The Mortgage Lead Investment

Mortgage Leads - Are they a good mortgage marketing tool?

Mortgage Leads are and will always be key in any mortgage marketing plan. The biggest issue with buying mortgage leads is that the buyer (Mortgage Brokers and Loan Officers) will spend $100.00 and expect a deal and no time in working that deal or leads. You have to expect the following when buying mortgage leads:

1. You will not reach the borrower by phone if you only call 1-3 times. If the borrower does not call back you should not consider this to be a bad lead.

2. Expect to always get 3 bad leads out of every 10 mortgage leads - as long as your mortgage lead company has a solid return policy you have only lost time - and I can assure you every person values time, but not as much as money.

3. The potential borrower has spoken to other mortgage companies, probably a few before even submitting information online for a Free Quote. So when you call a borrower and they say "I have been contacted by several people" - then that is your chance to sell - not say ok let me get off the phone and request a refund for this lead.

Research shows that online users submit their information to 2 or 3 mortgage websites when shopping for a quote online. Combined with shopping in their local market the person will always exaggerate with the common, "I have been called by 20 people", when it is really been FIVE.

Number of Leads Purchased: 50
Cost Per Lead Purchased: 15.00
Total Lead Investment: $750

Estimate Percentage of Leads Closed: 5%
Average Amount of Mortgage Closed: $185000
Number of Loans Closed: 2.5
Total Amount of Mortgages Closed: $462500

Fee's Collected: 2%
Commisions Earned: $9250
Return on Investment: 1133.33%

Taking all this in consideration you truly have to have patience and be willing to spend more than the $100.00 you thought was a major investment. A 5% closing on 50 leads is realistic and not fluffed like most mortgage lead websites.