Tired of being seen as a "head of lettuce"? Tired of only being shopped for rates and points? The reality is that no one will ever have the best rates and points. The issue is that we set ourselves up to be seen as a commodity, or a "head of lettuce." The only way a buyer can make a buying decision is by comparing price.
Have you ever been out and have someone ask you what you do? Did you say loan officer or mortgage lender? Did they respond, "Oh, what are your rates?" Well, that is the "head of lettuce" syndrome. Look at any other industry and you will find generalists and specialists. Here are some examples. There are doctors who have general practices, and then there are heart specialists, endocrinologists, kidney, liver, lung specialists. There are dentists, and there are oral surgeons. There are accountants, and there are tax experts, auditing experts. There are attorneys, and there are divorce, tax, labor and litigation experts. In every single case, the specialists make a lot more then the generalists. So, why not in our industry?
One of the concepts I have lived by, and taught to thousands of other successful originators and company owners, is "Pick a niche, become the expert, let everyone know about it." Here are some niches to think about: reverse mortgages, Jumbo's, FHA, VA, construction, lot loans. There are numerous others.
Some may come and go based on the market conditions. But, some will always be around no matter what the market does. So here's what you need to do now. Find a group that is easily reachable and has a problem. Find and learn the programs that will solve their problem, and then let them know you can help. This one idea will allow you to thrive during this crisis. It is very formulaic and it works.
My niche was working with buyers who had a bankruptcy or other credit challenge. They never asked about price, they simply wanted to know if I was for real and if I could help them. I know what you are thinking, "Yeah Brian, that was fine a few years ago but that would never ever work now." To which I will respond, "Wrong! FHA and VA both still have programs that are viable for people who have had issues."
"Yeah Brian, but now the rules have changed."
To which I will respond "correct!" Now go find the ones who meet the new criteria and let them know you can help." To wrap this one up, let me give you my line, which you can copy, when someone asks you what to do to avoid being seen as a "head of lettuce." I help buyers who have had a bankruptcy or other credit challenge get into a home with attractive rates and low down payments." Simply substitute what you do in the same sentence. It really is that easy. Try it, it works.
Before we move on to the next BIG MISTAKE I need to address those negative thoughts in your head right now. You are probably saying, "Brian, I can't afford to turn away any business right now." Yup! I agree and I am not suggesting that you turn away any business. What I am suggesting is that you only market to the most profitable clients who have an issue you can solve so you are compensated for your expertise. I am hoping that you are not trying to be everything to everyone all the time. Take some baby steps on this one and once you start seeing the results with your own eyes (and wallet) go ahead full speed. I was scared, too, when I first decided to be a specialist but I quickly went full steam ahead when I started earning $5000.00 per loan instead of being the generalist earning $500.00 a loan.
See, it takes A LOT of loans to make any real money when you are a generalist - especially with price sensitive clients. AGAIN, people with problems you can solve just want a solution and are not price sensitive. Let's assume you have an impacted molar- very painful! Are you going to get out the phone book and start calling around or are you going to the oral surgeon so you can feel better quickly? Enough said, you are either with me on this one or not, so let's move on.
In your next Loan Officer Formula Marketing Tip I will talk about some secret ways to get buyers chasing you - instead of you always doing the chasing.Brian Sacks is the CEO of
