It has to be discussed. It’s never any fun, but the bottom line is that it is reality. In a perfect world we could skip this topic completely and move on to discussing new and exciting marketing campaigns and tools. But since we all live in the real world, here we are. I intend for this article to be one of the most frank and straight forward articles you have or ever will read about failure, and the truth behind what causes it. No pulled punches, no fluff, just the bare truth about what is causing many loan officers to fail to reach their goals in our current market.

The first question I’m sure many will have about this discussion is what my definition for failure is. There are varying degrees, and many different perspectives of what constitutes failure. The best way for me to answer this question is to provide you with a break-down of what we will be covering today. If you have tried to increase your income as a loan officer by purchasing a marketing system or kit, then this article is for you. If you are frustrated with your income, and your pipeline is not quite what it used to be, then you need to read this as well. Finally, if you have hit a plateau, and you can’t seem to grow beyond this sticking point, then this article is definitely meant for you.

Some of the things I have to say will cut deep. As I mentioned before, this is a raw look at the daily habits and activities of loan officers. I’m not here to candy coat my words. We are all adults here and none of this is meant to offend. I sincerely hope that you will take these words to heart, and profit because of what you read here. Sometimes, an eye opener is all that is needed to get our career back on track. For those of you that are offended by what I have to say in this article, I suggest you simply move on.There has been a lot of talk lately about how difficult the market has been lately. I always find it interesting to observe what is going on in the industry when I read reports like this. If you pay close attention you will notice that no matter what the market condition is, there is always that top 10% of loan officers who keep plugging away, pulling down large and impressive incomes no matter what the reports, bar graphs and charts have to say. Haven’t you ever asked yourself why this is?

Some like to make themselves feel better by telling themselves that those in the top 10% simply knew the right people, or had money to begin with, or some other line that really offers no true explanation. The truth is, this is no accident. These top performers have a strategy and a plan in place that is being implemented, and updated to keep pace with the changes in the market. I can guarantee you that contained within this plan are strategies that identify weak links and improve on them. If you have not allowed for, or set aside time for this within your own career, today would be a great time to start.

Scenario #1

Let’s get started with our first scenario. If you recall, the first group I mentioned was those who have purchased a system, or even multiple systems that have not had the career changing impact that was desired. 9 times out of 10 the loan officer is purchasing a ready made marketing system that promises to deliver a steady flow of fresh clients to the users’ pipeline. This certainly sounds pretty good, and many times the marketing material is at least an improvement over what the loan officer is currently using. However, there are certain fundamental truths that are often overlooked that cause the disappointment often associated with this scenario. The best way I can explain what is happening is to relate my experience a few years ago with one of my hobbies. I am a guitar nut. I absolutely love music in general, but the sound of the acoustic guitar is intoxicating to me. Naturally, I had a strong desire to learn how to play. I purchased the absolute best equipment I could find, and even signed up for lessons.

I was in for a big surprise when I found out how much practice was needed to become proficient. Unfortunately I was very busy with my career at this time, and it always seemed that something was interfering with my schedule, and I never actually committed to a consistent schedule to practice. Did I have all the right tools? Most definitely. But did I have the necessary skill to operate these tools? Not even close. To this day I watch with envy and amazement as friends of mine who can play proficiently will pick up my guitar and make beautiful sounds with it. They make it look so easy! Should I jealously kid myself and pass it off as if they are just lucky? No. Luck has nothing to do with it. This took lots of practice and patience for them to get to this level.

This is a rather simple concept to understand right? So why then, do so many loan officers pretend that they can just buy success? Can you just purchase a marketing system and expect to see instant success from it? “But Chad, it’s just marketing, it either works or it doesn’t!” This is an argument I hear quite often when I’m giving this advice. Let’s look closely at the sales cycle. In fact, let’s break down some of the important elements of a standard sales process that will determine whether or not you get the deal, and whether or not you will grow your business. Here are some of the variables.

• Your ability to open and inspire confidence
• Your ability to communicate your value effectively
• Your ability to move the prospect forward efficiently
• Consistent and well-timed follow-up
• Differentiation
• Are objections handled effectively and convincingly?
• Do you have the ability to spot silent objections?
• Are your efforts repeatable?
• Do you know the best way to expand this marketing campaign, and how to duplicate effort?
• What advertising and marketing mediums are you using? Are they the right ones? Are your ads properly positoned?
• Do you use headlines effectively in your marketing? How about your call to action?
• Do you know how to “hook” appropriately?
• Did you under or over-promise?
• Are you believable?
• Do you give off a professional demeanor? Does your marketing?
• How do you capture information for your database? Is it mined effectively?
• Are you proficient with Web 2.0 strategies?
• How do you track and monitor the effectiveness of your campaigns?
• Can you give a detailed description of your ideal client, where they are, how to reach them, and how many of them are in your target market? Can you do this right now off the top of your head?

This list goes on and on. I’m not trying to overwhelm you here, but rather, point out that so many people seem to forget that marketing is a profession. The words marketing and sales are not interchangeable. This is a skill that requires just as much dedication and education as any other profession to master, yet so many loan officers seem to be attracted to the lazy mans way out; Namely, purchasing a system without ever dedicating time to learn and study. It’s best for you to think of these turnkey marketing systems as tools. This is your “guitar” so to speak, and you must possess the necessary skill sets to use this instrument. There are so many originators out there trying to pump new life into their careers by using ready made systems, but they have absolutely no clue why something should or should not work, and then have no idea what to do when things go wrong.

Imagine a guitarist breaking a string on his guitar and not knowing how to replace it. Or imagine going to a concert and listening to a song played way out of tune, because he doesn’t know how to tune his own instrument. Would you view this person as a professional, or as someone who is ready for success? Not a chance. So why don’t we apply the same standards to our own profession? I firmly believe that most loan officers cut themselves way too much slack, and are too willing to make excuses for themselves. Instead of taking responsibility for their own actions and career, they are only too happy to sit back and complain about the market, and complain that no one is buying or no one is refinancing, and that there is too much rate shopping etc.

Take affirmative action for your career! You are worth it. There is so much unrealized potential in many of the loan officers I meet. Unfortunately, the number 1 culprit I’ve seen for their lack of success is laziness. I know this sounds harsh, but it’s true. I constantly hear complaints that “there’s not enough time to learn this, or to learn that” but the sad truth is that the average office worker in America is less than 40% effective. This means that only 40% of the average office workers time is actually spent working! 60% or a majority of each work week is spent playing on the internet, typing non-work related emails, and chatting with co-workers. These are real world statistics people! So many like to say “That doesn’t apply to me” but to some degree, I’m sure it does. Even if you are a dedicated individual who does not waste a lot of time with the internet, and other items on the list, chances are your time is being wasted through low payoff activities, or some sort of bottle neck that is chipping away at your schedule.

I went through the same trials. I always thought of myself as a very hard worker, and very effective individual, but when I put my weekly schedule under the microscope, I was shocked at just how much of my time was tied up with things that it shouldn’t have been, and I had to do something about it. Bottom line here folks is that if you are serious about your career, you will find the time to educate yourself properly.

Scenario #2

The second situation for us to address is directed at those who just can’t seem to get going. The income is not there for whatever reason. Maybe you’re a new or newer loan officer, or maybe you’ve never been able to get things rolling after the refi business died down a bit. Regardless of the situation, the rules of the game are the same. Business is business. Any good business man/woman will tell you that certain actions and habits have to be present for a successful career to grow from what you are currently experiencing.

Do you know what those habits are? See, what typically happens in these situations is the loan officer is very eager to make things happen, almost desperately so. This is completely understandable. You need money, and chances are you need it sooner rather than later. It is very easy for you to find yourself in a catch-22 here. On the 1 hand you find yourself in a position where you need to generate business quickly, but once you start moving forward, you also find that most marketing campaigns and advertising requires an investment from you. This is a very uncomfortable position to be in. What can you do? First, I suggest that you have a frank discussion with yourself. You need to figure out before you move forward, exactly how committed you are to your own success.

Once you do this, you will know exactly what you are, and what you are not willing to do. Here comes the blunt and honest part of the article I told you about at the beginning. Ready for this? A large portion of loan officers out there find themselves in a tight spot because of their own actions or lack thereof. What I mean by this, is many originators are at a loss as to what they can do to generate business without spending too much money early on, but that same group is often very quick to point out what they are not willing to do. If it involves cold calling or phone calls, it’s out. If it involves presentations and public speaking it’s out. If it involves talking to strangers who have not already identified their intentions, it’s out. These are the types of restrictions I hear over and over. This group of loan officers will usually give me dozens of reasons why something will not work, even though they have not tried it, or have not tried it the correct way yet.

Why are these loan officers so willing to put limits on their actions? My best guess here would have to be that they are not willing to step outside their comfort zone. The possibility of rejection is too great for some people. They take it personally. Alternatively, some may have actually stepped a toe or two outside their comfort zone, but since they did not meet with success right away, they gave up and drew the conclusion that this strategy must not work around here, or in their market. What some people seem to be missing is the fact that every strategy comes with many different variables. You can change your script, your time of call, your consistency, your hook, your value statement… The list goes on and on. The lesson here is to not be so quick to write something off just because it didn’t work for you the first time. With the proper education and supplemented with the right set of tools, your chances for success could sky-rocket. Be ready and willing to take a chance on yourself. Find the money to get get your education, or find the money to invest in yourself or strategy. Once properly prepared, give it everything you’ve got! Then repeat…Repeat again… Consistensy will get you everywhere.

Scenario #3

Now let’s address our final group. This group has already met with a certain level of success, but has for one reason or another, run into a hurdle that seems to have brought forward momentum to a screeching halt. This can be very frustrating and often times a bit on the confusing side. It is important to realize that in situations like this, forward progress can be fickle. This sort of situation is best handled by first going back to the basics. In other words, take a close look at what habits and strategies have generated the success that you are experiencing right now or have experienced in the past. What were your habits? Get very detailed. Put everything under the microscope. The goal here is to identify the patterns, and what variables can be tweaked. I also recommend that you set aside time, as well as a budget to invest in your education, and in furthering your career. Are you up to date with the latest online marketing strategies? Do you understand the underlying concepts of interactive web pages, blogging, database management and consistent value added follow-up? Do you know where your prospects are both online and off?

This is the time frame in your career where it becomes even more important to work on your business instead of just in it. It’s amazing how much clearer those bottlenecks and weak spots appear to be when you take a little time out. It’s also vital to keep an open mind, and be ready and willing to learn. Those who take part in on going education will find themselves back on track much sooner than those who close their minds and choose to go at it alone. Why not learn from others mistakes? A solid combination of reviewing your foundation along with a dedicated mental workout supplied with your training or source of education should be enough to give you a strong push in the right direction. Sure, everyone will meet with slightly different results, but the basic concept is sound, and will work for those who take it seriously, and supply a strong skill set backed by the ability to consistently implement.

It is time to wrap up this article. I hope you have found this advice to be helpful and refreshing in its’ honesty. I may not have covered every possible scenario out there, and chances are a lot of you reading this will fall into more than one category, but I did my best to provide guidelines for the widest range of loan officers possible. If you happen to find yourself in a similar situation, I hope you will take this advice to heart. In the meantime, I hope you will make it a great day.

Chad Weber - Average Joe L.O.