Written By: Karen Deis
As a commissioned salesperson, every morning you wake up - you are BROKE. You literally have to do something each and every day to make money. Just because you have 10 deals in the pipeline doesn't mean that the rates won't change and you lose half of them. Just because you have a closing scheduled - doesn't always mean that the deal will close. Just because your company has been in business for a million years means nothing! It could be sold tomorrow and your whole commission structure changes - or you could be out of a job.
Brian Farley, President of Pride Mortgage, runs his mortgage business with the motto “Wake up—you are broke”. It's especially true for loan originators.
Business has slowed down. There is no one sales and marketing strategy that is any better than any other.
You now have the time to build a solid foundation and here are a couple of ideas on how you can make money in any economic climate.
Family, Friends and Past Acquaintances – Make a list of everyone in your family. These are the people most interested in your success. Get out your old yearbook; holiday card list; church member directory; club member list; teachers, friends and friends of friends. You will be creating a list of at least 100 to 200 people who know you and like you. Let them know you are in the mortgage business and keep asking for their referrals. (A top loan originator once asked his father why he never referred his friends to him for a mortgage. His father replied, “Because you never asked me to.”)
Stake out your territory – What does a new puppy do once you bring it home? Real estate agents do the same thing as puppies do - except they call it a “farm market area”. Consider picking a geographic area and become THE mortgage loan officer in that area. I once lived in a subdivision with 2,000 homes and consistently mailed post cards to my neighbors. Over the years, I was able to provide mortgages to 22% of my “neighbors”.
Pick A Board of Advisors – With time being your most precious resource, it can be difficult to find time to join clubs, organizations or attend business-networking groups. A more personalized approach would be to create your own “board of advisors”. Invite them to join your “board” and ask them if you can periodically consult with them for advice and ideas on how to increase your business. They do not have to be people who will give you leads—but a group of people you respect that will be honest and willing to help insure your success. Small business owners, printers, a marketing consultant, your doctor, your lawyer, would all be a great start to building your board. Don’t ask for leads—ask for their advice!
According to the experts, there are 3 market-share stages you need to be aware of:
- The “getting to know you” stage—takes about 6 months to a year!
- The “getting to like you” stage—takes about 1-2 years!
- The “getting to love you” stage—takes about 2 years!
Realize that it will take you anywhere from 1 to 2 years to build your business to a point where you never have to wake up each morning and wonder where your next paycheck is coming from.
Here’s to your long-term mortgage career!
Karen Deis
Copyright, 2004, LoanOfficerMagazine.com
