Sales 101 tells us many important basics, which we have discussed here before such as... Using the person's name often Smiling, Dressing appropriately, Looking people in the Eye, Never talking poorly about your competition, etc., etc. Another essential basic of sales is to always make a plan for the next appointment or contact prior to the end of the meeting. You will never have a better opportunity to schedule another get together than when you are already with someone and have their attention!
QUOTE OF THE DAY
“Experience is by industry achieved, and perfected by the swift course of time.”
As any student of literature knows, English was a very different language back in the days of Bill Shakespeare. While the English isn't too wacky in this quote, it definitely needs a little 21st century revision. I think the modern day interpretation would be something like...
“Experience is achieved through industry specialization and dedication. However, there is no substitute for the experience which can be gained by putting in your time.”
PLAYING OFFICE
Getting the phone to ring for you is ultimately the key to being a good Loan Officer. Unfortunately right now the phone is not ringing enough for most of us due to a shrinking market and we are all faced with a choice. In sports, it is always important for a team to control its own destiny rather than replying on other teams to lose. This also applies to life and career. You can choose to do what you have been doing, like playing office or making love to your computer. However, that will not get your phone to ring. This can lead to a slump in your career and even you sanity. Fortunately, you can choose to control your own destiny and make something happen. So if you are happy with your current production you can just keep doing what you have done before and hope your production gets better with the market, or you can just keep doing what you have done before and hope your production gets better with the market, or you make some calls, see some people, meet some new ones, challenge yourself, enjoy working while having fun, take some chances, and reenergize your career and feel better about yourself. The opportunities and rewards are endless.
TARGET NEW REFERRAL SOURCES
The key word here is target. Most targets have a bull's eye and to hit that bull's eye takes preparation and skill. So choose your target's wisely. Your best bet is to ask your current referral sources for an introduction to their colleagues whom you may be able to help. Also, check your local paper and the internet to find targets and educate yourself about them a little before making contact. Most importantly, keep in mind the numbers. If you contact ten new referral sources you can expect some rejection and some success. However, the success usually won't happen until at least your fifth contact with that person which is long after most people have given up. The thing that makes this discipline difficult for most people is the fear of rejection. Get over it! First of all, as a salesperson some rejection is inevitable. If you don't strike out at least a few times it is because you did not get up to bat enough times. Also, keep in mind that person is not rejecting you; they are rejecting those before you, since they don't even know you!
TOP SIX LIST
If a Loan Officer wants to make a positive impression upon their co-workers and customers, these six characteristics, in nor particular order, seem to be the key...
- Honesty and being up front with customers.
- Turning in a complete loan application.
- Positive attitude and enthusiasm.
- Respect and praise for co-workers.
- Willingness to help others.
- Kindness and understanding
Conversely, if you are trying to alienate others, this is the list. If any of these characteristics describe your behavior, maybe a little change is in order...
- Yelling and visible anger/tantrums
- Not being available to help handle issues.
- Criticizing and blaming others.
- Turning in incomplete and inaccurate loan applications.
HANG UP LAST
One of the least pleasant sounds for the most humans is the sound of a phone hanging up in their ear. Chances are, at some point, you too have been at least mildly put off by the crash of a phone hanging up in your ear. Many people will even choose another service provider based on perceived rude behavior whether consciously or subconsciously. To avoid this little sales faux pas, try counting off just a few seconds before you ever hang up the phone. The few extra seconds will be well spent!
TRACK YOUR REFERRAL SOURCES
One of the most valuable tools you need in your arsenal is a method of tracking where your business comes from and how profitable the business is from each source. In order to effectively allocate time and resources to referral sources, you must know what sources are responsible for your success. Take half an hour soon and set up a simple spreadsheet. Go back through the past 12-24 months and make not of how many transactions resulted from each source. Be sure and break down all sources individually rather than by office. Also, be sure to have separate categories for past clients, friend and affinity groups. You will probably find some results that are not only helpful but very surprising!
RETURN PHONE CALLS EVEN QUICKER NOW
Returning phone calls in a prompt fashion is a must for all Loan Officers. In fact, the lack of promptly returned phone calls is the number one complaint Realtors have about Loan Officers. These days a quick response is even more important for two additional reasons...
Number one; your builder and Realtor customers are being hounded by the competition more than ever, so you musty stay sharp with them or someone else may move in.
Secondly, whenever a borrower calls now and leaves you a message, there is a chance that they will also call someones else as well. Unlike a few months ago, the other Loan Officer they call probably will not take a week to call them back. The first person that borrower talks to usually has the upper hand on the competition and if you return your calls as quickly as possible you will put yourself in a better position.
MAKE QUALITY OVER QUANTITY YOUR PRIORITY ON SALES CALLS
Which is better?
Loan Officer A: spends a morning making sales calls to Realtors and builders who have come to expect her visits on this particular day. Some of her customers are out and some are too busy to talk. However, she does have three ten-minute conversations with established customers and is introduced to two of their colleagues throughout the morning.
Loan Officer B: spends a morning hitting every office in a three zip code area with rate sheets and other flyers. Most places she cannot get past the gatekeeper and has to leave a stack of flyers with the receptionist. In a few offices she is lucky enough to place the flyers in the respective boxes of the agents. She now has "exploded herself" to over a thousand agents in one morning.
Unfortunately, for Loan Officer B, however, we are in a relationship business that is why Loan Officer A had a more productive morning. So make your sales calls count. Quality over quantity will pay off every time!
CROSS SELLING
Cross selling s the inquiry and solicitation of business from other parties to a transaction. Cross selling can be particularly effective with listing agents and their sellers because there are some advantages to having one mortgage company assist on both transactions, plus it is also the one time where that listing agent will definitely be interested in talking to you since you have a loan in progress on one of their listings. So try it. A simple inquiry to the listing agent as to what the seller's plans are can't hurt. It may just help your business explode!
LISTEN MORE THAN YOU TALK / TALK AND SHOW YOU DO LISTEN
We are all born with one mouth and two ears and they should be used in proportion. The best salespeople are good listeners. Ask questions, determine your customer's highest value needs and meet those needs. Keep in mind that when you talk, it is important to show you are also listening by what you say. Above all, stop talking so much and start asking questions and listening!
I NEVER NOTICED THAT BEFORE
Now let's say while you are visiting your friend's new house, you also happen to be in the market for a refrigerator. You can bet that regardless of age, gender, life circumstances, or beliefs, you will notice their refrigerator thanks to your heightened sense of awareness!
Heightened awareness or what's important to you is constantly changing.
Those who study the brain seem to agree that the reticular activator is not only the key to turning on your brain but that is also at the center of an individual's motivation.
This is why asking for referrals is so extremely important in our business because at same time we are in contact with our customers; they are experiencing heightened awareness of the entire home buying process. What do you think they will be living, breathing, thinking and talking about for the next month or two?
However, the reticular activator is also constantly reprogramming itself based on your unconscious awareness and when you are consciously aware of its awesome powers it gets really interesting!
To be continued...
GOD BLESS THE U.S. MILITARY
Whether or not you agree with our country's decision to go to war, we can all agree that we owe a debt of gratitude to those people in our armed forces. With that said, we lenders owe it to our military customers to have a little better understanding and knowledge of their livelihood. One little known way to accomplish this is know how and how much they are paid. Military personnel are paid at least three different types of income. To figure a service-person's income all you need to know is their rank, years of service and location.
Just go to usmilitary.about.com and by clicking around a little, you will find pay charts for all types of military income.
Moreover, when you tell them how much they make they will be immediately impressed with your knowledge of the military.
THE ART OF NEGOTIATION
Many book shave been written on this subject, but there are two very important rules of negotiation to know and understand.
The first rule of negotiation is that whoever wants it the most usually loses. Enough said.
The second rule is that sometimes silence is golden. This rule is especially important in that sometimes it is best to say something and then wait for a response in total silence even if the dead air lasts for an uncomfortably long period. Silence is also golden for you, the Loan Officer, as you will be in contact with several parties on any given purchase transaction. Share with them what is essential and legal but do not volunteer any additional information that could be disadvantageous to you or your customers or any other party to the transaction.
As we have discussed before... One of the weapons mentioned in the bible was the jawbone of an ass. While it is no longer a standard weapon of choice for people in the 21st century, the jawbone of an ass can still be a viscous destroyer of Real Estate deals!
THE CHAIRMEN SPEAK OUT
Even though every Loan Officer runs their business somewhat differently, they all have a few things in common.
These common themes are...
- Excellent customers service. They take care of the customer, making sure they are hapy and creating customers for life.
- Strategic partnerships with referral sources who appreciate the value of an exceptionally experienced loan officer brings to the table.
- Excellent product knowledge.
- They treat their staffs well and understand they could not do it without them
- Self Promotion - All of the top LO's understand that you have to spend money to make money and that the right investments in marketing your business can pay off handsomely.
To be continued...
WHAT A DIFFERENCE A MONTH MAKES
As we all know, interest rates rose by over one percent during July 2003. This has been a shocking, yet somewhat predictable turn of events for those of us originating mortgages. The old saying that "history never repeats" is true if you change it to read, "History never repeats exactly!" The rapid increase in rates has happened frequently in the past and it will happen again in the future. The important thing is to change your mindset and embrace a market with fewer opportunities as a great opportunity for your long-term business plan. Refinances will always be at least a small part of our business, but they are here today and gone tomorrow. Our latest refi boom lasted far longer than anyone would have guessed and for that, we are all fortunate. Long-term success in mortgage origination requires relationship building in order to thrive in a non-refinance market and excel when the next refi boom hits. For the next few weeks, we will review some things you should be doing in this new market and some new products that will help you purchase business. In addition, we will explore some of the essential skills and knowledge required to thrive in the months and years to come.
HOW TO BUILD A CUSTOMER'S EGO
Sales success relates directly to one's ability to get along with customers and build their egos. By taking these steps with your customers you will help them to have a better opinion of themselves and usually it follows that they will have a better opinion of you as well.
- Establish a friendly connection - find something to admire and/or compliment the customer about
- Get them talking - ask open ended (not yes-no) questions that will get them talking about themselves and their life and accomplishments.
- Listen carefully - everyone likes to talk and know they are being heard.
The reverse of the above is true as well. If you take time to feel better about your customers you will probably feel better about yourself. Rewards all around!!!
BILL, NOTE, BOND
When discussing the financial markets, it pays to know what you are talking about. Especially if the person you are speaking to knows what they are talking about. With that said, please do not refer to the 10-year Treasury bond or the 5-year Treasury Bill. The five and ten year Treasury securities are notes just like any other instrument with a maturity of greater than one year and up to ten years. Here is the correct terminology...
Maturities of one-year or less are called Bills Maturities of greater than one year and up to ten years are called Notes. Maturities of over ten years are called Bonds.
ASK FOR BUSINESS
One of the biggest obstacles keeping Loan Officers from reaching their potential is not asking for business. It all comes down to this simple truth... The more business you ask for, the more you will receive. When calling on Realtors and Builders try something like this, "I would appreciate the opportunity to work on your next transaction." Or even something as simple and direct as "Please give me a try." When speaking to borrowers say, "I would be happy to help you out." Or "I would love to work with you on this." You certainly don't have to use these sentences because they are just examples and everyone must fit such questions into their own personal style. The point is if you ask you have a much better chance of getting the business that if you do not ask!
To be continued...
ORIGINATING IS LIKE FISHING (continued)
For the fisherman, the ideal situation would be a small pond with plenty of hungry fish and good weather conditions. If the experienced angler wants to keep some of the fish, they will be selective about the fish kept from the small pond, throwing many of the smaller fish back. Very much the way the experienced originator can be selective in this market.
However, on another day the conditions may not be nearly as favorable forcing the experienced to be less selective and putting the inexperienced in a position where catching anything is difficult.
The seasoned angler knows there will come a day when only he experienced will be very successful because the conditions will not be as favorable. Right now, we are all fishing in that proverbial small pond with plenty of fish and great conditions. On the other hand, as we all know, conditions can do change. When they will change is anyone's guess and harder to predict than fishing conditions.
So enjoy fishing in the small, stocked pond because some day soon there will be less fish in a much larger body of water!