As a loan officer, you already know the importance of quality business leads when it comes to the success of your business. But, as you quickly find out, generating those leads is more challenging than it sounds. While building realtor relationships helps to bring in warm leads, relying on those leads alone is often not enough to build a successful business. After months of unsuccessful lead generation, many loan officers turn to buy mortgage leads. But not every mortgage lead is the same, and it is important to research before choosing a lead generation company.
Here we offer a comprehensive guide to buying mortgage leads that considers the type of leads and guarantees that a lead generation company offers and whether the leads you buy will actually be effective for your business.
As a loan officer, buying leads can provide a great boost to your lead generation and percentage of closings if you take the time to understand the leads you are purchasing fully.
Key Takeaways
- Mortgage leads are crucial for loan officers, helping to grow their business beyond just referrals. Buying leads can help boost lead generation and business success.
- There are four types of leads: exclusive, non-exclusive, real-time, and aged. Understanding their differences can help decide which type suits your business needs best.
- Buying leads can provide more volume, targeted prospects, and save time. However, challenges include variable lead quality, increased competition, cost considerations, and the need for relationship building.
- Choosing the right lead generation company involves checking credibility, lead quality, pricing, customer support, and policies about lead replacement and refunds.
- Besides buying leads, other methods like growing your referral network, using content marketing, social media, direct mail campaigns, and partnering with a marketing agency can help generate leads.
Importance of mortgage leads
While referrals play a major part in a loan officer’s business, they are simply not enough to grow a successful business. In a competitive mortgage market, having access to high-quality leads can provide a significant advantage. Mortgage leads are important for preventing pipeline bloat and allow lenders to be proactive in reaching out to potential borrowers, increasing their chances of securing business and staying ahead of competitors.
Types of mortgage leads
There are four main types of mortgage leads: exclusive, non-exclusive, real-time, and aged leads. Before you consider buying leads, it is important that you understand the difference between these lead types and what they mean for your business.
Exclusive leads
Exclusive leads refer to a type of lead that is sold exclusively to a single buyer or recipient. In other words, exclusive leads are only provided to one mortgage professional or lender, ensuring that they have sole access to that particular lead and that it is not shared with or sold to any competitors. While these are often the most beneficial lead type, they are also the most expensive.
Non-exclusive leads
Non-exclusive leads are leads that are sold or shared with multiple mortgage professionals or lenders. Unlike exclusive leads that are provided to a single recipient, non-exclusive leads are distributed to multiple buyers simultaneously. This means that multiple mortgage professionals or lenders can pursue the same lead and compete for their business. Non-exclusive leads are less expensive than exclusive leads, but they require you to be ready to outshine your competition in order to convert.
Real-time leads
Real-time leads, also known as live leads or hot leads, refer to leads that are delivered to mortgage professionals or lenders immediately after the lead is generated. These leads are typically obtained through various marketing channels and are transferred in real time to the recipient, allowing for immediate follow-up and engagement. Because of their real-time delivery, these leads are actively seeking information, but this means you have to be ready to connect with the lead immediately.
Aged leads
Aged leads are those leads that were often generated with the intent of being exclusive, non-exclusive, or real-time but were not purchased within a window of time. This means these leads are older, and there is a risk that the lead has already chosen their loan officer. Because the aged leads are your least expensive lead available for purchase. While they are risky, keep in mind that many buyers are often still in the research phase when they fill out lead-generating information, so there is still a chance that aged leads can offer success.
Buying mortgage leads
When it comes to bringing in mortgage leads and establishing a lead generation strategy, whether on your own or through a lead-generation marketing agency, buying mortgage leads can be a strategy employed to supplement your lead generation efforts. Like any business decision, there are pros and cons to consider.
Pros of buying mortgage leads
- Increased Lead Volume: Buying mortgage leads allows mortgage professionals to quickly access a larger volume of leads compared to relying solely on organic or in-house lead generation efforts. This can help boost the overall pipeline of potential borrowers.
- Targeted and Qualified Leads: Many lead providers offer targeted leads based on specific criteria, such as location, credit score, loan amount, or other relevant factors. This allows mortgage professionals to focus on leads that align with their ideal customer profile, increasing the likelihood of conversion.
- Time and Resource Savings: Buying mortgage leads can save time and resources by outsourcing the lead generation process. Instead of spending valuable time and effort on prospecting and lead generation, mortgage professionals can focus on nurturing and converting leads.
Cons of buying mortgage leads
- Quality Variability: The quality of purchased mortgage leads can vary significantly depending on the lead provider and the lead generation methods used. Some leads may be outdated, inaccurate, or of lower quality, resulting in lower conversion rates and wasted resources.
- Higher Competition: Purchased leads are often sold to multiple buyers, increasing the level of competition among mortgage professionals or lenders. This can make it more challenging to convert leads into clients, as recipients are vying for the same borrowers’ attention.
- Cost Considerations: Buying mortgage leads involves a financial investment. The cost per lead can vary depending on factors such as lead quality, exclusivity, or lead provider reputation. Mortgage professionals need to carefully assess the return on investment and ensure the cost per acquired client aligns with their business goals.
- Relationship Building Challenges: Purchased leads may lack the warm introduction or existing relationship that comes with referrals or organic leads. Building trust and rapport with purchased leads may require additional effort and effective lead-nurturing strategies.
- Compliance and Data Protection: When buying mortgage leads, it is essential to ensure compliance with relevant regulations, such as data privacy and protection laws. Mortgage professionals must choose reputable lead providers that prioritize data security and adhere to industry standards.
Choosing the right mortgage lead generation company
Choosing the right mortgage lead generation company is crucial for the success of your lead generation efforts and comes from evaluating criteria like the credibility, lead quality, pricing, customer support, and guarantees that a mortgage lead generation company may offer.
Credibility
Credible lead generation companies have a strong reputation and a proven track record in the mortgage industry. Research their experience, client testimonials, and case studies to assess their credibility and success in generating high-quality leads.
Lead quality
How do you know if the leads a mortgage company provides are quality? Inquire about the lead generation company’s lead qualification processes, sources of leads, and the level of exclusivity they offer. Exclusive leads are often the best quality. Ask for data on lead conversion rates to gauge the effectiveness of their leads in converting into actual clients.
Pricing
Evaluate the pricing structure and affordability of the lead generation services offered. Compare costs across multiple providers and consider the potential return on investment (ROI) based on the conversion rates, lead quality, and your average client value. It’s important to strike a balance between cost-effectiveness and lead quality.
Customer service and support
Assess the level of customer support and communication provided by the lead generation company. Does the mortgage lead generation company offer hands on support? Do they offer phone support in conjunction with email support? Prompt and effective communication can help address any issues or concerns and ensure a smooth working relationship.
Return policies and procedures
Inquire about the lead generation company’s policies regarding lead quality, lead replacements, guarantees, and refunds. Understand their process for handling leads that do not meet the agreed-upon criteria or that are determined to be of low quality. A company with fair and transparent policies can provide peace of mind and protect your investment.
Types of leads
Determine if the lead generation company offers exclusive leads, non-exclusive leads, real-time leads, or aged leads. Assess whether the type of leads offered aligns with your budget and conversion goals. Exclusive leads often come at a higher cost than non-exclusive leads.
Alternative methods for buying leads
If you’re looking for alternative methods to buying mortgage leads, here are a few strategies and options that can help you generate a steady stream of leads.
- Build and grow your referral network
- Develop a content marketing strategy to bring in organic leads
- Leverage social media marketing options
- Offer valuable lead magnets and opt-in forms through your website to promote organic lead generation
- Turn to targeted direct mail campaigns
- Add a lead generation marketing agency
Quality leads are essential for business success
As a loan officer, you know that lead generation is an essential component of any successful business model. However, how you generate those leads can vary based on your budget, your available time, and your strengths and weaknesses. If you struggle with lead generation, it may be worth the extra investment to purchase leads on a regular basis, as well as partner with a lead generation marketing agency.
Your growth partner for exclusive and quality leads
At Good Vibe Squad, we understand the importance of creating a steady stream of qualified leads in order to generate the conversion rates your business needs to prosper. With our mortgage lead generation services, we can deliver pre-qualified, exclusive mortgage leads directly into your pipeline with little to no effort on your part.
