What do you think of when you think of buying mortgage leads?
If you’re like most loan officers, you think of long hours on the phone, low margins, and a lot of risk.
You may take that a step further still, and think of things like conversion rates, application rates, and return on investment.
Ahh yes, return on investment. Shouldn’t that be the holy grail of metrics for your marketing dollars? In fact, I’d argue that as long as you’re factoring a dollar value for your time into your ROI equation, it’s really the only metric that should matter when it comes to your marketing.
The problem is, just like loan officers forget to factor time into their return on investment calculations, they also forget about some of the intangible benefits that come along with generating internet leads.
If you’re considering investing in home purchase mortgage leads, you may want to weigh some less-tangible factors into consideration.
1. Often, Home Purchase Mortgage Leads Won’t Have a Realtor Attached to Them
Obviously, this is dependent on you buying/generating pre-approval or purchase leads as opposed to refinance leads. However, in this market, I would highly advise this approach anyway.
We generate thousands of mortgage leads a month for our clients and of those, about 70-80% of them report not having a real estate agent they are working with. Admittedly, when you break down the data of leads that qualify and end up closing vs those that don’t, that number becomes more like 50/50. But that means if you’re converting 4 deals a month from internet leads, you have 2 deals a month to refer out to a potential or existing referral partner.
The value of this can be hard to measure…
If you’re already working with an agent and using referrals to keep them on the hook, how do you know at what point you would have lost them as a referral partner if you stopped sending them deals?
However, if you’re leveraging these to bring new agents in the door, that’s a different story. With how easy it is to start out a relationship with a realtor with, “Hey, I’ve got a pre-qualified buyer for you. Are you able to take care of them for me?” It’s hard NOT to attribute every deal that you get from that agent from then on as being tied to the exclusive mortgage leads investment that you made in your business.
Not convinced that sending hot, preapproved buyers will win over realtor partners? Check out this benefit:
2. Generate Home Purchase Mortgage Leads to Be The Quarterback of Your Transactions
This is again, an intangible benefit, but one that should be understood and factored into consideration nonetheless.
You want to take control of your mortgage business right?
Well if you control the leads, you control everything.
Seriously though, while most loan officers spend their time bending over backwards for referral partners, unappreciative clients, and nonresponsive prospects, the loan officers that have harnessed the power of exclusive mortgage leads have figured out exactly what they need to do to get to the next level in their business, and it doesn’t include any of that.
Think about it, how many agents have you worked with in your career that have eaten up more than their fair share of your time? But you keep coming back for more because, well, where else are you going to get those extra deals?
How many clients have you worked with that you would have loved to fire, or at the very least reset expectations with, but didn’t for fear of losing the commission?
How much BS have you put up with from settlement companies because it was the preferred referral partner of the real estate agent you were trying to make a good impression with?
Imagine if all of those problems suddenly disappeared.
I experienced this when I made the leap to generate my own exclusive mortgage leads, and it’s the #1 praised benefit of our system based on our current and past clients.
Still not convinced? How about this?
3. Your Clients Will Remember You, Not Just Their Real Estate Agent
This is definitely the easiest hidden benefit to measure. All you have to do is count up the number of customer referrals you’ve received from your exclusive mortgage leads, and add them to your total amount earned.
When you receive a referral from your real estate agent partners, you’ll almost always be known as “The Loan Officer that ____ referred us to.”
It’s a sad fact, but true.
There’s always a “leader” (or a quarterback) in the triangular relationship that is you, your agent partner, and your client. When you receive a referral from an agent, most loan officers will defer to the agent as the leader in that transaction. This is done on both a conscious and subconscious level.
However, when you convert a purchase lead successfully, you have the opportunity to take the lead! Not only if you send the deal to one of your agents, but even if the client already had their own. At worst, you’re on equal footing with your new unknown partner on the transaction.
This means you’re able to position yourself to have the client call YOU directly when they have a potential referral, and not just send it over to the agent. No more assuming the agent will send that referral back to you.
Not only will you receive more customer referrals this way, but you’ll also be more likely to receive customer testimonials when you ask for them!
This doesn’t even factor in the increased referrals that come from solving some more challenging files and getting those to the closing table! Not all internet leads are going to be challenging. However, if you can solve the challenges you face, your rewards will be infinitely more than just the commission check you earned.
To Wrap it All Up
I had a call with one of our clients the other day, a client that is converting at about half of what our target conversion rate is. He’s the one who made me reflect on these different factors that are hard to measure within your standard ROI calculations.
He’s the happiest client we have, despite being on the lower end of our clients on the conversion rate scale.
Why? Because he’s leveraging the intangibles.
He’s seen the increase in referrals from agents and clients, and he’s felt what it’s like to be 100% in control of his own business.
If you’re on the fence about generating your own exclusive mortgage leads and want to learn more about how we can help, click here to learn more about our system.
Thanks for reading, and I’ll see you at the top!