The success of a joint venture depends on three main factors: attracting the right mortgage talent, the support of the referral partner and the mortgage partners’ ability to deliver consistent service. Understanding these three pillars is ultimately the foundation of the success and longevity of a joint venture. The right loan officers will enhance the customer experience by delivering a dependable service for agents and their clients. With the support of the referral partner, the experience becomes more organic and autonomous, leading to better practices and repeat business.
A common reason that agents can be hesitant to work with a joint venture is because it is something new. They grow their business through a repeatable customer experience with a lender who allows them to meet closing deadlines and provide a seamless mortgage transaction. Agents can be skeptical about the need to form a joint venture, especially if they are already working with a reliable lender. On the surface, a joint venture may just look like an additional revenue stream for the company, but while that is true, it can also benefit your agents. To increase your capture rate, show your agents how the joint venture can personally help them increase their client base.
One of the main goals of a joint venture is to create a unified customer experience, limited miscommunication between agents and loan officers, and a more involved overall transaction. Your agents may be wary that working with a new joint venture could mean unpredictable customer service and a missed opportunity to grow their business. However, when the mortgage company becomes part of the process through the joint venture, the agent has more control to shape the entire experience for their customer. The value of a better mortgage experience translates into a lifetime customer, with the client returning for all future real estate needs. Both the agent and loan officer are able to stay engaged with the client through the lifecycle of the loan and keep up with all their major milestones. It could be a refinance, a second home or something as big as a birthday. The goal is to build a personal relationship with the client and stay beside them throughout their next chapter, which could be 10, 20 or 30 years.
Most brokerages see different phases of agent adoption when forming a joint venture. Typically, there are three phases—early adopters, general adopters and late adopters. Each segment has the potential to advocate for the next round of adopters by sharing their success with the joint venture. Use the early adopters’ testimonials to speak to the later adopters until you’ve converted your entire agent population.
The best way to show your agents how they will benefit through this joint venture partnership is through word of mouth—real testimonials are so powerful. It is imperative to focus on testimonials from agents who have worked with these new loan officers and highlight testimonials from customers who have had a positive experience as well. This better customer experience can solidify the long-term value and ongoing business-revenue growth they can expect from the support of their new loan officer. Your greatest proof of value is your own satisfied agents advocating for the joint venture to their colleagues.
For more information, please visit www.cmgfi.com/jv-partners.