Mortgage Choice closes Help Me Choose
Broker franchise group Mortgage Choice is getting out of the comparison website business, announcing yesterday that it would close its Help Me Choose unit.Help Me Choose went from a cash profit of A$203,000 in 2013/14 to a loss of $763,000 in the year to June.At the company's results briefing last month, Mortgage Choice chief executive John Flavell said he was adding resources to the business to make sure it was able to capitalise on its opportunities.However, in a media release issued yesterday Flavell said the company had completed a strategic and operational review and, as a consequence, Help Me Choose was to be shut down.Help Me Choose provided home loan, insurance and energy comparison services.An executive at an online mortgage marketing company said the comparison website business was tough because there were a lot of competitors, and banks and brokers were also looking to generate leads online.Comparison sites, which pay search engine companies for placement and have other marketing costs, might spend $20 to $50 generating a lead. If those leads are not of sufficient quality to convert to sales, commission income will not cover costs."Everyone is getting smarter in that lead generation space and the competition is tougher," the source said.Mortgage Choice has had trouble diversifying its business. Last year it sold mortgage aggregator business LoanKit.