In his second article looking at ways brokers can reduce their dependency on lender commissions James Veigli says brokers can create passive income streams by aligning with other complementary service professionals
In his second article looking at ways brokers can reduce their dependency on lender commissions James Veigli says brokers can create passive income streams by aligning with other complementary service professionals
The serious modern-day mortgage and finance broker in Australia must align their service with other complementary service professionals - not only to create a complete financial experience for their clients, but also to create additional passive income streams for their business.
In my experience as a broker trainer and mentor, I've worked with industry 'newbies' right through to the 'dinosaurs' and 'power brokers', and despite the wide range of experience, two things are crystal clear:
1. All brokers clearly understand the importance of setting up professional alliances and know these alliances are a huge value-add to their clients, as well as a powerful referral source.
2. Yet, the majority of brokers (I'm talking to the 'newbies' as well as the 'dinosaurs' and 'power brokers' here) do not understand exactly how to approach, setup and (most importantly) maximise professional alliances. Most brokers think they are doing this correctly, but the hidden truth is they are only scratching the surface and are leaving massive amounts of money on the table for another broker or professional to pick up!
To stop this happening to you, follow my five-point fast-start (or quick-fix) guide to maximising your Strategic Partnerships:
* Take control of the partnership setup, growth and maintenance, because most professionals simply don't understand how to make alliances work properly. It's the common problem of a person being a great 'technician' in their business - but an uneducated 'business person'. If you don't take control and drive the partnership in the direction you want, it will slow down, stall or never even get started!
* Educate your strategic partners on your product, service and most importantly your marketing and sales process. Explain why partnering with you will help make them more money and improve their business. Remember - it's all about them! The big mistake here is to do this once and think that's good enough. Wrong! You must do this on a regular and consistent basis for maximum impact.
* Set boundaries and agree on them up front. If your partners don't play within the boundaries - warn them or give them the flick. The biggest tip is to quickly let go of any professionals that don't play by the rules. They will waste your time, leech all your clients, and mentally drag you down with them! Cut them loose and move on.
* Non-negotiable referral system. For example if you partner with an accountant, advise your clients that you will organise a 'tax check-up' for them with your accountant, to make sure they are paying the lowest amount of tax. In return, every client your accountant partner meets with will be directly referred to you for a 'loans check-up'. No exceptions. Implementing this non-negotiable part of your sales process will turbo-charge your referrals and income.
* Regular updates are essential. You must provide and request regular formal updates on the progress of all referrals. I suggest weekly, but depending on your partnership it may be better suited to fortnightly or monthly tracking, but never longer than that. This point is not to 'keep track' of your partners, but to ensure all parties are 100% up-to-date on all clients. This will guarantee a seamless, knockout experience for your clients - plus it eliminates the stress of uncertainly, and the time wasted making update phone calls to your partners.
If you implement this five-point guide with your existing and new strategic partners, you will see an immediate increase in the number of referrals, income, satisfied clients and partners - not to mention less stress and more time for you to focus on building your business.
When executed correctly and in combination with our more advanced tactics, this trail replacement strategy alone can not only increase your referrals, but dramatically increase your passive income and business value - with minimal additional work!
Stay tuned for the final trail replacement strategy on memberships and continuity.
Until then, take action, start implementing and go get 'em!
James Veigli is a mortgage broker, marketing and business strategist and founder of the Australian Mortgage Broker Alliance.
To read James Veigli's first column in the series go to: www.brokernews.com.au/news/industry-talk/forging-a-new-trail/36195
