The rule of 3 – important when meeting new clients

Posted by Aug31, 2012 Comments Comments Off
Print Friendly

The rule of 3 has given me a good methodology and system for ensuring I always kick off meetings well and quickly start building trust with prospective clients. Watch my first 3-minute video blog below to learn all about it.

If you can’t see this video, click here.

Categories : Uncategorized
Comments Comments Off
Print Friendly

A great opportunity and reason to make contact with an existing client is prior to the expiry of their interest only (IO) term. The bank will typically send the borrower a letter 6 weeks prior to the IO expiry telling them the repayments will revert to P&I. But brokers need to communicate with clients before the banks do.

The best case is to send a letter to the client 12 months prior to the interest rate expiry letting them know that it’s coming up. Warn them that rolling over the IO term may require a credit approval (depends on the lender of course) so if they are considering changing jobs or doing anything that may compromise the approval, then ask them to speak with you first. Then, I would suggest sending another communication no less than 8 weeks prior to the expiry suggesting that you need to complete a review and follow up with a phone call. That should leave enough time to arrange a refinance if that’s what you decide is in the clients best interest.

If you don’t take the above approach you risk the bank re-writing the loan (so you stop getting trail commission) or worse still, another broker looking after “your” client.

Here’s a goal for you this week: ensure you have a system for automatically generating letters to clients to warn them about IO expiry before the bank does. Put it in your diary now.

Do you have some tips or ideas? Leave a comment below.

Categories : Uncategorized
Comments Comments Off

Improving your results is simple… deceptively simple!

Posted by Aug22, 2012 Comments Comments Off
Print Friendly

I was reading a blog last night from one of the best thinkers of our time – Seth Godin. The short blog is about achieving results and changing behaviours – click here to read it.  Essentially, Seth is suggesting that you do not need to do one or two magnificent things each year but rather do the same simple tasks each day which you know work – like calling 2 to 3 past clients. Bestselling author, Jim Collins refers to this as the “20 mile march” because you need to take one step each day. Some days you might not see results. But after a year of taking one step each day, the results will be obvious. As Jim Collins says “the true signature of mediocrity is terrible inconsistency”.

Southwest Airlines (US domestic airline) is renowned for its culture, profits and long-time success. It’s ‘profit statement’ (i.e. a statement of how they make money) is simply “wheels up”. When the aeroplane’s wheels are up, they are making money and when they are down, they aren’t. Simple! Everyone understands it and works towards it. A mortgage broker’s profit statement is “talking to clients”. When you are talking to clients I bet you are making money (because when you talk you develop relationships, trust and look for opportunities). Talking to a lender, filling out an app, doing paperwork doesn’t make you any more money than you have already made.

So, what is the one thing that you should do each and every day that makes you more money? I suggest doing it for 3 hours per day (broken into two 90 minute sessions). Do that for 6 months and I’ll bet you’ll make heaps more money. But do you have the discipline??? Many don’t.

Categories : Uncategorized
Comments Comments Off
Print Friendly

What’s the real reason people come to brokers? Are they after the best deal or someone to take care of all the paperwork? Often, we as brokers think that this is the reason. However, I suspect that there are ‘higher value needs’ that brokers can help with that are less commoditised than finding the lowest rate or doing the paperwork.

A few years ago I read an excellent book by Liz Wiseman called Multipliers (one of the top 3 business books I have ever read). One of the ideas in the book is that focus on “asking the right questions” is incredibly powerful in influencing people and soliciting their best thinking. It is amazing how people can frame and solve their own problems by just be being asked excellent questions. Liz talks about an “extreme question challenge” where you simple just ask questions when meeting with a staff member or client to discuss/solve a problem. I use the “extreme question challenge” in my initial (and often only) meeting with a client. During the first 5 minutes of the meeting I do some talking (build rapport, set agenda, etc.) and then the next 30 minutes is my “extreme question challenge” where I will only ask great questions. Ask questions and just listen. I have a template questionnaire that I bring into meetings to prompt me – has heaps of different questions on it. I am often amazed what I learn just by shutting up and saying NOTHING! I learn about their needs that I can really focus on helping with. Concerns such as “I’m nervous about investing in property and buying the wrong property”, “I am worried about cash flow and risk”, “I really want to focus on tax effectiveness” and so on. If you help solve these problems, you’ll add a lot more value than “finding the lowest rate”. 90% of the time I find at least one high value need by taking this approach. If I can position myself as the best person to help with that need I’ll win the business regardless of the lender I recommend.

So my challenge to you is to take the “extreme question challenge”. In you next client meeting just shut up for 30 minutes and ask the best quality questions you can think of. Do not offer any advice or information during this time – none at all (sometimes it’s hard to resist). Complete this challenge and I promise you’ll be a convert and employ this approach throughout your whole life. Read the book too. Good luck and let me know how you go. Thanks.

Categories : Uncategorized
Comments Comments Off

Do you need to find a niche?

Posted by Aug13, 2012 Comments (1)
Print Friendly

I believe that most brokers should find themselves a niche. The benefit of having a niche is that you can tailor your marketing and sales process specifically for that niche thereby being way more effective. The tighter the niche, the better it will work. Conversely, if you don’t have a niche, your marketing and sales process will have to be “all things to all people”. The problem with that approach is that it’s too watered down to be hugely successful/efficient – it will probably just be “ok”. However, you’ll just look like and feel like every other brokers and bank in Australia – not remarkable (which by definition is, worthy of remark). However, if I’m an airline pilot and you’re a mortgage broker that specialises in helping pilots, I’m probably going to tell all my colleagues about you – because it’s remarkable. Also, you can tailor your approach around me – e.g. advertise that you can meet them at the airport and take care of everything in less than an hour.

So how do you pick a niche?

I believe there are two main considerations being your skill set and experience and the industries characteristics.

  1. Your experience & skills

Firstly, be realistic about your skill set. What are you good at? What types of people do you enough helping? For me, I’m good at developing systems and processes to make my work easier. This meant that preparing a report (with my credit advice) for high-end clients wasn’t going to be a problem. If you’ve played footy at the local club, hang out at the pub and so on – perhaps tradies might be a good niche for you (sorry for the generalisations). Also, think about your experience. Have you worked in a particular industry before? If so, it will be an advantage because you’ll know what they like, don’t like, need help with, etc. Plus they’ll immediately like you – because you are one of them.

  1. Industry characteristics

There are a number of things you’ll be looking for in an industry to translate into profitable clients. The top 4 in order of importance are:

  • Earning capacity and more importantly, earning stability. Actors probably won’t make a good niche because their earnings probably vary a lot making finance more difficult. Surgeons have a high and very stable earning capacity.
  • Is the industry easy to get in front of? Do they have one or two widely read publications? Industry groups/bodies? Events? Websites? Concentrated in a certain geographical location? There’s no point picking a niche of you can’t find a way to market to them.
  • Size of niche – probably looking for a niche with at least 2,000 people but probably not more than 10,000 (otherwise it’s not focused enough).
  • Do they have a problem that needs a solution? For example, IT contractors can sometimes run into trouble with some lenders because they might (for example) be on a rolling 3 month contract. So having a good broker that knows how to put the deal together and which lenders to deal with is important. The problem doesn’t necessarily need to be specifically about lending.

There are two ways you’ll get the above information: 1. The internet and 2. Talking to as many people in your target industry as possible. The better the understanding you have, the more successful you’ll be.

Do you have a niche? I’d love to hear your success stories.

Categories : Uncategorized
Comments (1)
Page 16 of 18« First...10...1415161718