Given the popularity of adjustable rate mortgages over the last few years, it is no surprise that the market is full of great, qualified refi leads. For refinancing companies who know how to find their core customer base, their profit margins can hold steady even in a down economy. Of course, the key to keeping your business robust is knowing how to find new contacts who are eager to sign up for your company’s refinancing plans. By outsourcing your lead generation, you can ensure that your sales staff spends more time speaking to customers and less time hunting down leads.
When you are buying a list, be wary of leads that seem too cheap. The best leads in refinancing tend to be quite expensive, costing up to $60 for one phone qualified lead. Though this may seem like a lot for simple contact information, good list brokers do far more than collect email addresses and phone numbers. Many will also call a lead for you before passing on their information. During these calls, they will confirm that the prospect is, in fact, looking to refinance their mortgage and has not yet found a lending institution with which to do it. After this work has been done, all your sales team needs to do is call and close.
Make sure that all lists you buy are exclusive. Paying such a high price for each lead will only work in your favor if the names that you purchase are only being shared with you. Some list brokers will resell the same lists over and over to all the competitive companies in one area, which can have a negative impact on the conversion rates that you expect. When paying a premium for a new list, always insist on a written contract stating that each list is exclusive and guaranteeing a minimum conversion rate.
Though the cost of purchasing refi leads can represent a large expense for small lending institutions, the amount of business that each new customer brings in more than makes up for the steep initial investment. Typically, these prospects are facing rising interest rates on their adjustable rate mortgage, so they have a strong incentive to find a new lender quickly. Well qualified leads will generally convert within the first few weeks of contact, and will remain customers for the duration of their mortgage.