Last week I had the opportunity to speak at CMP’s Mortgage Summit. The topic was “Broker Like a Rockstar” where I focused on the fact that sometimes we need to reinvent ourselves. To really look at what we are doing and how we are doing it. We talked a lot about not only understanding our value proposition as brokers, but also believing that value and being able to communicate it with our prospective clients. You see, our beliefs ultimately drive our behaviours and our behaviours drive our results. You need to find the value that you offer your clientele, the value that you truly believe in, and find a way to communicate that to your prospects.
Too few of us have a good understanding of the value that we bring to the table and as a result when challenged, we default to price (rate). In the absence of value price is all you have. So you better make sure you understand the value you provide. One example we discussed is our value to the marketplace. Not only do we provide value to the individual client but we, as a collective, drive immense value to the marketplace. When I first started selling mortgages for the bank we sold posted rates and maybe, just maybe if you were a superstar client you might get as much as a .5% discount off that rate.
If we did not exist then clients would be paying posted, or close to posted rates. If you do not believe that this fact alone is of value to your clients then you need to find a new line of work. Assuming that you believe this fact, you now need to find a way to clearly communicate this to your client. You need to do this at the beginning of your relationship with your client not the end. You need to ask your client for their commitment to work with you once you have had a chance to explain what it is you do and the value you can provide to them as an individual. One of the biggest challenges I hear from brokers is the old “My bank matched your rate” game. The next time you are asking your client to commit to working with you, forget about saying “If you don’t work with me I don’t get paid”. Clients don’t care. Clients care about how it impacts them, not you. Try something more along the lines of “If all my clients had their bank match my rates pretty soon I’d be out of business. You may or may not care about that but trust me, if that happens guess what rate you are paying at renewal?” Then pull up the RBC website and show them the posted rates. We, the broker channel, offer so much more value than what most of us are prepared to take credit for. That is a mistake.
This is an oversimplified example of a strategy to deal with rate shoppers and the bank matching issue. You can see that in order for any of this to work we have to believe in the value we provide our clients. My challenge to you this week is to take some time and write down what exactly it is that you bring to the table for your clients. Spend some time clarifying your value proposition in your own mind and once you have done that you can focus on finding ways to clearly communicate that to your prospective clients. Please share some of your thoughts below and I will do a follow up post summarizing some of the other things we discussed.