I'll get straight to the point here: "General Home Buyer" leads are the easiest thing in the world to generate. If you're any good at lead gen and know how to operate the facebook advertising platform, you can maybe generate them for $2 - $3 per lead. The problem arrives when, even with excellent follow-up (automated or not), they generally ONLY convert at 0.5%.... AND they can take 5 to 8 phone calls just to get a pre-qual. So, let's crunch some numbers in this scenario... In order to close 1 loan, from a general home buyer lead campaign, you'll need to:
- Generate 200 leads
- AND Make 1,000 to 1,600 calls!
...Ain't nobody got time for that! That's why when we run mortgage or real estate campaigns, we ALWAYS go after specific niches. These "niches" in our playbook is defined as a hyper targeted audience who we also know to generally be qualified as a homebuyer (this means including looking at things like consistent and substantial income). For example, I've been getting bombarded with questions as to why I keep posting about VA loans... Let me explain: Veterans frequently have VA benefits (hello "consistent and substantial income"), which nearly instantly qualifies them as a homebuyer lead. On top of this, they receive additional benefits that SIGNIFICANTLY increase their chance of being approved. Ask any mortgage broker, they would sweep up a VA loan client in a heartbeat. Compared to general home buyers, VA clients are way easier to finalize. Oh, and by the way...the campaign we run for VA loans closes at 4-8% AND generally only take a couple phone calls to do so. While the CPL (Cost Per Lead) comes out higher for this campaign around $20 CPL, it makes WAY more sense when we crunch the numbers again. FOR EXAMPLE: 📉Broker 1 spends $600 for General Leads to generate 200 leads, then makes 1000+ phone calls, just to close 1 loan 🙃 OR 📈Broker 2 spends $600 for 30 VA leads, makes 60 phone calls, to close 2 to 3 loans 😀 It's pretty clear which Broker is taking their family out to a nice dinner next month. Which one are you?