When it comes to mortgage broking, referral partners are worth their weight in gold. Imagine a steady stream of qualified leads, arriving courtesy of a trusted connection.
This "win-win-win" scenario is the magic of referral partnerships: you get happy clients, your referral partner enjoys satisfied customers they can confidently recommend you to, and the client gets an expert to navigate the complexities of their home loan journey.
But how do you unlock this goldmine of referrals and build these powerful connections?
According to award-winning broker Robert Flynn, you need to play the long game.
“People don't often realise how long those relationships take. Brokers meet with a real estate agent once or twice and think: ‘I’m just not getting anything out of this’,” said Flynn, speaking with LMG executive chairperson Sam White on the latest Success Breeds Success webinar series.
“It’s like your best mate from high school. You sat next to them for thousands of hours to become your best mate. This real estate agent who doesn't know you is not just going to start giving you business because you bought him two $4.50 coffees.”
Should brokers cast a wide net for referral partners?
For mortgage brokers, a "typical" week is a myth, according to Flynn. Even so, he prioritises a minimum of 10 client appointments, but strategically fills the gaps with referrer meetings.
"A busy week with 15 client appointments is fantastic," he said. "But then, I might only meet with one or two referral partners, or maybe none at all."
However, during slower weeks with just five client meetings, Flynn switches gears. "That's when I book breakfasts, coffees, lunches, or dinners with potential or existing referral partners," he explained.
There's a key distinction between "referral partners" and "referral sources," he said. Flynn dedicates a significant portion of his week to nurturing the former.
“I've been actively involved in a lot of referral groups for the entire time I've been a broker,” he said. “A real estate agent or an accountant could be a referral source for you, but a referral partner needs to be someone that you share clients with and who you pass business back and forth with.”
“I'd much rather have a smaller group of very active referral partners which is doing regular business together than a shotgun approach where you have heaps of referral partners.”
Referral partner case study
While cultivating these relationships sounds reasonable in theory, things can be different in real life.
Flynn shared an example of how he contacted a potential referral partner the day before.
“I was on the phone to a client of mine who's a wedding photographer. And she was calling me, as she always does, any time she's going to do anything with money.”
Her accountant suggested contributing to her superannuation, but she wanted to confirm it wouldn't impact her plans to buy a house next year.
“I said, ‘Great! It sounds like you’ve got a proactive accountant.’ I loved that she checked with the broker first.”
Flynn said this was the kind of person he’d love to work with so he asked his client if the accountant has a broker relationship already or if she wanted to have a conversation with him.
The client said that she thought would get on really well and organised an email intro.
“It’s easy because you already have something in common, which is the client. And then you can go from there.”
According to Flynn, this was the key takeaway: Your network, including clients and friends, likely know accountants, real estate agents, and financial planners. By fostering these connections, you can build a referral network without a "salesy" approach.
You're simply using your network to connect with others who can benefit from your services.
The symbiotic relationship of referral partners
Since fostering these relationships takes time, many brokers opt for paid leads services.
Flynn said he never pays for his referrals because he “hates being sold to”.
“What I provide my referral partners is my service proposition. And that is I'm going to help them to get the job done,” Flynn said. “Accountants, planners and real estate agents are already working towards a common goal.”
“If you can align your goals, then you're already working towards the same thing.”
Flynn urged brokers to not come on too strong in the initial meetings.
“Unless the conversation naturally steers that way, the meeting is not at all about trying to go: ‘Here's the sorts of referrals that I want.’ I think you need to earn that right,” Flynn said.
“That takes a different amount of time with different people.”
Equally, Flynn said brokers do need to set some context.
“So I'll just sort of say, the reason why I wanted to catch up was I'm always looking for people that I can work with other high quality businesspeople and I'm just wondering whether you'd be one of those people,” he said.
“Maybe there's an opportunity for us, but at this stage, I'd just like to get to know a little bit more about you. I've got hundreds of clients and I like to match people up with the right fit.”
Ultimately, Flynn said the best way to get someone to like you is to give them some business.
Speaking to Whiteman, Flynn said: “Take them out to golf and all of that, but Sam, if I had just met you 30 minutes ago, and at the end of the meeting I gave you three clients, you'd probably like me a fair bit.”
To view the webinar session on-demand, click here.
