Now is the time to invest in Lead companies, but how do you know which one is right for you?
When I was a new loan officer, it was hard to find a lead company. I remember going to Yahoo, typing in "mortgage leads," and getting a lot of links to lead companies that all said they had the best leads and the best deal for me.
But how could I get the best deal? That depended on what I was looking for, so I took my time and wrote down exactly what I was looking for, including whether I wanted refinancing, buying, or both. How much could I spend? Did I want leads from several states or just one? Etc., etc.
Before I invested any money, I decided to do a lot of research. I went to the websites of the companies I was thinking about to read their terms and conditions. I talked to representatives in their customer service department and asked a lot of questions. I also read lead site reviews online to see what other loan officers thought of the companies I was thinking about.
One thing to keep in mind is that no lead company can guarantee you a 100% conversion rate, and they will tell you that right away. If that is what you are looking for, you can stop looking now.
Are you with me? Good!
Here are a few things to think about before making a decision.
Charges
If you are on a tight budget and only have, say, $100 to spend, you will have to narrow your search to lead companies that accept $100 or less or will meet whatever spending limit you have set. Some companies won't let you make a deposit of less than $500, so this is not the right company for you.
Getting Leads
Find out where the company gets its potential customers. Some companies sell the same leads over and over again. They also buy leads in bulk from other companies and sell them again, so this is a very important question to ask right away.
Rules for returns
Look for a company with a good return policy. Lead site reviews are the best way to find out about this.
There is no reason why you shouldn't get your money back if you get a lead with fake contact information.
How Many vs. How Good
Be careful when you buy in bulk. If you can spend $100 and get 50 leads, it's likely that the leads are old and being reused, which means your chances of making a sale aren't very good.
If you can spend $100 and get five to ten new leads, you may be better off and much more likely to close the deal.
"Picking the Best" vs. "Filters"
Cherry-picking is a nice and popular feature that lets you look at a lead on a site before you buy it. Some sites will even tell you how many times it has already been sold.
Filters are also very nice features. They let you choose ahead of time what kind of lead you want, and when a lead comes in that fits your filter criteria, it is sent directly to you by e-mail or fax.
Service to customers
Customer service is the most important part of any business, and how they act on the phone can give you a good idea of how they run their business.
If you can't get in touch with someone or they don't return your phone calls, it's probably not a good idea to do business with them.
Referral
One of the best ways to find a mortgage lead company is to ask a co-worker or someone in your organization who has had success with a lead company for a recommendation. Talk to people and see what you can find out.
Exclusive vs. Nonexclusive
If you want to be the only one to get a lead, you'll have to pay more for it, but no one else will be able to buy it. This cuts out your competition.
On average, non-exclusive leads are sold three to five times. This usually cuts the cost of the lead in half, but you now have to compete with other loan officers. Don't forget that you get what you pay for.
Just one more thing..
By thinking about these eight things about mortgage lead companies, you'll be well on your way to finding the best one for you at the right price. But don't stop here. Keep looking for as much information as you can before you invest. I can't say enough about how helpful the lead review sites are, so check them out.
