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CSBS to develop nationwide mortgage professional licensing system

National Mortgage Professional
Nov 17, 2006

Selling mortgages is not rocket science - Leads - if you are going to purchase them ... Dave Hershmanleads What is a leading referral-based industry trainer doing talking about leads? It is true that I spend most of my time showing loan officers how to generate their own business and develop their referral base a lot more quickly. Yet in this day and age, leads play an important part in business development for companies and individuals within this industry. There are whole companies that are lead-based, and there are loan officers who come into the industry without the benefit of a sphere of influence, perhaps because they just moved into an area or graduated from college and are establishing their careers for the first time. But there are much more important uses for leads within this industry. If we look at a loan as more than just a paycheck, we can see these purposes. What are they? A lead can help you extend your sphere of influence. In order to serve this purpose, the lead must be selected for the express purpose of expanding the sphere instead of the generation of quick income. Of course, there are steps that must be followed in order to successfully achieve this goal. A lead can help you deliver value to a certain segment of your sphere. Yes, the identification and building of one's sphere is very, very important. But if you listen to some people's advice, asking your sphere for referrals is all that is necessary to generate business. This is not so. You must deliver value to your sphere on a regular basis. If you don't, someone else will. This is called "positioning." Some say that my advanced mortgage school is all about positioning instead of asking. So if leads are going to be part of your business model, where do you start? There are two parts of the equation. First is the selection of a quality source. If you start with the wrong source of leads, then it is impossible to achieve quality results. Of course, we follow with the next question: What is a quality lead source? The following questions should be considered: - Is the source a substantial company? For example, how long have they been doing business, and how large is it? Can they back any guarantee of quality? Believe it or not, many lead companies are no larger than a mortgage broker working out of his home. - What are their results? Do they have references and testimonials? - What type of support do they offer? Do they just give you leads or are there training and technology to support you as you try to achieve the best results? - Do they offer the types of leads that will help you achieve one or both of the goals delineated above? Remember, those goals include the extension of and delivery of value to your sphere. This leads us to the other end of the equation - targeting. You need to prioritize who is important within your sphere so that you can connect the target to the value. Or, if your sphere is not extensive enough, you need to identify where your sphere needs to be strengthened. For example, if your goal is to increase the quality of the pipeline, then your targets may be higher-end clients - clients who are likely to deal with accountants. In closing these loans, there will be an opportunity to strengthen your relationships with this segment. Another example is the provision of referrals to real estate agents. The best agents are going to be the ones who are going to demand that their originators be more than vendors - they should be partners. Why should an originator receive a steady stream of leads from an agent if there is nothing being returned? Of course, this dictates a concentration on purchase leads, as opposed to refinances. In conclusion, the key to success is the use of leads for the delivery of value, in order to help build the foundation for a long-term business plan instead of a quick paycheck. Dave Hershman is a top speaker and leading author in the mortgage industry with six books - including two best sellers for the Mortgage Bankers Association of America . His mortgage school is the only comprehensive advanced curriculum in the industry. For a schedule of classes, free marketing samples, speaking information and articles by Dave, visit www.originationpro.com or call (800) 581-5678.
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