Buy Mortgage Leads
It goes without saying that lead generation is a top priority for loan officers. And buying mortgage leads can be a powerful tool for building out a new business or growing an existing one. That said, buying mortgage leads is not a one size fits all solution and requires due diligence. Consider these five things before using your hard-earned money to buy mortgage leads:
buy mortgage leads
Before taking the plunge to buy mortgage leads, determine who your ideal customer is. Are you looking to cast a wide net or do you prefer a specific type of business? Do you want refinance, purchase business or both? Or do you prefer working with first-time homebuyers with FHA loans or prefer VA loans? Once you establish your target customer is, set specific goals for lead generation.
In a market where many lenders are struggling to keep sales pipelines flowing, NFM's influencer channel has generated thousands of leads every month on a lead-buying budget of zero and Surefire Power Video.
The basic economics of leads and referrals are virtually identical. For example, assume I place an ad on my Web site that entices readers to enter information about themselves, information that I sell to a loan provider (LP) for $10 per lead. Assume further that 10 percent of the leads result in a closed loan. This means that in obtaining loans through me, LP has a marketing cost of $100 per closed loan.
Although the economics is much the same, the law sees the two approaches very differently. The $100 payment contingent upon a loan being closed would be an illegal referral fee under the Real Estate Settlement Procedures Act (RESPA). In contrast, the sale of a lead is not directly related to a real estate transaction, and is not therefore subject to RESPA. Given that the purpose of the RESPA restriction is to protect borrowers from being overcharged, is there any reason for treating referrals and leads differently?
Some differences between leads and referrals have no bearing on borrower protection. These include the greater uncertainty in pricing leads, and the need for a referrer, but not a lead generator, to obtain accurate information about the number of closed loans.
Whether you are just starting out as a loan officer or have been in the mortgage industry for decades, chances are you know the importance of high-quality leads when it comes to your success. But why are leads so important? How do you generate quality mortgage leads? Should you purchase mortgage leads from outside providers? Here we offer a modern guide to high-quality mortgage lead generation and how you can get the leads you need to boost your business today.
Mortgage leads are a mortgage marketing term that refers to potential home buyers and homeowners looking for services, such as a new home loan or a mortgage refinance, from a mortgage lender or loan officer. In other words, mortgage leads are people interested in obtaining a new loan from you.
Mortgage loan officers can find and generate leads in a variety of different ways broken down into two main categories: Generation and Purchase. In this section, we will focus on lead generation performed by a loan officer in order to create a stream of regular leads.
Social media platforms, such as Facebook, Twitter, LinkedIn, and many others offer an effective way to connect not only with your current clients but also with potential leads. On these social media platforms, you can share blog posts, create educational and informative posts, share links to industry news, and so much more. They are also a great way for leads to ask questions and get to know your business.
Potential leads are looking for a reason to trust you as a loan officer. A popular lead generation strategy that can help you do just that is content marketing. With content marketing, you are creating valuable, educational, free content on your website, blog, or social media platforms that helps provide a potential lead with the information they are looking for while also highlighting your industry expertise. The goal of any content marketing strategy is to educate and engage your audience.
For a loan officer or mortgage broker, local business is often your bread and butter, so you want to do everything you can to boost your local presence online. A good way to achieve this is through a free Google Business Profile. Creating this free business listing allows you to manage a business page that will be highlighted in local mortgage searches, as well as show your business on local Google Maps. This profile includes everything from your business phone number to your website URL, hours of operation, and location. Once created, having previous customers provide reviews through your business profile can further boost your rankings in the local search results.
Email marketing is another tool to help nurture leads once they have shown interest in your business through another avenue. For example, if a potential lead visits your website and fills out your online form requesting additional information, email marketing kicks in to welcome them and provide the information they are looking for. With a quality CRM in place, you are able to automate many aspects of your email marketing strategy. When a new lead provides information through your website form, it is automatically transferred into your CRM, which then triggers a task, such as automatically sending out a welcome email addressed to the user.
Buying leads is relatively straightforward. A mortgage lead generation company has done all the legwork to gather mortgage leads and then sells them directly to loan officers for a price. The price of a lead depends on a variety of factors, and you should consider these different factors before purchasing any leads.
Non-exclusive leads are the most common and lowest-price lead options available. However, they can be sold to numerous loan officers, giving you a high level of competition when it comes to securing a new lead.
Semi-exclusive leads are those that are sold to two or three different loan companies, meaning the faster you connect with the potential lead, the better chance you have of acquiring a new client. These can be effective if you have your CRM set up to automatically send a welcome email when the lead comes in.
Exclusive leads are sold only to one loan officer, meaning if you purchase these leads, you will be the only loan officer to contact the potential borrower from the lead provided. While these types of leads often offer a higher closing rate, they also come with a higher purchase cost.
A fresh lead is a lead that comes in within the last 48 hours, such as a real-time lead. These are borrowers that were looking for information recently and are more likely to respond to you reaching out. Aged leads are leads over 48 hours old that the lead generation company did not sell right away. These leads are often cheaper, but there is a chance the borrower has already found another option.
There are many different companies out there that sell mortgage leads, with two of the main companies being Zillow and LendingTree. Many of these companies have been in business for generations and have a high recognition rate in the mortgage industry for both mortgage professionals and borrowers.
While the comprehensive list of mortgage lead companies above provides a great place to start, there are some factors to consider when choosing which company will provide the best leads for your business.
While you likely recognize the names of some of the companies above, it is still important to do your research when choosing which company is the best fit for your business. Read customer reviews to get a good idea of what borrowers think of the company. This can help you gauge the quality of the potential leads they will provide. Ask questions before you commit to any purchase. Are the leads fresh? Are they exclusive or non-exclusive? Can you choose your leads or are they provided at random?
Before shopping for leads, it is important to determine which type of leads you want to buy. Can you stand above the local competition and win the business of non-exclusive leads in your area or would you prefer exclusive leads?
Price is an essential component of any marketing strategy and that includes the purchase of leads. What is your budget? Will you be able to purchase enough quality leads within your budget? While your budget may go further in purchasing aged or non-exclusive leads, do you have the ability to nurture and convert those lead types to justify their cost?
Before you commit to purchasing leads, you need to ensure you have the right plan in place to quickly provide contact to your new leads. Do you have a CRM in place that can send out a welcome email or trigger a task, such as a phone call, immediately after the lead enters your system? Do you have a plan in place to further the new lead relationship and keep them from moving on to the competition? Once these methods are in place, you are ready to add new leads.
Deciding whether or not to buy leads or implement your own lead generation strategies depends on your business and your personal strengths and weaknesses. In most cases, a combination of both options can be beneficial. During times when your lead generation strategies may not be delivering the leads you need, purchasing selected leads may be a good option. However, if you have a quality lead generation strategy in place that is successfully driving leads to your business on a steady basis, purchasing leads may not be necessary.
Most importantly, we believe in creating partnerships, not just selling leads. That means focusing on creating long-term relationships by recognizing that we're only successful if our partners are successful. It means working with our partners to optimize performance based on their data and results. And it means always doing the right thing.
Our Aged Opt-in Leads are 100% TCPA compliant and have an average connectivity rate north of 90%. Our opt in aged call center leads are far superior to standard data because of the low cost and conversion rates between 3% and 15%. We offer volume discounts for bulk purchases and we can accommodate volume requests 041b061a72