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5 Things You Must Consider When Buying Mortgage Leads

By Bill Rice
5 Things You Must Consider When Buying Mortgage Leads Feature Image
4 minute read

If your business is running low on prospects, it may be time to look into buying mortgage leads. Even in this competitive market, you can jump-start your lead generation with exclusive leads, shared leads, or aged mortgage leads. Still, deciding what kind of leads to go with can be difficult.

Here are five factors to consider before you buy.

1. Budget

How much can you afford to spend? That’s the first question you need to answer before you go any further. Some lead companies cater to clients with a limited budget. Others only work with large brokerages and require a pretty substantial minimum order.

If your company can’t afford to drop several thousand or more on leads right now, that’s fine. Now you’re armed with info that will help you narrow down the quantity and type of leads to buy as well as where to buy them. Don’t be pressured by lead companies that try to hard-sell you into spending more than you can afford.

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2. Lead Sources

Next, consider where the lead company gets its leads. Some leads are the result of companies cold-calling individuals in order to find prospects. Others set up a landing page to attract visitors who request to be contacted by a mortgage specialist. Still, others buy recycled leads, know as aged leads.

There’s no good or bad source for leads, but other factors may help decide what’s the best choice for your particular business. The important thing is to be well informed. Your budget may narrow the field when it comes to where the leads you purchase are coming from. Expect to pay far less for recycled leads than for newly generated leads.

3. Return Policy

A lead missing a significant portion of the contact information, such as a mailing address. A lead with incorrect or false information. Occasionally, this happens.

If one of your leads has missing or incorrect information, at the very least, the lead company should provide you with another lead that has accurate and complete information. Look for a lead company with a liberal return policy. If something’s not right, you ought to be able to get your money back without a hassle.

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4. Filtering Options

When you’re buying leads, finding the prospects you can best serve is usually worth a bit extra. Some lead companies have excellent filtering options. You could narrow down your search to refinances, home purchase, reverse mortgages, and more. Perhaps you want to focus on aged mortgage leads in a particular zip code, or a particular loan to value ratio cut-off.

Ask yourself if the lead company you’re considering offers filtering options that will find you the prospects you need. It’s a nice feature and one that may help you qualify a higher percentage of leads.

5. Exclusive Leads

At first glance, exclusive leads can seem like a really appealing option. These leads are only sold to your company, with the idea being that you have a better chance of converting without competitors. However, it’s worth considering potential drawbacks.

Exclusive leads are expensive — usually twice the price of non-exclusive mortgage leads. Also, there’s a chance these leads may not be as exclusive as you think. The lead company may have only sold this lead to one client, but what if that prospect requested information from several lead companies? In that case, you’d be paying exclusive rates for a shared lead.

If you’re working on a limited budget, consider stretching it by buying a higher quantity of cheaper, non-exclusive leads.

The prospect of buying mortgage leads can feel a bit intimidating at first. If it’s your first time purchasing leads, you’ll probably make a few mistakes. Finding the right leads takes time, not to mention a bit of trial and error. But once you understand what works for your business, you’ll be well on your way to filling your sales pipeline with a steady supply of quality mortgage leads to boost your conversion rate.

About Bill Rice

Bill Rice is the Founder & CEO of Kaleidico, a lead generation agency. Bill specializes in mortgage marketing, legal marketing, lead management, and sales automation.

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