As a commissioned sales person, you literally have to do something each and every day to make money. Just because you have 10 deals in the pipeline doesn’t mean that the rates won’t change and you lose half of your deals. Just because you have a closing scheduled doesn’t always mean that the deal will close. Just because your company has been in business for a million years means nothing—it could be sold tomorrow and your whole commission structure changes—or you could be out of a job.
The reality is that every morning, when you wake up, you are broke until you find a way to get more business and close loans.
Now is the time to go back and build that foundation and here are a couple of ideas to create excellent long-term strategies and financial returns.
• Family, Friends and Past Acquaintances—Make a list of everyone in your family. These are the people most interested in your success. Get out your old yearbook; holiday card list; church member directory; club member list; teachers, friends and friends of friends. You will have created a marketing list of at least 100 to 200 people who know you and like you. A top loan originator once asked his father, who was a successful business owner, why he never referred his friends to him. His father replied, “Because you never asked me to.”
• Stake out a territory—Just like real estate agents who develop a “farm market area”, loan officers should consider picking a geographic area and become the mortgage loan officer in that area. I once lived in a subdivision with 2,000 homes and consistently mailed post cards to my neighbors. Over the years, I was able to provide mortgages to 22% of them.
• Your Board of Advisors—With time being your most precious resource, it can be difficult to find time to join clubs, organizations or attend business-networking groups. A more personalized approach would be to create your own “board of advisors." Invite them to join your board and ask them if you can periodically consult with them for advice and ideas on how to increase your business. They do not have to be people who will give you leads—but a group of people you respect that will be honest and willing to help insure your success. Small business owners, printers, a marketing consultant, your doctor, your lawyer, would be a great start to building your board. Don’t ask for business—ask for advice!
Strategies are longer-term, business-building techniques. According to the experts, there are three market-share stages you need to be aware of:
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Understanding the difference between a “tactic” (like corporate marketing) and a “strategy” (like building your database) is the first step.
Realize that it will take you anywhere from one to two years to build your business to a point where you never have to wake up each morning and wonder where your next paycheck is coming from.
Here’s to your long-term mortgage career!
