The future of the industry

He says it was unexpected, but he will nevertheless be using the win to his advantage.

“It was definitely a shock,” he says of the win. “I wasn’t sure what to expect, but at the same time it’s rewarding.

“I do work a lot. I guess that’s the negative part of being self-employed. It’s a reward for the hard work.”

Since the win was announced in mid-November, Mr Alabakov says he has been humbled by the response from the industry.

“I’ve been contacted by many people in the industry saying ‘congratulations’, ‘well done’, ‘you deserve it’.

“It’s great to hear from these people, and it’s great from a profile point of view too, as I can use it for marketing and PR purposes.”

The ranking required brokers to be aged 30 or under at the end of the 2011/2012 financial year, so Mr Alabakov will not be eligible for 2013’s ranking – making the win all the more special.

Brokers’ residential volumes accounted for 40 per cent of their overall score in the ranking. Their settlement numbers made up another 40 per cent, and the remaining 20 per cent was calculated based on the amount of non-residential business written.

Even with this weighting, Mr Alabakov’s mortgage volumes were the highest on the list and he placed fifth when it came to other volumes.
Regardless of how The Adviser weighted brokers’ volumes and productivity, Mr Alabakov would have done well.

TECHNOLOGY AND OPPORTUNITY

Mr Alabakov says, contrary to traditional thinking, being young in the industry actually offers brokers many business opportunities.

He says that the ability to do things a little differently and embrace technology could be key differentiators as the industry ages.

“Everyone talks about online, but it does depend on your business model. We’re all different, but I think using technology to your advantage will help.”

He says the prospects associated with employing new strategies and ideas are exciting.

“I think there are great opportunities being a young mortgage broker, and doing things a little bit differently to traditional brokers is exciting.”

Yet, as brokers young and old would know, the industry is not without its challenges.

“The worst thing is not always getting a positive result for the client,” he says. “I’d like to think, more often than not, it is a positive result with me – but it doesn’t always go your way.

“It’s important to remember that there’s always a client at the end of the line.”

NEW TALENT

He also has ideas about how the industry can attract people even younger than himself to the profession – remuneration and support.

“I have been employing juniors, or younger people, who have minimal experience in the industry. I get them involved from a customer service or admin point of view first, so they can understand the fundamentals.”

Mr Alabakov says that hiring new-to-industry recruits and putting them straight to work as brokers simply “won’t work” in most cases.

“There needs to be some kind of training or mentorship program within the business that allows them to understand the fundamentals. They’ve got to understand credit. They’ve got to understand how to put a deal together.”

He recommends having new recruits on a base wage or retainer while they are training, and then there are various options for integration into the industry.

Mr Alabakov is also first to admit that his training and learning is far from over.

“I’m young and I don’t know it all,” he says.  “I think it’s really important to learn from people who have very established businesses, so they can advise you on what works and what doesn’t.”

He says he takes time to work on his business and make sure his dreams and plans don’t stay in the realm of possibility and potential.

“I think it’s really important to meet with other people. Having your own business, you come up with all these great ideas and action plans – but you need someone to be accountable to.”

TRADE SECRETS

While Mr Alabakov is keen to recruit, teach and mentor those who are new to the industry, and also learn from those with more experience than himself, he doesn’t want to give everything away.

He says when it comes to referral partners, the tradition of partnering with financial planners and accountants is a successful approach, but brokers need to remember that these professionals are likely being contacted by multiple brokers on a daily basis.

“Your traditional financial planners and accountants are the way to go, but without giving too many of my trade secrets away, I do have some ‘outside the box’ referral partners,” he says.

“All I will say is, think outside the box with referral partners. I’ve got a few unusual ones.”

Despite not revealing everything, Mr Alabakov is more than happy to continue learning from, and contributing to the industry.

He’s come a long way from someone who admits that when he started working in his father’s financial planning business, he didn’t even know what a mortgage broker was.

Now, he’s winning awards and thinking about the future.

“I guess I’m really just starting,” he says, “so I’ve got a long way to go. I think it’s fantastic. I’m very grateful.”