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January is an exciting time of the year. Although we may have post-Christmas blues, January has the New Year feeling where we make resolutions, plan our bucket list for the year ahead and set up our business goals and objectives for the next 12 months. It brings a sense of motivation to make this year a great year.
As brokers, one of the most important things we can do in January is evaluate our referral networks and really analyse whether or not our referral network measures up.
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Any broker should look at their referral network as a pie chart.
The reason for this is at the end of the day you need to establish how much business you are getting from one network and then evaluate its effectiveness.
As a vital part of your business, you need to manage your networks well and assess whether you're getting what you need from them. If the numbers don't stack up you might need to assess how much time it's worth investing in this network and weigh up whether it's worth looking elsewhere.
If you are investing time into a network that isn't going anywhere, this is valuable time taken away from your business. Time spent with your network has got to have a return on investment.
You also need to ask yourself how much value you add to their business.
It's great to have 20 referral sources but if you're not able to give them anything back in return they will start asking the same questions back to you on the benefit of the partnership.
You need to be able to communicate your proposition effectively and have transparency on both sides.
For example, choosing two to three real estate partners in different areas will have more value than two real estate agents in the same area as your networks are broader and you have the potential to generate more leads in a wider web. The same goes for solicitors and builders.
Another great way to build an effective referral network is looking at joining referral groups.
Groups such as BNI are built around the core network of accountants, mortgage brokers, financial planners and solicitors. If you're young and have the time to wait to be included in these types of groups it's a great way to build a solid platform. It's advisable to keep your name out there within your peers for when an opportunity to join becomes available. However, if you're more experienced, you may not have the time to wait to be included in these groups.
Another good option is to find a mentor. Someone who will allow you to look at their business and see what they do well and how they work with their referral partners. This can give you ideas you can implement rather than having to reinvent the wheel.
An existing database will always be your best referral source as you have proven yourself. However, as we all have to start somewhere, it makes sense to find like-minded people to seek referrals from and give referrals to in order to assist you in building your database for the future.
Ruan Burger, managing director, TIME Home Loans
Ruan Burger has been in the mortgage broking business for nearly a decade, starting out in the booming town of Gladstone after working in the banking industry for many years. He formed Time Home Loans early in 2013 after moving to Brisbane and the business has grown significantly since then.
Ruan is a nationally recognised member of the MFAA. During his career as a mortgage broker, Ruan has won – and been a finalist in – several awards. He won the MFAA Mortgage Broker of the Year award in 2012 and 2013 as well as the MFAA’s Award of Distinction in 2012 and was a finalist for the MFAA’s Credit Adviser award in 2014.
Ruan believes it is his ‘love of the game’, his strategic alliances and colleague morale that promote his business as a leader in the field.
