Mortgage Marketing Tips: #14
How To Use The 80/20 Principle To Skyrocket Your Sales And Profits` PART 2       Guest Article By Reed Hoisington

80/20 Principle #1 - Products

I have analyzed my own business and determined that about 20% of our products and services account for approximately 80% of the profits.

Here`s how I`m going to use this information...

First, I`m going to spend 80% of my time focusing on how to improve these products, and generate the maximum number of sales to my clients.

Next, I`m going to eliminate any `slow-moving` products, and create automated selling processes for the rest of the products which require a minimal amount of servicing and intervention from me and my staff.

How can you apply this to your business you ask?

Start by analyzing which type of loan product(s)and/ or service(s) account for 80% of your profits. My guess is that it will be only one or two at most.

I have found that the most highly successful salespeople focus on one or two products that they are superior at marketing and selling while most `average` salespeople try to be all things to all people.

They figure that it`s better to sell `something,` but they fail to realize that it`s much easier and less time consuming to become the expert in a specific niche. Many salespeople end up spending large amounts of time constantly researching products or programs that they are not familiar with rather than focusing on creating effective marketing and efficient systems for the programs that they already know.

All because they cannot say no. They cannot turn away business. So they give up valuable time. Time in which they could produce several new clients in a specialized niche that they are already an expert in.

Which leads to the second principle.

80/20 Principle #2 - Clients

I recently analyzed my customer list, and found that 80% of my sales and profits were coming from about 20% of my clients. Conversely, I also found that about 80% of my headaches were coming from the bottom 20% of my clients.

Here`s what I`m going to do with this information...

First, I`m going to do whatever it takes (within reason) to keep my top 20% happy. I plan to offer this group of people special bonuses, private sales, extra levels of support, and anything else I can think of to let these people know how much we appreciate them.

On the other hand, I have instructed my staff not to tolerate the lower 20% who produce 80% of the headaches in our office. These people will be given warnings when they are abusive or impossible to please, and if that doesn`t correct the problem...

We Will Fire Them!

At first glance, this may sound harsh. But, after being in business for close to 17 years, I have found that it is far more profitable and enjoyable to work with people who appreciate what you do for them, and are willing to pay a fair fee for the help you give them.

I have also found that the universe works like a vacuum, and every bad client you fire is usually replaced by a better client who appreciates what you do for them.

Try this in your own business.

Determine who the top 20% of your clients are, and treat them like gold!

Then, figure out which 20% are causing you the most problems, and taking up an inordinate amount of your time. Start by giving these people an opportunity to `redeem` themselves.
If that doesn`t work, and they continue to make your life miserable...

Get Rid Of Them!


For information about Reed Hoisington's marketing methods see: Reed's High Profit Mortgage Marketing System


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