MPA reviews The Top Broker Handbook, a new e-book from Top 10 Commercial Broker and ex-Young Gun Joshua Vecchio.
Brokers might hold 52% of the market, but books on mortgage broking remain few and far between, particularly in Australia.
To find something genuinely readable – or at least more appealing than ASIC regulations or lender reports – is rarer still. So when we heard industry high-performer and blogger Joshua Vecchio was producing an e-book on broking tactics, we knew it’d soon become an industry must-read.
The Top Broker Handbook can be regarded as an extension of the Topbroker.com.au website, which Vecchio, owner of Discovery Finance in Brisbane, launched back in April 2014. The book itself will be published in September, and was written by Vecchio and his two brothers, Nathan and Joshua.
Vecchio, an ex-MPA Young Gun who ranked second in our Top 10 Commercial Broker report for 2015 (and third in 2014) certainly has some impressive credentials. The main criticism one could make of Vecchio is that he is inexperienced, having only started in commercial broking in early 2013. That said, this book is about fundamentals rather than technical skills, so a fresh memory of the challenges facing new brokers might not be such a disadvantage after all.
1. Vision, goal setting and planning
What readers will demand of The Top Broker Handbook is direct and practical advice, and it certainly delivers that. It does, however, take a few pages to get started. The book is divided into four sections, describing the timeline of writing a loan, and the first part on ‘Vision, Goal Setting and Planning’ is perhaps the weakest. There are plenty of excellent motivational and goal-setting books in business, not to mention autobiographies of top performers, and Vecchio’s writing doesn’t come into its own until he starts talking about broking.
As you’d expect from a broker, Vecchio isn’t afraid to quote specific numbers, and his ‘Example 90-Day Plan’ is a masterpiece. He instructs you to visit two accountants and financial planners per week, have two coffees with mobile banks per month and send 250 marketing emails per month, to pick out just a few suggestions. This was the plan Vecchio himself used to double his settlements, and he successfully illustrates how it translates into a typical working day.
Like an appointment with a customer, this first part of Vecchio’s book is a trust-building exercise – high on charm but low on detail, with the 90-day plan excepted. Still, the insight into Vecchio’s career is candid and touches on some hard truths experienced by brokers, such as the challenge of actually making money after completing one’s Cert IV. Vecchio’s argument is that ‘idea of the week’ business strategies didn’t work for him and won’t work for new brokers; what’s needed is a single, unifying approach to the broking business.
2. Lead Generation
Unquestionably, this book’s predominant focus is on lead generation; as Vecchio writes, “A broker without leads is like a car without wheels; both of them are going nowhere.” The section is absolutely packed with practical information: email templates, cold-calling scripts and even a mini guide to setting up a website.
Perhaps the best way to approach this section is to print out the individual pages and pin them to your desk, particularly the email and phone templates. Again, Vecchio is encouragingly specific; if you’ve got a potential lead’s phone number, Vecchio instructs you to call back within two hours. If you don’t get an answer, you should text them your contact details, and if you still can’t get through, leave a voice message – remember to repeat your contact details “twice and slowly”.
There are some deeper insights to be gained from this section. Thankfully, the book quickly moves beyond the ‘low-hanging fruit’ basics to more interesting concepts like adding unique value, such as bundling insurance and home loans for buyers who are more concerned about the former.
There’s also an interesting attempt to characterise typical referral sources, from overworked accountants to time-poor solicitors, which provide balance to the book’s fixation with numbers.
3. Running the appointment
In the third chapter of The Top Broker Handbook, the tone is more reassuring, walking readers through the appointment process. Although it’s a little shorter than the other chapters, it’s not short on detail, with the same range of practical tips, including how to research clients and ways to structure a conversation.
For new brokers, this chapter is particularly valuable because of its emphasis on control and professionalism. These come out of proper prior research, agenda setting and a real understanding that you are there to add value, meaning that you need to understand the client before attempting any type of sell. These might all appear obvious, but Vecchio successfully translates them from concepts to practical tips.
If any criticism might be made of this section, it’s that it is too detailed. Meeting a client is intrinsically personal, and the book’s characteristically specific style – such as advising readers to make eye contact for 4 to 6 seconds at a time – ignores the individual ways in which people interact and what makes people bond. Whilst Vecchio’s attention to detail serves this book well, readers of this section should pick and choose tips to suit their personal style.
4. Customer retention and referrals
That Vecchio’s book has an entire chapter devoted to referrals and retention is a little surprising, given its emphasis on developing leads and selling. It is incredibly useful, though, because Vecchio is making an important point about referrals – that they’re not just for veteran brokers, but available to all brokers.
As re-contacting customers can be a low priority in many brokerages, it’s useful that Vecchio presents a process rather than just a collection of tips. That includes a contact schedule during the loan settlement process for milestones such as the application being completed, valuation returned, application approved and loan contracts posted. It also includes suggested benchmarks for returning calls and enquiries.
This section also has some really interesting and personalised ideas. For annual reviews, Vecchio suggests you ask the bank if it’s possible to renegotiate the rate before calling the client, whilst for settlement gifts, Vecchio advises against the usual flowers-and-wine combination – use that personal knowledge you now have to buy a personal gift, he insists.
Tips for today
If you want a broking handbook, then The Top Broker Handbook delivers exactly what it promises. It’s packed with detailed, practical tips you can implement today, a refreshing break from the vague inspirational talks that tend to dominate industry conferences. The book really could save new brokers months of learning on the job. In fact, both the MFAA and FBAA have assigned CPD points for reading the book.
More experienced brokers also may find the book useful, but might be left with a sense that they’re not getting the whole story. Vecchio is an extraordinarily successful broker, and the journey from our Young Guns list to the top echelons of commercial broking must have required more advanced techniques, which aren’t revealed here.
Clearly, this is a valuable addition for all novice brokers, and it’s a tribute to Vecchio’s writing that it leaves the reader wanting a sequel. The countdown to The Veteran Broker Handbook starts now.
