Loan Officer Marketing – Do You Know What Business You Are Really In?

DO YOU KNOW THE BUSINESS YOU ARE “REALLY” IN ?

We all think we are in the “Mortgage Business” but the truth is that no one really wants a mortgage. No one I know will ever wake up in the morning and say “WOW – I want a Mortgage”
People do want a home.
People do want security for their family.
People do want an asset that will hopefully grow in value.
People do want to enjoy a pool- a basement- a fireplace- etc.

People do want to feel like they have achieved the American Dream.

THE LESSON HERE- IS ALWAYS SELL BENEFITS NOT FEATURES!
Most of the advertising that is done in our industry revolves around rates we offer, terms of loans, and other “technical” aspects of the mortgage itself. We then get frustrated and wonder why everyone we speak to ONLY wants to know our rates and points.

When we use this type of advertising of product features and costs we invite the question we all hate the most. You might even want to stop here and write that one down. Paste it to your computer and read it BEFORE you do any advertising intitiatives.

The truth is that we are NOT even in the mortgage business. We wake up everyday just like that caveman and start searching for new business.

Mortgages are simply a feature of what we sell. We are selling money and the best ways people can use their money wisely when purchasing a home.
You are actually in the Marketing of Mortgages business. When you approach this business as a consultant with the understanding that I have laid out above your business will change. You will generate more business, it will become much easier and your clients will be more loyal and happier.

BUT HOW?

Yes, I realize that what you have read so far seems logical but you may be wondering how to actually do this in your own business. The first step of course is understanding the differences between features and benefits.

As an example-
You will see ads like this…
FHA LOANS at ___ (RATE) 30 Year Fixed Call for details.
Now you understand that no one is waking up to say “Gee , I really need an FHA loan today. I better respond to this ad immediately.”
Instead what if you said.
“Looking To Buy A Home But Don’t Have a Large Down payment?”
We have program that allows you to put as little as 3.5% down. This program may work for you even if you have less than perfect credit” call ____ for details.

The person reading the first ad is ONLY thinking about rates and may even have no idea what FHA is or means. The second ad highlights the benefits of the FHA program and solves the challenges some buyers have.
Let’s sum this all up and see the reasons why you need to focus your advertising and your intitial conversations on benefits and asking questions rather than features.

First- people will see that you truly understand them and that is a critical step in bonding with them. People will only buy from those they know, like, and trust. Don’t think you are NOT a salesperson because that is exactly how the consumer sees you. Our product is money but we are still selling it.
Second- The rate question will rarely come up since the borrower will see that you understand their needs.
Third- You will be seen as an expert by using this approach since you are offering solutions and have established their needs.

Try it- don’t discuss ARMS- FIXED- LIBOR – 30-15-20 – APR
All your borrower hears is “BLAH BLAH BLAH”

Instead- Ask about them
Ask about their goals
Ask about their comfort levels with payments
Ask about their fears and concerns

THEN – AND ONLY THEN Show them a solution and tell them the solution and the way they can understand it that is full of benefits – never ever features.
Dedicated To Increasing Your Production
Brian Sacks
www.TopOriginatorSecrets.com

PS- Want More Business? Of course you do

Here are 2 programs I created that show you the ways I generate new business consistently

TURN RENTERS INTO LOANS AND GET REALTORS CHASING YOU
www.RentersIntoLoans.com
TAKE ADVANTAGE OF THE 7.3 Million BOOMERANG BUYERS and be seen as the go to person in your town
www.Boomerangexpert.com

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An Interesting Phone Call?

INTERESTING PHONE CALL ?
Do you hate clients who call you and waste your time ? Of course you do, we all do. But you have to stop and think about who you have invited to call you and the process they go thru before you actually speak with them.
Yesterday I got a call from Zillow about a new program they are offering loan officers around the country. To their credit this was a well thought out process. The program takes buyers from the website thru a process where they are asked a series of questions and then turned over to a loan officer.
YOU MUST THEN CALL THEM BACK IMMEDIATELY.
Now stop and think about that for a minute- I’ll wait.
What position are you in when you MUST CALL THEM BACK immediately. Do you go to a Doctor or a lawyer? Do you have a dentist ? Do you hava an accountant?
Do they call you back immediately?
THE DIFFERENCE BETWEEN A HEAD OF LETTUCE AND AN EXPERT.
The Zillow rep explained this process to me and I politely declined. She seemed totally stunned as if someone had just kicked her in the stomach.

So I explained all of our frustrations to her.
1. We hate rate shoppers.
2. We hate working with buyers who we spend a lot of time with and then don’t qualify.
3. We hate being seen as a head of lettuce.
4. We hate having our down time or family time interrupted with only a 10% chance of actually getting a client.
I WANT BUYERS SOLD ON USING ME BEFORE THEY EVEN MEET ME! DON’T YOU!
If you don’t like the buyers or referral partners you work with —- IT IS YOUR FAULT.
So here’s a formula-
1. Target the best people you want to work with. So for example if you are in an area with average sales prices of 250,000 you want buyers renting for 1500-2000 a month.
WHY?
You know they are renting and you know that they can afford the payments. You know a mortgage might be lower than their rent.
2. Let them hear your sales message – why they should work with you and educate them thru an automated process.
3. Encourage them to call you for a free consultation.

This is the formula I have laid out and provided all the steps for in my www.RentersIntoLoans.com system.

Now instead of having to drop everything to speak to borrowers you just paid 43 dollars each for you can put them thru a process.
Our process costs 50 cents per lead and they are already sold on using you BEFORE THEY EVEN CALL.
Happy Holidays and My Wishes to You for a prosperous 2016
Brian Sacks
PS- The other way to get rid of these issues is being the expert in a niche!
2016 WILL BE the year of the Boomerang Buyer.
Will you be a part of it? Or still be praying refi’s come back?
People don’t shop experts and they will work with your schedule and respect you.
Http://www.BoomerangExpert.com or watch the replay- it will be coming down soon
www.BoomerangExpert.com/replay

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HOW TO – Give Your Origination Business A Shot in the ARM

Some mortgage brokers and bankers search endlessly for a single, new way to generate more closed loans each month. The bottom line, however, is that there isn’t a single best way to generate business. In fact, thinking that there is can be problematic and will ultimately lead to a massive decline in your originations.

Simply put, business models built on a single marketing technique or referral stream put your business at major risk. Taking this a step further, if your referrals all comes from one Realtor or one builder, then your business is not built on a strong foundation. You need to plug into multiple marketing strategies and referral streams to maintain a consistent flow of new clients and keep your business healthy.

The problem with trying to find the “single best way to generate new loans” is that it encourages originators to embrace the latest “shiny object,” which never seems to deliver what was hoped. Think back a number of years and you may recall the popularity of massive telemarketing rooms. Entire business models were created based on this technique, but when do-not-call lists were enacted many large telemarketing operations ceased to exist. Those that did remain were not as successful as they had been in the past.

Four-legged business

Although there may not be any one way to generate a hundred loans, there are a hundred ways to generate one loan, but in reality you only need about four. Think of your business as a chair with four legs. If you take away one leg, you can still sit, but the chair is now a bit wobbly. Take away two legs, however, and your chair will fall over.

If a particular strategy isn’t working well, take the time to learn why.
Can it be fixed? Can it be tweaked?

Good marketing and referral generation should be built with a similar concept in mind. The more strategies you use, the more stable your business will become. Obviously pursuing too many strategies can become redundant and may bury you in increased costs, but having too few will cause your business to topple.

So, where can you find these hundred ideas for generating more business consistently? Let’s dive in and look at a few to give you some ideas. Pick any four of the following strategies — or generate your own — and make a plan to implement them as your new four-legged business strategy.

  1. Send direct mail. Target a list of prospects and offer them a specific solution to their issues. This could be direct mail to buyers who would be appropriate for reverse mortgages, apartment renters who might purchase, homeowners who could lower their rates through refinancing, or any other specific need you can solve. With fewer people using direct mail, your piece will have a better chance of being read and acted on.

  2. Use social media. YouTube, Facebook and LinkedIn can all connect you to potential referral sources, past clients and future prospects through posts, advertisements or both. You can even create a YouTube channel, a professional Facebook page or a LinkedIn group as a space where you can provide valuable, consistent content that attracts business.

  3. Create a newsletter. Online and print newsletters sent directly to your contact list allow you to contact past clients and other referral sources, as well as prospects you have already spoken to.

  4. Get builder business. Many builders use in-house companies, but your bank or broker-age may have a program those companies don’t offer. Do some research and reach out with specific solutions you can provide.

  5. Work with Realtors. Success in this endeavor is all about forging personal relationships. Focus on just 10 to 15 agents you would like to get consistent business from. A dozen or so Realtor connections are manageable for almost any loan officer.

  6. Teach courses or webinars. Local homebuilders’ associations or boards of Realtors often are eager to have local professionals provide seminars for their members. The more technically savvy can conduct online webinars targeted at prospects appropriate for the programs they offer. By teaching classes, you automatically position yourself as a subject-matter expert, which will help you forge new relationships.

  7. Host a radio show. Going on-the-air will position you as an expert in your area. Many radio stations will actually sell you 30-minute or 60-minute weekly spots. You can then go out and get sponsors to help you pay for the cost of the show and possibly even make a profit while marketing yourself to a large audience.

  8. Become a resource. Local newspapers, talk radio stations, and even TV news outlets all rely on local experts for a variety of topics. Make connections with producers and editors and offer your services as an expert on the topic of mortgage financing.

  9. Create referral target lists. Attorneys, certified public accountants and financial planners are all wonderful referral sources. Build a list of financial professionals to contact in your area and work to forge mutually profitable referral models.

  10. Write a book or free PDF. Identify a problem shared by a particular set of prospects, use your knowledge to create a document that provides a solution and make this book available online. This is another way to position yourself as a subject-matter expert, and the book becomes an effective lead-generation tool.

Monitor and modify

The key to finding success in the mortgage industry — or building on the success you already have — lies in finding multiple ways to generate new business. Just finding new lead-generation strategies isn’t enough, however. You must be able to track and monitor these strategies to know which ones are working and which are not. With that in mind, take the time once a month to review your prior month’s activities and results.

If one of your four strategies is doing well, think of ways to expand and improve upon that stream. If a particular strategy isn’t working, take the time to learn why. Can it be fixed? Can it be tweaked? If it can, try that for a month or two and monitor the progress.  If not, replace that failed strategy with a different one.

There may not be one, single, best way to get a hundred loans, but there are hundreds of ways to get one new loan every month. If you find at least four that work, you’ll have a consistent and predictable marketing and referral program that brings in a stream of reliable business so your company doesn’t topple over.

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Brian Sacks – Top Originator

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