individuals are people and are to be treated with kindness and respect. One never knows who could be a diamond in the rough. Through knotworking, you can start building those ties and bonds today.
Free Fall Networking
DECEMBER 2009 O
MICHIGAN MORTGAGE PROFESSIONAL MAGAZINE
O www.NationalMortgageProfessional.com
I went to a convention in Atlanta for one of my business ventures. I walked away with three potential deals for another business in which I was involved in. I also made two new friends and one acquaintance who shared a great story with me. I encountered these other business transactions for two reasons.
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O First, the woman I was traveling with, a friend Betty had a great deal of respect for me within the industry and felt comfortable referring me to her friends, because she trusted me. She opened the door for conversations and it was up to me to build the relationship and ask for the business. A referral. O Second is what I call “Free Fall Networking.” No, you’re not networking without a net, but you really aren’t there for business nor did you plan or position yourself to be there. It’s an event that leads you to unexpected knotworking opportunities. You bond almost instantaneously with someone, and before you know it, you’re doing business together. This is considered “Free Fall Networking.” Planned networking is when we plan to meet a certain person or to do something, such as attend a function, mixer, seminar or party. Neither
planned nor Free Fall Networking is better than the other. They are just different. Know the difference; learn to understand the dynamics of both to be an expert in networking. Futurists are telling us that relationships will be the most important factor in doing business. The author of Endless Referrals, Bob Burg tells us that “People will do business with those people they know and trust!”
Investing in relationships Quite a few years back, I had an unusual situation occur. I was working as a loan officer for a bank. I had to make a judgment call very quickly. I believe I did the right thing. The situation involved a great referral source, a builder, Larry, who had been my client for years. We had a comfortable, lengthy business relationship. He knew he could count on me to get the job done. We made a deal a few years back never to ask the other person to jump through burning hoops unless absolutely necessary. When asked, then you knew it was serious and immediate action would be taken on both sides. We discussed situations rationally, without unreasonable expectations of one another. We had built a relationship on trust, loyalty and mutual respect. He called me one morning and was interested in refinancing his own home loan. He asked me, “What could I do to help?” He called during the worst possible week! This was during the 1993 refinance craze when banks, from time to time, would raise their rates just high enough to slow down the volume giving them a chance to catch up and breathe. The bank I represented had done just that, raised its rates just slightly over
current market rates. I knew that we were higher than others at this time and there wasn’t anything I could do. So it was my dilemma! I knew my rates were not the best, competitive maybe, but not the best! This was my great business associate and referral source. If I quoted Larry my rates and he made a few phone calls, he could think I was taking advantage of our relationship, especially after all the business he had referred to me. He would have probably laughed and said, “What are your real rates?” I made a quick decision. I knew which lender had the best rates in town. It was also the lender who was kicking my butt! I also knew on a normal daily basis they weren’t the lowest and they didn’t have the niche products that I had. He didn’t need a niche product. All he wanted was the best rate. He was looking to me to give him the best rate. So I did! I took a risk. I said to him, “I can tell you where to go today. They have the best rate not only in town, but also in three counties. I cannot come close to their rate. Please, this is between you and me. I’m telling you this for your personal business. Next week, my rates will be down again, but not today. I want you to be happy as my business partner, so I am sending you to my competition.” I was playing Miracle on 34th Street, Macy’s referring Gimbels … Gimbels referring Macys. I referred him to another lender.
offering. I know it’s slightly higher than most, but we have a relationship so you have to work with me. You have to do your deal at the higher rate because it’s me. No other reason, I cannot beat the rate. I have the same service, but you have to take this rate because of our relationship.” How long do you think that our relationship would have lasted? I would have lost not only the relationship, but his respect as well. I opted to lose the transaction but keep the relationship. The very next week, he referred me to one of his construction clients, as always, no reservation or hesitation on his part. When you find yourself in a similar situation, think twice before you make a sales pitch to someone with whom you have a relationship. Always put the relationship before the transaction and commission!
What lies ahead
There will be changes in the future that will affect the way business is conducted. Technology will appear as a stronger force in sales, marketing and customer service. It is convenient, relatively easy to set-up and cost effective. LinkedIn, Facebook, Plaxo and Twitter are key marketing components, as well as a fabulous way to stay in touch with possible referral sources. By build the relationship first, referrals will come later. The world is evolving and we are history in the making. We may not see it happening, but we are creating history. Keep the relationship, We all need to take inventory regarding how we expect to grow our business in lose the transaction I lost the transaction, but kept the rela- this “new marketplace.” tionship! In fact, I even solidified our relationship. I lost the transaction, but I Laura Lynn Burke has been selected from didn’t lose my friend as a colleague in a nationwide search to be featured in the process. I strengthened his trust in Stepping Stones to Success, a highly sucour relationship and in me. I looked like cessful book series. The book features a “hero” instead of a “loser!” If I had best-selling authors Deepak Chopra (The tried to sell him on a bogus interest Power of Purpose), Jack Canfield rate, I would have risked our entire rela- (Chicken Soup for the Soul), Dr. Denis tionship, one of mutual trust and Waitley (featured in The Secret) and respect. I also kept control of where I Laura Lynn Burke (Networkolog) who are sent him. I knew they couldn’t fill my joined by other well-known authors each shoes for the future needs of his cus- offering time-tested strategies for success tomers. What if he’d been dissatisfied in frank and intimate interviews. Laura with my assistance and went in search is also the CEO and founder of of another lender on his own. Who then Footprints International d/b/a The might he have stumbled upon, a poten- Mortgage Institute, a training and contial new source for his customers. I did- sulting company designed with you in n’t want that to happen. mind. For more information, call (708) He was happy and respected my can- 692-6199 or e-mail llynn145@aol.com. dor because in his time of need, I came through. It didn’t matter that I didn’t Visit author Laura Lynn have the best interest rate. What matBurke’s Web site at tered was that I was the person who www.lauralynnburke.com found the lender who did give him the where she arms you with the best interest rate. information to “Prepare today for What if I had said to him, “I expect tomorrow’s changes, and you will stay you to take the rate and program I am one step ahead of the competition.”