An Affinity Business Idea!
Create and promote your own individual employee affinity program either at the LO level, or the branch level.
Read the article below. If you have questions after, please contact:
Imagine approaching an employer of any size and sharing with them that you have an employee benefit program that cost the employer nothing and promotes homeownership, which all studies reveal helps create more stable employees, better neighborhoods, higher test scores among school aged children and lower crime.
Here is one of several Infographics readily available on the Internet you should use for the promotion of this idea; https://www.houselogic.com/home-thoughts/infographic-benefits-homeownership/
Imagine sharing with the employer, HR Director, or decision maker that with their approval and promotion, their employees would receive lower closing cost, competitive interest rates on purchases and refinances and money donated in their name to a charity of their choosing.
Finally, imagine sharing with them that you will provide a customized landing page with their company name and logo and when the employee clicks on; “Start By Clicking Here”, it will take them to either the PRMG Branch Website or your PRMG individual Consumer Connect page we recently provided to each and everyone of you. The employee can begin the consumer friendly application process and once they click submit, you will be notified via email and you take things from there!
Could you do an Internet search of employers in your respective markets and promote such? I trust the answer is an emphatic yes. Also, in case you did not know, most City Halls around the Country have a list of all businesses within their limits who pay a City License fee based on the number of employees they claim to employ. This list is typically free so long as you pay for the copies. This list typically has the name of the business, the contact person and the number of employees.
View a SAMPLE LANDING PAGE: http://www.prmg.net/prmg-charity/
Right now, the home search feature uses Zillow. Personally, I would use the Mobility RE home search tool where available as I would want to control the experience and make certain I captured the lead. If you are unfamiliar with Mobility RE, reach out to them and get educated. Your branch Manager is already paying for this service for you.
**Please note, when you find an employer who is interested and you need the landing page, please send the request to; Marketing@PRMG.net and put in the subject line; Affinity Program. This will allow your request to be routed more quickly.
You need to make sure PRMG’s HR department modifies your employment agreement to allow for you to be paid 50bps less on a lead which comes from the employer you will solicit. If you are a BM, you can set this up with the LO’s blessing, pay said LO 50bps less so long as you and the LO have agreed to this by having HR modify their commission addendum.
Here is an example; Loan Amount of $250,000.00. 50bps equates to $1,250.00. All of this (Less 10%. Keep reading for explanation) would go toward the buyers closing cost, fulfilling the upfront commitment of; “employees would receive lower closing cost.” In addition, I would cap this amount at not to exceed $2,500 from PRMG. In a refinance, this is the only benefit available.
The next component to make this work for buying or selling a home is to use your MMI Report, which is provided to each and every one of you via Mobility RE, and search for a real estate firm that would service the employees due to proximity and any other criteria you choose. Reach out to the Broker or owner and share something such as;
“I have created an employee affinity program for an employer in your market and I am interviewing real estate firms that are interested and able to provide the level of service I’ve committed to. In addition, we’re seeking Brokerages who will agree to credit the employee 30% of the gross commission to cover a portion of their closing cost and a donation to a charity of their choosing.” “Would you be interested in being my exclusive real estate relationship?” “If yes, we would need to execute an agreement by and between yourself and PRMG Corporate (This is critical. Do not enter an agreement yourself. This must be signed by corp. to be compliant), which outlines your commitment and the breakdown of the monies.”
Here is an example; Sales price of $250,000.00. Gross commission paid to cooperating broker equals 2% (Sometimes this will be more, sometimes less. This must be explained to the employee), or $5,000.00. 30% equals $1,500.00. Please note, you MUST NEVER speak in absolutes when it comes to how much of a contribution you will offer. I have based this example on 2%, but if the commission is lower, this can be a challenge. The employee must understand this and by never mentioning anything other than; “employee to receive a credit towards closing cost” without mentioning an amount, you will not place yourself or PRMG into a legal challenge. This is another reason why PRMG Corporate must sign off on all agreements.
In order to fulfill the commitment to make a donation on their behalf to a charity of their choosing you need to come up with an amount that is consistent. I would suggest 10% due to its familiarity with Biblical Tithing. Therefore, in the examples I’ve used in this email, the combined credit from PRMG and the real estate brokerage equates to $2,750.00. 10% of this amount equals $275.00. This is the amount that you would credit to a charity of the employees choosing and I would suggest using Charity Navigator in an effort to confirm a charity’s good standing. Charity Navigator’s webpage is here: https://www.charitynavigator.org/
So lets confirm the numbers, the credit from PRMG in this example is $1,250, the credit from the Brokerage is $1,500, the sum is $2,750. 10% for charity is $275. This leaves $2,475 to be credited toward closing cost. In the event the credit is greater than the closing cost, apply monies towards a permanent rate buydown. Also, depending on your individual market, work with agents who are adept at negotiating some closing cost covered by seller. So long as the total credit does not exceed guidelines for the loan product being sought, you can use the monies to ensure the borrower receives not only their closing cost fully covered, but possibly a permanent rate buydown. Do all of this and you will likely create raving fans who will promote you heavily to their fellow employees, family, friends and sphere of influence.
Don’t forget that you are also creating relationships with Realtors who will also begin using you for the leads they generate on their own. Further, they are less likely to ask for anything when you’re already generating opportunities for them.
I hope this idea is put to good use. If I were you I would sign up as many employers as possible and host lunch and learns, ask to be promoted with internal emails, ask for a list of employees with a strict understanding not to spam and then send out, with borrowers written permission, stories of donations made from their support. People love good news stories!
Now let’s go out there and Serve for Success!
Thank you all for choosing PRMG.
Sr. Vice President/Director National Retail Production | NMLS# 242951
* Email: csorensen@PRMG.NET
( Direct: 909-262-0452
( Fax: 951-547-5733
Branch ID 000