You did your best to earn mortgage leads, but here comes loan officers who bought theirs. The question is, which of you has it better? Is going through extensive marketing strategies to earn them better than buying? Why pay for mortgage leads and does it really make sense to make that kind of investment?
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The Benefits of Buying Mortgage Leads
Is it right to spend on leads when their purpose is to bring in revenue? While it may seem counter-productive, it does bring a lot to the table. Take a look at all these benefits.
1. Paying for Mortgage Leads Guarantees High Quality Leads
Generating leads takes a lot of time and steps. You need to spread the name of your business and then funnel your audience down to filter out the people who are most likely in need of your service. By then, there is no guarantee that you have yourself a lead that will eventually make a transaction.
The reason why there is so much uncertainty is because this is only a part of your job and not really your specialization. It goes along with all your business tasks, preventing you from concentrating on how to get mortgage leads alone.
Compare this to lead generating agencies that sell you your leads. They have all the knowhows to acquire the right leads, plus they have all the time and resources to implement their extensive funneling process because it is all that they do.
Long story short, an agency that puts all their effort in generating leads are going to generate the most high-quality ones. And as a business, that is all you want.
2. Higher Potential for Conversion
Not too far off from the previous point, buying leads guarantees that they are high quality ones. What this means is that they have a strong affinity to make a purchase.
Remember, not all leads are the same. While all of them have the potential to seek your service, there are ones who are already ready to make a purchase and ones that are still undecided.
Buying guarantees that you receive the former even more than the latter. As a result, you don’t just get a lot of leads, but have a higher chance of making those leads into actual paying customers without too much effort.
3. Why Pay for Mortgage Leads? Cheaper
When you generate leads on your own, you have to start from the very beginning. You have to come up with effective marketing strategies and invest on the necessary resources. In the end, it is going to cost you.
The worse part is that not all your marketing campaigns are going to be effective. You need to factor in failed attempts, tracking data to know what to change in future implementations, and so on. To say the least, a portion of your budget is going to be spent on the “learning phase” instead of actually earning leads.
When you put all that money into buying leads, every single penny is converted to leads. As a result, buying ends up becoming much cheaper than earning them on your own.
4. Paying for Mortgage Leads Result in Faster Return on Investment
Does it need to be said? You no longer have to wait for your marketing strategies to take effect. Buying leads means you immediately get them as soon as you put in your investment.
What happens is that you are now able to jump into the next step which is converting those leads into actual customers. So, you get to see the returns of your investment much sooner than you normally would.
5. Have More Time on Your Hands
Among all the benefits of buying mortgage leads, the one that stands out is having more free time. Because when you buy leads, you delegate a huge number of tasks on the agency.
What once required hours, days, and weeks to finish has now been taken off your workload. With lesser things to do, you have more time to spend on your business itself, allowing you to concentrate your attention on business decisions that matter the most.
So, you get to put more effort on the growth of your business, instead of just keeping it up and running.
Things to Consider Before Paying for Mortgage Leads
You have seen all the good things buying mortgage leads bring, but before you get on it and make your first investment, consider a few things. Because while it may all be good, investing on the wrong agency can put all your money to waste.
Pricing
Spending more than you can make defeats the purpose of having a business in the first place. So, when you choose where you buy your leads, always consider the price.
If they are charging too much, beyond how much you expect to make out of each lead, then you can end up losing revenue instead of making any.
Question Where They Get Their Leads
Don’t just immediately assume that all leads are great leads, because there can be awful ones. Always ask and understand how they get the leads they are putting up for sale.
Stay away from companies that recycle leads. These have been resold many times over, which means that a lot of you mortgage lenders are already competing for their attention. Decreasing the chances of making a sale.
The reason why you pay for mortgage leads is to make it easier to find people to convert to customers. If that is not the case, then it completely defeats the purpose why you are buying in the first place.
Return Policy
No matter how extensive the filtering process can be, companies can still end up selling the wrong kind of leads. For example, a lead can give fake contact information and the company doesn’t spot it.
So, you shouldn’t expect for all your leads to be completely perfect. Instead, in the event that there are bad apples, what is the policy of the company?
Make sure they accept either a return or a refund. Don’t put your investment into waste by being forced to stick to a lead that has no potential of being converted into a paying customer.
One way to know if a company allows for returns is to check lead review websites. One way or the other, you can get an image of their policies from the feedback of their prior customers. Angry and disappointed ones usually make it imperative to put their experience out there, so you are bound to know whether or not a company is going to be the best choice.
Exclusive vs Nonexclusive
In the world of mortgage leads, there are two kinds that are being sold. Exclusive is when a lead is sold only to you and nobody else. On the other hand, nonexclusive means that it is sold to other buyers as well. On average, the reselling happens around 3 to 5 times, causing you to have a lot of competition on your leads.
Exclusive leads are going to cost a lot more. In most cases, twice as much as nonexclusive leads.
When choosing between the two, always factor in what you have to offer. No one is better than the other.
If you are sure that you are providing specific services and can standout from the competition, nonexclusive leads are not going to be a problem. But if you need to guarantee your sale, exclusive should be the go-to choice.
With all that has been said, paying for mortgage leads is actually great. It opens a lot of opportunities and benefits that can be hard to resist. If anything, it can exponentially propel your mortgage business forward unlike any other strategies.
Just make sure to keep in mind that nothing is perfect. No matter how great paying for them may sound, it is still a strategic approach and must be done with caution. Choose the right company and ensure that you are getting the right and best kind of leads.
If you think that this is not something you can do alone, you can always seek the help of the best marketing agency that will guide you from start to finish. Contact us today for a free strategy consultation.
