In today’s volatile mortgage lead generation market, brokers today are often concerned with the quality of their mortgage leads. Many brokers have tested and used Internet leads that have caused discouragement and frustration due to poor results. These leads are often generated through spam and unsolicited email blasting that yield poor quality, non-exclusive mortgage leads.
So are there any lead generation programs that provide quality leads, and if so where are they? The answer to this dilemma for many brokers may be Telemarketing Lead Generation.
Mortgage telemarketing lead generation services allow the mortgage industry an opportunity to proactively streamline applications and substantially increase revenue. When done properly, telemarketing provides brokers the best chance of receiving higher quality, exclusive mortgage leads. These leads at least provide brokers an opportunity to speak with interested homeowners who are requesting information on mortgage related products.
A lead that CLOSES does not necessarily determine the quality of a telemarketing lead. A quality lead is not a ‘lottery ticket’, but an opportunity to speak to a qualified homeowner who requires the services of a broker. There are a few factors to consider when evaluating the quality of mortgage leads.
Exclusive vs. Non-Exclusive
Sorry, this is my first time calling! The biggest obstacle to often overcome with mortgage lead generation is the exclusivity of the lead. With Internet leads, brokers often find themselves competing with a number of brokers. When investing into a Telemarketing Campaign, brokers needs to clarify the number of brokers that are receiving the leads generated. Telemarketing campaigns that ‘oversell’ their leads often yield the same poor results as Internet Campaigns. Even though ‘Exclusive Telemarketing Leads’ are more expensive, brokers are providing themselves a better opportunity at closing loans since competition is eliminated.
Lead Delivery Time
Fresh today, stale tomorrow! Another critical aspect on lead generation is the delivery of the lead. In the competitive mortgage industry, it is important that the leads generated are delivered in a timely manner. If a lead is not delivered within a 24-48 hour time period, the lead is less valuable and a brokers closing percentage drops dramatically. It is key that when choosing a Telemarketing Company it is clarified if the leads will be sent in ‘Real Time’.
Also, brokers need to verify the format the leads will be delivered. Leads can be delivered in a number of formats such as Word, Excel, Email, ECT. Make sure the format is acceptable since a delay on your part when receiving the data will also cause the lead to become stale.
Accuracy of Information
It’s great to receive exclusive, timely leads, but if the information is not accurate the lead is worthless! When selecting a Telemarketing Company, a broker wants to clarify how the homeowner’s information is taken. Quality telemarketing campaigns include systems that are focused on quality assurance allowing brokers a better opportunity to receive accurate leads.
These systems often include a third-party verification of the data at the end of the call to ensure all the information was accurately taken. Also, due to upgrades in technology, many companies ‘digitally record’ all calls. This allows the lead generation company an opportunity to review calls for accuracy and compliance. This technology also allows companies to enhance training programs as well as provide brokers an opportunity to ‘monitor’ their telemarketing campaigns.
Lead Methodology
Oh, you were only interested in the free toaster! Since the Telemarketing Company is an extension of a brokers business, it is important to understand the methodology of the lead generation. Brokers want to clarify that their lead generation does not include incentives or special offers. Leads that are produced under this format are worthless and often originate from homeowners who are just looking for a ‘free gift’. Also, understanding the lead system will allow brokers a better opportunity relating to their clients which will adversely lead to more closings.
Lead Return Policy
A ‘Bad’ lead is not one that does not close, but a lead that does not meet the criteria! It is important for a broker to understand the lead return policy that is being provided. No matter how reputable and strong the telemarketing company is, there is no way that 100% of the leads provided will be accurate. Bad leads are worthless, and even a small percentage can lower a brokers ROI. It is key to understand the Lead Qualification Criteria that is involved within the telemarketing campaign and have a full understanding on how ‘Bad’ or “Unqualified’ leads will be addressed.
Price per Lead vs. Cost per Close
As we all know, you get what you pay for! If a telemarketing company is offering a campaign that is well below the norm, brokers might want to be aware. There are certain variables and costs involved with telemarketing, and these costs are often fixed. When considering the cost involved, a broker should expect to pay between $75-$90 per qualified lead.
An exclusive telemarketing campaign should be based on Return on Investment not on initial investment. A broker should be focused on ‘Cost per Close’ not ‘Price per Lead’. If a company offers a telemarketing campaign that provides leads for $40-$50, but are poor quality and have a very low closing percentage, what good are they? A strong telemarketing lead generation program should return a 20%-25% closing rate, which yields a very strong ROI even at $75-$90 per lead.
Guarantees
As we all know, if it sounds too good to be true, it probably is! If a telemarketing company is offering a guarantee on the number of closings you will have, be careful. Since a telemarketing company cannot be responsible for the broker doing their job, guarantees like this are far fetched and are often a sign of trouble to come. However, a quality telemarketing company should stand behind their campaigns and offer guarantees in writing. These guarantees should focus on lead production, lead criteria, and quality of the leads.
Company
Here today, gone tomorrow! Brokers need reassurance that the companies they choose for their marketing campaigns are reputable and professional. Brokers also want to clarify that the telemarketing company is in full compliance of all Federal and State DNC Legislation. Also, brokers needs to protect themselves from DNC Legislation and want to make sure that the telemarketing company assumes all responsibilities for any such infractions. A main reason for ‘outsourcing telemarketing’ is to avoid these hefty fines, so brokers need to make sure they hold no liability.
Also, check the company’s history to validate their credentials. If they are somewhat new be concerned since they may not have a ‘track record’. Try to target established companies since longevity is often a sign of success and success is often found in the quality of their telemarketing system. Never be afraid to ask for industry references, since speaking to another broker will often provide insight with what to expect.
Summary
Even though frustrating, lead generation is a key tool that can increase revenue and closings for brokers. Telemarketing, even though often frowned upon, is the best resource to use when searching for qualified mortgage leads. When done properly, telemarketing lead generation provides the mortgage community the best option when searching for qualified, exclusive leads. Using the pre-mentioned factors when choosing your vendor will increase your success rate and your ROI.
Lets face it, ‘Return on Investment’ is the key here, so use that to determine if a lead generation program was successful!!
Michael Bococinski, Co-Founder of TheMortgageCircle.com and Senior VP of Business Development for Metro Marketing, is a specialist in Direct Mortgage Marketing. He has provided powerful and successful consultant work to the Mortgage Industry through Direct Marketing Campaigns for over 10 years. Mr. Bococinski is also responsible for heading a start-up Direct Marketing Company that has grown to over $18 million yearly in sales within its first 2 years of operation.
Call him directly at 1-800-696-7788 ext 268 for a free mortgage marketing analysis or email him at Mbococinski@themortgagecircle.com for that request. |
