The Ultimate Guide to Boosting Your Mortgage Broker Business Through Referrals

As a mortgage broker, generating leads and growing your brand can sometimes feel like a daunting task. However, there's a powerful tool at your disposal that can make this process much more effective: referrals. In this blog, we will dive into the best practices for maximising your income through referrals, address common mistakes, and provide actionable steps to ensure your clients are eager to recommend you to others. Whether you're an employed or self-employed mortgage adviser, these insights will help you leverage referrals to their full potential.

Why Referrals Are Your Best Leads

Referrals are arguably the best way for mortgage brokers to generate leads. Why? Because these leads come from satisfied clients who have already experienced your service and are willing to vouch for you. This trust transfer is invaluable and often results in higher conversion rates compared to other lead generation methods.

The Importance of a True Referral

It's crucial to understand what constitutes a true referral. A true referral comes from someone who has directly worked with you and has paid for your services. They have first-hand experience of your expertise and are motivated to refer you because they want their friends or family to receive the same excellent service. This is different from a casual lead passed on by an acquaintance, which may not carry the same weight of trust.

Common Mistakes in Referral Generation

One of the biggest mistakes mortgage brokers make, especially those who are self-employed, is attempting to bribe clients for referrals. Offering incentives like Amazon vouchers or discounts might seem like a good idea, but it can backfire for several reasons:

1. Misaligned Motivations: When clients refer you for a reward, they might not be genuinely endorsing your services. This can lead to lower-quality leads and clients who are not a good fit.

2. Undermining Trust: True referrals stem from trust and satisfaction. When you bribe clients, it undermines the authenticity of their recommendation.

3. Regulatory Issues: In the UK, offering financial incentives for referrals can be tricky to navigate within FCA regulations.

Delivering Impeccable Service

The cornerstone of generating genuine referrals is delivering impeccable service. Your clients should feel heard, respected, and informed throughout the entire process. This level of service doesn't happen by chance; it requires a well-defined system.

I recommend implementing a seven-step customer journey roadmap. This roadmap ensures that every client receives consistent, high-quality service, from initial contact to post-closing follow-ups. Here are the key components of this roadmap:

1. Initial Consultation: Understand the client's needs and set clear expectations.

2. Regular Updates: Keep clients informed at every stage of the mortgage process.

3. Personal Touches: Send personalised messages or small tokens of appreciation.

4. Milestone Celebrations: Celebrate important milestones like mortgage approval or completion.

5. Post-Closing Follow-Up: Check in with clients after they've moved into their new home.

6. Annual Reviews: Schedule annual reviews to assess their mortgage needs and explore refinancing options.

7. Consistent Communication: Maintain regular contact to stay top-of-mind and ask for referrals.

Asking for Referrals

Many brokers shy away from directly asking for referrals, but this is a missed opportunity. There are strategic points within your service process where asking for referrals can be highly effective:

• At Mortgage Offer: Once the mortgage offer is secured, express your gratitude and ask if they know anyone else who could benefit from your services.

• After Moving In: When clients have settled into their new home, it's a perfect time to request referrals.

• Annual Reviews: During your annual check-ins, remind clients of your services and ask if they know anyone who might need a mortgage expert.

Creating a Referral-Friendly Environment

To encourage referrals, you need to create an environment where clients feel motivated to refer you. Here are some tips:

• Exceed Expectations: Go above and beyond to make your clients' experience exceptional. Small gestures like personalised thank-you notes or unexpected follow-up calls can leave a lasting impression.

• Stay Connected: Use social media and email marketing to stay in touch with past clients. Share valuable content, updates, and success stories to keep them engaged.

• Show Appreciation: When clients refer you, acknowledge their effort. A simple thank you can go a long way in reinforcing their positive experience.

Avoiding Pitfalls

It's important to avoid the pitfalls associated with referral generation. Instead of offering financial incentives, focus on building genuine relationships and delivering outstanding service. Here are some things to avoid:

• Discounting Fees: Offering discounts for referrals can cheapen your brand and attract clients who are only interested in the savings.

• Gifts and Vouchers: As mentioned earlier, these can undermine the trust and authenticity of referrals.

Leveraging Your Network

Your existing network is a goldmine for referrals. Reach out to your past clients, industry contacts, and even friends and family. Let them know you're open to referrals and appreciate their support. Here's how to effectively leverage your network:

• Client Newsletters: Send regular newsletters to keep clients informed and remind them of your services.

• Social Media Engagement: Use platforms like LinkedIn, Facebook, and Instagram to connect with your audience and share valuable content. Follow me on Instagram for more tips: @ashborland.

• Networking Events: Attend industry events and local meetups to expand your network and connect with potential referral sources.

Utilising Content Marketing

Content marketing is a powerful tool for establishing yourself as a thought leader in the mortgage industry. By providing valuable content, you can attract potential clients and encourage referrals. Here are some content ideas:

• Blog Posts: Write informative blog posts on topics like mortgage tips, industry trends, and client success stories. Check out my blog for more insights: www.ashborland.com.

• Podcasts: Start a podcast to share your expertise and interview industry leaders. My podcast, "Mortgage Business Mastery," is a great example of how to simplify success for mortgage brokers: Listen here.

• Video Content: Create videos that explain complex mortgage concepts or showcase client testimonials.

Call to Action

If you're ready to take your mortgage broker business to the next level, I invite you to explore my free mortgage marketing blueprint. This comprehensive course covers seven modules designed to help you increase leads, close more deals, and maximise referrals using social media and simple social selling processes. Join the many mortgage brokers who have already seen amazing success: Get the blueprint now.

Conclusion

Generating referrals is not about bribing clients or offering financial incentives. It's about delivering exceptional service, building genuine relationships, and consistently asking for referrals at strategic points in your client journey. By following these steps and leveraging your network, content marketing, and a structured approach, you can create a steady stream of high-quality leads for your mortgage broker business.

Ready to transform your referral strategy? Learn more about working with me as a coach and how I can help you grow your brand and increase your sales: Work with Ash.

For more tips and insights, follow me on Instagram: @ashborland.

Thank you for reading, and here's to your continued success as a mortgage expert!