3 Ways to Grow Your Business and 5 Methods to Avoid
Wow, the last five years have been pretty epic in real estate. Each year has set a record and you’ve reaped the rewards. In 2022, Realtors and loan officers are coming off of that high, and the sudden lack of interest is both shocking and a true test of strength to overcome barriers. It’s especially a challenge for those who began their careers in 2015 or later.
Following these record producing years of low interest rates and double-digit home appreciation, it can be stressful not to have a healthy pipeline of loans or steady flow of homeowners inquiring to see how much they can sell their home for or that homebuyer demand we had back in 2021. As the go-getter and survivalist you are you should be asking yourself how can I grow my business in tough times like this year?
Well as luck would have it! We have 3 tips to help improve your business in 2022 (and 7 methods you absolutely want to not do).
Tip No. 1: Increase Your Prospects
Of course this is clearly evident, but it’s a necessary step towards building a solid business. One of the best methods to getting more prospects is to market to people you already have a relationship with. This includes professional and friends and family.
It’s ideal because it’s the most inexpensive yet most effective ways to obtain more business. Many realtors and mortgage originators have a large circle of contacts that should be utilized. Your professional sphere can be regarded as your referral partners and they are extremely valuable in difficult periods such as 2022.
If you rely primarily on generating internet leads you may have discovered they are very competitive and not very loyal because many of them are seeking the lowest loan fees or real estate agent commission rebates.
There’s always exceptions and methods you can implement to make these leads more valuable with better follow-up response times, prospect questions, and being persistent. You don’t want your marketing dollars wasted with bad leads and end up where you are today with little business.
• The takeaway: Market existing contacts and relationships
• Avoid buying online leads without truly qualifying them.
• Start using another marketing channel; direct mail and cleverly timed postcards
Tip No. 2: Get More Loans Per Customer
According to a Redfin study, the average homeowner will stay in their home for 13.2 years. This means they may very well have gotten a purchase loan, refinance their home and purchase a move up home. People underestimate the high potential to get that low-hanging fruit; the second and third transaction! If you did them right on the purchase loan, you are very likely to be their number one choice for their transaction.
It’s a delicate situation between reaching out and not being too persistent. Develop a system to look for possibilities and filter out the homeowners you’ve helped and their neighbors who are in the market.
• Takeaway: Review your old purchase clients. Follow up with them so you are top of mind, again.
• Absolute no no’s: Spamming your old contacts excessively
Tip No. 3: Get More Referrals Per Customer
The best way to generate referrals is by making a system that really connects and benefits the people. It is recommended to start off with establishing dependable referrals for every area of life like a reputable electrician, handyman, moving company, or landscaper. As soon as the trust is set up, it’s easy for both partners to progress and become mutually worthwhile for each person’s profession.
• Takeaway: Develop a system of trusted referrals and connections from your business network
• Avoid posting on your own personal social media accounts to spark interest.
o Avoid asking anyone you meet if they know somebody who is selling, buying or wants a mortgage.
o Avoid asking your customers for names and numbers of their friends, colleagues or relatives that may be seeking a loan or buying a home.