This is a community of like-minded people that share a bold vision for the mortgage broking industry. We believe a quality mortgage broking relationship provides tremendous value to many Australians, want to see our industry flourish and strive for constant improvement and growth. I will share stories, strategy, tips, insights and learnings to help you thrive in your business.
4 things brokers must master to thrive in a world without trail commission
Video 1: becoming a transactional master - click here
Video 2 - referral strategy and script - click here
Video 3: systemise back office and outsource including a look at my system - click here
Video 4: how to become a valuable resource - click here.
And to learn more about my course - which is open fro enrolment now, click here.
Part 3: Three practical steps to get your clients to send you more referrals
Recap: Not all clients will send you referrals no matter how well you do. Some clients feel its too risk for instance - they are land mines because talking about referrals with them will be a disaster! However, some clients will be happy to send you referrals if tell them how - they are gold mines.
We talked about the 7 reasons why gold mines aren't referring to you. It mainly comes don't to not knowing that you want referrals, when to make them and how to make them.
So, in the last of this 3-part series, I'm going to talk about the 3 practical things you must do to maximise referrals. I must point out that I learn this from Dan Allison from Feedback Marketing Group - this is not my content (see http://focusedadvisor.com/products.html). But it's so valuable, I wanted to share it.
(A) Conversation to determine whether they are gold mines or land mines
We aim to achieve three core goals with the relationships we have with clients:
•We want you to be so happy you never leave. So, we'll ask you for feedback on how we're doing.
•We want to help you as much as possible so its important that you understand all the services we provide - we will educate you about this periodically.
•We want you to talk about us, but we also know that some people just aren't comfortable making referrals. So, how would you like to deal with the topic of referrals, if at all?
(B) Conversation with gold mines
At the begging of your meeting with an existing client (after you have settled at least one loan) ask them 4 questions:
•What do you feel is the most valuable thing that we provide?
•If we could focus on doing two things differently to make your experience better, what would they be and why?
•When you think about the way we communicate with you, how can we improve that to make your experience better or life easier?4. Confirm you want to grow your business - but not to the detriment of your service. That if you don't talk about referrals with clients that people will be reluctant to make them. So, how would you like to address it? Tell them that passing on a name and number doesn't work - they need to contact you first.
(c) One-page summary listing all your services.
I once helped a client buy their first home. Two years later, the client asked me if I do refinances. What?!
So, do not assume that clients know everything you do. In fact, assume that clients only know 20% of what you do.
So, how can you expect a client to send you business if they don't know what you do.
You must have a one pager listing all your services and give it to all clients - ad it to your website - put it at the bottom of your email.
Within only a few minutes I was able to list 20 services that most brokers offer:
•First home buyers
•Construction of a new home
•Holiday house acquisition
•Interest rate reduction reviews
•Loan structure reviews
•Investment property acquisition
•Investment portfolio strategy
•Access equity in your home for share market investments
•Downsize your home
•Home loan repayment strategies
•Investing with family
•Parents helping kids get into property
•Debt restructures for divorce settlements
•Fixed versus available interest rate advice
In the next few week I will be opening enrolment for my course (s...
Part 2: 7 reasons why your delighted clients aren't sending you more referrals (at all of more often)?
The idea is that if we do a great job, we will get heaps of referrals. And if we aren't satisfied with the amount of referrals we are getting? Work harder.
But this advice is wrong. You could be doing an awesome job but not doing a few very simple steps. And if you do these steps, you will get all the referrals you deserve (and worked hard to earn).
But, before we talk about these, lets look at the research.
60% = never brings it up, don't ask, didn't know they wanted them.
81% = their method of referral is giving out a name and number.
90% = clients cannot define why we are different. What separates you from other brokers?
So, based on the research and focus groups, here are the top 7 reasons:
•I've never been asked
•I don't understand who my broker wants to work with
•I don't know how to explain what they do
•I don't know how to make the introduction
•I am too private
•The risk I take if the relationship/referral doesn't work out
•I haven't had a referable experience.
Reason 5-7 are "land mines" - they won't give you referrals (refer part 1).
5 characteristics of someone that might be a good referrer:
•They have to value their experience enough that they would refer.
•They have to fully understand your services and all of your products. Can they list all our services and also articulate why we are different.
•They have to know that your firm is growing (I.e. you want more clients) and who an idea client is.
•They need to know how to make an effective referral
•They have to be comfortable talking about and making referrals.
There are two things you must do in our to solve this problem - which I will cover in Part 3.
Part 1: Gold mines and land mines - who are your top 20 clients?
I attended a presentation by Dan Allison recently. He is a US-based trainer that works with finance professionals to help them generate more referrals. It was one of the best presentations I have been to for a long time.
Anyway, Dan explained this concept of 'gold mines' versus 'land mines'.
A land mine is a person that will never give you a referral no matter how awesome the service you offer is. It's not about you and what you did or didn't do. Its about their personality. They view making a referral as risky. What happens if you have a bad experience, don't like their broker, stuff up your relationship relationship with them (because the referred person wastes your time, and so on). Referrals are just too risky.
Whereas a gold mine is someone that loves to give referrals. They don't see it as risky. They see it purely as helping their friends. If they don't like their broker, then its their fault. They realise they aren't responsible for the results.
Often, we have been trained to treat all clients the same. If we haven't received a referral, ask for one. Or work harder to earn one. Use cheesing lines like "can you give me the names of 3 people that I can help in the same way I have helped you" and so on. If you say that to a land mine, you'll make them feel uncomfortable and probably burn your relationship!
You must look at your clients as land mines and gold mines. There will be some clients in the middle. For now, just focus on the gold mines.
•List the clients that you would hate to lose but love to clone
•Think about the ones that have given you referrals versus the ones that have not - is there any commonality in personalities?
•keep this list as we will work on these clients more in the second part of this podcast. Until then, stop treating all your clients that same.
Here's why you shouldn't panic about the Royal Commission
•What I think the likely outcome will be
•The difference between a finite and infinite game/business
•Why you must focus on making money upfront - don't rely on trail for profit
•What you need to do now.
Your communication templates can transform your business and referrals
The power of communication is easily underestimated.
How do you communicate something to a client can produce four possible outcomes:
1. A very unhappy client
2. A client that is indifferent
3. A satisfied client
4. A raving fan that sends you lots of referrals.
Often, we think that if we have lots of great news to tell clients, our clients will be happy. But if we have bad news, they will be unhappy. More often than not it's how you communicate not what you communicate that determines which category your client ends up in.
This is why it's critically important that you craft a few (probably not more than 10) template emails which are consistently used by everyone in your business.
After reading an email from your business your aim should be to ensure that the client feels:
· looked after,
· cared for,
· important and
Templates that you need to have in place to cover:
· annual review / interest rate review - positive and not
· low valuation
· loan approval or decline
· lower borrowing capacity than expected
· delays in application.
Tips for drafting templates:
· Remind them of your core values i.e. we care and are here to help
· communicate what work is involved
· empathise with how the client feels and tell them you feel the same
· tell them why it's a great outcome
· sell a future solution (i.e. its okay for no but we'll revalue in 12 months' time)
· always remind them of what you have done in the past
In this podcast episode I discuss how to craft template emails and I share an example of what he uses in his business for an interest rate review.
In March 2019 I will open enrolments for my course which shares all the systems that I use in my business including all templates, emails, report, scripts and so on. I only run this course once per year.