Earning More Referrals

I hope this article provides inspiration or insights to help your realise your own potential so you too can operate a broking practice that provides you ongoing professional and personal reward.

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In a conversation I was having with an experienced broker, he was trying to get himself out of a vicious cycle.

The cycle revolved around his process that hadn’t changed in years even though he recognised it had flaws.

When a new enquiry came in, of which he only has a handful on the go at any given time,?he typically had capacity to do the research, review the docs, upload everything to his share drive and organise the application so it could be submitted to the lender.

And because he had exacting standards, he found it difficult to hand this over to anyone else, even a per file service provider, because they wouldn’t do the work exactly as he would.

That said, he has promised himself that when he hits his goal of settling $3M per month for 3 months in a row, then he'll employ a PA.

That promise was made around 2019, and he still doesn’t hav a PA.

Why?

It’s the chicken and egg syndrome.? When there are files on the go, he’s focused on getting them lodged and settled, meaning there’s little business development done to create new opportunities for his pipeline.

Contrast that to a call I had?earlier this week where I spoke with another mortgage broker. Well, more so a broker turned business owner who has a team of brokers working for him.?

He has a big trail book.?

In fact, it's the biggest trail book I've ever heard of for a brokerage.

If he didn't work a day for the next 12 months, his business would turn over 7-figures on the trail alone (assuming no drop-off).?

That said, his firm requires his attention and leadership, though he has built up a significant client base and asset.

How'd he do it??

Well, it was a deliberate and planned outcome?that happened over a period of time. ?

There are a multitude of things done extremely well, and here are a few:

Strategy. He had a long-term view in mind. He knew what type of business he was looking to create – and was prepared to work toward this. He understood his value proposition and how that aligned to his referral partners, and he didn't compromise on short-term tactics at the cost of longer-term strategy. He kept his focused – and he did work hard to make it happen

Business model. He wanted a business that gave him scale and leveraged his time. This meant he could process more deals, help more people and build a bigger client and asset base. It also meant being able to trust, lead and empower others – as he delegated a lot of responsibility through to members of the team so they could share the load – which also freed up his time from writing the deals to working more 'on' his business

Relationships.? I can’t tell you how many times he’s laboured the point about being relationship centric – with clients, with referrers, with lenders and other stakeholders.? He has a lot of high net worth clients. ?

Sure, he could ‘zoom’ them all for convenience, but he doesn’t.? He sees them in person.? Is this inefficient?? Though clients certainly appreciate and recognise his efforts, which earns him repeat business and a lot of referrals, which he can then distribute to the team.

Thinking.? He actually sees himself as a practice owner, and has cultivated a mindset of abundance.? He believes there is ‘plenty of business out there’, and I virtually always notice people who embrace this belief tend to source their unfair share of opportunities.

Those are a handful of the key components of which has contributed to the performance of the firm.? Other words like ‘culture’, and ‘remuneration structure’, ‘loan process’, ‘time management’ have also been dialled in to ensure a well-designed approach that supports their strategy.

If you’re a practice owner and you are wanting to:

• Grow your own volumes for without growing your office hours, or;
• You’re contemplating how to grow team volumes and asset value so things tick along even when you’re on holiday

I invite you to schedule an initial and complementary deal flow call with our growth advisor, herself a broker of 17 years, to point you in the right direction.? If that sounds useful, simply reply to this email.

Warmly,

James McCracken