I've read a lot of articles that talk about asking for referrals to generate a steady flow of business. Most everyone agrees that referral business is more reliable and easier to get new applications or set an appointment. If you consider how much business is left on the table during the loan closing business, you start to shake your head in despair. Most originators have a difficult time asking for referrals because they either don't know how or feel it is imposing to ask. Every loan officer should have a consistent way to ask for new referrals each time they originate a new loan application. Think of the steps we go through as separate opportunities to build your business. The five business building steps are as follows:



Building Block #1: During Loan Application

Building Block #2: Following Loan Application

Building Block #3: Before Closing

Building Block #4: During Closing

Building Block #5: Following Closing

Use strategic thinking when you approach building your business during these five steps. Most people don't realize that Marketing is the law of attraction. You get what you ask for, so be sure to know what type of referral you are looking for. Here is one way of asking: Who do you know that just got married and needs more room? Do you know of anyone of your friends looking for investment property? Try to get four to six referrals from each customer. Use a systemized method of asking for referrals to grow your loan pipeline with every loan application.

Most originators don't know how to ask for a referral or feel too uncomfortable to consistently be asking. Remember the old Saying "Always Be Selling" which is a credo for the sales industry. Well in my opinion, we should always be networking and asking for referrals. There is very little to understand, no hidden secret, just common sense about how people behave. Whenever you give great service or get acknowledged for doing good work… A red flag should go up to say NOW!! This is what I refer to as a strong emotional response point in time. Cherish these, but more importantly Ask For The Referral! I call these emotional points-in-time a "response-point.". When a client makes a general acknowledgement about your service provided. At this very moment you have an opportunity to build your business by word-of-mouth advertising. Mention specific times you have "saved-the-day" in a loan scenario. Set a tale in writing before hand that you can recite easily before asking your client for a referral or go straight to the close and ask right then.

You can literally double your business if you know how to generate or prompt The Referral. Prepare to ask anybody you want for a referral without being impolite or imposing. You first must set-up the other person's way of listening to you by asking for their permission. For example: Can we take 10 minutes to discuss ways how I can grow my business working with people like yourself? Another approach after hearing a response-point would be to say "I have something I have wanted to ask you". In fact you can prospect for referrals anytime with past clients during their annual check up call.

If a loan officer wants to be successful, they have to overcome their fear or reluctance to asking for referrals. Keeping a long-term relationship going with past clients will maintain a solid business model with consistent income streams. Make sure your referral marketing system is written, practiced, and well rehearsed. Always listen for the positive emotional response, and then ask for the referral. Build referral hints into the mind of your client from the very start and explain that you run a referral business and rely on their help with referrals to grow your business. Always deliver quality service with more benefits than your clients expected. This way they are always grateful to you and feel more obligated to return the favor. Think of asking for referrals as word-of-mouth advertising for your business building success campaign.