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Several years ago, I had lunch with Peter Majthenyi, one of the top mortgage brokers in the country.
At the time, while working no more than 40 hours a week, and no evenings or weekends, Peter was closing over 400 mortgages a year.
His business was built entirely on past clients and referrals.
Over lunch, I asked Peter, “If you were to start over today, what would you do?”
Not missing a beat, he replied, “I would spend all my time and energy getting my first 250 clients, and then would spend all my time and energy marketing to those 250 clients.”
Peter was essentially saying he would focus exclusively on hunting until he got his database to a critical size, at which point he would switch to farming.
This is similar to the actions of our most successful ancestors, who transitioned from a hunter-gatherer lifestyle to an agrarian one.
Using that model, and with his constantly increasing number of past clients, Peter’s business has continued to thrive.
I have seen countless other mortgage brokers follow a similar model.
Essentially, that model was: Do a mortgage to build your list.
However, with the rise of social media and the ability to cheaply create and distribute content, we can accelerate this by flipping the model.
The new model is: Build a list to do a mortgage.
As you know, mortgages are not an impulse item. People don’t just wake up one day and get a mortgage.
As mortgages are only gotten every several years, mortgage professionals often neglect database marketing and list building.
This is a massive mistake. Having a list is like owning a farm—it will produce for you for years to come.
If your business is not where you want it to be, you do need to keep hunting, but start building that farm as well.
The sooner you do, the less you will have to rely on hunting every day.
In last week's 12-minute tactical podcast, I share a strategy that can help mortgage brokers add hundreds of people to their email list.
This is one episode you won’t want to miss.
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