MortgageOnlineBlog.Com

Posted At : January 14, 2008 1:11 PM  I enjoyed Bill Rice’s article 10 Step Lead Buying Marketing Plan article posted on Leadcritic.com. Good stuff. I’d like to add a step we had to overcome to change from a small Realtor focused broker to what I will call a “mid sized multi state” lender.

That step is one that centers on culture. We used to be owned and made up of loan officers that would source our own production, pay ourselves a good commission on our production and hopefully at the end of the year be able to split what was left in the checking account. In good years where we had a few loan officers that were not owners we made out pretty good at year end. When we started buying leads we felt that leads were a good way for a new loan officer to get some good experience, build a base of clients and then “graduate” out of working leads to the major league of Realtor and client referrals. The “internet” loans officers were looked on as “order takers” and their files took a back seat to our “real” loan officers.

However, one of our Realtor based loan officers decided he was tired of the double sale in the Realtor referral business (sell the agent to get the referral then sell the referral on allowing us to originate their loan). He made a huge effort and was instrumental in building many of our best practices and quickly was originating volumes in the range of the Realtor based loan officers. Jim Backhus still produces for us, is one of our sales managers and helps in our secondary department with loan sales.

After Jim’ success, we could legitimately hire loan officers without thinking they had to treat internet leads like the minor leagues. Jim also helped dispel the myth that the loan officers were “order takers” and that internet borrowers did not deserve the same level of service that our Realtor based clients received.

In many ways our ability to survive off of internet leads has made us a better option for consumers when they compare us to the typical Realtor based lender or broker (the kind of company we used to be).

I still see small to mid sized brokers and lenders focusing on the Realtor/Friend/Past Client/CPA/Divorce Attorney/PTA referral, as the way to build their businesses. Take a look at Mortgage Originator Magazine and you will understand this thinking and the number of service providers that live off these companies.

So my advise before you start on Bill’s 10 steps is to get your owners, managers and employees to honestly understand, believe and act on the fact that internet lead buying is as good or better an option then the personal referral business. And actually one perk of the focus on the internet leads is that you occasionally do benefit from a past client or Realtor referral. That referral is one that was generated solely on the price and service you were able to provide your internet lead client, rather then an organization membership, golf sponsorship, donuts delivered to a Realtor office etc…