I Want to Work With Less Referral Sources…Really

January 4, 2011 13 Comments

I Want To Work With Less Referral Sources….Really!

Sue Haviland, CRMP

The title of this piece might sound crazy, but follow me for a minute and see if you agree with me in the end. For a long time, I was the networking queen. I went to every senior oriented event, and even some that were not senior focused. I wanted to meet anyone and everyone that could possibly send me a reverse mortgage referral. And I was going to keep in touch with them by phone and newsletter and whatever other method I could, because I was going to be darn sure I was the one who got these referrals. One day the light bulb went on (sometimes you just gotta hit me over the head). The way I was approaching this was simply unsustainable. I took a good look at what I was doing with my networking activities and I started to cut. And even more important, I looked long and hard and the referral sources I was cultivating and made some tough decisions.

I made a list of the things that were important to me. I did not need to work with every financial planner within 50 miles. I did not need to be connected with the largest insurance agency in town. It was not possible nor very smart to operate this way. Instead, I focused on the referral sources that needed me. Who among these professionals could I help the most? Basically, who would see the reverse mortgage as a tool to help their clients and build their business? And whose values and business practices most closely mirrored my own? This was perhaps the most important question. The exercise took quite a bit of time but was well worth it. I now have a loyal roster of attorneys, financial planners, insurance representatives, home health care agencies, etc. They were hand selected and they know it. They are not the biggest in the area nor the most well known. That’s just fine. They will continue to grow their business and so will I. Can you say the same for your referral partners? Sometimes less really is more.

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13 Responses to “I Want to Work With Less Referral Sources…Really”

  1. Michael Pinter Reply January 4, 2011 at 2:36 pm

    Sue,

    I wish I had the same problem as you and had to cut down on my referrral sources. I tried for montsh to get referral sources to send me clients and I always hit the same roadblock: The sources did not understand the product and were unwilling to be educated about it so they were uncomfortable referring clients to me because they thought that Reverse Mortgages were “bad” I tried LT inusrnace people, accounatnts, elder-law attorneys and Financial planners. I always had the same issue. After a while, I gave up and said that my time would be better served if I marketed directly to potential borrwers.

    • Sue Reply January 11, 2011 at 1:38 pm

      Michael, stay tuned- a big part of our focus in the coming year will be discussions on how to build this network and to get these professionals chasing YOU!

  2. Hal Tennant Reply January 4, 2011 at 3:15 pm

    I relate to Michael’s situation. I don’t like being dependent on someone else for my business (referrals). I like to be able to turn the faucet on or off at will (direct marketing).

    Each has its advantages and disadvantages. The problem as I see it is that most of us are Loan Originatirs, not Marketing Executives. I’ve spent thousands of dollars and hours of time trying to be the marketing guru and I’ve come to the conclusion that I’m probably just adequate at marketing.

    I can’t immagine a Physician, an Attorney, a CPA etc. spending as much time as I do trying to find business. I guess if I had all the answers I would be a wealthy man.

    • Sue Reply January 11, 2011 at 1:40 pm

      Hal, you make a great point. You DO need to be in control of your pipeline and be able to turn it on at will. But I suggest a mix of strategies is the beat way to go. If one stops working, you’ve still got the other sources.

  3. Mike Johnson Reply January 4, 2011 at 4:32 pm

    I agree with Sue. But first, make sure you have properly trained the TRUSTED REFERRAL PARTNERS. Once they know you are Mr. or Mrs. REVERSE and think of you that way, they also need to know REVERSE can be good, very good for their clients. How will they ever know that? Well here’s where the real work starts. But it’s EASY! I run a “Professional Tryout” each month. That’s right, I invite them to our offices for a 15 minute presentation by yours truly, the MYTH BUSTER, and I present the myths and truths, and then open to Q&A. At the end I ask them who would like to be on my REFERRAL TEAM. If so, they MUST send senior leads to me each eyar, at least one a year! That’s easy, and if they can’t I don’t want them anyway. Theyw ant t now what they get in return and that answer is QUALITY services and great results from a professional.

    I have an assistant whose job is to schedule presentations for me, and invite 500 atorneys, accountants, insurance agents, financial planners and elder attorneys to the monthly session. They keep my database too, and mail a monhly newsletter about REVERSE. Every e-mail and address is kept up to date. I get their birthday and anniversary too, and send them a card. My assistant does not originate. Only keeps a database and invites on my behalf and gets paid a salary. So what if the geographical area I cover is 10,000 of these professionals. If I want 5 or 10 loeans a month, I need 5-10 REAL DAEL types referrals from my partners. I “WORK WITH THE WILLING” and invite 500 per month with INVITATION and follow up call for one of the 20 available seats. If 20 a month show that’s 240 new referral partners a eyar! If each gives one lead, that’s 20 a month. The heck with advertising. YES I mail seniors at the rate of 5,000 a month too and invite to one of 2 luncheon dates, loacations and types of food. 20 show there too, 10 at each, and this alone gets 5 deals. The cost is almost $10K per month for the assistant, the mailings, the luncheons, the seminars and tryouts, food etc. But I ask you, what can we make on 10 deals a month??? YES, we have a large conference room in a beautiful office Building on Long Island. I may as well use it right!

    • Rubian Foglia Reply January 7, 2011 at 4:21 pm

      Thanks for the valuable marketing information. Appreciate your expertise. Thanks again!

    • Sue Reply January 11, 2011 at 1:41 pm

      Mike, congrats! You’ve obviously got the system working for you. As you say, the key is the properly trained referral partner. That’s why not everyone will qualify.

  4. Tom Reply January 4, 2011 at 6:23 pm

    I too am facing many hurdles to encourage referral sources to suggest this great program to their clients. What I am finding is fear of the regulatory issues in their areas of specialty. (at least that is what I am told). This is especially true with financial planners. They and others must be very careful when suggesting reverses to thier clients.
    At this point, I just try to educate as best as I can, and move on to the next contact. But it IS frustrating!
    I don’t have the marketing budget for seminars, luncheons, and conferences and that kind of lead gathering system. So my progress is very, very slow. I know if I had the leads my production would soar.

  5. Kim Reply January 4, 2011 at 10:54 pm

    I agree with Tom. I wish I had the budget for seminars, luncheons and conferences, but I don’t. what I do have is a sincere desire to help seniors’. I am very good at what I do. what I am not good at is marketing.

    • Sue Reply January 11, 2011 at 1:42 pm

      Kim, stay tuned- I have never believed that you must spend tons of your hard earned dollars to be successful in this business. There are many strategies you can implement that cost very little and are highly effective.

  6. Steve Reply January 5, 2011 at 2:07 am

    I have been out of the business for a year and a half and now returning. It has always been a little difficult for me to develop referral sources. I would like to do better in this area. I will rededicate myself to this in 2011. HOwever, I have always been good at direct response. Telemarketing/Direct Mail are my areas of expertise. I am going to try more with a website and social media. The cost for those are low enough. The one warning I do have for all my colleagues here is to beware of some of these people selling leads on the internet. ALWAYS google them and check ripoff.com. I got real nervous when one guy asked me to fax him a check. (NEVER do that.) Then I checked him out and there are dozens of complaints. SO … I checked out another and same thing happened! I wanted to start a mailer right away to kickstart my marketing. After these incidents I just rehired a GREAT in-house telemarketer and instantly had 6 leads and 1 appointment off of a highly targeted list. Now I need to work on my own mailer that used to get a 1.00% response. I need to update and tweek. It may take time but I won’t gamble my money on any more unkown lead companies. Best of luck to everybody in 2011.