Comparing Mortgage Leads To Direct Mail Marketing - Understanding When It Is Better To Spend More

For mortgage brokers looking to increase their client base

, there are a few basics things that they can do to generate new business. The most common two ways of finding new customers are through direct mail marketing campaigns and through buying qualified mortgage leads. A direct mail marketing campaign is one where a postcard or letter is sent, unsolicited, to a wide variety of potential clients, with the hope that they will read the materials mailed to them and be inspired to call. Direct marketing can work, but it is essential that you have a good mailing list to send your materials to, otherwise it can be a waste of paper and postage.

In order for a direct mail marketing campaign to generate even a single mortgage lead, you must be mailing your materials to people that even might be interested in purchasing a new mortgage. There are many target markets that you can zero in on, such as borrowers looking to consolidate credit card debt, borrowers that are house shopping or borrowers that many be eligible for a better rate. Once you have purchased or compiled a list of prospective customers and prepared a mailing that should appeal to their needs, you need to mail it out and hope that anyone takes the initiative to call you about what you have to offer. A direct mailing of hundreds of postcards may not produce even one mortgage lead.

Buying mortgage leads is a much more reliable way of getting business moving, and mortgages written. Unlike a mailing list, which targets people based upon different social information, a mortgage lead starts out with the potential borrower qualifying themselves as a lead. Whether this is through signing up and applying for a pre-approval through a mainstream lending site or by hiring a realtor, the simple fact is that they are indicating a potential interest in mortgage services. Although typically more expensive to buy than a mailing list, the return on investment is much better, as you are much more likely to get a bona fide mortgage lead from your purchase than you are from a mailing list.

Regardless of what lending market a mortgage broker specializes in, the simple fact is that they are going to need good mortgage leads to keep themselves in business. The old adage that you have to spend money to make money may not be true for all markets, but for mortgage brokers, it is unmistakably true.

by: Troy Truman

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