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Click on this bar to refer to the accompanying data table at any time.
Analysis of Financial Network Performance For 2010 (Continued)
Networks appearing to sign significant numbers of new AR’s in 2010 include Financial Ltd, but a large proportion of these where actually internal signings from Investments Ltd who are part of the same group and not “new” firms. First Complete, a trading style of LSL with their “en masse” signing of HOC AR’s worried about losing pipeline business also blasted straight into the tables top ten, Please note that since First Complete bought the assets of Homes of Choice and not the “actual” network itself, AR losses for Homes of Choice are outside the scope of this table. Mint and Homeloan Partnership both also show fair performances in the medium network range.
Although the table gives a rough indication of the progress or otherwise of networks over the year. It should also be born in mind that a quick look over them isn’t really comparing apples with apples. Some of the larger networks for example spend extremely large sums of money on recruitment with teams of recruiters and very large advertising budgets, but at the same time obviously 5% of 100 looks very different from 5% of 900. Other networks may use external agencies to boost their AR numbers whereas others rely principally on word of mouth so as I’ve previously stated the figures only give a basic indication of the movement of AR’s within the network community. They should certainly not be used as the primary evidence to base a decision on whether or not to join a network. This needs to be rooted in far more detailed independent evidence covering all aspects of networks.
Overall, perhaps the most noteworthy fact is that the exit movement within the network community wasn’t more pronounced, with the total difference for the networks covered actually rising by 12 indicating that for Mortgage Brokers and IFA’s looking for relatively low maintenance, low cost access to the market, the network model is still eminently viable, with the right choice of network allowing advisers to spend less time on compliance, and more time “doing business”.
Going forward, we are aware of a number of networks who will probably be sold in the next twelve months, however, this isn’t necessarily a problem to their AR’s where the sale is handled properly and the new owners buy the organisation as a going concern. Interestingly, we are also starting to see some businesses, fledgling at the present time, but growing rapidly who can fill important niches within the industry charging higher fees but providing considerably more development and marketing advice for brokers which can lead to an overall growth in their business profitability and some of these may well prove to be the new networks of tomorrow.
If you are currently looking for a new mortgage network we can help. Please click here for our contact form or click on the following link if you wish to know more about Which Network Ltd