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dbartels
11-20-2007, 12:13 PM
Hi all,

I ran this article in my newsletter and wanted to share it with you too.

I would love your feedback. Hope you enjoy it.

Selling is Serving

If you want to sell smarter, you must realize that selling is serving.
I became a sales trainer at the age of twenty-two. I learned by becoming a trainer for the Dale Carnegie’s Sales Training Course. It changed my life.
Over Twenty years later, I am still applying the principles I learned as evidenced by Selling Smarter’s 5-step selling process, which was adapted from Dale Carnegie’s 5 step selling process (attention, interest, conviction, desire and close).

My biggest take away from Dale Carnegie is the importance of taking the time to find out what the borrower wants and needs and then spending the rest of the time helping him or her get it. If you’ll take the time to find out what your borrowers want and spend the rest of the time helping them get it, you won’t need any “high-pressured” or “slick” closing techniques in order to get people to choose you. Choosing you will be the natural conclusion toward which all your efforts had been directed. This is looking at selling as serving.
Do you approach your borrowers with that attitude? Are you discovering what each borrower wants and needs? Are you focused on helping him or her achieve it?

Sales = Service = Information = Trust = Loan Application = Funded Loan

This is the information age. The way people acquire information is different than it used to be. The way people make purchase decisions is different than it used to be. As a result how we present mortgage advice must also change.

If you don’t service the borrowers’ need for information, somebody else will.
When the borrower asks the rate question, you must answer the trust question.

The originator who best services the borrower’s need for information is the originator who’s going to get that borrower’s business. If you’re providing excellent service, then rates and fees drop lower on the borrower’s priority list whether they realize it or not. Rates and fees matter only if all you have to offer the borrower are rates and fees.

To us, the mortgage is just another transaction, but to the borrower, it is the biggest financial transaction they have probably ever made.

As a result, borrowers enter the discussion with a great deal of anxiety (fear of making a bad decision). Our objective is simple; to relieve the borrower’s anxiety by servicing their need for information, thus moving them from anxiety (mystery) to knowing (confidence). People filled with anxiety seek additional info (shop) while people with confidence buy.

Think about your own experiences. When you have a lack of information, you have a hunger to get information. If you don’t get information from a person you think has the information (because they are more interested in getting information from you), it creates mistrust.

Lack of information creates the need to validate what someone else told you or seek additional information. So if I, as a borrower, do not think I’m getting enough information from you, then I’m going to find someone else and ask them. My need to validate or expand my knowledge base is what causes me to shop… even when I prefer to buy.

If you understand this, then the obvious questions you must ask yourself are; Does your presentation create questions or does it answer them? Are you relieving anxiety or are you exacerbating it?

The originator that asks the last question closes the loan

You could be doing 80% of the work. You answer 8 out of a borrowers’ 10 questions and the borrower thanks you and says they need to think about. Thinking you connected with them, you do not want to pressure them, so you agree to let them think about it. The borrower, wanting to validate what you shared, clicks or calls someone else; the next originator answers a couple of simple questions and closes your loan. I know you know this happens, because you have probably won some loans this way.

You have to realize that while you are interviewing the borrower, the borrower is interviewing you too. When they ask you about rates, instead of assuming they are shopping you, try assuming that they have chosen you.

The rate question should mean the borrower is interested. When somebody asks you about rate, I want you to hear, “I want more information”, not “I’m shopping you”. What you should assume is that you have a borrower who has some anxiety and they need more information in order to feel better about what they’re doing. Your job is to service their need for additional information.

If you believe that Selling is serving, then it should change the way you present mortgage advice. In fact, it should change the way you perceive every opportunity.

If the only change you make in sales process is what I am about to share with you, I am very confident you will immediately improve the percentage of leads you convert into loan applications and closed loans.
Beginning right now I want you to assume:

1) Your borrower has already chosen you
2) That your borrower is qualified

Stop treating borrowers like shoppers and stop treating borrowers like they can’t qualify. Focus on what you want, not what you don’t want.

When you are working with a borrower you know is going to choose you and you know they can qualify for what they want, you provide a significantly higher level of service than if you think the borrower is shopping you or you think they cannot qualify.

If borrowers are choosing originators based on who they trust, I assure you that you will win more loans by treating people like they are qualified and can buy versus treating them like they are shopping you and don’t qualify.

The worst thing that will happen is you will miss the loan, but for me, I would rather work the lead and lose the loan than not work the lead and lose it.
I would rather sell the way people buy, than force people to buy the way I sell

If you have an attitude of servitude with your borrowers, they will notice it. And it will make more of a difference than anything else, rates included. Take the time to find out what your borrowers’ want and spend the rest of the time helping them get it. If you’ll do that, you won’t need any “high pressured” or “slick” closing techniques in order to get them to choose you because choosing you will be the only conclusion they could make.

arscherer
11-20-2007, 12:43 PM
David, thanks for sharing this article. I wrote something similar to this as a Sales Director while holding training seminars for them. I entitled it Increasing Your Sales With Professional Service. It was much more condensed, but I have to say that the points were relatively similar.

Great information, and again, thank you for posting this!

ShortSale
11-20-2007, 01:47 PM
I would rather sell the way people buy, than force people to buy the way I sell.

So you're saying commission breath is bad. lol

David, great article and a belated welcome to WannaNetwork!

Paul

dbartels
11-20-2007, 02:01 PM
Hi shortsale,

I like commission breathe... a lot.

I just think we can have more of it if we will focus on what the borrower wants and needs.

Borrowers are making an emotional decision about the originator, not the rate.

If we focus on the relationship we make the most important sale. The one where the borrower chooses us. Once they choose us, the rate is the rate is the rate.

Jakeduvall
11-20-2007, 02:20 PM
Hi shortsale,

I like commission breathe... a lot.

I just think we can have more of it if we will focus on what the borrower wants and needs.

Borrowers are making an emotional decision about the originator, not the rate.

If we focus on the relationship we make the most important sale. The one where the borrower chooses us. Once they choose us, the rate is the rate is the rate.

Hello David! I heard you are a sharp guy. I am from San Jose CA just a question for you... Do you recommend a REALTOR sells both Real Estate and does home loans? My broker has been trying to get me on this boat for a while...
Thanks,

benny_g
11-20-2007, 02:45 PM
This is why I'm so excited about Mr. Bartels joining our community. David, has an extensive backround, and truly is a person that wants us to succeed.
David, thank you for sharing your newsletter with us.
I like it......:D

ShortSale
11-20-2007, 03:13 PM
Hi shortsale,

I like commission breathe... a lot.

I just think we can have more of it if we will focus on what the borrower wants and needs.

Borrowers are making an emotional decision about the originator, not the rate.

If we focus on the relationship we make the most important sale. The one where the borrower chooses us. Once they choose us, the rate is the rate is the rate.

So true my friend. So true that I'm taking it a step further.

We're using the 247 call capture service and have removed all of the prices.

I call back and engage our prospect in a conversation, then set an appointment with them to talk to one of my LOs. All of this is accomplished without giving the caller the price of the house.

So, it's not about rate, and it's not about price. As you've said it's about education and relationships.

I'll also add that 'showing up' (i.e. calling back right away, being available, etc.) is 90% of it.

Paul

dbartels
11-20-2007, 04:08 PM
Hi ShortSale,

I believe Woody Allen coined that phrase and I agree.

Focus on the relationship and the transaction will take care of itself.

Has very little to do with sales skills and more to do about caring and wanting to help.

dbartels
11-20-2007, 04:17 PM
Hi Jakeduvall,

In my humble opinion, the decision to do both is yours. I have not encountered anyone who has been hugely successful doing both. My recommendation is to pick one and try to do it better than anyone else. Be great at something instead of mediocre at everything.

Also, you could lose referral opportunities because you will begin competing against your originator referral partners.

But if this is something you feel strongly about, as a Realtor you can do it more easily than an originator. Here is how I would handle it.

Before you go with the buyer to look at properties, casually ask them if they have been pre approved. If they say no, tell them why it is important to get pre approved BEFORE they look at properties and ask if they would like you to take a few minutes to do it for them or prefer you refer them to a partner. Most of the time they will accept the convenience of dealing with one person.

Hope this helps.

wheelady
11-20-2007, 08:19 PM
Good message, particulary when restoration of trust in the finance industry is so important! I also appreciated this article in the Promotional Products mag (http://www.ppbmag.com/Article.aspx?id=3822). I had a chance recently to share with some new mtg loan officer trainees. Of course, it's good to be realistic: no matter how hard you try you won't win every time!

Michelle (wheelady@mortgagewheel.com)
www.RealEstatePromoShop.com

Secret
11-21-2007, 12:55 PM
Thanks for inviting me over here to read this piece of yours David. I see your highlighted formula: Sales = Service = Information = Trust = Loan Application = Funded Loan ... trys to hit the point that what the front-line people in our industry do (the originators) begins with 'Sales' ... this article I see focuses on the popular and widely utilized perspective of 'Sales' as the foundation of the loan originator customer relationship. I have heard and seen that notion for the last 2 decades, but not so much before the '88 correction. Therefore, to me, a relatively new concept in this fiducary business customers and I believe we're in. It is one I disagree with.

I too learned a small formula when I began in the loan business in 1965: it is to always provide good quick fast prompt speedy friendly couteous service. It is my view, contray to your understanding, that the central focus on the portion of the overall lending process (the origination), that customers are drawn to credibility #1, and that the position of originator is far more like a 'help desk/customer service' position which has as its principal focus, solving customer problems, than it is like selling a new auto, aluminum siding, etc.

Please realize I didn't come to this opinion because I saw it on the Discovery channel or because I bough the DVD later on, it comes from being an employer in this industry from 1968 up until ... last Tuesday. :p So, it's all based upon first-hand eye-witness observations of probably thoudands of employees over the years, from the perspective of owner. :D

Secret
11-21-2007, 01:10 PM
I just now took the time to re-read your piece, and I see my brain was focusing on the more traditional "selling" lingo I commonly hear over and over, from ordinary podium pitchman who's sole function is fluff and to pump up the egos of the audience (you know the ones, 'I'll show you how to earn $100,000 monthly forever with little or no hard word') - our industry education & training niche is full of them.

I like much of what you have said here David, now that I have taken a second look. :D

dbartels
11-21-2007, 01:36 PM
Secret,

The formula is:

Sales = Service

Service = Information

Information = Trust

Trust = Loan Application

Loan Application = Funded Loan

The "formula" you refer to was just a headline and did not sum up the article. I encourage you to read the entire article. Bottom line is if you want to sell more you need to serve more.

Didn't mean to confuse you or the readers, but I think what I am saying is the same as what you are saying?

Please let me know where your upcoming speaking dates are. I would love to attend.

Secret
11-21-2007, 03:09 PM
Secret,

The formula is:

Sales = Service
Service = Information
Information = Trust
Trust = Loan Application
Loan Application = Funded Loan

The "formula" you refer to was just a headline and did not sum up the article. I encourage you to read the entire article. Bottom line is if you want to sell more you need to serve more.

Didn't mean to confuse you or the readers, but I think what I am saying is the same as what you are saying?

Please let me know where your upcoming speaking dates are. I would love to attend.

Yes David, there does seem to be quite a bit of similar ideas we share.

Our focus at Secret! University is not aimed at LO's and how to sell more/better; we try and hit a significantly wider range of nuts & bolts ... all the moving parts that make up a closed/funded loan ... from stranger to 1003 to funded, and all the various people and activities involved with that endeavor.

The seminar sessions we have are almost always smaller in size (since they are not promoted outside our group as a main-stay of what we do/offer on purpose), but here's a link David to the next scheduled one: http://www.americasmoneycenter.com/conversation.htm :D

HAPPY THANKSGIVING

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