|
Marketing Tips
If you have ideas that you would like to share with your fellow originators,
please send them to tips@brokeruniverse.com. Be sure to include your name and the name of your company so we can give you credit for
your tip.
The reality of networking
thecoldhardtruth
Every LO needs to create networks with
related professionals as well as clients. If you have a client that owns their own business, you need to network
with them. Never expect or (worse) demand immediate payback (meaning referrals that turn into closed deals) from
your network. It will not happen. In 15 years of being an LO and 14 years spent trying to network, I received actual
referrals from less than 40% of the other businessmen I contacted. Of the 40% that did send me at least 1 name,
the closable deals accounted for maybe 2 out of every 3 referrals. The percentage was much lower during the initial
years when all I got were the "next to impossible" deals to "test my worthiness" of the potential
networkers business. (Essentially putting in my dues to earn the referrals.)
My point to LOs, especially new ones, do not expect fruitful results
from your networking for many months. Do not bang your head against those people who simply take your rate sheets
and never call. If you loyally send rate sheets to a realtor for more than 4 months and never get even a call -
move on. Make more effort to network directly with customers.
To mortgage brokers, do not expect your LOs to have instantaneous pipelines from spending countless days driving
down streets and cold-calling on potential networking partners. I recommend to my LOs that they send out simple
one-page letters explaining what they have to offer and that they want to establish a no-maintenance network. All
the potential networking partner has to do is send a business card back in a SASE provided, and my LO will make
a mutually convenient appointment to talk to them. This way, the potential networking partner doesn't have to be
bothered with a face-to-face "vendor call" - they can read the letter and make a quick decision and not
hear the "my service is the best, try me" speech, again.
So - if you concentrate on networking directly with potential customers, you will obtain success far more quickly
and get far greater commissions with far less hassle. Not that any LO should avoid the traditional networking relationships
- just don't waste time doing something because everyone else is doing it. More often than not, it is better to
try and be different from the Joneses than try and keep up with them. Try and network with people who directly
appreciate your service rather than people who are constantly asking "What have you done for me lately?"
Staying ahead of the competition
thecoldhardtruth
As business slows, several of my LOs have asked how I keep my pipeline, at least,
partially filled as theirs coast on zero.
My philosophy is simple, yet unique in its approach. The mortgage broker who can
get the deal done at a competitive rate usually gets the deal and the commission. (Be patient - the truly good
stuff is coming.) Anyone can get any conforming rate anyone else can get. Conforming loan success is a matter of
how little you are willing to work for to undercut your competition.
In subprime, much of that same strategy exists. There is a very important twist.
Each subprime loan has its own unique problems that must be met. I teach all of my LOs to find subprime lenders
that offer you a truly unique advantage over your competition. Subprime borrowers are far more grateful than conforming
ones - my humble opinion. If you have 10 subprime lenders offering the same rate on a 2/28 ARM, making 1 YSP, chances
are your competition has the same lenders? So what sets you apart? What if you could find a lender that would do
the loan for 1/2% less AND still pay you 1 YSP IF you submit a full package to the lender? Now you have a solid
advantage.
If you want to have an unbeatable bag of tricks, do your homework (while everyone
else is at Happy Hour) and find lenders that fill very difficult niches that most brokers do not want to do or
simply don't think can be done. Advertise those programs and you will get deals.
Such as a lender that offers a free point at par for simply submitting an appraisal
with the package. Or a lender that offers a 1/4% reduction in rate for purchases over 75% LTV! Yes - over 75% LTV
Or a lender who will treat a s/e borrower with less than 2 years of s/e as a full doc. borrower! Or a lender who
offers a 107% purchase/refinance at rates under 8%, 30-year fixed, no MI, no escrows and at scores down to 660!
Do not be worried about what your competition can do - be worried about what you
can't do because you do not seek out new lenders with programs to do what you have been told or thought couldn't
be done.
Just some thoughts that have kept me one step ahead of the competition. Many mortgage
brokers turn away new lender reps because they do not want to hear the same stuff. I have never been so busy that
I could not listen for 10 minutes to information.
How to Get the Best Value From an Internet Lead
thecoldhardtruth
I buy leads only from sites that allow me to "preview" the leads before
I purchase. Buying leads blindly or sight unseen is like playing blackjack blindfolded. I know most Internet lead
providers offer filters, but I still hold to seeing is believing.
I make sure I get an email address for the client. I send an introductory email
immediately letting the client know 2 very important things - that I will call them within 24 hours AND will do
business by email if they feel more comfortable. The 2nd item has been successful for me. It allows the client
to conduct business on their time. They can rest assured that I will not call them in the middle of CSI-Miami or
original CSI for the West Coast and take up their free time. By using email, I get to maximize my time, too. Email
allows the client to feel more secure in that they do not have to deal with another commission salesman in the
flesh.
If I have been unable to reach a lead after a week of calling and at least 2 emails,
I send a polite letter apologizing for MY inability to reach them. I ask them one final time for an opportunity
to "answer their questions" not necessarily sell them a loan. While this goes against the old "ask
for the sale" advice, it eases the client into knowing that I will not pressure them into making a decision
immediately. I will ask for the sale once I have their trust and can show them the savings they are missing. I
include a couple of free information guides on credit scores and mortgage refinancing myths so that they get something
of value for nothing if we part ways.
Finally - I close my letters by making it clear that I will not chase after them
anymore. They must make the decision to utilize my services- I will not shove them down their throats.
I include 2 business cards - one for them and one for a friend who they tell about
the free guides I sent.
Have at it and remember - by the end of 2003, consumer revolving debt will top
$2.0 trillion at an average interest rate of just over 13%. With the 30-year fixed hovering around 6.125% - you
do the math.
Mortgage Insurance vs. Purchase Money Second (i.e., 80:10:10)
From Calculated Industries
There are many programs that offer limited down payments (i.e., 5% or 10%). However,
they sometimes have Mortgage Insurance associated with the low down payment.
The straight first concept isn't usually in the client's best interest, as the Mortgage Insurance is not tax deductible.
However, in some cases of lower credit scores, Mortgage Insurance types of loans are a benefit.
Below is a comparison of why you will want to try and provide your client with the Purchase Money Second. This
example will show you how to create a "positive cash flow", how to figure out the "blended rate",
and "benefit" to the Purchased Money Second.
Step #1: Calculate the payment
for a traditional 90% loan with MI on a sales price of $400,000.
| Key Strokes |
Display |
|
| [On/C] [On/C] |
0.00 |
|
| 360,000 [L/A] |
360,000 |
|
| 30 [Term] |
30 |
|
| 6.5 [Int] |
6.50 |
|
| .62 [Mtg Ins] |
0.62 |
|
| [Pmt] |
2,275.44 |
Principal & Interest Payment |
| [Pmt] |
2,461.44 |
PI & MI Payment |
Calculate the payment for a conventional 80% first of $320,000 and a 10% purchase money second of $40,000.
| 320,000 [L/A] |
320,000 |
|
| 6 [Int] |
6.00 |
|
| [Pmt] |
1,918.56 |
Principal & Interest (1st) |
| 40,000 [L/A] |
40,000 |
|
| 4.25 [Int] |
4.25 |
|
| [Pmt] |
196.78 |
Principal & Interest (2nd) |
Benefit to your client: $2,461.44
(PI & MI) - $2,115.34 (1st & 2nd) = $346.10 Positive Cash Flow
Step #2: Figure the blended rate
of the Traditional Loan and the 80:10:10 purchase money second.
| 360,000 [L/A] |
360,000 |
|
| 2,461 [Pmt] |
2,461 |
Loads P&I + PMI Pmt |
| [Int] |
7.27 |
Blended Rate with PMI on 90% LTV |
| 2,114 [Pmt] |
2,114 |
Loads P&I of 1st & 2nd |
| [Int] |
5.81 |
Blended Rate of 80:10:10 (Benefit!) |
Step #3: How soon will the second be
paid off if I apply the cash flow to the monthly payment?
| 40,000 [L/A] |
40,000 |
|
| 4.25 [Int] |
4.25% |
|
| [Pmt] |
196.78 |
Payment of Second |
| [+] 346.10 [=] [Pmt] |
542.78 |
Loads New Payment |
| [Term] |
7.13 |
Benefit of Payoff 2nd |
Step #4: After 7 years how much
buying or move up power will your client have if they go with the 80:10:10?
| Compare Loan with MI |
Compare 80:10:10 purchase money second |
| Sells Home for $400,000 |
Sells Home for $400,000 |
| Cost to Sell is - 24,000 |
Cost to Sell is - 24,000 |
| Balance -325,498 |
Balance - 296,846 |
| Buy Power $50,502 |
Buy Power $89,154 |
Recap: You have given your client
the ability to put down $89,154 towards a new home in 7 years, as well as paid off their second in 7 instead of
30 years.
The Mortgage Success Kit and the calculator is available at a 10% discount
with free shipping at
www.calculated.com/nmn
Use a Commercial Blog to Keep Your Web Site Content Fresh and Interesting
Marcus John, Stellar Site Designs
Web sites become stale if their content is not fresh and interesting. It is crucial
that your web site provide pertinent and interesting information.
Most small businesses lack people with the technical savvy to update the web site on their own, and it becomes
too costly to have consultants or web designers update for them. A growing trend called Blogging may be the answer.
Blogs, also referred to as web logs, have been around for several years now; recently they have begun to be used
as a marketing tool for business web sites. A Blog is simply a web-based journal powered by a self-publishing tool
that enables the author(s) to regularly and easily update the content. Businesses have begun to use Blogs in a
similar fashion as eMail Newsletters. You can use a Blog on your web site for almost anything. Perhaps it can be
used as a "What's New" page. Maybe you could use it as a page that provides daily or weekly tips to your
customers.
No matter how it is used, it will add value to a web site if it provides fresh
content. If you like to write and wish to use your web site as a forum to speak with your customers, then a Blog
could be for you.
My Blog is sort of a hodgepodge of Internet Marketing tips. Click here to see it in action.
Why Should I Give A Closing Gift?
From Kevin Spier, AdStamp
Giving a closing gift is a terrific opportunity. An appreciated gift that is used
frequently is a permanent reminder of you and your services.
One gift idea is a self-inking address stamp that prints your client's new address. An address stamp is a memorable
and long lasting gift, and some rubber stamp companies specialize in serving Loan Originators. They will print
your personal information (name, phone number, company logo, etc.) on the outside of the address stamp. The stamp
prints only your client's new address. One company, AdStamp, will provide a free personalized sample to any loan
originator that visits www.adstamp.com and completes a brief on-line form.
Loan Originators who want the gift address stamp should email or fax client addresses to AdStamp and the personalized
address stamp arrives at their office or client's home within a few days. Most Loan Originators like to ship the
stamps directly to their clients shortly after closing, but some order a week or two in advance so they can provide
the gift in person. Either way clients like getting a personalized gift.
Says Brian McDermott of Sahler Mortgage, "I call all of my clients after
I know they have received their new address stamp, and they often thank me exuberantly before I even get a chance
to ask about it. Clearly the stamps make a great gift, but what I really like is my name and number permanently
attached to that gift. I tell them to think of me when they use the stamp and to call me if they or anyone they
know could use my services...it really works."
The cost ranges from about $10 - $15 per address stamp. Many Loan Originators
also provide them to refinancing customers. The logic is that you have not only given a special personalized gift,
but you have also left a valuable marketing piece in your client's home.
A gift that permanently places your name and number in your client's home should
help generate both referral leads and repeat business. When the homeowner is ready to move to a new home, your
name and number will be on the address stamp they will soon need to replace. You should be the first one they call.
A closing gift can be a tool for generating new and repeat business. You just
need to find the right gift for the right situation.
Selling Payment Options in a Tough Economy
From Calculated Industries
With today's tough economy, there is a need for a "cash flow" type of
loan or payment options. Many clients just want to pay the interest only and use their payment savings towards
credit card debt, saving their cash until they can land a better job, or use it to invest in better opportunities.
Here is a scenario that we ran across in a training. We had a client who had about $20,000 in credit card debt
at a moderate 10% interest rate. They also wanted to take advantage of the low mortgage rates. Their sales prices
of their home was $100,000 and they had a loan of $75,000 (LTV was 75%). Their current 1st was at a fixed rate
of 6.5%. Their issue was very little room for a Home Equity Line with a higher rate. Their middle credit score
was a 680 with no charge offs or BK's.
First provide your client with the "cash flow" concept or payment options. How would you like to pay
at a Start rate of 1.95%, or a payment of $293.70? I always prefer to sell the latter instead of the rate. How
would you like to payoff your credit card debt and loan in less than 25 years? Here's how:
Payment options are defined as: Start Rate (1st payment), Interest Only (2nd payment), 30 year (3rd payment) &
15 year (4th payment). (RE: World Savings has the MARM)
You need to determine the following payments based off an $80,000 refinance or 80% LTV:
Start rate 1.95% Start rate payment $293.70
Interest only 4.95% Interest only $330.00
Note rate 6.0% 30 year payment $479.64
15 year payment $675.09 (based off the note rate)
Now you can pitch the "cash flow" concept. Your client can pick a payment that fits their lifestyle or
investing strategy. For example, if the client was already paying $400 a month towards their $20,000 credit card
debt at 10%, it would take them about 5.4 years to pay it off. By subtracting the 30-year payment of $479.64 from
the Start rate payment of $293.70 = $180.93, this extra money may be added to their $400 credit card payment, resulting
in a pay off term estimated at 3.4 years. The client will build up some deferred interest by only paying the start
rate payment, but will have the opportunity to write off the interest and make accelerated payments after their
credit card debt is paid off.
You can apply the same savings into an interest bearing account for those who want to invest in stocks. Sell the
payment options.
Click here for the rest of this article.
The calculator is available at a 10% discount with free shipping at
www.calculated.com/nmn
Key Chains as Successful Marketing tools
From the Grapevine by moneyone
A recent thread at the Grapevine inquired about the feasibility of hanging
flyers on the doors of apartment buildings. The consensus was that this is illegal in some places and just plain
doesn't work. However, moneyone had a useful suggestion.
I had class act "key rings" made up (not the cheap plastic ones). Each
had a brass plate dangler. On one side I had printed "I WANT MY OWN HOME" and on the other side "FOR
LOAN" my Logo and Phone Number. Key Rings cost me $3.00 each for 100. I mailed them with a short note and
my business card. I originated 25 loans over the next 6 months, and have received lots of referrals since from
these 25 originals. That was two years ago. I still get a call now and then. Just an idea to accomplish your goal.
ALMOST FORGOT-When these 'originals' bought their home, I gave them an even classier
Key Ring. Had the Realtor put the new keys to their house on it. Key Ring dangler said, "I LOVE MY OWN HOME",
(w/their engraved first names). Cost me $10.00 each... and on the reverse, "I GOT MY LOAN" my logo and
phone number. I also asked them to pass their old key rings on to the other Renters who are still "buying
Real Estate for their Landlords".
I think I got many of their Referrals, and their Refinances because my phone number
was very 'handy'.
PS- If you can't afford something 'you' would use as a key ring, don't bother.
It won't work. Been there, done that too. :>)
by moneyone February 6, 2003
TURNING AWAY BUSINESS
Brian Sacks, Integrity Funding
Sometimes the best move for your business is to say no to a deal. I have had to
turn away loans recently. I only have so many hours in a day. Even with our back office working tremendous amounts
of overtime there is a limit to how many loans we can handle at once.
We have had to prioritize because in this business you are only as good as your last deal. I have always said that
the key to success is your reputation.
When volume spikes it is crucial to maintain your relationship with Realtors and builders. Refinances are great
but you it is imperative that you never let them take priority over your purchase business.
When, not if, rates go up you must have solid relationships to survive.
Here is an example of how I have survived almost 20 years. I was able to promise a Realtor a 30 day closing, I
took one refinance loan and I turned down 3 other refinance requests.
The Realtor who referred this loan to me is someone I have not worked with previously.
They heard I was able to close loans quickly and efficiently. I have high hopes that this will turn into a long
term relationship and will help me when rates go up and refinances stop.
Mr. Sacks's web site is at http://www.loanofficersuccess.com
Radio Interviews
Brian Sacks, Integrity Funding
One of the best strategies for becoming known as the expert
is to do radio interviews. This weekend I was the guest on
a local radio show that deals with real estate.
The show is on Sunday afternoon which is generally the time many
buyers are house hunting. I discussed with the host my
expertise in getting buyers who have had a bankruptcy
into a home with very little money down and low interest rates.
Since this was talk radio , I was also able to answer questions
from potential buyers who were listening.
THE RESULT WAS 3 NEW LOANS SO FAR AND
14 NEW PRE- QUALIFICATIONS THIS WEEK.
It is very comfortable to be on these shows. I simply feel
like I am having a conversation with a friend. If you are
the shy type this also is less intimidating than TV.
To get started doing this yourself start listening
to radio shows ( usually AM ) . Identify the station
name and hosts name. Next prepare a media kit
( there is a sample in my system How to close more
loans at www.loanofficersuccess.com)
After you have sent the media kit follow up with a
phone call. You must have a hook . A topic you
feel you are the expert in and is not commonly talked
about ( no doc, rehab , reverse mortgage , 103% etc)
It is also possible to have your own show. Typically
the station will charge you a fee for an hour show.
You can then get a title company , a realtor , a mover
or others to become a sponsor and pay the cost of
the show. Each week you could discuss a different
important topic and bring on guests.
This is the quick and easy way to become known
as the expert and get new loans without spending
thousands on advertising.
Mr. Sacks's web site is at http://www.loanofficersuccess.com
Using Your Financial Knowledge as a Selling Tool
Allen Alexander Calculated.com
Using your financial knowledge as a selling tool can change a no to a yes.
Many of us have vast stores of financial knowledge, but are not sure how to use that information to the fullest
extent. How can we use this data as a useful selling technique? Why do people buy homes? The number 1 reason is
to write off the interest.
So if the number one perk for purchasing a home is to write off the interest,
then we should use this in our pitch to the prospect. Prospects like to hear how much they will save by buying
a home. As a broker, it is important to discuss this issue when you talk to the prospect.
As an example, let's pretend Marshall Faulk is a potential client. He has a job
that pays $50,000 a year. Marshall can afford a $165,000 loan. Interest rates are around 6% on a 30 year note.
Marshall is currently renting a home for $1000 a month. If you compute the P&I payment for the loan, it works
out to be $990. This is where your financial knowledge comes into play.
Take Marshall's tax bracket, 28%, and figure out what his payment would be after
he writes off his interest. $760 is his average payment which makes a savings of $230 a month. Does Marshall like
what he hears? Of course, because you are now going to suggest that he take his monthly savings, of $230, and put
it into a safe investment that earns 6%. How much will Marshall have after 5 years? An estimated $16,047 to put
towards a home.
Will Marshall come back to you and refer you to his buddies? Of course he will.
Now, how else can we use the $230? He could apply it to the payment and solve for the new term or you can show
him how much he will save in interest.
Always recommend to your prospect or client that they seek out professional accounting
help as this is an estimate and that you are not a tax or accounting expert.
Now, if you used my previous tip, "How can you get the Realtor files?"
you saw where this tax savings technique would be perfect to teach Realtors how you can help them get their prospects
to say yes. There is a quick start Finance Training Package (calculator, workbook, video + free shipping) for $71.96
(after 10% discount). www.calculated.com/nmn There are many examples in the workbook to make you successful. Or buy other products
at a 10% discount and free shipping, a savings of up to $15 per unit.
How Can You Get the Realtor Files?
Allen Alexander Calculated.com
Loan Officers seem to be constantly dialing for dollars. Lead sources are expensive,
$15-20 for internet leads. If you do manage to contact your potential client on the phone, one of your competitors
may be on the call waiting. Much of our energy and money goes toward bringing in new files.
Here is a strategy that works for me. Realtors usually have the first contact with future clients. If you teach
a Realtor the basics of finance, how to qualify a prospect, how to use finance as a selling tool, how the loan
process works, and how to gather the proper information then you will have everything for a productive relationship.
Many Realtors are excellent marketers, but are not always as good with finance. If you take the time to teach them
about your job and about finance they will understand what you will need to sell and close the deal.
Think of them as a mini sales force obtaining files for you to close. They can gather information for you and pitch
your relationship to the client. Your job will be to close the loan. That way there are no surprises at closing
and you have gained the trust of the Realtor who will then send future files.
Work on building a team with a Realtor where you are both accountable for the client. It will bring you closer
to the Realtor and should bring a consistent revenue stream.
The hardest part is teaching them about finance. Teach them what information to gather and train them on the different
programs that you offer. Go over the different possibilities; stated income vs. full doc etc.
There is a quick start Finance Training Package (calculator, workbook, video + free shipping) for $71.96 (after
10% discount). www.calculated.com/nmn There are many examples in the workbook to make you successful. Or buy other products
at a 10% discount and free shipping, a savings of up to $15 per unit.
Send 'em Over Here
Brian Sacks, Integrity Funding
A subscriber writes, 'I am looking for suggestions about letters of introduction--'Why
you should tell your clients about me' letters. We have a real estate inspection business and are in search of
more business, especially targeting realtors. Any suggestions?'
Any marketing communication should explain the benefits of doing business with
you. What do customers get when they hire you? Not just the nuts-and-bolts of what you do and how you do it, but
the results customers get. What makes your product or service better than others'? Do you find things others miss?
Make appointments around the client's schedule and offer extended hours? Give faster turnaround? The first thing
you have to address is what is in it for the clients your prospects may
refer.
There is an additional level of benefits to consider when you are asking someone
to refer their friends, colleagues or clients. What is the benefit to the person making the referral? In some cases,
what's in it for them might be a tangible reward, even cash. However, in many circumstances such a reward is neither
expected nor appropriate. So what do they get for making referrals? Will referring clients to you make life easier
for them and
for their clients? Why?
When you are asking professionals to refer their clients to you, you are also
asking them to risk their reputations on you. If you don't do a good job, it reflects on them. Demonstrate that
you will do a great job. Include your credentials, information about your experience, and testimonials. Testimonials
from clients you've served are great, but testimonials from people who have made successful referrals to you are
even better. So, in this case, include one or more testimonials from realtors who regularly refer clients, as well
as some from individuals who have used the inspection service.
What if you don't have a testimonial from a referral source, because you're not
getting those referrals yet? Focus on having some great customer testimonials, and add a referrer testimonial to
your marketing as soon as you can.
Follow up. A professional is unlikely to start referring clients to you just because
they got a letter. Make yourself known to them by becoming active in local organizations, contacting them more
than once, etc.
And, lastly, don't expect overnight results. You have to build your reputation,
build awareness of your business, and prove yourself before you see maximum results. But once you've established
some great connections, your referral network will be a pipeline bringing customers to your business.
Mr. Sacks's web site is at http://www.loanofficersuccess.com
Internet Presence Is More Than a Web Site
Realty Times
In order to become a successful professional, one of the first things to recognize is that an internet presence
is more than a web site. Web sites are passive... and internet consumers want to hire aggressive professionals.
Pay attention to the big sites -- you'll see that they all offer some kind of free subscription to visitors. This
can be anything from daily news headlines to monthly marketing tips. Why do they offer these great tips for free?
Think about it...every time you get an email from a company like this, you see their name in your in-box and it's
refreshed in your mind. They're using a non-intrusive advertising method. You associate valuable information with
their company name. So this all makes sense... but finding a way to do this can be tricky.
For over a year, Realty Times has offered the Financial Wire Monthly Newsletter. The Financial
Wire is a newsletter created with six to eight new articles every month. Mortgage professionals can subscribe to
this service and then send out the monthly newsletters to their clients or prospects. While it's designed for e-mail
distribution to save you the cost of postage, each of the articles can also be printed out. The content ranges
from mortgage banking to financial services and with personal features like a space for your own article, you can
add your own news and advice. The Financial Wire makes subscribers look really slick: Since every issue features
the subscriber's personal info and photo, it looks like something they've created. The only work you have to do
is create a mailing group. It doesn't have to be big...and the Financial Wire's going to help you get more e-mail
addresses anyway because you can offer it to prospects.
DON'T WASTE MONEY ON ADVERTISING
Brian Sacks, Integrity Funding
In the past I wasted money on advertising and I tested many ways to improve my
results. The most important thing I did was to do TARGETED marketing instead of general ads in magazines newspapers
and radio/tv.
With my niche, working with credit challenged buyers, it seemed I was wasting
a lot of money on general advertising and finding the buyers I wanted to work with. Instead I found a reliable
list broker (see link page at my web site for IT technologies) and am now able to only advertise to people I know
need my services.
Next, I wrote and tested a sales letter so these buyers would be sold on
using my services BEFORE I even met them.
Think for a moment about what you would do if you were looking for a car? You
could search the newspaper ads but you would soon find out that most ads are variations of the same concepts. Then
you spot an ad that says call 1-800-555-2222 if you would like a free report on how not to get ripped off when
buying your next car.
The mortgage ads are really very much the same as well. Mine, however, offers
2 free reports. One report is for buyers who have had a credit issue, the second is for renters who want to become
homeowners. Both reports are available on my website.
The buyers now have a reason to respond for FREE information. They can call my
800 number at any time and can have the letter faxed on demand. The service I use also captures their phone number
so I can follow up and set up an appointment.
I have now tested some direct mail postcards using the free sales letters
and the telephone system.
Here are my findings after 8 months of testing. I experimented with different
size postcards and found the 8 1/2 by 5 1/2 produced the best response.
Then I tested the colors. What do school buses, yield signs on the highway, and
McDonalds all have in common? They all use gold/golden rod with black letters.
The National Color Institute did a survey and found this color combination can
increase response by almost 42% over all other color combinations.
Finally I found that after much testing, my greatest response came after the third
mailing of the same mailing piece.
So to sum it up:
- target your audience
- mail at least 3 times
- use a 8 1/2 X 5 1/2 postcard
- use gold with black letters
- get a call capture/fax on demand system
- create special reports or use mine
Get ready to measure your results.
Mr. Sacks's web site is at http://www.loanofficersuccess.com
A Hot Marketing Idea
Brian Sacks, Integrity Funding
The temperature in Baltimore today is almost 90 degrees. I bring this up to tell
you about a cheap marketing idea I have used over the years. Since we are always trying to find cheap ways to promote
ourselves here is the idea. I hate getting into my car when the seats and wheel are burning hot. I had a sun screen
made up that goes across my windshield. It has my business card blown up with my contact number and my slogan 'You
can buy a home with low rates and little down even if your credit is not perfect' Wherever I go and park my car
I am actually advertising. I always get comments because it is different so people at least look at it. You can
probably purchase one from any ad specialty company in your area for less than $50.00.
Mr. Sacks's web site is at http://www.loanofficersuccess.com
Having People Find Your Web Site:
Marcus John, Stellar Site Designs
There are five ways traffic can reach your web site, such as
word of mouth, banner advertisements, email ads, search engine traffic, and other media (print/radio/TV). Search
engines tend to bring the most beneficial traffic because it is traffic that actually is looking for your service.
There are 5 or 6 major search engines that perform roughly 90% of the searches on the web. That doesn't mean the
thousands of minor search engines and directories should be ignored. These minor directories can be used to actually
increase your search engine ranking in the major search engines. Basically, the more places you can get your site
listed, the greater your search engine ranking will be in the major search engines.
I would advise any mortgage broker with a web site that they
want to market to start with pay-per-click search engine listings. These types of search listings are highly effective
because they are geared towards a specific search term and they appear at the beginning of the search. They are also ideal
for businesses on a tight budget because you are only charged for the traffic you draw, and you have many controls
to limit the costs. For an example of an excellent pay-per-click service, check out the Google Adwords program. It
doesn't take a lot of money to see results with this type of marketing. $250 a month can get you 15 to
20 leads easily if you target your listings well. If you focus on a niche
in the industry that you can target listings to even further, you can get even more bang for your buck.
What is your best marketing idea?
Margeret Koon, American Home Mortgage Concepts Inc.
When I go to personal events and the opportunity is there, I talk to people about what I do and try to get business
that way. I also do advertising in the Indianapolis Star and keep my rates in there every week. The main thing
I really try to accent though is my customer service. To do an application, if necessary, I will go to their house
or meet them on their lunch hour. In addition, if they have got a lot of debt, I do counseling with them and try
to help them determine how they can get out of their debt.
Monica L. Bpatman, Illinois Dream Home Mortgage Corp.
A lot of my networking is done in social settings, like church events.
I also donate raffle gifts such as a certificate for a free credit report and appraisal. In addition, I also do
a lot of counseling for people with poor credit. I show them how they can aggressively, within six months to a
year, depending on their circumstances, get to the point where they can purchase a property. Many people do call
me back when it is time to purchase a home. I also make it a point to go to a lot of my closings, especially my
refinances.
James B. Dobbs, Woodfield Planning Corp.
We do postcard mailings to our customers every month. The postcards always
have a picture of an individual loan officer with their pager on one side, and then something of interest to the
customer on the other side, such as where to donate things for goodwill or a solicitation offering new loan products
or free pre-approvals. We just need to keep our business in the front of their minds, so they are excited about
us and will refer us to friends. We see 25%-to-30% of our business come from this. When we have a customer, we
also provide them, their attorney and their Realtor with a weekly update letter as to the status of the file until
it closes.
Effie Zacharoudis, First Trust Mortgage Services, Inc.
I keep in touch with all of my past customers through some type of correspondence
four times a year. I send out postcards highlighting my programs, and once every spring, I send out a newsletter.
The newsletter is not solely industry related. In it, I give customers tips on home improvement, gardening, cooking
and other concepts. I also send out surveys to customers asking, "How did we treat you." I also found
that networking, joining different organizations, is another way of expanding my customer base. At a closing, I
like to give my customers a bottle of wine and I send a thank you card right after that.
A Day of Fun with Realtors
Brian Sacks, Integrity Funding
Today, I spoke to one of my larger Realtor offices and we planned a trip for February to Atlantic City for a day
of fun. So what type of success tip is this you ask? Well since I live in Maryland , the trip to Atlantic City
is 2 1/2 hours each way. This gives me a chance to speak to these Realtors on the way up and also on the way back.
We are able to interact and get to 'know"each other. This is often not possible since this real estate office
is a closed office and has its own in -house mortgage company. The best part is I will actually get paid for taking
them. The bus will cost 600 for the day. I will charge the Realtors $20.00 (which the casino reimburses them upon
arrival)x 40 people =800. So I will have a day of fun getting to know my Realtors as 'people' and have an extra
$200.00 to play with. Always remember that in all sales situations people like to deal with people they know and
like. So if you are frustrated by rejection and closed offices, than you must be creative . An added bonus in this
situation is the manager has agreed to let me teach a course on working with buyers who have had credit issues
for the first hour and a half. This will reinforce my credibility to the agents of this office. I have put together
these trips annually for the last ten years and with great success.
Mr. Sacks's web site is at http://www.loanofficersuccess.com
A Red Cross Kit for Every Customer
John E. Krueger, Investors Mortgage Services Inc.
As a way to have our clients remember us, at the closing table we give them a red cross kit with our company name
and telephone number. It is something that they will possibly keep with them forever. We also do follow up letters
right away after the closings, where we thank them for doing business with us and ask for referrals, which are
our best source of business. We have also recently changed our business cards. We now have the initials 'IMS' and
in the space inside the 'M,' we have a dragonhead with fire coming out. It's a real eye catcher.
|
