A recent survey conducted by The Adviser found that 78 per cent of brokers had lost a client as a result of channel conflict. It appears to be a growing concern with 88 per cent more worried about channel conflict than they were 12 months ago. Over 93 per cent of brokers cited the major banks as their biggest concern and 74 per cent of brokers said channel conflict would influence which lenders they recommend to clients over the coming 12 months.
Private Mortgages Australia receives over 90 per cent of our business from broker referrals and we want to keep it that way. That is why we’ve decided to make changes to our referral fee structure to alleviate any concerns from our broker partners about channel conflict.
We’ve now introduced a ‘subsequent referral fee’ which is paid to the referrer should a borrower comes back to PMA directly after taking a previous loan with us via a referrer. We get a lot of repeat clients (which is uncommon in private lending) so we believe we’ve got to be doing something right. We want to reward referrers for providing us with a good lead and will continue to do so no matter how many times that client comes back to us directly. It’s basically free money for our referrers but we believe they deserve it. All referrer fees are paid within 24 hours of settlement with no clawbacks.
Of course, we do have some conditions around this. For instance, if a client comes back for a subsequent loan via a new referrer with an updated client mandate, PMA will always pay the new referrer based on the client’s updated direction to pay.
To find out more about the referral fees, interest rates and LVRs you can view a copy of our Referrer pack here.
PMA has also introduced a Referrer Reward program to show our appreciation for the great work our referrers do. As part of the program, the value of all transactions settled with PMA will count towards your referrer rewards total and each time you reach a referrer milestone you will receive a reward from PMA – think a nice bottle of Grange, flights, shopping vouchers and much more. Each time you reach a new milestone we’ll have a bigger and better reward for you.
To find out more about the rewards milestones, visit the Referrer page on our website here.