Positioning Your Title Company For Success

Here's a link to one of my articles, which was featured in the March/April 2008 edition of ALTA's magazine Title News. Just scroll down and click on the heading labeled: March/April 2008 - Volume 87, Number 2. The download is in pdf format.

I'm been busy putting the final touches on three ebooks. The first is a step-by-step guide to starting and running a successful title company. I receive hundreds of emails each month from individuals looking to start title agencies. I strongly believe that there are more opportunities for small title agents today than ever before.

The second ebook focuses on marketing to credit unions. I will share some of my personal experiences and discuss the techniques I've used to develop mutually beneficial and long-term relationships with credit unions. The ebook will also include a twenty minute interview with the vice president of lending at a New England based credit union. 

The third ebook focuses on marketing to consumers. In order to prosper in today's environment title agents must be able to effectively communicate value to consumers. Dealing with consumers is far different that dealing with mortgage and real estate professionals.

Back to work...   

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Shane on Inman.com

This past Friday I was interviewed by Matt Carter of Inman.com. The article in which my comments appear is called, "Site aims to crack closing costs black box"

Click here to read the full story. 

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Make Time For Marketing

One of the most challenging aspects of running a small business is that you are forced to wear several hats.  On any given day your duties may range from balancing checking accounts to dealing with complicated title issues.  As business owners we can get so caught up in the day to day activities that we forget to set aside time for marketing.

You should be engaging in some form of marketing activity each day.  Whether it be improving your website, sending out sales letters to prospects or updating your mailing list. 

Here are five ways to make more time for marketing:

1. Twice per week arrive at the office one-hour prior to the start of normal business hours.  Once the day begins and the phone starts ringing it can be quite difficult to focus on any one task.  This simple step will provide you with eight hours of uninterrupted marketing time per month.
   
   
2. Outsource non-essential tasks. Payroll can easily take up two to three hours per week.  There are hundreds of payroll companies out there that would be happy to take care of your payroll, and will do so for a small fee.  Wouldn't those two or three hours per week be better spent out in the field engaging prospects?
   
   
3. Set aside a few hours each Friday afternoon for marketing.  With the exception of the last week of the month, Friday afternoons tend to be quiet in real estate.
   
   
4. Have a plan of attack for the next day.  Write down what tasks you need to accomplish the following day so you are ready to go the next morning.
   
   
5. Use small blocks of free time during the business day to return phone-calls and emails.  Follow up with prospects and/or send out note cards to past and recent clients.   

The bottom line:

Most title agents don't spend enough time marketing.  Make a commitment to set aside time each day for marketing. Even when you're busy!

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Article in "Title News"

One of my articles is featured in the most recent edition of ALTA's quarterly magazine "Title News". The article is called "Positioning Your Title Company for Success." In this article, I give title agents tips on how to stand out from the crowd. I also touch upon some of the most common and costly marketing mistakes title agents make.      

I would like to thank both the staff and members of ALTA for all of their support and positive feedback. It's my understanding that ALTA will be providing more marketing related content to its members. Due to the void in the marketplace for this type of information I think it's a positive step forward.

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Know Your Competition - Revisited

Back in October I wrote about the importance of keeping track of your competitor's client roster. Well, good thing I practice what I preach. A few weeks back one of my largest competitors folded. It's no coincidence that we've seen an increase in orders over the last week or so. Many of these orders coming from companies that we've not worked with in the past.

Here's a excerpt from that post:

Do you keep tabs of the mortgage and real estate professionals your competitors service? Well, if not, get going. Many title companies will not be here in 3-6 months, so there will be many mortgage and real estate professionals looking for new title providers.

This is why it is imperative to keep up ongoing communication with all of your prospective clients. You want to be the company they look to when they are in need of a new title service provider.

Tips to keep your company in front of prospects:

• Stop by their office or put a call in every other month. Just ask them how’s business and let them know that you are always available should they need any assistance.
• Keep them on your mailing list. All of your existing and prospective clients should be receiving some type of communication from your office at least 6-12 times a year. Whether it be providing industry related news updates or holiday cards. 
• Make sure your prospects always have your contact information handy. Include your business card in every mailing.

The goal of these activities is to occupy the "top of mind space" of your prospect. Which simply means you want your company to be the first name they think of when they are looking for a new title service provider.

The bottom line: Every real estate or mortgage professional will change or add a title service provider at some point in time. Make sure that your company is in a position to take full advantage of this opportunity.

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How To Become A Trusted Partner

Over the past year or so, most lenders and mortgage brokers have reduced their support staff due to the decline in financing activity.  This has forced many loan officers to take on the additional burden of handling processing type duties.  This is very challenging to loan officers because many have not had to handle this type of work in the past, having relied on their support staff.  Ordering payoffs, insurance binders and interacting with the lender are just more things for them to contend with.

Finding and putting a deal together is more difficult than ever.  Every minute a loan officer spends on processing tasks takes away from time they could be spending with a customer.  In order to prosper in the current market, loan officers must focus all of their time and energy on generating new work and servicing their existing customers. 

It may take a little time and effort to order an insurance binder or a payoff statement.  However, if you can alleviate some of that burden for mortgage professionals, you will be viewed as more than a title provider.  You'll be viewed as a trusted partner.  Trusted partners rarely compete on price and will certainly be held in high regard.  The mere fact that you provide these services for your clients can speak volumes about you and your company.

The bottom line:

Many title companies fail because they think they are selling title services.  They're wrong.  You are selling convenience.  Effectively communicating to mortgage professionals how you can make their jobs easier can make all the difference.

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Optimistic to a Fault?

Binyamin Applebaum, the residential real estate columnist for the Boston Globe, touches upon a very interesting issue in the column entitled "The Always Sunny Side of The Street." In this column, Binyamin examines the "buy now" mentality of real estate agents.

My brother and I always joke about this issue in the office. How can it always be a good time to buy?

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I Can't Believe My Eyes

There's an article on Boston.com today, "Special Agents", by Binyamin Appelbaum.  It discusses how some real estate agents are looking to gain an edge by embracing niche markets.  These agents are narrowing their focus in order to increase their appeal and stand out in a crowded marketplace.  However, there is one particular group mentioned in the article that caught my attention.  The group is called the Association of Associates Representing Sellers.

Here's an excerpt from the article: "Some real estate agents say that the rules imposed by the National Association of Realtors are tilted in favor of buyers.  Members of the new Association of Associates Representing Sellers promise never to reveal days on the market, or to leave keys for other agents (meaning they need to be on hand whenever a home is shown) or to use terms such as "Asking Price," presumably because it implies that the buyer might be able to, you know, negotiate."

Here’s a portion of the "oath of action", from the website of the Association of Associates Representing Sellers:

• "Shall NOT disclose a seller's days on the market to any potential buyer at anytime."
• “Shall not utilize the words, “ASKING PRICE” or “REDUCED” in any form of advertisements of SELLER’S said property.”

These types of practices will turn buyers away. Agents seem to think that withholding information from buyers is giving sellers the upper hand. Buyers are already frustrated by the lack of transparency and truthfulness that exist in the average purchase transaction. You would think that in today's market sellers would want to do everything possible to attract more buyers.

So this raises the question. Who really benefits from these practices? I'm very interested to see how this model holds up in today’s market. 

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Marketing to Credit Unions - Part 4

According to the Credit Union National Association, "Credit unions provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the credit union."

The association goes on to say that, "Credit unions place particular importance on educational opportunities for their volunteer directors, and financial education for their members and the public."

As someone who works closely with several credit unions I can tell you that they are placing greater emphasis on all of the above. Like many financial organizations, work came easy to the credit unions over the last four to five years. Because of this many credit unions started to stray away from the basics. Work was plentiful and they didn't really need to reach out to consumers. Consumers were coming to them, and in large numbers.

Then, as we all know, something happened. The market took a fast and sharp turn for the worse. Credit unions have been adversely affected by this downturn. They haven't been hit nearly as hard as say mortgage brokers, but nevertheless their volumes are down.

Credit unions are unable to help many of their existing members due to the decrease in property values. This has forced them to increase their marketing efforts towards recruiting new members.

One of the ways in which they are accomplishing this is through consumer initiatives, such as educational seminars. Especially seminars geared towards first-time home buyers. First-time home buyers are the ideal customers for credit unions.

The credit unions realize that first-time home buyers will need more than just a mortgage. In many instances the buyer will be new to the community and they will require someone to assist them with all of their personal banking needs. This may include: auto loans, checking/saving accounts, investment and other banking products.

Having coordinated and been involved in countless seminars, I know firsthand how effective they can be in building relationships. Not only do they help to strengthen your bond with the credit union. They help you to establish new relationships with local home owers and prospective home buyers.

Here are two approaches to help you get started.

1. Contact the credit union and offer your assistance for their next seminar. You can either help to coordinate the event or ask to be a presenter.
2. Take the initiative to coordinate your own seminar and invite someone from the credit union to present alongside you.

There is a good deal of work and preparation involved in both approaches. However, it's been my experience that it is well worth it. This is your opportunity to separate yourself from other title providers. The vast majority of title agents are unwilling to spend the time needed to organize such an event.

The bottom line:

Credit unions are more difficult to establish relationships with. However, a little extra effort now will be rewarded in the long run. Communicating your desire to establish a long-term relationship with credit unions will separate you from 99.9% of other title agencies. Title agents that think they can win over a credit union with a one-time sales pitch will be sorely disappointed.

Do your homework, plan your approach and maintain your professionalism at all times.

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Marketing to Credit Unions - Part 3

If you've missed it, here's a link to part one and part two of this four part series which focuses on marketing to credit unions.

The meeting:

One of the biggest mistakes a title agent can make when meeting with a prospective client is spending the entire time engaged in a one-way conversation. Talking about yourself and your services will only serve to isolate the prospect. Instead, engage the prospect by orienting your conversation around how the two of you can work together towards achieving a common goal.

This approach is effective for three reasons.

• First, by engaging the prospect you are helping to break down the barriers which tend to exist whenever meeting with someone for the first time.

• Second, it shows the prospect that you have more than your own self-interest in mind.

• Third, it helps to change the dynamics of the relationship. Engaging in dialogue with the prospect helps you to be viewed as a peer right from the start. This will always make the process much easier. 

The next step:

Remember all that research I had you do a bit earlier? Well, this is where it all comes into play.

Don't wait for the decision-maker to bring up the most common sales objection, which is: "Sorry, but we already have title/closing providers that we are satisfied with." Most title agents hear this and head for the hills. The best way to deal with this objection is to address it right off the bat.

For example: "I'm sure that you have existing relationships with other title companies. However, my goal is to be more than just a title service provider. I know that your credit union is involved in the following activities: (Fill in the blank) and is also looking to: (Fill in the blank). Here are a few ways in which we can work together that I believe will be mutually beneficial."

The next step is to propose some specific ways in which you can work together. Be sure to encourage the prospect's participation. You'd be amazed how powerful this type of approach can be. In some instances the prospect may have an immediate need that requires your assistance, such as an upcoming seminar geared towards home buyers or home sellers.

The board of directors:

Assuming that you now have a decision-maker's attention, you next task will be to win over the board of directors. Ultimately the decision to add a new title service provider will need to be voted on by the board. The board is typically comprised of management and local, prominent business owners. How the board initially perceives you will carry weight in the final decision-making process.

The board of directors will be evaluating you at all times. Should they decide to vote you in, you will be representing their organization. Because of this they will want to make sure that you will treat their members with a high level of professionalism and courtesy.

How to make the best impression:

• Look professional. Try to dress in a fashion that is similar to the board members. You want the members of the board to feel comfortable with you and view you as an equal. Should you decide to walk into the board room with an Hawaiian shirt and jeans, you will be tuned out from the start. Don't let your image become an issue, there's enough things you have to contend with.

• Offer immediate value. Communicate some of the ways that you and the credit union can work along side each other. Focus on what you can accomplish together, and stay away from touting your individual credentials and accomplishments.

• Take Initiative. Suggest the next steps that need to be taken in order to start this relationship. Maybe a second meeting is needed. At this point in time, you should have a pretty good idea of where you stand with the board.

The key is to be confident and relaxed. The more comfortable you feel around decision-makers, the more effective you will be. In part four of this series we will look at several other ways to establish a relationship with a credit union.   

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