Finding the Right Strategic Alliance Partner
Strategies in Action Kit July 2002

Look:

Listen:    Click Training (23 mins)

Learn:

As you read in the June Strategies in Action kit Before Unit Strategy, Nancy Anderson of Houston, TX and Lyle VanDenbos of Milwaukee, WI were both brand-new real estate agents when they joined the By Referral Only Community. As new agents, they needed to build a fire in the Before Unit of their businesses.

The June strategy, a full-page Homes Magazine lead-generator ad, worked very profitably for them, at opposite ends of the country. They both generated multiple transactions each month as a result of the campaign. And the campaign didn't cost them a cent — because their strategic alliance partners paid for the ad.

There are lots of reasons to form Realtor or Lender strategic alliance relationships. You benefit by working with someone who is as committed as you are to delivering world-class service and building a referral-based business. You give each other referrals. You spend less time looking for clients. You spend less money on marketing to strangers. Your clients benefit by working with a Realtor/Lender team that cares about their needs, exceeds their expectations, and nurtures the relationship after the transaction closes. And those Raving Fans send you both referrals!

How to you find a strategic alliance partner whose mindset and principles are compatible with yours — with whom you can build a relationship based on trust and mutual respect?

Start By Looking Within the By Referral Only Community!

This month's strategy will offer several ways to make contact with potential strategic alliance partners within the By Referral Only Community. We'll also include a strategy to help you if there are no community members in your immediate geographic area. Though, as our April Super Servants Of The Month, Penny Alper and Vicky Pinckney, said, "If they don't exist geographically close enough to you, then make one! Find somebody whose philosophies are in line with your own, and make it critical that they become a part of this organization."

Finding a Strategic Alliance Partner
Within the By Referral Only Community

One way to find a By Referral Only strategic alliance partner is to visit the Community Forum Message Board at www.byreferralonly.com. On the Community Resource Center page click the "Message Board" tab, then click "Community Forum." This area of the website is available to all members — and it's a popular place! Members use this area to not only find other local community members, they also use it to make connections all across North America. Here's an example:

I am in need of a Lender for some clients who are relocating from MN to CO. These clients are working with one of my best clients (an agent) to sell their home in MN and have already hooked up with an agent in CO, but need a good, honest Lender. Let me know if you can help — my e-mail is…

What an easy way to begin an alliance — and it's available 24 hours a day!

A second way to find a By Referral Only strategic alliance partner is to contact your Coach (800-950-7325). Say you're a Lender in Detroit and you'd like to meet a Realtor in the same area. Your Coach will check our database, find a few Realtors in your area and give you their names, e-mail addresses and phone numbers. From there it's up to you to make contact.

One suggestion: Once you initiate a search for a By Referral Only Community member via the Community Forum Message Board or through your Coach, it's important that you follow through by responding to a phone call or e-mail, or showing up for a meeting. Please extend the same courtesy to other members as you yourself would expect.

Another way to connect with a By Referral Only strategic alliance partner is at The Main Event, at Community Remodel Days and at Mastermind meetings. All three are not just opportunities to update your skills and learn new strategies, they're great occasions to network with members from your immediate area — and all across North America. Bring plenty of business cards!

Finding a Strategic Alliance Partner
Outside the By Referral Only Community

If you've tried all of the above and are still finding it difficult to connect with a local member of the By Referral Only Community, you have the option of forming an alliance with a nonmember Realtor or Lender. How do you find good candidates and how do you determine if their mindset and way of doing business is compatible with yours?

Begin by listening to both of the interviews Terry Hunefeld and Dean Jackson did with Nancy and Lyle in MORE Document #5601. Lyle relates how he arranged an appointment for a strategic alliance candidate to listen to the Nancy Anderson Click Training where Nancy related her numbers and success. When the Click Training concluded, Lyle simply looked at the candidate and asked, "You in?" That's how easy it can be to find a strategic alliance partner!

How it Works:

  1. If your strategic alliance candidate is a By Referral Only member: Arrange to meet and discuss both of your definitions of "world-class service." Don't skip this important step. This is the opportunity for both of you to craft an Ultimate Scenario for your vision of a quality strategic alliance relationship that will benefit both of you and your clients for years to come.

  2. After your meeting, you must feel good about the relationship. Your "psychic tentacles" should be telling you that you have selected the right person from both an involvement and financial standpoint, but more importantly, from a world-class service standpoint. If you're having any misgivings, state them clearly now, or politely disengage, or both — and interview other candidates.

  3. Consider using the Find-A-Realtor or Find-A-Lender Letter on the enclosed CD as a Preferred Realtor Agreement or Preferred Lender Agreement. Even if you don't formally sign the document, read it and draft your own expectations and discuss them in detail. Now is the time to set the tone for what you want the relationship to look like in the future.

  4. If your strategic alliance candidate is not a By Referral Only member: Send the Find-A-Realtor or Find-A-Lender Letter on the enclosed CD to 30 professionals in your community.

  5. Only Realtors or Lenders who are most likely to give superb customer service will respond. Don't think twice about those who don't respond to your letter. If you don't get a good response after mailing out 30, then mail another 30. We have never had a member mail more than 100 to find the perfect partner.

  6. Don't ever call someone to follow up on your letter — the positioning is all wrong. You want them to call you first. (It's a test!) You want the hungriest, hardest working, most-clear-on-the-concept-of-good-customer-service, most innovative prospective partners calling you, rather than you calling them.

  7. When you meet, be prepared to play the relevant portions of the Click Trainings from MORE Document #5601. Explain what you will be listening to, why you are a member of the By Referral Only Community, what By Referral Only is, why you selected her and finally, that after interviewing her today, you may extend to her the "first right of refusal" to participate in this campaign with you. (What is unsaid, but understood, is that if she does not elect to participate, you will be offering the opportunity to someone else. Note the subtle but powerful use of the words "after interviewing her" and "today" in the above dialogue.)


  8. Whether your new strategic alliance partner is a member or nonmember: You and your new partner can now share in the costs of using your Automatic Prospecting System (APS) to get ready-to-buy buyers, sellers or borrowers to call you.

  9. You both share the clients — Realtors find the home, Lenders place the loan. By using By Referral Only principles, you each make the other look terrific in the eyes of the clients.

Download These Templates:

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Samples/Templates:

Find-A-Realtor Letter (for Lenders)

Dear (Realtor name):

     Would you be interested in my sending you a steady stream of highly qualified, ready-to-buy buyers in return for your commitment to treat those buyers like royalty?

     I'm writing this letter because I'm frustrated. In your business, like mine, many Realtors promise high-quality service and then don't deliver. I have implemented a system of excellence for buyer clients here at Anchor Mortgage Company that virtually assures a steady stream of referrals and repeat business.

     My programs are so effective that I'm looking for another Realtor who will make a personal commitment to continue that system of excellence throughout the homebuying process.

     I use real estate hotlines to find buyers and new clients. My hotlines receive calls from hundreds of buyers every month. After a series of qualifying steps, the most sincere buyers wind up in my office where I check their credit, verify their employment, and make a decision as to whether I feel they are truly qualified and motivated.

     I don't work with buyers unless they are sincere, qualified and motivated — what I call "ready-to-buy" buyers.

This is where you come in.

1. I am looking for a Realtor who will help my buyer clients find the homes of their dreams without manipulation, pressure or a sense of feeling obligated.

2. I am looking for a Realtor to make me look good. I want our clients to say to their friends, "John Lenderfield at Anchor Mortgage Company recommended me to Bob Edwards at XYZ Real Estate Company. He said Bob was the best Realtor in town, and he was right! Bob was delightful, and represented my best interests every step of the way. He made the entire process easy and enjoyable!"

3. I am looking for a Realtor who shares my commitment to the highest level of service.

4. I am looking for a Realtor to help share in the marketing expenses in return for a steady, dependable stream of qualified, motivated buyers.

     If you and I decide to work together, I'll send you some ready-to-buy buyers. After a transaction or two, if we like working with each other and work well together, I will send you even more buyers.

     When you find the right home for the buyer, then I'll find the very best home loan for them.

     If you're interested in having me send you ___ to ___ additional transactions over the next 12 months, please call me at 800-000-0000.

Sincerely,

Your Name

P.S. Many agents talk about service. I'm looking for a world-class Realtor to work with who will actually deliver! If you honestly feel that you would be willing to render this level of service in return for a steady flow of qualified buyers, and if you're committed to growing your business, please give me a call.


Find-A-Lender Letter (for Realtors)

Dear (Lender name):

     Would you be interested in my sending you a steady stream of highly qualified buyers in return for your commitment to treat those buyers like royalty?

     I'm writing this letter because I'm frustrated. In your business, like mine, many loan officers promise high-quality service, then don't deliver. I have implemented a system of excellence for our buyer clients here at U.S. Home. I'm looking
for a Lender who will make a personal commitment to me to continue that system of excellence throughout the loan process.

Here's how I get you qualified buyers for loans:

      I use a real estate hotline to sell my listings and find new clients. My hotlines receive calls from hundreds of buyers every month. After a series of qualifying steps, the most sincere buyers wind up in my office where I check their credit, verify their employment and make a decision as to whether I feel they are truly qualified and motivated. I don't work with buyers unless they are sincere, qualified and motivated — what I call "ready-to-buy" buyers.

     If I accept a buyer as a client, I show them my Preferred Buyer Presentation. My presentation emphasizes the high level of service they will receive by using me to help them. It explains the many benefits of obtaining a preapproval. It also explains why I cannot work with them unless they seek preapproval from a quality Lender — before we look at houses.

     My buyers sign my Preferred Buyer Agreement — a one-year buyer agency agreement. This agreement ensures that I stay in control even if they buy a FSBO or have a new home built by a nonlisted builder. I get paid 99 times out of 100. So do my Lenders. In 200__ I did ___ transactions. I recommended and placed more than ___ of the loans. More than 90% of all buyers who sign my Preferred Buyer Agreement buy a home within a few months.

This is where you come in.

     1. I am looking for a Lender who will make me look good. I want our client to say to his friends, "Terry Hunefeld at U.S. Home asked me to meet with Bob Smith at XYZ Mortgage Company. He said they were the best in town, and he was right! They were terrific! They made everything so easy!"

     2. I am looking for a Lender who shares my commitment to the highest level of service.

     3. I am looking for a Lender who will help share in the marketing expenses for this program in return for a steady, dependable stream of qualified, motivated buyers.

     If we decide to work together, I will send you some clients. After a transaction or two, if we like working with each other and work well together, I will send you even more ready-to-buy buyers.

     If you're interested in working with me, and realizing an additional ___ or ___ transactions over the next 12 months, please call me at 800-000-0000.

Sincerely,

Your name

P.S. Do you honestly feel you would be willing to render this level of service in return for a steady flow of qualified buyers and loan business? Many Lenders talk about service — I need a world-class mortgage professional to work with who will actually deliver!

 

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