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Brokers have been urged to choose one type of referral partner and become educators to embed themselves in that community and grow their business.
Founder of coaching business for brokers Success and Broker Ruan Burger encouraged new brokers to select a referral partner that suits them and their fledgling businesses.
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“Don’t think that you can be all things to every referral source such as lawyers, financial planners, or real estate agents,” the former broker warned.
“Choose your avatar that you can connect with and add value to. From there, you can branch out when you become really good at connecting with them.”
Mr Burger spoke to The Adviser ahead of the 2022 New Broker Academy in September, where he will present a session on the sales strategies and fundamentals that are essential to a successful broking businesses.
Mr Burger will unpack how new brokers can create an attractive business by embedding themselves in their community to build a referral pipeline, while broadening their client base and building strong, repeat revenue streams.
Talking to agents in their currency
For example, when Mr Burger was running his own mortgage and finance brokerage (Time Home Loans), he built his referral pipeline by connecting with real estate agents as his first source.
He ingrained himself in that community by providing education to agents rather than asking for leads.
“When I started my career in broking, I started off by getting to know two or three agents in my area, and the first thing I did was to send them a text message on Saturdays with information about the different types of home loans out there in the market, along with lender expectations and offers for different types of prospective buyers,” Mr Burger explained.
“For example, I’d tell them which lenders had fast turnaround times or which bank allows buyers to borrow up to 85 or 95 per cent loan-to-value ratio (LVR) without requiring Lender's Mortgage Insurance (LMI).”
He continued: “My aim was to talk to agents in their currency about how quickly their prospective buyers can get their finance approved so they can sign a contract to buy a property.
“If a broker understands how an agent operates, it becomes easier to provide that targeted education,” he said.
Subsequently, other agents began reaching out to Mr Burger and requested to be added to his text list so they could receive his information.
“When you network with agents and educate them, you are on their minds. So, when they meet prospective buyers and find that they are eligible for a loan with a higher LVR, the agent will remember you and refer the buyer to you,” Mr Burger said.
The art of getting referrals to sell you
Forming relationships with referral sources such as an agent could mean they 'sell' the broker by introducing them to other potential referral partners such as financial planners, lawyers, and accountants, Mr Burger posited.
“This is how you form a referral community within your chosen avatar,” Mr Burger said.
“For example, if an agent introduces me to a financial planner, I’d take both the agent and the planner out to lunch because the agent would break the ice for me as they already trust me.”
“The key is to form these referral partnerships so that your referral partner sells your services for you. You need to provide the education so that other people sell your services. You should never ask for leads yourself.”
Use time wisely
During his session at the New Broker Academy — which is aimed at new brokers looking to ignite their broking career, and prospective brokers looking to break into the industry — Mr Burger will explain how brokers could elevate their pitch to win more business face-to-face, what makes a good referral, and how to be efficient with time when building relationships with referral partners.
Mr Burger concluded: “My pitch at the New Broker Academy will be that less is best.
“Would you be better off dealing with five agents in one office instead of one agent in five different offices? I would say the former, because your strike rate would be so much better.”
To hear more from Ruan Burger about how new brokers could implement effective sales strategies to grow their businesses, come along to the 2022 New Broker Academy, hosted by The Adviser with the support of principal partner NextGen.
The free event will take place in the following locations:
- 6 September: Rydges Southbank, Brisbane, Queensland
- 8 September: Montage, Sydney, NSW
- 13 September: Crown Melbourne, Victoria
Places for this free event are limited so book your seat now by registering here.
For more information about The Adviser’s New Broker Academy, including the agenda and speakers, click here.
[Related: New Broker Academy 2022 to help ‘ignite’ brokerages]
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