• Are less rate conscious
• More trusting and approachable
• More loyal
• Easier to set appointments with
• Require less time and energy
• Are less costly to acquire (in many cases, they’re free!) and...
• Are a great source of what? More referrals!
It’s no wonder that most mortgage professionals rely almost entirely on referrals for new business. But the difference between the superstars and the mediocre majority is that they setup referral systems that provide a predictable and consistent flow of quality referrals into their business.
There’s a BIG difference between word of mouth and referral systems. Average mortgage pros get their referrals through word-of-mouth (WOM), top producers get their referrals through referral systems.
WOM occurs when one of your clients just so happens to be talking to someone who just so happens to mention they’re looking to buy a new home and your client just so happens to recommend you as their trusted mortgage adviser. We love it when that happens, don’t we? But the problem with relying on WOM is that we have no control over it. It’s unpredictable. It occurs by happenstance and serendipity
If you are a superstar mortgage professional, you refuse to leave your marketing -- and your income -- to happenstance. You need a marketing system that produces predictable, consistent results. And that is what referral systems give you.
One of the most powerful referral systems you’ll see superstar mortgage pros utilizing, is what I call the WOW Factor Formula. It includes four cards:
The Initial Inquiry Card
Immediately after submitting the mortgage application, send out a handwritten greeting card to your client, thanking them for entrusting their mortgage needs with you. For added WOW FACTOR, enclose a $5 gift card from Starbucks or Tim Hortons. This will go a long way towards improving your closing ratios and boosting your referrals and repeat business!
The After Closing Card
After the deal closes, send out another Thank You card expressing your appreciation for their business. But don’t stop there. Exceed their expectations with a gift, such as a box of brownies or pecan brittle. Remember, little things really do make a BIG difference!
The Referral Thank You (Unclosed)
Every time you receive a referral, regardless of whether it has closed yet or not, send out a postcard to the person who referred you and thank them for the referral. Yes, you could do this by email but it doesn’t have near the same effect. Something tangible always has more impact than something digital. Trust me, it works.
The Referral Thank You (Closed)
After a referred mortgage closes, go back to the referrer and do something special for them to reinforce their positive behaviour. I recommend rewarding referrers with a $100 certificate towards an excellent restaurant. Then invite them to have a “fun night out” with a guest couple because “breaking bread with friends is always more fun.” Guess who they are going to be talking about at least once during that memorable evening? You, my friend. And that means your chances of getting more repeat and referral business go up dramatically!
As you can see, a referral system is a systematic process, which you can use time and time again to generate referrals at will.
This is a slightly amended version of an article written by Doren Aldana, considered by many to be Canada’s leading Mortgage Marketing Coach. It has been shortened to make it suitable for web publishing.
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