Mike Pero, whose advertising of his firm, Mike Pero Mortgages is widely credited with putting the mortgage broking industry on the map in New Zealand, has challenged the rest of his industry to put its money into funding generic industry advertising.
Speaking at the New Zealand Mortgage Brokers Association (NZMBA) annual conference, Pero suggested that his industry shouldn’t sit back and wait to see whether more lenders decide to follow the lead of Bank of New Zealand which will no longer deal with brokers.
"As an association, we should be promoting our services more aggressively," Pero said, pointing out that many New Zealanders still don’t know what exactly a mortgage broker does or how they could benefit from using one.
"It’s about time some of you put your hands in your pockets and that collectively we promoted our industry. It’s your future," Pero said.
While the banks are currently loudly complaining how expensive it is for them to deal with brokers, Pero suggested the best answer is to ensure the public insists on dealing with brokers.
He suggested every broker contribute $4 or $5 per loan to a generic advertising fund or a minimum $50 a month per broker. Given that the NZMBA currently has 498 full members and about 530 total membership including affiliates, such a levy would bring in more than $300,000 a year.
Pero suggested a cartoon style ad showing what brokers do and said the industry could get "unbelieveable value" from spending on that scale.
His suggestion received overwhelming support from the conference. When another broker asked for a show of hands of those who would be willing to support such a fund, the conference erupted with upraised arms.
NZMBA chairman Brian Berry said the positive response showed "people are prepared now to invest in their industry outside of their individual businesses" and promised the NZMBA would work on the proposal.
He noted that the Mortgage Industry Association of Australia (MIAA) has just started a nationwide advertising campaign along such lines in Australia.
