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Art of Referrals by Dave Savage


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This is the story and playbook of how Dave Savage closed 252 loans in one year and he #1 referral source was CPA's and Financial Planners

Published in: Business
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Art of Referrals by Dave Savage

  1. 1. 2 Section One: TheM illion Dollar“Trusted Advisor’sEdge”M indset Section Tw o: H ow to Find M oreQualityReferralSourcesThan You Can H andle Section Three: H ow to Contactand SetAppointm entsW ith Advisors Section Four: H ow to CreateInstantCredibilityW hen M eetingW ith aCPA orFinancialPlanner Section Five: Buildingand M aintainingYourCPA and FinancialPlannerDatabase Section Six: H ow to CaptureAuthoritativeEndorsem entsThatAllow You to LeverageaSingleReferralInto Dozens Section Seven: TheArtofReferrals—TheNew W ayofDoingBusiness THE ART OF REFERRALS CONTENTS 02/2007 3 5 8 14 18 21 25
  2. 2. 3 THE ART OF REFERRALS Se c t i o n On e : Th e M i l l i o n D o l l a r “ Tr u s t e d A d v i s o r ’ s Ed g e ” M i n d s e t DearM ortgageProfessional, Iam notgoingto startthisreportw ith them echanicsofhow to develop alternativesourcesof referralsfrom CPAsand financialplanners.That’sactuallytheeasypart, becauseI’vecreated a proven system .Thehard partisthis… Mindset. H ere’sw hatIm ean.Unlessyou havetheproperm indset, you’renevergoingto beableto use w hatI’m teachingyou… no m atterhow easyI’vem adeitforyou.So, w hatisthism indsetI’m talkingabout? Them indsetisw hatIcallthe“Trusted Advisor’sEdge”. W hatisthe“Trusted Advisor’sEdge”? W hatm ostprofessionalsdon’tunderstand isthatthem ostprofessional, credibleim ageyou can havedoesn’tcom efrom yourclothes, yourcar, oryouroffice.Them ostbulletproofim age you can havespringsup from w ithin you.Itcom esfrom havingaprofessional, “I’m hereto do businessand you need theserviceIdeliver”attitude.You haveto believethatyour“advice”can actuallym akealife-changingdifference. You haveto shiftyourperspectivearound 180 degreesfrom thetypicalloan officer.W hen you havetheTrusted Advisor’sEdge, you decideifyou w antto do businessw ith aCPA orfinancial planner, ornot.It’s your decision, not theirs. You decideiftheym eetyourqualifications. You can enhancetheirserviceofferingand keep theirclientshappy, becauseyou’reatrusted and valued resourceto them . Butfirstyou’vegotto respectyourselfand thelevelofexpertiseyou bringto thegam e.Stand tall, look confident, and SH OW them how youradvicem akesalife-changingdifferenceto their clients. Do you need to bew ellgroom ed and m annered?Ofcourse!But, ifyou don’thavethatTrusted Advisor’sEdgem indset, yourlack ofconfidenceand credibilityw illquicklyeataw ayattheillu- sion of“im age”you aretryingto create. W ith thisTrusted Advisor’sEdgem indsetthatI’m goingto giveyou thetoolsto 02/2007
  3. 3. 4 THE ART OF REFERRALS Se c t i o n On e : Th e M i l l i o n D o l l a r “ Tr u s t e d A d v i s o r ’ s Ed g e ” M i n d s e t ( c o n t . ) create, you aregoingto build ahugestream ofreferrals. W hen you finallyrealizethattheseCPAsand financialplanners, or“advisors”asIcallthem , need you becausetheknow ledge, advice, and insightyou possessw illhelp them im provethe financiallivesoftheirclientand theirinfluenceovertheirclientsyou w illthen beholdingthe cards.You arenow theplayertheyw antto associatewith.That’sw hyIhavedeveloped the tools, techniques, and strategiesyou aregoingto learn to use. Each and everystrategyIshow you putsyou in aposition ofbringingvalueto thetable— notbeggingforthecrum bsthatarefallingfrom it.You don’tw antto belikealittlepuppy, pant- ingand w aggingitstail, hopingyou aregoingto getareferralthrow n to you.W hen you learn to usethesetoolsand strategiesw ith skilland confidence, you aregoingto stand head and shoul- dersabovetypicalloan officersand lendersw ho m aybecom petingforthosereferralsbecause oftheincredibleadviceand valueyou bringto a CPA and financialplanner. And justasim portantlyforthoseofyou w ho w ork w ith realtors… you aregoingto develop a rem arkablystrongpostuream ongtherealestateagentsyou’rew orkingw ith.W hen you bring thistypeofw orld classadviceto thetable, theyw illuseyou asarespected sourceofadvicethat m akesalife-changingdifferencefortheirclients.The day you realize the pow er ofdoingbusi- ness based on the Trusted Advisor’s Edge is the day you w illgain an incredible sense ofcon- trolover your grow th and the consistency ofyour business. Letm equicklycoverafew m oreofthebenefitsyou’llexperiencew hen you learn to applythe Trusted Advisor’sEdgem indsetto yourbusiness. First, thepeaksand valleysin yourincom ew illstabilizebecauseyou arebroadeningoutyour referralbase.Im agineapierstretchingoverthew ater.Each new referralsourceyou add islike addinga pillarto itsfoundation.Them orepillars, them orestablethepier.And so itisw ith yourbusiness. Second, you w illalso enjoythelevelofbusinessprofessionalism thatcom esw hen you begin to do alotofbusinessw ith CPAsand financialplanners.You w illfind theirdow n-to-businessatti- tudesand behaviorsrefreshing. 02/2007
  4. 4. 5 THE ART OF REFERRALS Se c t i o n Tw o : H o w t o F i n d M o r e Q u a l i t y R e f e r r a l So u r c e s Th a n Y o u Ca n H a n d l e So w hat’sthefirststep? W ell, beforeyou can putanyofm ystrategiesto w ork, you m ustfirstbeableto find potentialCPAsand financialplanners. Ihavedeveloped tw o w aysto getreferrals.Let’slook firstattheeasiestw ayto get started. Theeasiestw ayto generatem oreadvisorreferralsthan you can handleisfrom your currentcustom ers.Here’show you do it. Ihavefound thatoneofthem ostprofessionalw aysto gatherqualityreferralsisduring theinitialm eetingw ith oneofm ycustom ers.Asw earegoingovertheapplication, they m aynothaveallthenecessaryfinancialinform ation ortaxreturns.W hen thatsituation arises, Iusethefollow ingscript… “Inoticethatyourfinancialinform ation ism issing(oryourtaxreturnsarem issing).Let m ehelp you out.I’lljustgo ahead and giveyourCPA acallforyou, w ith yourperm ission.” M ycustom erstypicallyrespond atthispoint, “Thatw ould begreat.Iw ould really appreciatethat.” Now Iam callingtheirCPA forabusinessreason.Duringthatbusiness, Iraisetheidea ofchannelingotherreferralsm yw ay.I’lldiscusstheactualscriptsIusejustabitlater. Now , w hatiftheyalreadyhavetheirreturnsand alltheirfinancialinform ation? IfIam m eetingw ith acustom er, and InoticethataCPA hasprepared theirreturns, Ipay attention to thenam eoftheCPA and w herehis/herofficeislocated.(Isitgeographically desirable?) SinceI’vebeen buildingm ybusinessthisw ayalltheseyears, Ioften know theCPA.In thatcase, Iusethisopportunityto build even m orerapportw ith theclient. “Oh, you know so and so?H eorsheisaclientofm ine.” W hen IseeaCPA thatisin m ytargetarea, Iw aitforapointin theconversation w here thingsaregoingreallyw ell, and Isaythis… “Bythew ay, Ireceivethem ajorityofm yreferralsfrom CPAsand financialplanners.W ould you 02/2007
  5. 5. 6 THE ART OF REFERRALS Section Two: How to Find More Quality Referral Sources Than You Can Handle (cont.) m ind ifIcalled yourCPA?” “M ayIuseyournam e?” Thisisaveryeasy(buthighlyeffective) w ayto establish contactw ith CPAsand financialplanners. Ialso haveaquestionnairethatIcallpage5ofthe1003.Thisisaseparateform thatIfill outform yclients.Besureto ask forthenam esofeveryone:CPA, financialplanner, insuranceagent, hum an resourcem anagersand anyattorneyrelationships.Seeacopy ofthisform attheend ofthisreport. H o w to G et G r ea t R ef er r a l S o u r c es F r o m th e N ew sp a p er a nd O th er Media Thesecond m ajorw ayto generategreatCPA and financialplannersourcesisthrough the m edia.W hatdo Im ean bym edia?Yourlocalnew spapers, businessrags, local television show s, and thedirectm ailpiecesyou receiveathom efrom CPAs, attorneys, and financialplanners.I’vecoined theterm “countersolicitation”to referto m y approach w hen Icontactthem becausetheysolicited m efirst. H erearesom ehotopportunitiesthatshould catch yourattention asyou scan yourlocal paperand otherm ediasources: • Look forpressreleasesbyoneofyourtargeted advisors. • Look foran articlew ritten byone. • Look attheadsin thepapers.(Yes, Iw illcontactthem from an ad theyhaverun.) • Look foran articleon “finances”or“taxes”w herethereporterm entionsJoeSm ith, financial planner, asasource. W hydo Iem phasizew orkingw ith CPAsand financialplannersw ho aregettingm edia attention?PUBLICITY!You need toknow w ho isactivelym arketingthem selves. Typically, theprofessionalsw ho areaggressivelyprom otingthem selveshaveabetter clientelebase, w hich m eansyou w illbereceivingm orereferrals.You are, in averyreal sense, capitalizingon thefinancialassetstheyhaveinvested in.Theseadvisorsarealso m orelikelyto stayin thebusinesslong-term .Theyarem uch m orestableand an enduringsourceofreferrals.W hen you think aboutit, theyarepracticallyannuities. 02/2007
  6. 6. 7 THE ART OF REFERRALS Iusuallygo through thenew spaperand localbusinessragseverym orning, and identify thepeopleIw antasm yclients.Iliketo choosem yclients, becauseIpreferto do businessw ith peoplew ho areaction-takersand im plem enters. Think aboutthisforam om ent… bytappinginto thesesourcesthatarealreadyspendinga substantialam ountofm oneyprom otingthem selvesand theirpractice, you areessentially ableto tap into thousandsofdollarsofadvertisingon am onthlybasisw ithoutpayinga dim e.You areleveragingoffrelationshipsw ith theircustom ersthathavetaken them yearsto build.Considerhow longithastaken you to build thedatabaseofcustom ersthat you currentlypossessand you can reallyseethevalue. Bytappinginto thesesources, you aretappinginto yearsofw ork, good service, and thousandsofdollarsofm arketingand advertisingexpenditures.In addition, you are not payinga single penny to do it!Itisquiteliterallyahidden gold m ineofbusinessjust sittingthere, w aitingforyou to takeadvantageof. Theseprofessionalsarealso com m itted to theirbusinessesand arehereto stay.Onceyou arelocked into thisreferralsystem , you w illhavelucrative, w arm , and friendlyreferrals flow ingyourw ayforyearsto com e. 02/2007 Section Two: How to Find More Quality Referral Sources than You Can Handle (cont.)
  7. 7. 8 THE ART OF REFERRALS Now thatyou havelocated potentialCPA and financialplannerreferralsourcesto w ork w ith, you need to: Num ber One:Getthrough to them and… Num ber Tw o:M akeaGREAT firstim pression so you can begin theprocessof developingalong-term businessrelationship. CAUTION:Do notm ilk them forallthereferralsyou can possiblygetoutofthem in the veryfirstm eetingorconversation on thephone.Rem em ber… relationship buildingisa life-longprocess.You w illhaveam uch betterchancebytakingitslow duringtheinitial m eetingforbuildingalong-term referralsource. H aveyou everhad theopportunityto sitin am ajorportorharborand w atch them bring in thosem onstrous600-footoiltankersorcargo shipsfordocking?Thecablestheyuse to tiethesevesselsto thedock arem assive.Itisan im possibilityto throw oneofthese linesfrom theship to thedock.In fact, itisim possibleforahum an to even pick up one ofthesecables. So, hereisw hattheyhaveto do. First, theythrow athin ropethathasbeen w eighed dow n on theend, overthedock.Even achild could throw italongdistance.W hen thatropereachesthedock, alongshorem an beginsto pullthatthin ropeto shore.Do you know w hatistied to theend ofthatthin rope?A m uch thickerrope.Now , thethick ropeispulled to shore, and you probablycan guessw hatisattached to it… that’sright, them assivecablethatisused to pulltheship in. Keep thatim agein m ind duringyourinitialcontactw ith theseprofessionals.Goingfor everyreferraltheyhaveduringthefirstcallw ould bevirtuallyim possible.You could end up dam agingaviablelong-term referralsource. Thegoalduringtheinitialcontactistw o-fold: First, you m ustqualifythisindividual.Do you w antto investyourprecioustim e developingarelationship w ith thisprospect? Secondlyyou w anthim /herto seeyou asan honest, extraordinarilyknow ledgeable, and 02/2007 Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s
  8. 8. 9 THE ART OF REFERRALS Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s ( c o n t . ) totallycredibletrusted advisorloan officer. W ith thatsaid, letm efirstgo into theexactstepsand scriptsto usew hen you arefirst m akingcontactw ith afinancialprofessional. Beforeyou m akethefirstm eeting, Ihighlyrecom m end doingsom equick research on so you haveabasicunderstandingofhow thisprofessionalpresents them selvesto theircustom ers.Besureto usethe“LINK’SSearch”beforeevery m eeting—review chapternineforsom eadvanced Googlesearch tips. Now let’sstartw ith areferralyou havereceived from oneofyourow n custom ers.The bestw ayto approach areferralisto m ention thereferringparties’nam efirst, beforeyou m ention yourow n nam e.H ereisan exam ple: “H ello, Joe.SuzyFundingsuggested thatIgiveyou acall.Iunderstand you prepareher taxreturns?” “Yes, Ido.” “M ynam eisDaveSavagew ith XYZ M ortgage, and Iam currentlyin theprocessof processingam ortgageforher(orjustclosed aloan forher).”Ithen letthem know thatIspecializein w orkingw ith CPAsand financialplannersbysaying, “Do you everhaveclientsw ho haveaneed forrealestatefinancing?” “Sure.” “Do yourclientseverask you aboutrealestatefinancing?” “Yes.” “Great.Iw illsend you aletterintroducingm yselfand thekindsofservicesIprovideto m ycli- ents, alongw ith afew testim onialsfrom pastclients.Then, Iw illgiveyou afollow -up calland schedulean appointm entw ith you.”Thisisakeyfirststep becauseIw antto createsom ecredi- bilityand differentiation beforew econtinuetalking.M ostloan officersw illskip thisstep and justgo fortheclose, notto m ention theyw illnothaveacredibilitybuildingpackagelikem ine. 02/2007
  9. 9. 1 0 THE ART OF REFERRALS Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s ( c o n t . ) I’d especiallyliketo pointouttheim portanceofsendingtheadvisorsom e actualexam plesoftheanalysisand adviceyou provideto yourclients.If you areaM ortgageCoach M arketingM achineuser, send them som e sam plereportsand analysesyou created usingit.Theseexam plesofthe professionalserviceyou providew illm akeahugeim pression on theadvi- sorand causethem to seeyou astheprofessionalcolleagueyou are. Thenexttim eIcallthem up, Iw illschedulean appointm ent.Afterthe openingpleasantries, Iusesom eform ofthefollow ingscript… “W ell, I’d liketo schedulean appointm entw ith you so thatIcan explain to you how m y adviceisdifferentthan thatoftypicalloan officersand lenders.W ould Thursdayat 8:00am w ork foryou?” Thatisthebestw ayto getthefirstappointm ent. Ifyou arecallingfrom an article, advertisem ent, orotherm ailingpiecethatyou have seen, theonlychangesareyouropeningrem arks.It’sverysim ple.You justneed to m ention thepiece, and theyaregoingto takeyourcall. “Inoticed thearticleyou w erequoted in on Tuesday.Thereason form ycallisI specializein w orkingw ith CPAsand financialplanners.Iw ould liketo schedulean appointm entw ith you to show you how m yadviceisdifferentthan thatoftypicalloan officersand lenders.W ould Thursdayat8:00 am begood foryou?” Afterthat, theprocessisidenticalto how you w ould w ork w ith an advisorthatw as referred to you from acustom er. W hatifheisalreadyw orkingw ith am ortgagebroker? “IhaveaguyIhavealreadybeen referringbusinessto.” “IfIsend you m ybusinesscards, w ould you havea problem offeringyourclientsa choice?” “Yes/No.” 02/2007 Examples of reports and analyses created u si ng th e M ortg ag e C oach M ark eti ng M ach i ne
  10. 10. 1 1 THE ART OF REFERRALS Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s ( c o n t . ) “W ell, itsoundslikehehasbeen doingan adequatejob foryou.”Suggestion:Iw ould liketo sharew ith you som ecriticalinform ation thatm akesm edifferentfrom otherloan officers.M yadvicem akesalife-changingdifferenceforyourclientsbecause: “W hatreallym akesm edifferentisthatIhaveaveryuniqueapproach—m ostloan officersjust quoteratesand fees… Ido w hatiscalled aTotalCostAnalysisto help them m akean inform ed decision.I’m com m itted to providingyourclientsw ith advicethatm akesadifferenceforthem . W hatIw ould liketo do issitdow n w ith you, sinceIgetm ostofm ybusinessfrom CPAsand financialplanners, (Letthem know thatyou dealalm ostexclusivelyw ith CPAs) and explain the advisorysoftw arethatIuseand show you how AD VICE m akesadifference.TheadvicethatI provideyourclientshelp them m akebetterdecisions.W ould thatm akeanysenseforyou?Do you haveanyinterestin that?” Theansw erisalm ostalw ays, “Yes.” “Let’sdo this.Itshould onlytakeabout30m inutesto go overthereportand analysis thatIusethathasbeen verysuccessfulassistingotherCPAsto provideadvicethat generatesm orereferrals.” Now , ifI sense that this guy isn’t goingto be a great source ofreferrals, I m ay not w ant to take tim e out ofm y schedule to personally m eet w ith him . In that case, I use this alternative w rap-up. I’m goingto send you aletterofintroduction, businesscards, afew sam plereports(e.g.Rate- W atch, TotalCost, EquityRepositioningAnalysis), and acoupleoflettersofrecom m endation from pastclients. Then Isend him theInfoFAX on a regularschedule, butw on’tcom m itm ytim efora personalvisitw ith him .InfoFAX isanew sletterthatfocuseson educatingprofessionalsabout interestingratesand theeconom icfactorsinfluencingthem .Given today’sm arket, Ihighlyrec- om m end BarryH abib’sM ortgageM arketGuide(w w w .m ortgagem ) to provide you w ith thecontentforthisstrategy. Letm epointouttoyou how strongthism akesyourposturew hen approachingadvisors and w hen battlingw ith com petingbrokersforreferrals. 02/2007
  11. 11. forFREEsamplesandmoreinformation. average Startusingourcompetition-crushingnewpersonalmarketingproposals, brochures&presentationsTODAY. ByusingTheMortgageCoachyouactuallychangethegameonyourByusingTheMortgageCoachyouactuallychangethegameonyour competitors.TheMortgageCoachPLUSMarketingMachineinstantlysets youapartfrom“lowball”competitorsandestablishesyouastheexpertinthe eyesofprospectsandreferralpartners.Itdoesthisbycombiningthe insightfulanalysisoftheMortgageCoach7.0intopowerful,brand-building packagesoftheMarketingMachine—Injustseconds. TheimpactisimmediaTheimpactisimmediate...Yourprofessionalstatureisheadand shouldersoverlowratecompetitors.YouwillbecomeaREFERRAL MAGNETwithyourreferralpartnersandyouwillhaveanUNFAIR ADVANTAGEwithprospects.Yourclientswillthinkyouspenthours customizingandpreparingyourrecommendationswhenitactuallyonlytakes minutes. Upgradeyourproposals,brochures&presentationstoday. Now,standapartfrom competitors instantlywithMortgageCoach. Superstar
  12. 12. 1 3 THE ART OF REFERRALS Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s ( c o n t . ) H ere are three sim ple strategiesthat m ake m e different from the com petition: 1. Thefactthatm yadvicem akesalife-changingdifferenceto yourclients. 2. UsingtheM arketingM achine, Iam goingto continueto providethem w ith am onthly RateW atch reportto m akesuretheyhavethebestloan todayand form anyyearsto com e. 3. Everytw o w eeks, Iw illbeeitherfaxingore-m ailingm yInfoFAX usingM ortgageM arket Guide’scontent. 02/2007
  13. 13. 1 4 THE ART OF REFERRALS Se c t i o n F o u r : H o w t o Cr e a t e I n s t a n t Cr e d i b i l i t y W h e n M e e t i n g W i t h a CP A o r F i n a n c i a l P l a n n e r In thissection, Iw antto teach you how to conductyourfirstface-to-facepresentation w ith CPAsand FinancialPlanners.Theprim arygoalisto establish credibilityasa professionaland develop astrongrapport. First, Iuserelevantquestionsto takecontrol.Ialso establish credibilityasaknow ledgeable professionalthrough thequestionsIchooseto ask, and byvisuallyshow ingthem sam plesof theadvanced reportsin theM ortgageCoach and theM ortgageM achineservicedeliveryvehi- cle.Iusuallystartw ith theRateW atch reportbecauseeveryoneisim pressed w ith theunique valueitrepresents.Itdem onstratestwo pow erfulm essages:First, itim m ediatelydem onstrates thatIhaveadviceand toolstheyhaven’tseen from otherlenders.Secondly, itshow sthem m y com m itm entto m yclientsafterthesaleto ensurem yclientsalw ayshavethebestloan avail- ablein them arket.Thisreportestablishestrustand credibilitythatgivesyou an im m ediate com petitive advantage. Itisim portantthatyou continueto build instantcredibilityforyourself. Afteryou establish rapport, usequestionsthatshow you havean understandingofhis/her business.Ask them personalquestionsaboutthelasttim etheyfinanced ahom e.Iask them contrastquestions, such as: “Did thelastloan officeryou w orked w ith do an analysissuch asaTotalCostAnalysis?” Then drilldow n on thevalueofdebtreduction and assetaccum ulation.“Doesyour lenderorloan officertrack yourm ortgageon an on goingbasis, show ingyou how 02/2007
  14. 14. 1 5 THE ART OF REFERRALS Se c t i o n F o u r : H o w t o Cr e a t e I n s t a n t Cr e d i b i l i t y W h e n M e e t i n g W i t h a CP A o r F i n a n c i a l P l a n n e r ( c o n t . ) today’sloan program sand interestratescom pareto yourcurrentm ortgage?”(Seesam pleTotal CostAnalysis>> Seesam pleRateW atch Report>>) Rem em ber—in m ysitua- tion, Iearn m ostofm ybusi- nessfrom CPAsand finan- cialplanners.Becauseof this, itiscriticalthatIdem - onstratethatIhaveknow l- edgeoftheir business. IusequestionsIhavedevel- oped to dem onstrateaba- sicunderstandingofhis/her business.Iw illgiveyou a sam pledialogoftheinter- view processIgo through. You w illnoticethatIam also qualifyingthem to seeiftheym eetm ycriteriaassom eoneIw antto spend m ytim eon. Idon’thaveaspecificscriptthatIgo through everysingletim e.ThegoalthatIw antto accom - plish istw o fold.Firstisto m akethisperson like, trust, and respectm e.Second is to com pletelyqualifythisindividual. Theobjectiveisnot to seehow m anyreferralsIcan m ilk outofhim /herin asingle m eeting.M ygoalisto establish the beginning ofa long-term relationship.People likeit, and areim pressed w hen you m akeitapointto know alotaboutthem and their businessorindustry.H erearesom equestionsIstartoffw ith to gethim /herto open up to starttellingm eabouttheirbusiness, and establish m yprofessionalcredibility: • H ow m anyCPAsarein thisoffice? • H ow m anypartnersdo you have? • H ow longhaveyou been in business? • Isyourem phasism oreon gettingindividualorbusinessclients? • H ow m anytaxreturnsdo you prepareayear? 02/2007 T h e reports from T h e M ortg ag e C oach —a cru ci al k ey to referral su ccess.
  15. 15. 1 6 THE ART OF REFERRALS Se c t i o n F o u r : H o w t o Cr e a t e I n s t a n t Cr e d i b i l i t y W h e n M e e t i n g W i t h a CP A o r F i n a n c i a l P l a n n e r ( c o n t . ) • W hatisyourm ix betw een corporateclientsversesindividuals? • Geographically, w heredo yourclientscom efrom ? • H ow do you m arket?(Som eCPAsfrom theold schooldo notliketo m arket.) • H ow aggressivelyareyou lookingto expand? • Areyou lookingto expand yourpracticeorareyou happyw ith yourcurrentflow ofbusi- ness? • H aveyou referred businessto otherlendersin thepast? • H aveyou seen thetypesofreportsand analysisthatIhaveshow n you today? • Doesyou currentlendersend you aRateW atch report? You should not ask allofthese questions in one sitting. You are not w ritinga book, you are sim ply tryingto find a little about this advisor’s business and w arm him /her up a bit. It is very im portant that you ask these questions in a casualm anner and be yourself. Atthispoint, Iam in controland Ihavepeaked theirinterest.Iw entfrom beingsom eguy offthestreetlookingforareferral, to beingan interestingtrusted advisor. W a tc h O u t f o r T h ese C r edib il ity L a nd Mines Duringthisinterview , therearetwo seriouscredibilityland m inesthatcan blow both yourprofessionalism , and anychanceofeverseeingareferraloutofthew ater. Thefirstland m ineisactinglikeyou need thebusiness.Desperation islikebad cologne… you can sm ellit!Rem em ber, earlierIadm onished you to throw aw aythe “littlepuppyhopingforacrum b to falloffthetablem indset”and takeon the“Trusted AdvisorsEdge”m indset.Nobodylikesdoingbusinessw ith som eonew ho seem s desperate.Buttheyw illstand in lineto do businessw ith som eonetheyrespectw ho’sin dem and. Thesecond land m ineisforgettingyou arethereto providethem w ith valuable know ledgeand advice.Rem em ber, you arethereto help them .You arenotthereto ask them forbusinessorhelp.You arethereto providethem w ith life-changingadviceand inform ation.You aretherew ith theattitudeof“Ifyou don’tdo businessw ith m eyou are m akingam istake.”You aretherew ith totalconfidencein w hatyou haveto provide. You’renotthereto sellthem som ething.You areshow ingthem “Iam hereto m akean im pactand thisisofno costto you.”Thatistheattitudeyou should carry.Nothaving thetrusted advisor’sedgeisyourbiggestland m ine.Byvisuallyshow ingthereports 02/2007
  16. 16. 1 7 THE ART OF REFERRALS Se c t i o n F o u r : H o w t o Cr e a t e I n s t a n t Cr e d i b i l i t y W h e n M e e t i n g W i t h a CP A o r F i n a n c i a l P l a n n e r ( c o n t . ) generated bytheM ortgageCoach, you w illclearlyseparateyourselffrom anyloan officerhehasm etin thepast. Thebeginningofm yadvisorcom m unication program startsw hen Ifirstm eetw ith them . But, Iam carefulnotto ask forreferralseverysingletim eIcall.Im ayonlyask every othertim e.Iusetheothercontactsto givethem updateson them arketorothervaluable inform ation. Ialso add them to m yInfoFAX listand begin to faxa new slettereverytw o w eeks—again, using BarryH abib’sM ortgageM arketGuide’se-m ailnew sletters. In addition, Idon’tlim itm yselfbym erelyaskingforloan referrals.TheseCPAsand financialplannerscan begreatsourcesofleadsto otherCPAsand attorneys, etc.H ereisa sim - plew ayto ask.Let’sassum eyou justasked foraloan referraland theydidn’thave oneforyou. “Idon’thaveanybodyrightnow .” “That’s ok. W ho do you know that is a financialplanner or perhaps another CPA in your office?W ho is your m ost successfulfriend in the business?Do you m ind ifI use your nam e?” You w illsoon havem oreCPAsand financialplannersthan you can possiblyfollow up w ith usingthissystem .So, itisgoingto bevitalthatyou develop asystem aticw ayto Follow up and capitalizeon thesevaluablereferralsources.Thisisw hyIthink itis im portantform eto teach you thissystem forkeepingtrack ofallyouradvisors, determ iningw hich onesyou should spend yourtim eand attention into cultivating. You m ust train and condition your advisors on how to refer business back to you. Atthe beginning, m anyoftheseadvisorsthatyou contactw illnothavebeen trained on how to keep alook out.Itw illtakean attentiveear(on theadvisor’spart), trained to listen for thosecuesand cluesthatareopportunitiesto send you businessin addition to giving value-added serviceto theirclients. 02/2007
  17. 17. 1 8 THE ART OF REFERRALS Se c t i o n F i v e : B u i l d i n g a n d M a i n t a i n i n g Y o u r CP A a n d F i n a n c i a l P l a n n e r D a t a b a s e Thissection istheheartand soulofm ysystem . W hiletheprinciplesareeasyenough to apply, you need to keep thisfactin m ind:ifyou do notcontinuouslyand professionallyfollow up and keep in touch w ith theCPAsand financialplanners, allthew ork you havedoneup untilnow w illhavebeen atotalw aste oftim e. Theenginethatkeepsm yreferralm achinegoingyearafteryearisthefollow -up system Ihavedeveloped thatkeepsm ein constantcontactw ith m yadvisors.Ifyou arenot usingacontactm anagem entsoftw areprogram to m aintain yourdatabase, you need to investin one.Ihaveputm yentiresystem on com puter, so allIhaveto do ispush a button and theletterorfaxison thew ay.In fact, theprogram even rem indsm ew hen to send w hich docum ent. Iknow thatyou haveheard aboutthe80/20rule. You w antto spend 80% ofyourtim eand energyon thetop 20% ofyouradvisors.Ihave developed asystem thateasilyallowsyou to focusyourtim eand energyon thesevery valuablerelationships.H ereishow Iclassifyand keep track ofallm yadvisorsand advisors-to- be. Advisor/Suspect: Anykind ofCPA and financialplannerthathasbeen given to m easa referralor, Ihaveseen alotofm ediaattention given to.TheactionsItakeare: 1. A qualifyingphonecall; 2. Sendingan introduction letter, clienttestim onials, and printed exam plesofm yservices, includingRateW atch, acreditreport, and an equityreview ; 3. Iftheadvisorseesprom ising, Im aytakean appointm ent. Advisor/Prospect—Ihad 399 prospectsin thissegm ent: AnyoneIhavetalked to w ho hasm etm ycriteriaand qualifies.Ipersonallyw illtakeaCPA, forexam ple, w ho hasat least100clients.(Thesenum bersvaryforfinancialplanners.You w illhaveto develop yourow n criteriaforeach categoryofadvisor.) H erearem yaction steps: 1. Atleastfourcallsperyear; 2. Sixm ailpiecesayear; 3. Follow -up letters; 4. Send sam plesofRateW atch, acreditreport, and an equityreview . 02/2007
  18. 18. 1 9 THE ART OF REFERRALS Section Fiv e: B uilding and Maintaining Your CP A and Financial P lanner D atab ase (cont.) Advisor/Silver—Ihad 161 clientsin thissegm ent: Thesepeoplehave identified them selvesbytellingm ethattheyw illdefinitelyreferm ebusinessand theyhaveatleast 200clients.H erearetheaction steps: 1. Atleastfourcallsayear; 2. Sixm ailpiecesayear; 3. Follow -up letters; 4. Thank-you cards; 5. InfoFAX—fax/e-m ail; 6. Send sam plesofRateW atch, acreditreport, and an equityreview . Advisor/G old—Ihad 118 clientsin thissegm ent: Thesearethetop 30% ofm y advisors.Theyhavereferred businessm yw ayand Ihaveestablished a strong relationship w ith them .Thesearetheaction steps: 1. Sixorm orecallsayear; 2. Printed exam plesofm yservices; 3. Sixm ailpieces; 4. InfoFAX—fax/e-m ail; 5. Send sam plesofRateW atch, acreditreport, and an equityreview ; 6. Thank-you cards; 7. Follow up letters. Advisor/Partners—Ihad 115 clientsin thissegm ent: Thesearem y best20to 30clients orthebest15% .Thisism ysalesforce.Theyareconstantlycallingm ew ith referrals.I do alotofspecialthingsfortheseadvisors.You w illrealizethatbylooking attheaction stepsthatItaketo m aintain therelationship. 1. Sixorm orecallsayear; 2. Printed exam plesofm yservices; 3. Sixm ailpieces; 4. Invitetolunch and/ordinnerannually; 02/2007 Sample RateWatch Report Sample E q u i ty Repos i ti on i n g A n aly s i s
  19. 19. 20 THE ART OF REFERRALS Section Fiv e: B uilding and Maintaining Your CP A and Financial P lanner D atab ase (cont.) 5. InfoFAX—fax/e-m ail; 6. Send sam plesofRateW atch, acreditreport, and an equityreview ; 7. Send Christm ascard; 8. Thank-you cards; 9. Send birthdaycards. Note:IusetheM ortgageCoach M arketingM achineto cre- atetheprinted exam plesofRateW atch, creditreports, and equityreview s. Iseem yselfasasourceoftrusted know ledgeand advice.IfI haveidentified and established contactw ith aCPA orfinan- cialplannerthathastheabilityto referbusinessto m e, I need to send him m yInfoFAX, interest-rateupdates, and, callup occasionally.Ifheseessom ethingcom eoverthefax from m eeverym onth orso, and heseesthingscom eacrosshisdesk from m ein them ailevery otherm onth, itw on’tbelongbeforeheisreferringbusiness. Itryto keep contactgoingfor3to 6m onths, and then iftheadvisorneverreturnsm y callsorsendsm eanyreferrals, Iw illreducehispriority.Therearejusttoo m anyfish in theseato keep w astingm ytim eon som eonew ho doesn’tw antto referbusinessto m e. H ow ever, don’tforgettheim portanceofpatience.Som eofm yverybestreferral generatorstook alongtim eto harvest. Thissystem w orksw ellform ovingpeoplethrough aseriesofstagesthatgradually increasetheirloyaltyto you and helpsm axim izehow you investyourtim e. Thisisthesystem and approach thathelped m eclose252loansand generated over $962,500 in annualcom m ission—w ithout talking to realtors.W hileIdo notexpect you to takethisto theextrem ethatIhave, Iw ould likeyou to fullyrealizethatyou can develop anew sourceofreferralsthisw ayand dram aticallyexpand yourpresentincom e. 02/2007 C reate referral-g enerati ng pri nted reports and rev i ew s u si ng th e M ark eti ng M ach i ne.
  20. 20. 21 THE ART OF REFERRALS Section Six : How to Cap ture A uthoritativ e E ndorsem ents That A llow You to L ev erag e a Sing le Referral I nto D oz ens In thefinalsection ofthisreport, Iam goingto revealoneofm ym ostrecentand pow erfulde- velopm entsin gettingfloodsofreferralscallingm e.Ifbuildingand m aintainingyourCPA and FinancialPlannerdatabaseistheheartand soulofm ysystem , then capturingauthoritative endorsem entsarethebrain.W hy?It’sthesm artw ayto turn asinglereferralinto dozens. Severalm onthsago, am arketingconsultantsaid to m e, “Yourreferralsystem isgreat, butyou arem issingtherealleverageofw hatyou aresittingon.Ibetthatifyou actually had theseCPAsand financialplannersm ailoutaverystrongendorsem entletterdisguised as an im portantfinancialupdate, you could turn thosepassivereferralstream s into runningriversofreferralgold w ithin days.”(Yes, hereallydoestalk likethat.) I thoughtaboutw hathesaid and figured itw asatleastw orth atry.OnceIw asableto get thefirsttestoutin them ail, Iw asstunned. W ithin hoursofthatletterhittingpeople’sdesksin them orning, Iw asgettingcalls. Actually, ten callsthefirstday!Ihadn’teven m ailed thatm any(about400).Som eof thecallsarepeoplew ho w erepresentlyrefinancing, and othersw erepeoplejustseeingif theygotagood dealw hen theyrecentlyrefinanced, butatleast20% ofthose callsarelaydow n, highlyqualified clients. Yahoo!Yahoo!Yahoo! W hatisthepointto thislittlestory? Ifyou presentlyhaveeven acasualrelationship w ith CPAsorfinancialplanners, you could generatedozensofnew loansw ithin daysofm ailingthisletter.In fact, thisletter w ould w ork forastrongrealestateagent’scustom erbaseifyou w anted to trythatout. Ifyou havenotyetbeen convinced thatyou need to add anotherpillarto yourbusiness bydevelopingrelationshipsw ith advisors, thislittleletterand m arketingconceptshould graphicallyshow you thenum berofdealsthatarejustslippingaw aythough yourfingers. Thissection should serveasaw akeup callto thatpartofyourbrain thatw antsto m ake m orecash in ahurry, w ithouthavingto w ork reallyhard to getit.Thisisalm ostbetter than theDom ino’spizzaslogan “H otpizzadelivered to yourdoorstep in 30m inutesor less”. 02/2007
  21. 21. 22 THE ART OF REFERRALS Section Six : How to Cap ture A uthoritativ e E ndorsem ents That A llow You to L ev erag e a Sing le Referral I nto D oz ens (cont.) Thisslogan could be“H ot, qualified referralsdelivered to yourdoorstep… ” Anyw ay, Ithink you getthepointIam tryingto m ake.Let’sgettotheexactstepsyou need to taketo m akethisdream areality. Tw o ofthem ostim portantthingsIhavefound in getting the endorsem entsare: • One: Finding a selfish intereston theirpart.A m otivation forthem to do thisletter.You have gotto find outw hatm akesthem tick and go, “YEAH !Iw antit.Let’sdo itnow .”G etthem inter- ested, getthem to say, “Yes, thatisa greatidea and Ican seehow thatw ould benefitm ybusi- ness.”Keep sending differentinform ation overto them , discussing w hythisalliancem akes sense.You havegotto tieitto how itisgoing to m ake m orebusinessforthem . • Tw o: M akeitsim ple.O fferto take careofallthefolding and labeling, offerto com eoverand dow nload theinform ation rightonto yourcom puter.O fferto w ork w ith theiradm inistrative assistant.Justm akeitaspainlessand hassle-freeaspossibleforthem . D o notgetthese tw o turned around.W hen Ifirststarted, Iw ould sayhow easyIw as going to m akethisforthem and theykeptforgetting to send itoutin theirnew sletteror m onthlym ailing.Theyw ould saytheydid nothavethe tim eorhad justforgotten. AfterIlearned to convincethem that“thisw illm akeyourtelephonering, thisw ill generateleadsforyou,”they forgotthatIhad even m entioned Iw asgoing to take careof thecost.Iw ould actuallyhaveto rem ind them ofthat. Anotherm istake w asthatIjustcharged in there.Ididn’task enough questions.Iw entin w ith a presentation, “H ere’sa hotstrategyand letter.Itcan m akeyourphonering.Itis going to generateleads.Itistim elyinform ation foryourclientsthatIknow you w illw ant to givethem .”Idid notsetitup properly—theyneed to believethatthisw asin theirow n bestinterest. H ereisaveryeffectiveand proven w ayto getthisendorsem entlettersentoutquickly. “Do you send outnew spiecesto yourclientsabouttaxesand interestrates, etc.?Great. W hatisthepurposeforyou doingthat?” “Iw antto providem yclientw ith inform ation and keep m ynam ein frontofthem .” 02/2007
  22. 22. 23 THE ART OF REFERRALS Section Six : How to Cap ture A uthoritativ e E ndorsem ents That A llow You to L ev erag e a Sing le Referral I nto D oz ens (cont.) “That’sgreat.So, them orew ecan keep yournam ein frontoftheclients, thebetter?” “Absolutely.Ialw aysliketo do that.” “W hydon’tyou do itm oreoften?” “Idon’thave thetim e.”O r“Itcostsm oney.” “And do you likeitw hen yourclientscallyou aboutthe thingsthatyou send outto them ?” “O fcourse.” “D o you likeitbecausethatisan opportunityto getm orereferrals?” “Yes.” “H ereisw hatI’d liketo do, sinceitism utuallybeneficialto both ofus.Thisis som ething thatcan benefitm e, asw ellasyou.Sinceyou areputting up thedatabaseand w earesending thisletteroutto yourclients, Iw illpick up thecostand w illfold, stack, stuffand send outallthem ailers.” Thebestw ay to handlethisisto say, “I’llcom ein and dow nload yourinform ation into m ylaptop.”Then, handleeverything yourself. Anything you can do to make it simple for them. Say, “Let’sscheduletw o hourson Saturdayafternoon.”O r“Let’sscheduletw o hourson such and such.Iw illsitdow n w ith yourassistant, and I’lldo w hatever needsto bedone to help you getthisjob done.” Thatisthebestw ayto do it. Thebottom lineisto havethem m otivated to w hytheyw antto do it, w hyitm akessense to them , and w hyitw illbenefittheirbusiness.Then, you haveto go in and m akeiteasy. Takeasm uch controloftheprocessaspossible, becauseitw illshorten thetim elineon getting those m oneym aking endorsem entsoutthedoor. 02/2007
  23. 23. 24 THE ART OF REFERRALS Section Six : How to Cap ture A uthoritativ e E ndorsem ents That A llow You to L ev erag e a Sing le Referral I nto D oz ens (cont.) Thisisim portant:W hen thesepeoplestartcalling you up and thingsaregoing w ell, do notforgetto startasking forreferrals.Yourprofitsaregoing to grow geom etricallybydoing this. Alw aysask forthereferral! 02/2007
  24. 24. 25 THE ART OF REFERRALS Section Sev en: The A rt of Referrals—A Rev olutionary W ay of D oing B usiness In thisreport, I’vetold you how to takechargeofyourreferral-creation process.First, Itold you aboutthem illion dollar“Trusted Advisor’sEdge”m indsetyou need to have.Thism indset com esfrom havingaprofessional“I’m hereto do businessand you need theserviceIdeliver” attitude.W hen you believethatyouradvicecan actuallym akealife-changingdifferenceand you possesstheknowledgeand insightfinancialadvisorsneed to im provethelivesoftheircli- entsand them selves, theyw illrealizethatyou areaprofessionalthattheycannotafford to do businessw ithout. In thesecond section, Ishow ed you how to find m orequalityreferralsourcesthan you can han- dle.Thew ayisto establish relationshipsw ith financialadvisors.Thebestw ayto do thisisby goingthrough yourow n currentclients.You can eitherask them w ho theirfinancialadvisors areorglean theiradvisor’sinform ation directlyfrom yourclients’financialdocum ents.Another greatw ayto locatefinancialadvisorsisto find them in new spapersand otherm edia.A diligent efforton thesetw o frontsw illyield m orereferralsthan you can handle! Third, Ioutlined am ethod ofcontactingand settingup appointm entsw ith advisors.Asw ith anythingw orthw hile, contactingand m eetingw ith advisorsneedsto bedoneright.Itherefore brokethism ethod into tw o basicsteps.Thefirstisto getthrough to theadvisorsso thatyou can establish thefoundationsofafuturerelationship.Thesecond isto m akeagreat firstim - pression so you can begin theprocessofdevelopingalong-term businessrelationship. Asexcitingasgettingleadsto financialadvisorscan be, don’tjustchargeoutofthegate!Iw rote Section Fourto help you build yourrelationshipsw ith advisorsbygraduallyestablishingcredi- bilityand rapport.AsaM ortgagePlanner, yourinitialgoalisnotto m ilk an advisorforallthe referralshecan giveyou.Rather, itisto establish along-term relationship thatw illafford both you and him professionalsuccessand advancem entthroughouttheyears.Oncetherelation- ship isfirm lyfooted in professionalrapport, personaltrust, and m utualbenefit, thesky’sthe lim it.Justw atch outforcredibilityland-m inesalongthew ay! In thefifth section, Irevealed the“heartand soul”ofm y referralsystem :buildingand m aintain- ingyourCPA and FinancialPlannerdatabase.Allthew ork you’vedoneup untilnow requires m aintenance.You need to continuouslyand professionallyfollow up and keep in touch w ith youradvisors.H ow do you do this?Sim plyusem ytried and truefollow -up system to focusthe appropriateam ountofattention on each advisor.In general, thisinvolvescategorizingyour 02/2007
  25. 25. 26 THE ART OF REFERRALS Section Sev en: The A rt of Referrals—A Rev olutionary W ay of D oing B usiness (cont.) contactsand then expendingthebulk ofyourefforton them ostproductiveofyourcontacts, w hilestillm aintainingappropriatecontactw ith therestofyourcontactsaccordingto m ycare- fullydevised contactand m ailingplan.Byusingthisplan, you can nurtureyouradvisorsso that theybecom esteadystream sofreferralw ealth! Finally, Italked abouthow to captureauthoritativeendorsem entsthatallow you to leveragea singlereferralinto dozens.Ido thisbyusingasim ple, enterprisingletterand m arketingcam - paign in closecooperation w ith thefinancialadvisorsw ho arem ostsuccessfuland w ith w hom you havetheclosestrelationship.Thisapproach w ill, in thew ordsofoneofm ym arketingcon- sultantfriends, “turn thosepassivereferralstream sinto runningriversofreferralgold w ithin days”! Now you know theArtofReferrals.You havebeforeyou aslam -dunk m ethod ofgoingfrom beingatypicalloan officerw ho isbankingon futurenew custom ersto beingatrusted advisor w ho hasasteady, predictable, and m ultiplyingreferral-driven business.Thisrevolutionaryw ay ofdoingbusinesshasw orked form eand thousandsofsuccessfulM ortgagePlanners.And it w illw ork foryou too.Allthatisleftisforyou to do it.W elcom eto thew onderfulw orld ofrefer- ral-driven business! 02/2007 For more information on my ideas and insights, subscribe to my blog, Savage Insights, at w w w . savageinsights. com. For more information on T he M ortgage C oach and T he M ortgage C oach M ark eting M achine, p lease visit w w w . mortgagecoach. com or call 1 -8 0 0 -9 5 1 -2 6 9 6 .