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Everybody talks about "creating value.” It's an overused buzz-phrase in the mortgage industry and the business world in general. But what does it actually mean? Specifically, what does it mean to "create value" in today's mortgage environment? Here are three specific tactics I've observed from top producers who create unique value in today's mortgage industry:
1. Understand what the other person values
Most mortgage originators propose value (sell solutions) to borrowers, real estate agents and financial advisors without first understanding what the other person values. For example, your value proposition to a financial advisor may be, "I can send you referrals." However, what if the financial advisor doesn't really care about that at the moment? What if the financial advisor's main issue right now is creating a competitive advantage vs. the full-service financial company that just opened next door? In that case, a top producer would likely change his/her value proposition to something like, "I can help you protect your clients from being poached by the new financial services company that just opened next door." Top producers make it a habit to understand what the other person really wants before offering to give it to them.
2. Don't be generic
A value proposition is nothing more than a proposal of value. Not everyone values the same things. So why be generic and propose the same value to everyone you talk to? Top producers understand that it's not so much about an "elevator pitch," but it's more about an "elevator question.” What's the number one challenge that the person you're speaking with is facing at this particular moment in time? The specific solution to THAT specific challenge is your new value proposition for that person.
3. Be creative: Leverage your relationships
One top producer I know recently started doing homebuyer employee benefit workshops with a builder she works with. She discovered a need in her market: A new company is moving into town and relocating people from out of the area. She leveraged her existing relationships: A builder friend is building new homes in the area where the new company is relocating. She creatively used her resources to meet the need: help the new company relocate employees by offering education and incentives with the builder. Your relationships are your biggest asset. Leverage them in the way you create value.
Gibran Nicholas is the founder, chairman and CEO of CMPS Institute and Top Producer Round Table Series. Since 2005, he's helped more than 7,000 of America's top loan originators to grow sales and improve their relationships. He may be reached by phone at (888) 608-9800, e-mail [email protected] or visit CMPSInstitute.org.
This article originally appeared in the February 2015 print edition of National Mortgage Professional Magazine.