Loan Officer Leadership Podcast

043: 2020 Business Plan: Agent Review

December 18, 2019
Loan Officer Leadership Podcast
043: 2020 Business Plan: Agent Review
Chapters
Loan Officer Leadership Podcast
043: 2020 Business Plan: Agent Review
Dec 18, 2019
Steve Kyles

In this episode, Steve Kyles touches on how habits, whether good or bad, determine the level of success in your business and life. Furthermore, Steve goes deeper in business planning and talks about your agent review/accounts pyramid. In this episode, you'll receive 3 questions to ask your referral partners and go DEEPER  in 2020.

Join our facebook group, Loan officer Leadership Group and Make sure to SHARE and SUBSCRIBE to the weekly podcast.

Show Notes Transcript

In this episode, Steve Kyles touches on how habits, whether good or bad, determine the level of success in your business and life. Furthermore, Steve goes deeper in business planning and talks about your agent review/accounts pyramid. In this episode, you'll receive 3 questions to ask your referral partners and go DEEPER  in 2020.

Join our facebook group, Loan officer Leadership Group and Make sure to SHARE and SUBSCRIBE to the weekly podcast.

Speaker 1:
0:09
[inaudible].
Speaker 2:
0:09
Hey, welcome back to another episode of the loan officer leadership podcast. I'm your host Steve Kyles and I am thrilled to be on this journey with you each and every week to get better and to continue making a difference. Hey, it's our commitment to help you break through the barriers and through the challenges you're currently having by providing tools and tactics to get better each and every week. And so, Hey, I got to tell you, thank you for being a part of the journey with us. Thank you. For those of you who are joining the Facebook community group, a loan officer, leadership Facebook group, it is growing. We just started it in October and see in such great growth, uh, in that group. So make sure if you're not already a member of the group, go in, ask, uh, fill out a couple of questions, give us your email address, uh, we'll let you in.
Speaker 2:
0:59
But the conversation has been rich, uh, things from products to programs to business planning and ideas and how each piece, each person really in the group is just getting better. So, uh, continue to join us on that. And you know what I love is on episode 41, we talked about business plan. And so today I'm going to re, uh, really just share a few more thoughts on the business plan. I'm excited. Next week's episode, I've got a good friend of mine, Adam Outland, uh, is going to be on the episode. So you're going to want to check that out. He's going to be talking about business planning and thoughts on prospecting and mindset. Uh, but this week here's what I wanted to do. I want to encourage you as you roll into the new year, about to go into January. I want to encourage each of you to get a book.
Speaker 2:
1:45
Uh, we highly recommend called atomic habits. I'm going to share just a quick nugget out of that book. And then after that, uh, I wanted to build on episode 41 where we talked about the business plan. There were four things we talked about. We talked about why, why do you do what you do? Number two is where am I going? Number three is who do you need on the team to get you where you want to go? And the fourth thing is this, what are you going to do different this year that you didn't do this past year? Because we talked about it on episode 41 so many times at coach Gaz and they say, Hey, I'm going to go from 10 to 20 million. The biggest question is what are you going to do different? Well man, I'm just going to keep doing the same thing, but I'm confident I'm going to grow my business.
Speaker 2:
2:32
And here's the reality. If you're not willing to do something different today to make up the margin, it's just a pipe dream. It's so what I want to talk about after I share a few thoughts on atomic habits is we're going to talk about the accounts pyramid and how to evaluate the relationships you have and who to prospect for in 2020. But the reason why I want to focus on the book atomic habits real quick is this. Um, as you are looking, feed your mind with resources. Grab the book. James clear is a dynamic author. Uh, you know, it's amazing that habits, uh, allow us to be successful and to build on success day after day. You know, it's interesting what I'm realizing is habits create a compounding effect and every day they allow us to get a little bit better and a little bit more efficient. And the reason why I want you to grab this book, I love what James clear says.
Speaker 2:
3:28
Um, he says it this way, time magnifies the margin between success and failure. It will multiply whatever you feed it. Good habits make your time an ally. Bad bad habits make your time the enemy. And so even starting and perfecting one habit each quarter can make the world of difference in the way we live. So this year in 2020, instead of focusing on what major things can I accomplish in the next year, what I want to encourage you is what habit or what can you change? Just one habit each quarter that will allow you to get 1% better every day. Habits won't help you improve in the days and weeks or months. They will help you create a lifetime of successful living. And one of those habits I want to talk about today is regularly, uh, going back through your accounts pyramid. And so one of the things that I want to encourage you as you're looking at your business plan is your accounts pyramid.
Speaker 2:
4:32
And I gotta tell you the core probably has one of the best models on it. I follow so much of the core philosophy. I was a student in the core for over six years. Uh, some. So my dearest friends and some of the guys you've been hearing on the podcast come out of those relationships. But here's what I want to challenge you is as you're looking at your business plan, and especially question number four that says, what, what are you going to do different today that you didn't do last year so that you can go further faster in 2020? I think some of us have to get back in and look at our accounts pyramid. We ran a list of who referred the most close transactions and I have to tell you, drum roll please. It is shocking again, that over half of my business is completed by [inaudible].
Speaker 2:
5:19
And it is the people that you do one transaction a year may be two. There simply aren't enough what we call channel accounts. And so what I want you to do is go through and look at your database of who closed this year. And when you're looking at an accounts pyramid, here's what you gotta look at is how many referral partners did I have? How many referrals did those partners give? So we've got, how many do I have? How many referrals did I get from each? And then what's the conversion weight rate? So if somebody gave me a hundred leads, let's say I only closed three transactions, the conversion's, um, and then what are we doing? Or how are we adding value to each other? And I think as you're looking at your business plan and you're evaluating, um, what am I going to do different this next year?
Speaker 2:
6:09
You've got to look at your accounts pyramid and say, okay, do I currently have enough channel accounts? Uh, do I currently have enough agent partners or builder partners or, uh, business partners referring me business? And so a channel account is somebody who gives you more than 12 closed transactions a year. Do I have enough channel accounts in order to achieve my number for 2020. Now you may not have a channel account, which is 12 or more close transactions. The next section is accounts. Accounts are anywhere from four to 11 closings in a year from a single source. So do I have enough channel accounts? Do I have enough accounts? Or the last one is, are they in my top 30 or top 40. It's my top group of agents that send me one to three, uh, transactions. So as you're looking at your business plan, here's what I would challenge you.
Speaker 2:
7:05
Uh, I think most of us in me, including when I look at it, I only have three channel accounts. And that's crazy considering this was one of my best years I've ever had is just, uh, I spent too much time going wide and not enough time going deep. And so as I'm looking at how do we coach through that, you want to know how many referral partners, how many referrals did I get, what's my conversion rate, and how am I adding value to their business? Because you know, here's, here's the challenge. You've got to find out what do I need to do differently now to help me close more business in 2020 and here's the challenge. If you don't have enough channel accounts, you don't have enough counts. My question is, who are you putting on that prospect list in order to get more business in 2020 so what tends to happen is many of our loan officers that are listening, you've got people that know, like, and trust you, and they'll send you every deal.
Speaker 2:
8:07
They can send you a, I've got a loan officer I just coached this week. And he said, man, they send me everything. And I say, great, how many transactions did they close a year? And you know what the answer was? 10. And I said, well, who are you prospecting? I'm prospecting agents that closed double digits. And so when I went back, here's what you've got to look at. If somebody closes 10 transactions, 10 transactions on average means they have five buyers and five sellers, right? Five buyers, five sellers, that's an average out of the five buyers that they can refer, how many come without financing? Typically two, maybe three if they're lucky. So out of 10, they can refer you two to three transactions or two to three opportunities a year. And the truth is you're only closing 20 to 25% of your opportunities. So guess what?
Speaker 2:
9:03
You're going after an agent that closes quote unquote double digits, but they're only able to refer you three opportunities of which you get half or one a year. There in lies your onesie, twosies. And here's what I'm dying laughing is we're all, uh, we all have it. So what you've got to do when you're thinking about your business plan is who's closing more than 30, 35, 40, 50. Uh, I've got an agent that today, uh, we're in the last two weeks of December and he'll find 50 transactions as a realtor, but I've only closed six transactions with him. That's crazy. And he sends me every lead he gets outside of relo. Um, and it is an amazing thing. You just have to go after agents that are closing more transactions. Now I'll tell you that your agent target lists should not be all that you do.
Speaker 2:
9:58
I would say agents would probably be good. 50, 60% of what your focus should be. Then you need at least 25% of your past client business, at least 10 or more percent in business relationships. Uh, and then five to 10 in builder or miscellaneous business. So you need different legs. But what I want to challenge you in your business planning is you've got to reevaluate where your leads came from, how many of those leads turned into referrals, and also what's the conversion rate? Because if that's not enough to help you grow, my question is who are you prospecting now? And then when you're prospecting agents, you've got to make sure you know that they are closing enough transactions for you to get enough at bats to win and move the needle in your business plan for 2020. So make sure you're finding out, Hey, if they close 10, put them in your onesy twosy followup.
Speaker 2:
10:53
And that's what I love about, uh, we send an email every other week to 1400 of our agents, but I assure you most of them are onesie, twosies. Uh, I don't do lunch, individual lunch or coaching with onesie, twosies. I invite them to my monthly lunch and learn because it's not individual time for those guys, any broad band touch and reach. So I'm hitting them with social media, I'm hitting them with biweekly emails. They're getting my letter of the heart, uh, which is a monthly mailer or my evidence of sec success, which is a every other month mailer. So I'm trying to touch them with technology and not invest as much time. And what I'm focused on now is who can help me close 12 or more transactions a year, uh, or anywhere from four to 11 transactions. But that's where your energy and efforts gotta be.
Speaker 2:
11:47
Now, once you begin to realize where you're deficient, do you have enough accounts or channel accounts? You have enough accounts or are you full of onesy twosy [inaudible] now you've got to build your prospect list. You got to make sure they're closing more than I'd say 36 transactions a year. I know it draws the market down. There's not as many, but trust me, if they don't close enough transactions, you won't get enough at bats. Hey, and then here's the last thing in planning, I think it's a great way to close out the year with your current partners. And for some of us, uh, you may not have been able to actually reach out to the ones that you're closing business with yet. So the first few weeks in January is great, but here's what you wanna do. You wanna do a look back with your accounts pyramid.
Speaker 2:
12:32
Uh, and you want to have a one on one with the ones you're closing more than two to four transactions and you want to ask these three questions, Hey, you want to tell them here's how many families we served in 2019. So based on that success, how many families or people do you think we can serve together in 2020? I think it's important to have that conversation because you want to know if anything has changed. There are accounts or people you've worked with that are building additional relationships and they may say, Hey, I'm not sure how many we're going to close, but at least it gives you the opportunity, know where you stand and have the conversation. Uh, so what you want to do is you want to say, Hey, based on our success, how many families and people do you think we can serve in 2020 second question is how can I improve on how I'm serving you?
Speaker 2:
13:23
How can I improve on how I'm serving you? A great open ended question. It'll give you insight to what they feel like you're doing to add value. Hey, in the third one is, this is based on some of your personal and professional growth goals. How can I support you in 2020? And so I think these are critical questions to be asking, uh, with your channel accounts, with your accounts. And then for some of us, it's a wake up call to say, Hey, I got a lot of onesie, twosies. Who am I going to prospect for 2020 to be a breakout break through year? Hey, and remember this. January, 2020 can be as large as any month of the year. As long as you're consistently prospecting. Don't go sleepy on the holidays. Prospect, prospect, prospect, make the calls when you're working. Work when you're off. Be engaged with your family and friends.
Speaker 2:
14:15
Uh, but when you're working, don't let the holidays cause you to LOL asleep. People are buying the market's hot in start January with a bang. Hey guys, with that, I hope you enjoy the podcast. Do me a favor. Would you go to iTunes and specifically subscribe and or give us a testimonial, five star review. It helps us on ranking in the podcast, uh, engage in the, in the Facebook community. We want to be a part of your journey. You know, I've got another testimonial yesterday and I absolutely love them. So, uh, if you've got something to share, insight, something that we've done to help you grow, uh, give us a testimonial. We'd love to see how we're making a difference and an impact in your life. So, Hey, with that guys, make sure, uh, to grow and grind, be purposeful in your growth and relentless in your effort. Remember, anything worth doing is worth doing badly. Just get started. So you
Speaker 3:
15:25
[inaudible].
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