Buying leads is common in the mortgage industry – and we get it.
Mortgage bankers and loan officers are time-strapped. They don’t have a lot of hours or resources for marketing, nor do they have the tools or expertise to do it properly.
They’re busy doing what they do best: serving home buyers and approving loans.
Unfortunately, while purchasing leads may offer an easy route to potential sales, the truth is they’re not as effective as most would hope – especially given their cost.
Here’s why:
1. You're not the only one getting the lead.
You might have paid for that list of leads, but so did Jim, Jan, and Jenny down the street. And once you all get those names and phone numbers, it’s a race to see who can contact them first.
The mortgage industry is already a highly competitive space. Buying the same leads as other bankers and brokers just makes it even harder to find qualified potential customers and close sales.
2. Buyers will probably be annoyed with you.
Because leads are sold to several loan officers and bankers at once, customers end up barraged with constant phone calls, emails, and text messages all around the same time.
And though they might actually be interested in getting a loan, they’ll probably get annoyed with all the intrusion and may even start screening their calls. On the off chance, you do get them on the line? They probably won’t be too happy. You’ll have an uphill battle getting them on your side and in your corner.
3. You need the right technology to make it work.
The only real way to be successful with purchased leads is with auto-dialing technology, automated email campaigns, and other digital tools that can streamline the way you contact and communicate with your leads. The big dogs like Quicken Loans and Loan Depot already have a start on this.
Otherwise, you’re wasting valuable time and resources on leads that, for the most part, aren’t going to convert. It truly is a numbers game, and the more leads you purchase and the more you can contact, the more likely you’ll get customers. Unless you’ve got a big call center and lots of resources at your disposal, you’re likely at a disadvantage to the bigger firms and agencies who can afford those things.
Buying leads is a tough, numbers-driven business, and it often doesn’t work out in a loan officer’s or banker’s favor. In the end, the most effective way to generate leads is through quality content marketing that brings the leads to you, instead of the other way around.
Want to learn more about content marketing, and how it can drive qualified leads to your door? Get in touch with us today to see if we might be a good fit!
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