Measuring Success: Who Benefits?

The success metrics of incorporating in-house services could be the most valuable to a business, in terms of customer satisfaction, retention and referrals.

“We’ve seen that value is delivered to our consumers in different ways,” Golden says. “The first way we deliver value is in terms of time. Our affiliations save our clients significant time during their buying or selling process. The second way is buying power. Our relationships can get clients a better deal and assure a better experience with a quality mortgage broker. We need affiliations because clients demand services. As a company, we show we can provide more value to our clients, which often is immeasurable.”

Clients are not the only ones who benefit from an in-house model. Companies benefit from the increased business associated with the level of service that clients experience, and the overall value delivered to the clients who go through the process.

“When the market was down from 2008 until 2011, Baird & Warner really benefited from in-house services,” Ellis says. “We were able to bring in consistent revenue that helped us to redo our website, individual property websites photos and more – that revenue helped us to continue to reinvest in our business and technology infrastructure.”

Baird & Warner’s annual sales volume is typically about $5 billion, Ellis adds, and this year, the company is hoping to reach $6 billion. Key Mortgage handles 25 percent of Baird & Warner’s purchase transactions, and its title company does 45 to 50 percent of purchase transactions.

The Downsides of a One-Stop Brokerage

There are minimal negatives to bringing services in-house; however, it is important to avoid pressuring clients to use a brokerage’s in-house services, which will only add to their stress.

“Our in-house mortgage company offers a free analysis, price comparison and pre-approval, but it’s ok if a client chooses to go with another mortgage company,” Ellis says. “We look at our in-house services as different companies; they all are independently successful.”

It’s important to carefully vet the services being brought in-house. “If you don’t offer a good service provider, it’s a downside. We wouldn’t be in business anymore if clients felt stuck using our services,” says Golden. “We don’t force anyone to use affiliates. They are a proven recommend resource, and supplement resources clients already have.