acquisition: For new business, focus on niche, targeted campaigns (e.g., nurses, FIFO workers, SMEs) rather than generic “come to me” strategies.
Without an existing book, newer brokers need to get their name out there:
- Be on social media: Use LinkedIn, Instagram, and targeted Facebook groups to build awareness.
- Target B2B: Build strategies to get in front of accountants and buyer’s agents, but understand this takes time.
- Become a thought leader: Produce content that positions you as the go-to expert in your local area or niche.
When asking for referrals from happy clients, be specific. Instead of a broad “Do you know anyone?”, use a more targeted approach.
The goal isn’t just more leads – it’s more qualified prospects. By shifting your focus from top-of-funnel volume to rigorous qualification and strategic nurturing, you can stop wasting time on dead ends and start building a pipeline of clients who are ready to act.
[Related: Business Accelerator: The difference between leads and prospects]
