Broker businesses that do not harness the growing power of internet lead generation are likely to suffer in an increasingly cluttered market, according to Money Quest.

The business - which is itself a branded national brokerage supplying internet-generated leads to a network of 18 brokers - argues that 80% of home loan shoppers begin their research online.

However, unlike in other internet and phone delivered mortgage models overseas, general manager Gill McLean said in Australia, consumers "don't necessarily like to transact online", and still in the majority of cases want to consult a mortgage broker before going through with an application.

"Ultimately if brokers are not aligned to an online business that has got a strategy around capturing those consumers, effectively those businesses will suffer," she said.

McLean said brokers are struggling in a "cluttered market", including in the traditional referral space, where they are trying to do business with real estate agents and accountants at a reasonable cost.

She said over time, broker businesses that do not embrace the 'online revolution' to generate fresh business will see their businesses shrink.

"I think that what will happen is that their existing book will run off, they will re-write the exiing book at a lower margin - but commissions have dropped - and effectively they won't be growing the value of their business - they will have diminishing asset."

Money Quest has brokers based in NSW, Queensland, Victoria and WA, and is targeting growth in broker numbers to 50 from the current 18 by the end of 2012.

McLean said the business is targeting $2m per month per broker, and currently is averaging over $1m a month across its network, which McLean said puts the team in the top 15% of the broking market.