If your mortgage business relies on the trail income to pay all expenses and be profitable… this is lazy and poor business practice.

In fact, you might have a cash haemorrhaging business and not be aware of it.

Unfortunately the financial literacy of many brokers is not up to scratch.

I’ve seen it.

The percentage of brokers who don’t know their numbers, key drivers, KPI’s, profit… is scary.

The percentage of brokers who run their business by taking revenue in, paying bills, and the rest is left for them… with no finger on the pulse of projections, cash, profit… essentially relying on their accountant and looking at a P&L once a quarter or year… is scary.

The amount of brokers, with teams, writing $5-15m per month, that don’t realise they aren’t really making any money (i.e. their business isn’t viable, or would be better off closing the doors and just collecting trail)... is scary.

In this episode of Mortgage Broker Acceleration, I talk about money maths. Covering the concept of a Trail Book Management business vs a New Loan Writing business, and why each must be standalone profitable. I share why volume and number of deals is an irrelevant method of keeping score and success (and the only two metrics that really matter). Finally, the 5 things you need to do to take control of your money and future.

UPDATE: Starting this month you may have already noticed something different about the podcast.

After over 200 episodes alongside the man, the myth, the legend… Mr Ash Playsted… after loads of insights, discussions and laughs… we’ve decided to go our separate ways in business and part ways as great friends.

I’m excited to continue the podcast solo… bringing you a new flavour… with the latest insights and strategies from my work with ambitious brokers and high performing mortgage businesses. I think you’ll enjoy it… and I know your business will thank you for it.

So, keep listening… and let’s get into it.

Enjoy.

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