The Database Multiplication Method
How To Close 20 Deals per Month using the Database Multiplication Method
Did you know that databases alone can sell for multiple millions of dollars?
That's right. Multiple $Millions$ of dollars.
Which blows my mind because so few in the mortgage and real estate industry focus on growing their databases...
- Past clients...
- Referral partners...
- Strategic partners...
There is a difference between a referral partner and a strategic partner.
Referral Partners are giving you business they already have.
Which is why people run out of referrals...
Ever want to acquire another partner but you don't have anything else to give?
It's like a bunch of homeless people trying to get food from one another...
Neither of them work...
So why would either of them have any more food for you or anyone else?
(No i'm not referring to you as a homeless person, don't be sensitive, it's just the only analogy I could think of that made sense)
Strategic Partners are actively marketing/advertising to solve the same problem of a market, but just with a different angle.
The "Strategy" is that you're attacking multiple psychologies on the same market.
What if every partner you had was advertising to sell homes?
- Realtor
- Lender
- Captive Insurance
- Independent Insurance
- Credit Partner
What happens?
2 things...
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1) You hit more of the same market but cater to different types of people.
NO ONE wants to be sold...
But EVERYONE wants to buy.
They just want to buy their way.
- Some want to go shopping (realtor)
- Some want to make sure their finances are in order (lender)
- Some want to make sure their assets are covered (insurance)
- Some know they need a credit boost (credit agent)
Problem you run into with your business alone is that you can only attack one side of the market at any given time.
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2) You can 5x your attack on the market... 5x your attack on building your database.
It's simple math really...
If all of you (5) partners are advertising to collectively generate 400 home buyer leads per month.
You need the lead cost to be an average of $15
And you need to convert an average of 5%
It will cost you $6,000 between all of you
And you will close 20 deals per month.
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- $6,000 in advertising
- @ $15 per lead = 400 leads
- 5% conversion = 20 deals per month
Some are going to think 5% is difficult to do... but it's what our clients average on Facebook home buyer leads using our process in PODS (Partners On-Demand).
Actually pretty easy when you get in touch with 7/10 qualified leads that come through the door (as long as you and your team know how to close).
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Lender, Realtor, and Insurance agent solidifies the relationship with the buyer between all of you.
It's actually not hard to do if you synchronize your efforts to actually caring about the individual instead of the sale.
The outcome...
-- Credit agent has more credit leads than he knows what to do with
-- Insurance agents are poppin off savings like Geico
-- Realtor & Lender make out like bandits.
- Collaborative advertising efforts
- Between strategic partners
- Advertise for the same solution
- With different angles
- Benefiting differently, but still same outcomes - everyone grows their database
Merely trying to leverage each other's databases...
Without active database growth from all of you...
It is impossible, frustrating, and a complete letdown every time.
This doesn't mean to do a shared marketing agreement...
NO.
Do your own marketing, grow your own databases, and share the wealth in the middle.
You can't build wealth by sharing it all first.
Not doing this properly is leaving you subject to all the annoyances you currently deal with everyday...
* shared leads
* networking events
* unproductive partnerships
* inability to grow the team
If anything is going to change...
Change up the strategy to building a database with other like-minded strategic partners that also want to build a database together.
You'll go much farther together when done properly.
This is also the power of the Partners On-Demand System (PODS).
If you'd like to chat with our team about how you can start your own POD in your area, you can submit a request for a Free Strategy Roadmap Session with our team at MortgageConvert.
I hope this article helps you make the best of your current and future partnerships.
Cheers,
Cody Baker, Founder at MortgageConvert & Partners On-Demand