art of referrals by dave savage

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Section One: The M illion D ollar “Trusted Advisor’s Edge” M indset

Section Tw o: H ow to Find M ore Q uality Referral Sources Than You Can H andle

Section Three: H ow to Contact and Set Appointm ents W ith Advisors

Section Four: H ow to Create Instant Credibility W hen M eeting W ith a CPA or Financial Planner

Section Five: Building and M aintaining Your CPA and Financial Planner D atabase

Section Six: H ow to Capture Authoritative Endorsem ents That Allow You to Leverage a Single Referral Into D ozens

Section Seven: The Art of Referrals—The N ew W ay of D oing Business

THE ART OF REFERRALS

CONTENTS

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3 5 8 14 18 21 25

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Se c t i o n On e : Th e M i l l i o n D o l l a r “ Tr u s t e d A d v i s o r ’ s Ed g e ” M i n d s e t

D ear M ortgage Professional,

I am not going to start this report w ith the m echanics of how to develop alternative sources of

referrals from CPAs and financial planners. That’s actually the easy part, because I’ve created a

proven system . The hard part is this…

Mindset.

H ere’s w hat I m ean. U nless you have the proper m indset, you’re never going to be able to use

w hat I’m teaching you… no m atter how easy I’ve m ade it for you. So, w hat is this m indset I’m

talking about?

The m indset is w hat I call the “Trusted Advisor’s Edge”.

W hat is the “Trusted A dvisor’s Edge”?

W hat m ost professionals don’t understand is that the m ost professional, credible im age you

can have doesn’t com e from your clothes, your car, or your office. The m ost bulletproof im age

you can have springs up from w ithin you. It com es from having a professional, “I’m here to do

business and you need the service I deliver” attitude. You have to believe that your “advice” can

actually m ake a life-changing difference.

You have to shift your perspective around 180 degrees from the typical loan officer. W hen you

have the Trusted Advisor’s Edge, you decide if you w ant to do business w ith a CPA or financial

planner, or not. It’s your decision, not theirs. You decide if they m eet your qualifications.

You can enhance their service offering and keep their clients happy, because you’re a trusted

and valued resource to them .

But first you’ve got to respect yourself and the level of expertise you bring to the gam e. Stand

tall, look confident, and SH O W them how your advice m akes a life-changing difference to their

clients.

D o you need to be w ell groom ed and m annered? O f course! But, if you don’t have that Trusted

Advisor’s Edge m indset, your lack of confidence and credibility w ill quickly eat aw ay at the illu-

sion of “im age” you are trying to create.

W ith this Trusted Advisor’s Edge m indset that I’m going to give you the tools to

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Se c t i o n On e : Th e M i l l i o n D o l l a r “ Tr u s t e d A d v i s o r ’ s Ed g e ” M i n d s e t ( c o n t . )

create, you are going to build a huge stream of referrals.

W hen you finally realize that these CPAs and financial planners, or “advisors” as I call them ,

need you because the know ledge, advice, and insight you possess w ill help them im prove the

financial lives of their client and their influence over their clients you w ill then be holding the

cards. You are now the player they w ant to associate w ith. That’s w hy I have developed the

tools, techniques, and strategies you are going to learn to use.

Each and every strategy I show you puts you in a position of bringing value to the table—

not begging for the crum bs that are falling from it. You don’t w ant to be like a little puppy, pant-

ing and w agging its tail, hoping you are going to get a referral throw n to you. W hen you learn to

use these tools and strategies w ith skill and confidence, you are going to stand head and shoul-

ders above typical loan officers and lenders w ho m ay be com peting for those referrals because

of the incredible advice and value you bring to a CPA and financial planner.

And just as im portantly for those of you w ho w ork w ith realtors… you are going to develop a

rem arkably strong posture am ong the real estate agents you’re w orking w ith. W hen you bring

this type of w orld class advice to the table, they w ill use you as a respected source of advice that

m akes a life-changing difference for their clients. The day you realize the pow er of doing busi-

ness based on the Trusted Advisor’s Edge is the day you w ill gain an incredible sense of con-

trol over your grow th and the consistency of your business.

Let m e quickly cover a few m ore of the benefits you’ll experience w hen you learn to apply the

Trusted Advisor’s Edge m indset to your business.

First, the peaks and valleys in your incom e w ill stabilize because you are broadening out your

referral base. Im agine a pier stretching over the w ater. Each new referral source you add is like

adding a pillar to its foundation. The m ore pillars, the m ore stable the pier. And so it is w ith

your business.

Second, you w ill also enjoy the level of business professionalism that com es w hen you begin to

do a lot of business w ith CPAs and financial planners. You w ill find their dow n-to-business atti-

tudes and behaviors refreshing.

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Se c t i o n Tw o : H o w t o F i n d M o r e Q u a l i t y R e f e r r a l So u r c e s Th a n Y o u Ca n H a n d l e

So w hat’s the first step?

W ell, before you can put any of m y strategies to w ork, you m ust first be able to find

potential CPAs and financial planners.

I have developed tw o w ays to get referrals. Let’s look first at the easiest w ay to get

started.

The easiest w ay to generate m ore advisor referrals than you can handle is from your

current custom ers. H ere’s how you do it.

I have found that one of the m ost professional w ays to gather quality referrals is during

the initial m eeting w ith one of m y custom ers. As w e are going over the application, they

m ay not have all the necessary financial inform ation or tax returns. W hen that situation

arises, I use the follow ing script…

“I notice that your financial inform ation is m issing (or your tax returns are m issing). Let

m e help you out. I’ll just go ahead and give your CPA a call for you, w ith your perm ission.”

M y custom ers typically respond at this point, “That w ould be great. I w ould really

appreciate that.”

N ow I am calling their CPA for a business reason. D uring that business, I raise the idea

of channeling other referrals m y w ay. I’ll discuss the actual scripts I use just a bit later.

N ow , w hat if they already have their returns and all their financial inform ation?

If I am m eeting w ith a custom er, and I notice that a CPA has prepared their returns, I pay

attention to the nam e of the CPA and w here his/her office is located. (Is it geographically

desirable?) Since I’ve been building m y business this w ay all these years, I often know

the CPA. In that case, I use this opportunity to build even m ore rapport w ith the client.

“O h, you know so and so? H e or she is a client of m ine.”

W hen I see a CPA that is in m y target area, I w ait for a point in the conversation w here

things are going really w ell, and I say this…

“By the w ay, I receive the m ajority of m y referrals from CPAs and financial planners. W ould you

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Section Two: How to Find More Quality Referral Sources Than You Can Handle (cont.)

m ind if I called your CPA?”

“M ay I use your nam e?”

This is a very easy (but highly effective) w ay to establish contact w ith CPAs and

financial planners.

I also have a questionnaire that I call page 5 of the 1003. This is a separate form that I fill

out for m y clients. Be sure to ask for the nam es of everyone: CPA, financial planner,

insurance agent, hum an resource m anagers and any attorney relationships. See a copy

of this form at the end of this report.

H o w to G et G r ea t R ef er r a l S o u r c es F r o m th e N ew sp a p er a nd O th er Media

The second m ajor w ay to generate great CPA and financial planner sources is through the

m edia. W hat do I m ean by m edia? Your local new spapers, business rags, local

television show s, and the direct m ail pieces you receive at hom e from CPAs, attorneys,

and financial planners. I’ve coined the term “counter solicitation” to refer to m y

approach w hen I contact them because they solicited m e first.

H ere are som e hot opportunities that should catch your attention as you scan your local

paper and other m edia sources:

• Look for press releases by one of your targeted advisors.

• Look for an article w ritten by one.

• Look at the ads in the papers. (Yes, I w ill contact them from an ad they have run.)

• Look for an article on “finances” or “taxes” w here the reporter m entions Joe Sm ith, financial

planner, as a source.

W hy do I em phasize w orking w ith CPAs and financial planners w ho are getting m edia

attention? PU BLICITY! You need to know w ho is actively m arketing them selves.

Typically, the professionals w ho are aggressively prom oting them selves have a better

clientele base, w hich m eans you w ill be receiving m ore referrals. You are, in a very real

sense, capitalizing on the financial assets they have invested in. These advisors are also

m ore likely to stay in the business long-term . They are m uch m ore stable and an

enduring source of referrals. W hen you think about it, they are practically annuities.

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I usually go through the new spaper and local business rags every m orning, and identify

the people I w ant as m y clients. I like to choose m y clients, because I prefer to do

business w ith people w ho are action-takers and im plem enters.

Think about this for a m om ent… by tapping into these sources that are already spending a

substantial am ount of m oney prom oting them selves and their practice, you are essentially

able to tap into thousands of dollars of advertising on a m onthly basis w ithout paying a

dim e. You are leveraging off relationships w ith their custom ers that have taken them

years to build. Consider how long it has taken you to build the database of custom ers that

you currently possess and you can really see the value.

By tapping into these sources, you are tapping into years of w ork, good service, and

thousands of dollars of m arketing and advertising expenditures. In addition, you are not

paying a single penny to do it! It is quite literally a hidden gold m ine of business just

sitting there, w aiting for you to take advantage of.

These professionals are also com m itted to their businesses and are here to stay. O nce you

are locked into this referral system , you w ill have lucrative, w arm , and friendly referrals

flow ing your w ay for years to com e.

02/2007

Section Two: How to Find More Quality Referral Sources than You Can Handle (cont.)

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N ow that you have located potential CPA and financial planner referral sources to w ork

w ith, you need to:

Num ber O ne: Get through to them and…

Num ber Tw o: M ake a G REAT first im pression so you can begin the process of

developing a long-term business relationship.

CAU TION: D o not m ilk them for all the referrals you can possibly get out of them in the

very first m eeting or conversation on the phone. Rem em ber… relationship building is a

life-long process. You w ill have a m uch better chance by taking it slow during the initial

m eeting for building a long-term referral source.

H ave you ever had the opportunity to sit in a m ajor port or harbor and w atch them bring

in those m onstrous 600-foot oil tankers or cargo ships for docking? The cables they use

to tie these vessels to the dock are m assive. It is an im possibility to throw one of these

lines from the ship to the dock. In fact, it is im possible for a hum an to even pick up one

of these cables.

So, here is w hat they have to do.

First, they throw a thin rope that has been w eighed dow n on the end, over the dock. Even

a child could throw it a long distance. W hen that rope reaches the dock, a longshorem an

begins to pull that thin rope to shore. D o you know w hat is tied to the end of that thin

rope? A m uch thicker rope. N ow , the thick rope is pulled to shore, and you probably can

guess w hat is attached to it… that’s right, the m assive cable that is used to pull the ship

in.

Keep that im age in m ind during your initial contact w ith these professionals. G oing for

every referral they have during the first call w ould be virtually im possible. You could

end up dam aging a viable long-term referral source.

The goal during the initial contact is tw o-fold:

First, you m ust qualify this individual. D o you w ant to invest your precious tim e

developing a relationship w ith this prospect?

Secondly you w ant him /her to see you as an honest, extraordinarily know ledgeable, and

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Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s

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Se c t i o n Th r e e : H o w t o Co n t a c t a n d Se t A p p o i n t m e n t s W i t h A d v i s o r s ( c o n t . )

totally credible trusted advisor loan officer.

W ith that said, let m e first go into the exact steps and scripts to use w hen you are first

m aking contact w ith a financial professional.

Before you m ake the first m eeting, I highly recom m end doing som e quick research on

google.com so you have a basic understanding of how this professional presents

them selves to their custom ers. Be sure to use the “LIN K’S Search” before every

m eeting—review chapter nine for som e advanced G oogle search tips.

N ow let’s start w ith a referral you have received from one of your ow n custom ers. The

best w ay to approach a referral is to m ention the referring parties’ nam e first, before you

m ention your ow n nam e. H ere is an exam ple:

“H ello, Joe. Suzy Funding suggested that I give you a call. I understand you prepare her

tax returns?”

“Yes, I do.”

“M y nam e is D ave Savage w ith XYZ M ortgage, and I am currently in the process of

processing a m ortgage for her (or just closed a loan for her).” I then let them know

that I specialize in w orking w ith CPAs and financial planners by saying,

“D o you ever have clients w ho have a need for real estate financing?”

“Sure.”

“D o your clients ever ask you about real estate financing?”

“Yes.”

“G reat. I w ill send you a letter introducing m yself and the kinds of services I provide to m y cli-

ents, along w ith a few testim onials from past clients. Then, I w ill give you a follow -up call and

schedule an appointm ent w ith you.” This is a key first step because I w ant to create som e credi-

bility and differentiation before w e continue talking. M ost loan officers w ill skip this step and

just go for the close, not to m ention they w ill not have a credibility building package like m ine.

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I’d especially like to point out the im portance of sending the advisor som e

actual exam ples of the analysis and advice you provide to your clients. If

you are a M ortgage Coach M arketing M achine user, send them som e

sam ple reports and analyses you created using it. These exam ples of the

professional service you provide w ill m ake a huge im pression on the advi-

sor and cause them to see you as the professional colleague you are.

The next tim e I call them up, I w ill schedule an appointm ent. After the

opening pleasantries, I use som e form of the follow ing script…

“W ell, I’d like to schedule an appointm ent w ith you so that I can explain

to you how m y

advice is different than that of typical loan officers and lenders. W ould

Thursday at

8:00 am w ork for you?”

That is the best w ay to get the first appointm ent.

If you are calling from an article, advertisem ent, or other m ailing piece that you have

seen, the only changes are your opening rem arks. It’s very sim ple. You just need to

m ention the piece, and they are going to take your call.

“I noticed the article you w ere quoted in on Tuesday. The reason for m y call is I

specialize in w orking w ith CPAs and financial planners. I w ould like to schedule an

appointm ent w ith you to show you how m y advice is different than that of typical loan

officers and lenders. W ould Thursday at 8:00 am be good for you?”

After that, the process is identical to how you w ould w ork w ith an advisor that w as

referred to you from a custom er.

W hat if he is already w orking w ith a m ortgage broker?

“I have a guy I have already been referring business to.”

“If I send you m y business cards, w ould you have a problem offering your clients a

choice?”

“Yes/No.”

02/2007

Examples of reports and analyses created u si ng th e M ortg ag e C oach M ark eti ng M ach i ne

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“W ell, it sounds like he has been doing an adequate job for you.” Suggestion: I w ould

like to share w ith you som e critical inform ation that m akes m e different from other loan

officers. M y advice m akes a life-changing difference for your clients because:

“W hat really m akes m e different is that I have a very unique approach—m ost loan officers just

quote rates and fees… I do w hat is called a Total Cost Analysis to help them m ake an inform ed

decision. I’m com m itted to providing your clients w ith advice that m akes a difference for them .

W hat I w ould like to do is sit dow n w ith you, since I get m ost of m y business from CPAs and

financial planners, (Let them know that you deal alm ost exclusively w ith CPAs) and explain the

advisory softw are that I use and show you how AD VICE m akes a difference. The advice that I

provide your clients help them m ake better decisions. W ould that m ake any sense for you? D o

you have any interest in that?”

The answ er is alm ost alw ays, “Yes.”

“Let’s do this. It should only take about 30 m inutes to go over the report and analysis

that I use that has been very successful assisting other CPAs to provide advice that

generates m ore referrals.”

Now , if I sense that this guy isn’t going to be a great source of referrals, I m ay not w ant

to take tim e out of m y schedule to personally m eet w ith him . In that case, I use this

alternative w rap-up.

I’m going to send you a letter of introduction, business cards, a few sam ple reports (e.g. Rate-

W atch, Total Cost, Equity Repositioning Analysis), and a couple of letters of recom m endation

from past clients.

Then I send him the InfoFAX on a regular schedule, but w on’t com m it m y tim e for a

personal visit w ith him . InfoFAX is a new sletter that focuses on educating professionals about

interesting rates and the econom ic factors influencing them . G iven today’s m arket, I highly rec-

om m end Barry H abib’s M ortgage M arket G uide (w w w .m ortgagem arketguide.com ) to provide

you w ith the content for this strategy.

Let m e point out to you how strong this m akes your posture w hen approaching advisors

and w hen battling w ith com peting brokers for referrals.

02/2007

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1 3



H ere are three sim ple strategies that m ake m e different from the com petition:

1. The fact that m y advice m akes a life-changing difference to your clients.

2. U sing the M arketing M achine, I am going to continue to provide them w ith a m onthly

RateW atch report to m ake sure they have the best loan today and for m any years to com e.

3. Every tw o w eeks, I w ill be either faxing or e-m ailing m y InfoFAX using M ortgage M arket

G uide’s content.

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Se c t i o n F o u r : H o w t o Cr e a t e I n s t a n t Cr e d i b i l i t y W h e n M e e t i n g W i t h a CP A o r F i n a n c i a l P l a n n e r

In this section, I w ant to teach you how to conduct your first face-to-face presentation

w ith CPAs and Financial Planners. The prim ary goal is to establish credibility as a

professional and develop a strong rapport.

First, I use relevant questions to take control. I also establish credibility as a know ledgeable

professional through the questions I choose to ask, and by visually show ing them sam ples of

the advanced reports in the M ortgage Coach and the M ortgage M achine service delivery vehi-

cle. I usually start w ith the RateW atch report because everyone is im pressed w ith the unique

value it represents. It dem onstrates tw o pow erful m essages: First, it im m ediately dem onstrates

that I have advice and tools they haven’t seen from other lenders. Secondly, it show s them m y

com m itm ent to m y clients after the sale to ensure m y clients alw ays have the best loan avail-

able in the m arket. This report establishes trust and credibility that gives you an im m ediate

com petitive advantage.

It is im portant that you continue to build instant credibility for yourself.

After you establish rapport, use questions that show you have an understanding of his/her

business. Ask them personal questions about the last tim e they financed a hom e. I ask

them contrast questions, such as:

“D id the last loan officer you w orked w ith do an analysis such as a Total Cost Analysis?”

Then drill dow n on the value of debt reduction and asset accum ulation. “D oes your

lender or loan officer track your m ortgage on an on going basis, show ing you how

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Se c t i o n F o u r : H o w t o Cr e a t e I n s t a n t Cr e d i b i l i t y W h e n M e e t i n g W i t h a CP A o r F i n a n c i a l P l a n n e r ( c o n t . )

today’s loan program s and interest rates com pare to your current m ortgage?” (See sam ple Total

Cost Analysis >> See sam ple RateW atch Report>>)

Rem em ber—in m y situa-

tion, I earn m ost of m y busi-

ness from CPAs and finan-

cial planners. Because of

this, it is critical that I dem -

onstrate that I have know l-

edge of their

business.

I use questions I have devel-

oped to dem onstrate a ba-

sic understanding of his/her

business. I w ill give you a

sam ple dialog of the inter-

view process I go through.

You w ill notice that I am

also qualifying them to see if they m eet m y criteria as som eone I w ant to spend m y tim e on.

I don’t have a specific script that I go through every single tim e. The goal that I w ant to accom -

plish is tw o fold. First is to m ake this person like, trust, and respect m e. Second is

to com pletely qualify this individual.

The objective is not to see how m any referrals I can m ilk out of him /her in a single

m eeting. M y goal is to establish the beginning of a long-term relationship. People

like it, and are im pressed w hen you m ake it a point to know a lot about them and their

business or industry. H ere are som e questions I start off w ith to get him /her to open up

to start telling m e about their business, and establish m y professional credibility:

• H ow m any CPAs are in this office?

• H ow m any partners do you have?

• H ow long have you been in business?

• Is your em phasis m ore on getting individual or business clients?

• H ow m any tax returns do you prepare a year?

02/2007

T h e reports from T h e M ortg ag e C oach —a cru ci al k ey to referral su ccess.

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• W hat is your m ix betw een corporate clients verses individuals?

• Geographically, w here do your clients com e from ?

• H ow do you m arket? (Som e CPAs from the old school do not like to m arket.)

• H ow aggressively are you looking to expand?

• Are you looking to expand your practice or are you happy w ith your current flow of busi-

ness?

• H ave you referred business to other lenders in the past?

• H ave you seen the types of reports and analysis that I have show n you today?

• Does you current lender send you a RateW atch report?

You should not ask all of these questions in one sitting. You are not w riting a book, you

are sim ply trying to find a little about this advisor’s business and w arm him /her up a bit.

It is very im portant that you ask these questions in a casual m anner and be yourself.

At this point, I am in control and I have peaked their interest. I w ent from being som e guy

off the street looking for a referral, to being an interesting trusted advisor.

W a tc h O u t f o r T h ese C r edib il ity L a nd Mines

D uring this interview , there are tw o serious credibility land m ines that can blow both

your professionalism , and any chance of ever seeing a referral out of the w ater.

The first land m ine is acting like you need the business. D esperation is like bad

cologne… you can sm ell it! Rem em ber, earlier I adm onished you to throw aw ay the

“little puppy hoping for a crum b to fall off the table m indset” and take on the “Trusted

Advisors Edge” m indset. N obody likes doing business w ith som eone w ho seem s

desperate. But they w ill stand in line to do business w ith som eone they respect w ho’s in

dem and.

The second land m ine is forgetting you are there to provide them w ith valuable

know ledge and advice. Rem em ber, you are there to help them . You are not there to ask

them for business or help. You are there to provide them w ith life-changing advice and

inform ation. You are there w ith the attitude of “If you don’t do business w ith m e you are

m aking a m istake.” You are there w ith total confidence in w hat you have to provide.

You’re not there to sell them som ething. You are show ing them “I am here to m ake an

im pact and this is of no cost to you.” That is the attitude you should carry. N ot having

the trusted advisor’s edge is your biggest land m ine. By visually show ing the reports

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generated by the M ortgage Coach, you w ill clearly separate yourself from any loan

officer he has m et in the past.

The beginning of m y advisor com m unication program starts w hen I first m eet w ith them .

But, I am careful not to ask for referrals every single tim e I call. I m ay only ask every

other tim e. I use the other contacts to give them updates on the m arket or other valuable

inform ation.

I also add them to m y InfoFAX list and begin to fax a new sletter every tw o w eeks—again, using

Barry H abib’s M ortgage M arket G uide’s e-m ail new sletters.

In addition, I don’t lim it m yself by m erely asking for loan referrals. These CPAs and

financial planners can be great sources of leads to other CPAs and attorneys, etc. H ere is a sim -

ple w ay to ask. Let’s assum e you just asked for a loan referral and they didn’t have

one for you.

“I don’t have anybody right now .”

“That’s ok. W ho do you know that is a financial planner or perhaps another CPA in

your office? W ho is your m ost successful friend in the business? D o you m ind if I

use your nam e?”

You w ill soon have m ore CPAs and financial planners than you can possibly follow up

w ith using this system . So, it is going to be vital that you develop a system atic w ay to

Follow up and capitalize on these valuable referral sources. This is w hy I think it is

im portant for m e to teach you this system for keeping track of all your advisors,

determ ining w hich ones you should spend your tim e and attention into cultivating.

You m ust train and condition your advisors on how to refer business back to you. At the

beginning, m any of these advisors that you contact w ill not have been trained on how to

keep a look out. It w ill take an attentive ear (on the advisor’s part), trained to listen for

those cues and clues that are opportunities to send you business in addition to giving

value-added service to their clients.

02/2007

1 8


Se c t i o n F i v e : B u i l d i n g a n d M a i n t a i n i n g Y o u r CP A a n d F i n a n c i a l P l a n n e r D a t a b a s e

This section is the heart and soul of m y system .

W hile the principles are easy enough to apply, you need to keep this fact in m ind: if you

do not continuously and professionally follow up and keep in touch w ith the CPAs and

financial planners, all the w ork you have done up until now w ill have been a total w aste

of tim e.

The engine that keeps m y referral m achine going year after year is the follow -up system

I have developed that keeps m e in constant contact w ith m y advisors. If you are not

using a contact m anagem ent softw are program to m aintain your database, you need to

invest in one. I have put m y entire system on com puter, so all I have to do is push a

button and the letter or fax is on the w ay. In fact, the program even rem inds m e w hen to

send w hich docum ent.

I know that you have heard about the 80/20 rule.

You w ant to spend 80% of your tim e and energy on the top 20% of your advisors. I have

developed a system that easily allows you to focus your tim e and energy on these very

valuable relationships. H ere is how I classify and keep track of all m y advisors and advisors-to-

be.

Advisor/Suspect: Any kind of CPA and financial planner that has been given to m e as a

referral or, I have seen a lot of m edia attention given to. The actions I take are:

1. A qualifying phone call;

2. Sending an introduction letter, client testim onials, and printed exam ples of m y services,

including RateW atch, a credit report, and an equity review ;

3. If the advisor sees prom ising, I m ay take an appointm ent.

Advisor/Prospect—I had 399 prospects in this segm ent: Anyone I have talked to w ho

has m et m y criteria and qualifies. I personally w ill take a CPA, for exam ple, w ho has at

least 100 clients. (These num bers vary for financial planners. You w ill have to

develop your ow n criteria for each category of advisor.) H ere are m y action steps:

1. At least four calls per year;

2. Six m ail pieces a year;

3. Follow -up letters;

4. Send sam ples of RateW atch, a credit report, and an equity review .

02/2007

1 9


Section Fiv e: B uilding and Maintaining Your CP A and Financial P lanner D atab ase (cont.)

Advisor/Silver—I had 161 clients in this segm ent: These people have

identified

them selves by telling m e that they w ill definitely refer m e business and

they have at least

200 clients. H ere are the action steps:

1. At least four calls a year;

2. Six m ail pieces a year;

3. Follow -up letters;

4. Thank-you cards;

5. InfoFAX—fax/e-m ail;

6. Send sam ples of RateW atch, a credit report, and an equity review .

A dvisor/G old—I had 118 clients in this segm ent: These are the top 30%

of m y

advisors. They have referred business m y w ay and I have established a

strong

relationship w ith them . These are the action steps:

1. Six or m ore calls a year;

2. Printed exam ples of m y services;

3. Six m ail pieces;


5. Send sam ples of RateW atch, a credit report, and an equity review ;

6. Thank-you cards;

7. Follow up letters.

A dvisor/Partners—I had 115 clients in this segm ent: These are m y

best 20 to 30 clients

or the best 15% . This is m y sales force. They are constantly calling m e w ith

referrals. I

do a lot of special things for these advisors. You w ill realize that by looking

at the action steps that I take to m aintain the relationship.

1. Six or m ore calls a year;

2. Printed exam ples of m y services;

3. Six m ail pieces;

4. Invite to lunch and/or dinner annually;

02/2007

Sample RateWatch Report

Sample E q u i ty Repos i ti on i n g A n aly s i s

20


Section Fiv e: B uilding and Maintaining Your CP A and Financial P lanner D atab ase (cont.)


6. Send sam ples of RateW atch, a credit report, and an

equity review ;

7. Send Christm as card;

8. Thank-you cards;

9. Send birthday cards.

N ote: I use the M ortgage Coach M arketing M achine to cre-

ate the printed exam ples of RateW atch, credit reports, and

equity review s.

I see m yself as a source of trusted know ledge and advice. If I

have identified and established contact w ith a CPA or finan-

cial planner that has the ability to refer business to m e, I

need to send him m y InfoFAX, interest-rate updates, and,

call up occasionally. If he sees som ething com e over the fax

from m e every m onth or so, and he sees things com e across his desk from m e in the m ail every

other m onth, it w on’t be long before he is referring business.

I try to keep contact going for 3 to 6 m onths, and then if the advisor never returns m y

calls or sends m e any referrals, I w ill reduce his priority. There are just too m any fish in

the sea to keep w asting m y tim e on som eone w ho doesn’t w ant to refer business to m e.

H ow ever, don’t forget the im portance of patience. Som e of m y very best referral

generators took a long tim e to harvest.

This system w orks w ell for m oving people through a series of stages that gradually

increase their loyalty to you and helps m axim ize how you invest your tim e.

This is the system and approach that helped m e close 252 loans and generated over

$962,500 in annual com m ission—w ithout talking to realtors. W hile I do not expect

you to take this to the extrem e that I have, I w ould like you to fully realize that you can

develop a new source of referrals this w ay and dram atically expand your present incom e.

02/2007

C reate referral-g enerati ng pri nted reports and rev i ew s u si ng th e M ark eti ng M ach i ne.

21


Section Six : How to Cap ture A uthoritativ e E ndorsem ents That A llow You to L ev erag e a Sing le Referral I nto D oz ens

In the final section of this report, I am going to reveal one of m y m ost recent and pow erful de-

velopm ents in getting floods of referrals calling m e. If building and m aintaining your CPA and

Financial Planner database is the heart and soul of m y system , then capturing authoritative

endorsem ents are the brain. W hy? It’s the sm art w ay to turn a single referral into dozens.

Several m onths ago, a m arketing consultant said to m e, “Your referral system is great,

but you are m issing the real leverage of w hat you are sitting on. I bet that if you actually

had these CPAs and financial planners m ail out a very strong endorsem ent letter disguised as

an im portant financial update, you could turn those passive referral stream s

into running rivers of referral gold w ithin days.” (Yes, he really does talk like that.) I

thought about w hat he said and figured it w as at least w orth a try. O nce I w as able to get

the first test out in the m ail, I w as stunned.

W ithin hours of that letter hitting people’s desks in the m orning, I w as getting calls.

Actually, ten calls the first day! I hadn’t even m ailed that m any (about 400). Som e of

the calls are people w ho w ere presently refinancing, and others w ere people just seeing if

they got a good deal w hen they recently refinanced, but at least 20% of those

calls are lay dow n, highly qualified clients.

Yahoo! Yahoo! Yahoo!

W hat is the point to this little story?

If you presently have even a casual relationship w ith CPAs or financial planners, you

could generate dozens of new loans w ithin days of m ailing this letter. In fact, this letter

w ould w ork for a strong real estate agent’s custom er base if you w anted to try that out.

If you have not yet been convinced that you need to add another pillar to your business

by developing relationships w ith advisors, this little letter and m arketing concept should

graphically show you the num ber of deals that are just slipping aw ay though your fingers.

This section should serve as a w ake up call to that part of your brain that w ants to m ake

m ore cash in a hurry, w ithout having to w ork really hard to get it. This is alm ost better

than the D om ino’s pizza slogan “H ot pizza delivered to your doorstep in 30 m inutes or

less”.

02/2007

22


Section Six : How to Cap ture A uthoritativ e E ndorsem ents That A llow You to L ev erag e a Sing le Referral I nto D oz ens (cont.)

This slogan could be “H ot, qualified referrals delivered to your doorstep… ”

Anyw ay, I think you get the point I am trying to m ake. Let’s get to the exact steps you

need to take to m ake this dream a reality.

Tw o of the m ost im portant things I have found in getting the endorsem ents are:

• One: Finding a selfish interest on their part. A m otivation for them to do this letter. You have

got to find out w hat m akes them tick and go, “YEAH ! I w ant it. Let’s do it now .” G et them inter-

ested, get them to say, “Yes, that is a great idea and I can see how that w ould benefit m y busi-

ness.” Keep sending different inform ation over to them , discussing w hy this alliance m akes

sense. You have got to tie it to how it is going to m ake m ore business for them .

• Tw o: M ake it sim ple. O ffer to take care of all the folding and labeling, offer to com e over and

dow nload the inform ation right onto your com puter. O ffer to w ork w ith their adm inistrative

assistant. Just m ake it as painless and hassle-free as possible for them .

D o not get these tw o turned around. W hen I first started, I w ould say how easy I w as

going to m ake this for them and they kept forgetting to send it out in their new sletter or

m onthly m ailing. They w ould say they did not have the tim e or had just forgotten.

After I learned to convince them that “this w ill m ake your telephone ring, this w ill

generate leads for you,” they forgot that I had even m entioned I w as going to take care of

the cost. I w ould actually have to rem ind them of that.

Another m istake w as that I just charged in there. I didn’t ask enough questions. I w ent in

w ith a presentation, “H ere’s a hot strategy and letter. It can m ake your phone ring. It is

going to generate leads. It is tim ely inform ation for your clients that I know you w ill w ant

to give them .” I did not set it up properly—they need to believe that this w as in their ow n

best interest.

H ere is a very effective and proven w ay to get this endorsem ent letter sent out quickly.

“D o you send out new s pieces to your clients about taxes and interest rates, etc.? G reat.

W hat is the purpose for you doing that?”

“I w ant to provide m y client w ith inform ation and keep m y nam e in front of them .”

02/2007

23



“That’s great. So, the m ore w e can keep your nam e in front of the clients, the better?”

“Absolutely. I alw ays like to do that.”

“W hy don’t you do it m ore often?”

“I don’t have the tim e.” O r “It costs m oney.”

“And do you like it w hen your clients call you about the things that you send out to

them ?”

“O f course.”

“D o you like it because that is an opportunity to get m ore referrals?”

“Yes.”

“H ere is w hat I’d like to do, since it is m utually beneficial to both of us. This is

som ething that can benefit m e, as w ell as you. Since you are putting up the database and

w e are sending this letter out to your clients, I w ill pick up the cost and w ill fold, stack,

stuff and send out all the m ailers.”

The best w ay to handle this is to say, “I’ll com e in and dow nload your inform ation into

m y laptop.” Then, handle everything yourself.

Anything you can do to make it simple for them.

Say, “Let’s schedule tw o hours on Saturday afternoon.” O r “Let’s schedule tw o hours on

such and such. I w ill sit dow n w ith your assistant, and I’ll do w hatever

needs to be done to help you get this job done.”

That is the best w ay to do it.

The bottom line is to have them m otivated to w hy they w ant to do it, w hy it m akes sense

to them , and w hy it w ill benefit their business. Then, you have to go in and m ake it easy.

Take as m uch control of the process as possible, because it w ill shorten the tim eline on

getting those m oneym aking endorsem ents out the door.

02/2007

24



This is im portant: W hen these people start calling you up and things are going w ell, do

not forget to start asking for referrals. Your profits are going to grow geom etrically by doing this.

Alw ays ask for the referral!

02/2007

25


Section Sev en: The A rt of Referrals—A Rev olutionary W ay of D oing B usiness

In this report, I’ve told you how to take charge of your referral-creation process. First, I told you

about the m illion dollar “Trusted Advisor’s Edge” m indset you need to have. This m indset

com es from having a professional “I’m here to do business and you need the service I deliver”

attitude. W hen you believe that your advice can actually m ake a life-changing difference and

you possess the know ledge and insight financial advisors need to im prove the lives of their cli-

ents and them selves, they w ill realize that you are a professional that they cannot afford to do

business w ithout.

In the second section, I show ed you how to find m ore quality referral sources than you can han-

dle. The w ay is to establish relationships w ith financial advisors. The best w ay to do this is by

going through your ow n current clients. You can either ask them w ho their financial advisors

are or glean their advisor’s inform ation directly from your clients’ financial docum ents. Another

great w ay to locate financial advisors is to find them in new spapers and other m edia. A diligent

effort on these tw o fronts w ill yield m ore referrals than you can handle!

Third, I outlined a m ethod of contacting and setting up appointm ents w ith advisors. As w ith

anything w orthw hile, contacting and m eeting w ith advisors needs to be done right. I therefore

broke this m ethod into tw o basic steps. The first is to get through to the advisors so that you

can establish the foundations of a future relationship. The second is to m ake a great first im -

pression so you can begin the process of developing a long-term business relationship.

As exciting as getting leads to financial advisors can be, don’t just charge out of the gate! I w rote

Section Four to help you build your relationships w ith advisors by gradually establishing credi-

bility and rapport. As a M ortgage Planner, your initial goal is not to m ilk an advisor for all the

referrals he can give you. Rather, it is to establish a long-term relationship that w ill afford both

you and him professional success and advancem ent throughout the years. O nce the relation-

ship is firm ly footed in professional rapport, personal trust, and m utual benefit, the sky’s the

lim it. Just w atch out for credibility land-m ines along the w ay!

In the fifth section, I revealed the “heart and soul” of m y referral system : building and m aintain-

ing your CPA and Financial Planner database. All the w ork you’ve done up until now requires

m aintenance. You need to continuously and professionally follow up and keep in touch w ith

your advisors. H ow do you do this? Sim ply use m y tried and true follow -up system to focus the

appropriate am ount of attention on each advisor. In general, this involves categorizing your

02/2007

26


Section Sev en: The A rt of Referrals—A Rev olutionary W ay of D oing B usiness (cont.)

contacts and then expending the bulk of your effort on the m ost productive of your contacts,

w hile still m aintaining appropriate contact w ith the rest of your contacts according to m y care-

fully devised contact and m ailing plan. By using this plan, you can nurture your advisors so that

they becom e steady stream s of referral w ealth!

Finally, I talked about how to capture authoritative endorsem ents that allow you to leverage a

single referral into dozens. I do this by using a sim ple, enterprising letter and m arketing cam -

paign in close cooperation w ith the financial advisors w ho are m ost successful and w ith w hom

you have the closest relationship. This approach w ill, in the w ords of one of m y m arketing con-

sultant friends, “turn those passive referral stream s into running rivers of referral gold w ithin

days”!

N ow you know the Art of Referrals. You have before you a slam -dunk m ethod of going from

being a typical loan officer w ho is banking on future new custom ers to being a trusted advisor

w ho has a steady, predictable, and m ultiplying referral-driven business. This revolutionary w ay

of doing business has w orked for m e and thousands of successful M ortgage Planners. And it

w ill w ork for you too. All that is left is for you to do it. W elcom e to the w onderful w orld of refer-

ral-driven business!

02/2007

For more information on my ideas and insights, subscribe to my blog, Savage Insights, at w w w . savageinsights. com. For more information on T he M ortgage C oach and T he M ortgage C oach M ark eting M achine, p lease visit w w w . mortgagecoach. com or call 1 -8 0 0 -9 5 1 -2 6 9 6 .