Broker feature: How to build a healthy pipeline
In broking, relationships are the building blocks of a successful business. In harder times they become invaluable. Our members’ best success stories are from those who have cultivated good client relationships and built robust pipelines.
Our broker member Faris Dedic, Director of Red Door Financial, a business where 100% of lead generation is word of mouth, shares his tips on success in our broker series.
How to define your position in the market
Faris advocates the following sensible tips for strong market positioning:
A win for clients is a solution that meets their needs. A win for banks means no bad debt. And a win for the brokerage is deals that settle, generate revenue and clients that stay with you over time.
High-end service to all clients
Treat each client well, no matter how much the deal is worth. Communicate sincerely and transparently with your clients.
Trust and respect
Develop trust and respect with everyone you work with. Your clients, BDM’s, staff, banks and credit.
Perceived brand value
In a market with low barriers to entry, it’s important to differentiate yourself from others. A well perceived brand value will reward you in both good and harder times.
Seek to continually update yourself on changes in legislation, industry news and new tools. If you’re in the know, you’ll be better equipped to help all your clients. This also boosts credibility and engages trust.
How to win new business through existing relationships
Warm leads versus cold calling
Leveraging your existing contacts and social media friends is an effective way to gain new business. Using these ‘warm leads’ can be far more fruitful than cold calling.
Referral partner agreements
Try to work out a non-financial arrangement with referral partners. When they refer clients, their brand value is elevated via satisfied clients. No financial kickback.
Establish strong relationships with bankers, BDM’s and credit. Use this time to consolidate these ties.
What is a pipeline?
A pipeline describes the series of work-in-progress stages used to achieve your financial goal and cash flow. As such, it should be realistic to be of any value.
Faris uses the example below to show what a healthy pipeline can look like. He uses these parameters to successfully forecast his business goals:
Goal: Settle $10 million per month
What you need to achieve this:
- $20M ( (200% of goal) in: Application forms out & deals at credit
- $20M ( (200% of goal) in: Documents requested and pending documents from clients
- $5M(50% of goal) in: Unconditional deals in the system
So: $45 million total in pipeline
$10 million settled
These numbers can be substituted with your own to meet your financial objectives.
3 ways to build a strong pipeline
Communication – Respect – Trust
“They have made me and the firm what we are today…” Faris says of these 3 pillars:
Communication is key for a strong pipeline. Be honest, transparent and upfront with your clients, your bankers, team members and BDM’s.
Speak to your clients respectfully. This includes promptly returning phone calls and emails. This may seem obvious but some brokers don’t do it and it’s an easy way to lose business.
Trust is gained through client solutions and reliability. This feeds back into new referrals and new business.
Use this opportunity to review and strengthen your pipeline. Fix the weaknesses and improve upon your strengths.
Watch the webinar on-demand now HERE.