What is a Lead?
The most common question we hear from potential buyers is “What can I expect from a lead?”
In effort to better define exactly what to expect in a lead, we recently conducted a comprehensive study of several hundred non-purchase leads in order to figure out just what happens to the people who fill out our forms after they click submit.
The results were as follows:
- 44% of leads closed a loan or were in the process of closing a loan within 90 days of filling out the form
- On average, loans funded for $30,000 more than the amount that the lead entered into our form
- 76% of leads filled out only one form online when shopping for a mortgage
- 52% of the leads could not remember the name of any of the lenders who contacted them after filling out the form
- 61% of leads discussed their loan with friends / family to solicit a reference
What do these numbers tell us? Well, there is A LOT of potential for brokers to close more loans! We know that the best brokers typically close about 5% of their leads (and average brokers close about 2-3%). However, from the survey results we see that there are a huge percentage of people who are closing above and beyond the 5%. Typically these leads will either close with another of the lead buyers, or more likely they will close with their bank or a broker referred by a friend.
It’s important for a lead buyer to do everything they can to get in front of a lead. From the numbers above, we can see that most lead buyers are not doing a good job of leaving an impression on the lead (not even 50% of leads could remember what companies called regarding their loan). We typically recommend that brokers use a lead management system in order to contact their leads quickly and keep themselves in constant contact with each lead. The leads are closing! It is important for the buyers to treat each lead with care. As we see from the numbers, leads typically close for an average of $30k higher than they put in the form. So, don’t leave any lead or any money on the table.
Get out there and close more loans!
posted by BigMortgageLeads at
1:06 PM
1 Comments:
I also suggest the use of refinance leads software. There are already a lot of them that are practically web-based, to ensure that all sales agents, no matter where they are, will only be working on centralized data. There's the lesser risks of having two or more people working on the same leads. Moreover, it has the ability to import the existing leads that you have and, most importantly, rank them according to their value to the business. Though you could be generating hundreds of leads every day, not all are worth pursuing.
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