Lately I have heard from a few mortgage brokers who keep some unusual company. One guy’s best referral partner is a hot tub salesman. Another broker gets several deals a month from a hair stylist. I guess that shouldn’t strike me as unusual — I mean hair people talk all day, and they are sure to be in the know if some one is house hunting. I have established a referral relationship with a great insurance guy, and to my surprise, he really is different from the other insurance joes. For starters, he’s getting his financial planning license in addition to being a third generation State Farm agent. His best referral partner is a guy who builds choppers for a living. I’m talking about the fat tires, massive engine monsters that will set you back $60,000. Come to find out, these barely street legal machines are not that easy to insure. That’s where my insurance guy comes in. He gets a steady stream of referrals from this chopper shop because most insurance guys aren’t used to insuring such an unusual combustion beast. So lately I have started thinking about unique referral partners.
One of my goals for 2008 is to facilitate some unique referral partnerships of my own. I want to build relationships with some top notch contractors. I’m not talking about the guys with a rusted out toolbox in the back of an old pickup truck. I want to work with exceptional contractors — the people who have established companies with clientele, marketing budgets and expansion plans of their own. In thinking of ways to add value to these companies, I got to thinking about the annual cost vs. value report. Every year a bunch of smart software guys do a national survey on remodeling projects. Their goal is to find out how much remodeling projects cost and how much of that cost is recouped at the time of completion — meaning how many dollars the project adds to the value of the home at the time of completion. The numbers are also broken down by region. For example, 83% of the costs of a minor kitchen remodel in my area (the mountain region) will be recouped at the time of completion. 81.2% of the cost of wood windows are recouped at the time of completion vs. only 67.4% for a roofing replacement. My thinking is that if I can help contractors close more deals, I will get referrals in the process. Using the cost vs. value data, I have created the following flyer for kitchen contractors, cabinet makers and appliance companies. I plan on revising the flyer as I establish relationships with deck builders, window companies and other established companies in the construction industry.
While we’re on the subject, I’d love to hear about the unique referral relationships that some of you have established.
Wade Young is a Denver Mortgage Broker
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{ 2 comments… read them below or add one }
Anytime someone starts thinking outside the parameters of what the masses are doing I say “BRAVO!”
I’ll bet you will fail at most of the things you try outside the box. But that’s okay. You’re looking for the one that will work.
When I said I wasn’t going to continue working with people who wanted to own and live in their own home real estate agents everywhere said “what?”
You’re doing the same thing.
Immigration attorneys have been a great one for me. Anyone that can afford the fees that an immigration attorney charges can afford to put 30% down on a home and buy a small business to get their Visa’s. This has been a tremendous source of leads for me. Also, I get contacted through my website by lots of people looking to relocate to the US - so I kick them over to them.
Good post, I’m interested to hear other peoples comments.
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