Thursday, February 26, 2009

The Risks of Buying Mortgage Leads

Generating leads is very important for those who are engaged in the mortgage business. Without these leads, there’s no way these people can know who to approach to try and sell a deal. Without leads, there’s no way their business can move forward and reach its goals and expectations. Hence, there is that importance everyone gives to lead generation. 

There are many ways that one can generate leads. The most common practice is to use the Internet. They set up a website, engage in SEO, and then sit back as they watch the traffic come in. This is the simplest and easiest way to generate leads. It is also very cost-effective and cheap too.

However, there are some marketers that do not want to engage in that kind of marketing or simply does not want to leave their lead generation efforts to chance. These are the people that are likely to resort to lead buying. There are companies that sell leads in the Internet, and marketers are quick to buy these “hot” new leads from these firms. Compared to using SEO to gain leads, buying seems to be easier. Never minding the huge investment that might be needed to buy leads, marketers seem to find this an ideal option in their lead-generating process. 

If you are thinking of buying leads to keep your mortgage business moving forward, it is best to know what risks are involved with that investment. 

Hot Leads Are Not Exactly Hot

Companies that sell leads are engaged in business, much like yourself. In business, to attract your desired traffic, you have to put your product forward the best way possible. This means that you should use the best words to describe your product. In the case of lead companies, they need to describe their leads as “hot” so that you, the customer, will bite and buy those leads.

However, some leads are not exactly hot as they are claimed to be. Sadly, it is not uncommon for some marketers to recycle their processed leads. These marketers will go through their leads, segregate them into interested and uninterested, and sell the uninterested ones to any willing marketer. This can be frustrating, because you’ll start offering a product to these leads and find out that they’ve already been offered the same product from someone else; and, no, thank you, they’re not interested. Considering the amount you have paid for these leads, you can say your investment might have gone to waste. 

It doesn’t mean these leads cannot be used. Some leads might not have been interested because the marketing strategies from other marketers did not appeal to them. You should do your best in processing these leads and offering them products. Some leads might even “bend to your will” after they’ve refused your competitors simply because you told them the message better. 

Mortgage Leads Can Be Very Expensive

Because of their value to marketers, mortgage leads can be quite expensive. You might be able to find leads that cost as low as $4 each. However, you might also come across leads that will cost you $20 each. If you are purchasing, say, 100 leads, then you can find yourself paying $20,000 for a batch that is uncertain if they will buy your product or not. As mentioned earlier, it is an investment. 

Fortunately, it is possible to find good deals just like in any product. Just spend the time to look around the Internet. If you have the patience and the perseverance, you can land a deal where you get a good number leads for a reasonable price. 

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