The mortgage industry sees a great deal of intense competition. Nowadays mortgage brokers and real estate agents are looking for new ways to drum up business and increase their own bottom line. Quite a few agents and brokers resort to the purchase of mortgage leads. Mortgage leads are a service you purchase from a reputable company that has done the background work for you. You pay them a fee and they provide you with leads that will get you closer to a closed mortgage deal. This means commission for the agent and commission for the mortgage broker. At the same time, as a mortgage customer, you must focus on get a bunch of loan or mortgage quotes to get the best deal in the market. One very valuable method that real estate businessmen use in making their businesses grow is investing in mortgage leads. Before you start buying some leads, here are a few tips you need to know to make sure your money is being used wisely.
1) Shop around. There are just as many lead brokers out there as there are mortgage companies. And they all want your business.
2) Look for a company that has no start up costs and no long-term obligations. You want to make your purchase and be done with it.
3) Understand that leads are going to be sold in blocks, generally you will purchase anywhere from 25 to 1000 leads depending on how big your business is.
4) Ensure that you have a decent understanding of the various lead types. There may be a possibility you are sharing your leads with another broker depending on what kind of leads you buy. The 4 main lead types are:
* Exclusive Leads: These are leads that are only sold once, and sold to you.
* Shared Exclusive Leads: These are leads that are generally sold only about two times. The lead is shared with another broker, but only by one other person. Also, when you start looking for leads, ask about how often shared exclusive leads are sold.
* Shared Leads: These are leads that are shared by as many as 4 or 5 other brokers, depending on where you get them from.
* Live Leads: These are leads that you can get in touch with as soon as you purchase them. For all you know, your lead and you might be talking the moment your payment is processed.
5) Your cost per lead will be influenced by the lead type you buy. The more exclusive your lead, the higher your price is going to be. Leads can be anywhere from $30-$50 each, so keep this in mind when determining what kind of package you want, and how exclusive the lead you want.
6) You will want your leads to be tele-verified before they reach you. That means you are not making cold calls, the leads you will be receiving have been verified by phone that their information is correct, and they have expressed an interest in loan services.
7) Confirm that the mortgage lead selling company that you are dealing with will replace leads if they are not “good leads”. Ask them about their lead replacement policy.
