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Everything we know about the lead business from everyone at the Leads360 family. From online lead providers like LowerMyBills.com to Mortgage Lead Management best practices. We'll tell you what we know and what we've learned.  

Share your closing ratios with your lead providers…

Friday, December 14th, 2007 | Link | Spread The Word!

The Lead Critic made a very good post earlier this week about sharing data with your lead providers. As a lead management system company, obviously we have a good idea of overall performance. I say overall performance because it would be unfair of me to say lead performance, because a lead is only one ingredient in the mix. More on that some other time…

From 2004 - 2006 I spent my week days selling mortgage leads to loan officers, brokers, and lenders from coast to coast. I sold leads to the mom and pops shop around the corner, and to a handful of the largest direct lenders in the nation. Out of well over 100 clients, only a few of them would share data with me. How many loans have you closed out of the leads I sent you? What is your contact rate? What is your application rate? How about speed to contact, how long does it take you to respond to a lead on average? Getting an answer was like pulling teeth. I think it was a mix of “I don’t want to tell you I’m doing great because you’ll jack my prices up” and “I don’t want to tell you my metrics because I am afraid others are doing way better and I don’t want to hurt my ego.” Whatever the reason, my intention for asking was simple: With your information, I can make my product better.

It’s almost 2008, advertising online is pretty mature, and it is easy to tell what campaigns are producing quality leads, and what campaigns are not. But the only way for a lead provider to know what campaigns to target is to tell them what is working, and what is not. Just so you understand how this works, most lead providers that I know of can target a specific lead back to it’s specific source. Let’s say that a lead provider has 250 campaigns running at any time online. If you send them a list of leads that were pure crap, they can track them back to where they originated. If most of them came from a specific campaign, they can pull the plug on that campaign and end your misery.

Let’s go out on a limb and say that if you do share this information, and the product gets better, your prices DO go up. So what? You’ll be closing more loans, you’ll keep your loan officers happier and more amped to get on the phone with a lead faster, and at the end of the day your life will be easier. So you spend a few bucks extra per lead, it’s not the end of the world. When a lead provider is able to produce better leads, you’re going to win in the end, but if you do not share this information, you’re only going to shoot yourself in the foot chasing not so great leads around. The rewards severely outweigh the risks in this scenario. Do yourself a favor and tell your lead provider how you are doing. If you’ve ever filled out a survey after buying a car, a large TV, or even called one of those “How Am I Driving?” 800 numbers, you’ll know why…

Pass the Beans!

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  1. The one thing about leaving feedback (and our business model) at LeadPoint is that we don’t and can’t use the feedback to raise our prices for you the lead buyer. So if you are buying leads from LeadPoint, leave feedback - it will help your account manager determine where you are or are not performing and help us as a company weed out the bad sellers.

  2. Spot on.

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