How Many Referral Partners Do You Need?

Here’s a secret, I’m going to tell you how you can create a sustainable mortgage business that you actually love…??

Start making referral partners central to your business!

And once you see the value in that, which I’ve discussed in my previous newsletters, it’s time to figure out how many referral partners you need to achieve your goals.

Reverse Engineer Your Goals

Here’s how to estimate the number of referral partners you’ll need.?

Let’s say your average loan amount is $530,000 and your goal is to do $50 million in loans per year.?

That means you need to have around 95 settlements each year.?

But don’t forget to factor in the percentage making it to settlement. The industry standard is around 75%.?

So, to account for the 25% of loans that don’t make it, you’ll need to write 127 loans per year. That’s your annual target.?

Then, divide by 12 for a monthly goal - to write around 11 loans per month. That’s 2.5 loans per week. And when you divide it by 5, that means you need to get your daily target of .5 loans each day.?

Next, it’s time to look at your lead to application conversion rate - how many of your leads actually make it to the application stage.?

Let’s say it’s 75%.?

So, 2.5 applications per week divided by 75% equals 3.33 leads per week.?

Now, how many referral partners do you need??

Assuming you’re already getting a couple of leads per week on your own, you just need an extra lead or two per week for a goal of $50 million worth of loans per year.

Fortunately, a good referral partner can send you one or two leads per week, making it easier for you to meet your target.?

And for your broking business, that one referral partner could even be all you need.?

Of course, it’s always better to have more than one referral partner as long as your business is set up to serve that amount of incoming clients.?

So, work backwards to find the number of referral partners you need. Then design your business around finding and nurturing those referral relationships.?

Do that and your mortgage business will be on the path to success!

Cheers,

Ross Le Quesne

Mortgage Broker Coach, Mentor and Founder of?The?Billion Dollar Broker

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P.S.?Whenever you’re ready... here are 4 ways I can help you grow and scale your mortgage business:

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