I recently attended a wedding and ran into a financial planner friend of mine who I had not seen in a couple of years. He had struggled for years building his business (like we all do) but now, his business was absolutely phenomenal!
My comment to him was "well, we all have to pay our dues and stick with it".
"No" he said, "My business got a huge jump-start when I learned how to ask for referrals the RIGHT way".
Well, I was stunned because I thought there was only one way to ask for referrals - like you just ask for names right?
He went on to explain that the "timing" of WHEN you ask for the referrals and how you get your clients to participate in the process, has made the critical difference in tripling his business.
Most of us have been told to ask for referrals at some point during the processing of the loan. Others have said to ask for referrals at the closing table. And some have recommended asking for referrals about 30 days after the loan has closed.
Jim asks for referrals, over the phone, at the time he sets up the face-to-face appointment. In addition to bringing in some financial records, he tells them that his business relies on referrals and asks them to think of 3 names of friends who might benefit from his services.
You've heard that one before, right?
However, he tells them that he will not even ask them for the names until they meet with him and they are confident that he has earned their trust and sure that he would be able to help their friends as well. It takes the pressure off of having to come up with some names and sets up the process for some outstanding referrals.
Most of us have done just the opposite. We "suprise" our clients by asking them for referrals without warning. If you are like me, it's difficult to come up with some names right off the top of my head - let alone the addresses and phone numbers - or even who might be interested in getting a mortgage.
What he has done is give them time to THINK - about whom they could refer. And, that's only AFTER he has gained their trust.
Just think about your "script" when you set up an appointment for a loan application. You ask the client to bring in paycheck stubs, W-2's and bank statements. Here are a few sentences you could add when setting up your appointments:
"I also wanted to let you know that my business relies on referrals and if you end up applying for a loan with me, I would like to have you think of 3 people who you think might be looking for a home or want to refinance.
However, I won't even ask you for the names until you feel confident in my services."
First of all, you are letting them know exactly how you do business. You are not asking them to give you referrals prior to developing trust and rapport. You are not suprising them by asking for names and phone numbers without warning.
Probably the best time to ask for the names is at the time of loan approval - however, there is a "twist". My friend asks that prior to giving him the referrals, that the client CALL their friend and tell them that they are referring their names. That way, the referral is first of all "warned" of the impending follow up call, and secondly, pre-screened for you.
Ask for 3 names.
You may only get one.
But what you will end up with are names of people who are truly interested in doing business with you.
It will save you an enormous amount of time and make you lots of money.
Copyright, 2004, LoanOfficerMagazine.com
