The Best Marketing Ideas For Mortgage Loan Officers

So often I hear people talking about how loan officers should market or advertise themselves. Typically, it’s half & half…half of ’em say to market strictly online using Facebook ads, Google, Zillow leads, etc. and the other half talk about marketing strictly offline using referral partners, teaching classes, in-person relationship marketing methods, etc. What do you think? Is it better to market online or offline?

The one thing I don’t hear loan officers talk too much about is marketing to their database. Let me ask you this if I told you, you could get an extra 2 – 3 loans per month from talking to people you’ve already done business with, would you believe me? I’ve found that one of the most effective ways to get more deals, like, right now is to market to your database using both online AND offline marketing methods!

In this video, I literally walk you step by step on how I personally market to my database in my branch and how we average 1 – 3 closings PER MONTH for every 100 people in our database. So if you have, let’s say, 300 people in your database you could potentially see 3 – 9 closings per month just from marketing to your past database. Click here or the image above to watch the video, and I’ll see you on the inside.

Should You Build a Team or Plug Into One?

As a loan officer, once you realize the power of leverage, you ‘get’ why it’s so important to have a team. But should you build a team or plug into an existing team? There are pros and cons to each approach – one has greater initial expense while the other is turn-key. I actually don’t know if there’s a right or wrong answer to this question because I’ve experienced both and been very successful with each method. That said, it’s important to explore this topic for your business so here goes.

Here’s the first reality of being a loan officer – you have to be a good salesperson to succeed. As a general rule, you are great at what you do because you’re keeping food on the table. (If that’s not the case, we need to talk – please DM me immediately!). 

However, just because you’re good at sales doesn’t mean you make a successful human resources (HR) officer — that’s an entirely different skill set. Just because I think I’m a darn good salesperson doesn’t mean I’d be good at knowing how to hire and fire people. Granted, some people have both skill sets, but that’s not typical. 

One of the most common scenarios I find in this business is that people are hesitant about adding someone to their team. I’ve been asked, “Carl, what if they’re not the right person and I have to fire them?” People procrastinate on starting or expanding their team because they’re worried the new hire won’t be a good fit. So let’s just take care of this little myth right now – when you hire enough people, you will eventually hire someone who is going to be a wrong fit. It is statistically rare that every hire you make will turn out perfectly. You have to learn how to hire and do it fire fast, because delay can cost you a fortune.

The good news is we find every time someone is added to a team, as long as that team member pulls their weight, it frees up the loan officer or branch manager’s time to get more business. We’ve found the average person who adds someone to their team does an additional 5–7 loans monthly. For the example I’m about to share, we’ll use six loans as an approximate number (but that may vary in your real-world situation). 

Let’s say every employee hired means an additional six loans to you and your business per month. Let’s go a little further with another general assumption and say you make $2,000 per loan. Ultimately, each time you hire a new employee, you’re adding an extra $12,000 of revenue per month, using these hypothetical numbers. 

Of course, you need to pay your employee. To make it easy for our example, let’s say they get $5,000 a month. That’s $7,000 of net profit per month going into your business. Keep in mind that, while you’re bringing in this $7,000, you’re actually doing less of the work because the person you hired is helping you take applications, chase leads and put out fires. All you’re doing is making the phone ring, selling deals, and turning them over to your team to handle the rest.

Now, it might take someone six months before they hire their first team member. Of course, it’s not your fault if you’re not the best HR person. In my organization, someone else does the hiring and firing because that’s not my gift. However, if you force yourself into the HR position and there’s a six-month delay, you miss out on $7,000 of net profit revenue per month. That’s a total potential profit loss of $42,000 from not hiring that new person right off the bat.

You might think getting help is expensive, but not getting help costs you a lot more in money, time and potential opportunities. It’s okay to recognize that building a team isn’t one of your skill sets and that you need to find someone who has that talent for your business. Building a team is a major undertaking and I highly recommend it. Here’s the downside: every minute you spend building your team, you’re not out selling.

This leads into another viable alternative — plugging into a team that’s already in place. You don’t have to leave your company to take advantage of this method. Just find a group already in your company and join their team. I did this early in my loan officer career, and it helped me immensely.

You need to know when you plug into an existing team, they’re going to charge you some basis points. Let’s say that ‘cost’ runs about 25 basis points. If you’re used to making 100 basis points and you plug into that team, you’ll get 75 basis points, and the team will receive 25 points from you. The benefit is that, instead of worrying about the headache of hiring and firing people, you’ll be able to focus on closing more loans and getting revenue for you and the team.

The math will prove the point. Let’s say you’re doing $200,000 loans, closing five loans a month with 100 BPS, and you are earning $2,000 per loan. That’d be $10,000 of revenue as a one-(wo)man band. Now, when you plug into that established team, you’ll drop down to 75 basis points, but you’ll still be doing $200,000 loans — that doesn’t change. What does change is the number of loans you’re doing, which obviously affects your earnings. If you were doing five loans a month by yourself and adding six loans from being plugged into a team, you’d be doing 11 loans a month. So instead of making $10,000 a month, you’d be making $16,500 every month. Even though your basis points are lower, you’ll be closing more loans by having a team.

Again, both methods can bring success. Since they’re both effective, I don’t know which is right for you and your business – only you can make that decision. However, I’m happy for me and my team to be a sounding board for you to work out what’s best for your business. If you want a personal 1:1 strategy session, we’re standing by. 

Carl White, Chief Officer of Coolness
Article Originally Posted on LinkedIn

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#LoanOfficer #MortgageMarketing #MortgageExpert #LoanOfficers #LoanOriginators #Lenders #MortgagePro #MortgageBroker #FreedomSeeker #Branding #Mortgage #MortgageLoanOfficer #MortgageAdvisor #MortgageBanker #TheMortgageMarketingAnimals #CarlWhite #FreedomClub #LoanOfficerFreedom #MortgageLife #MortgageLifestyle #HomeLoans #LoanOfficerLife #LoanOfficerLifestyle #MortgageBoss #Entrepreneur #MortgageFinanceAdvisor #MortgageAdvisor #TeamBuilding


The New Reality: Loan Officers Need to Use Online Marketing to be Competitive

There are two ways that loan officers are failing their business regularly… 1) they’re being intimidated by technology, so they don’t use it, and/or, 2) they’re using it like everybody else out there to attract new clients. The reality in business today is that we are operating in a digital environment. While loan officers need to build relationships belly-to-belly, they also need to work smarter vs. harder by using online marketing. 

If you’ve spent any time at all with me, you know I’m a big fan of picking up the phone and beating the street for leads and cultivating prospects. And you also know that, over time, I learned that internet marketing is an entire industry – one that we loan officers can use to our competitive advantage. So I’m here to tell you that you don’t have the luxury of letting your tech fears rule your business results. Instead, it’s time to leverage technology to generate new leads. 

Now I’m not talking about doing what everybody else does – slap together a visual that works like a digital brochure. A lot of people are making that mistake. If you’re doing that, you’re competing with every other Average Joe out there for the same low-quality leads. And you’re just not going to win that game. In fact, it will cost you a lot of ad money while you lose that game. 

6 to 8 Touches on Both the Front-End and the Back-End

Customer experience is a term being used to describe what your customer, well, experiences you’re your brand throughout their transaction with you. When you want to upgrade your customer’s experience, there are two stages you need to pay attention to – the front-end (when you’re cultivating the business) and the back-end (when you’re celebrating the business). 

You need six to eight marketing touches to bring people in as a customer on the front-end, and then you need six to eight different marketing touches on the backend to convert them into being a long-term advocate and brand ambassador for your business. It is a lot harder to handle all these communications one by one; this is one way you can see that technology can help you with your customer relationships. 

Each of those marketing touches needs to have a strategy behind it to be effective. Why? Because if they don’t all work together, you’d be directing a band of cats all playing their own tune instead of a harmonious song. 

And when it comes to online marketing, especially through online ads on Facebook, Google, Youtube and Instagram, you need to know how to ‘slice and dice’ the market so you get top-level leads for your business. There is a way to do this fairly easily – even for us non-techies! 

There are four types of online ads. There are three campaigns you want to be running at all times. And there are three advanced strategies you can use with your online target audience once you’ve identified them. The key is to find YOUR target audience! You don’t want the same audience everyone else is talking to for ‘mortgages’; you want the first-time home buyers or reverse mortgage seekers or lifestyle upgrade buyers who are actively looking. And you want to work all the leads your referral agent partners are buying (and aren’t working!). 

Is all this too good to be true? No. Can you learn what all this means in this one blog post? Nope. And, of course, it is not my intention to be coy or hold out on you here. So is there a way to get your hands on this insider info so you can understand and use it to predictably build your business over the next six months? Absolutely. 

Your Key to this New Reality Is Right Here

My buddy and business partner, Chris Johnstone, and I got together and wrote a book to share exactly this information. Chris started helping his dad, a real estate agent, figure out how to use online advertising to generate leads. And he found out he was really, really good at it. In fact, he’s been building his business for the last fifteen years or so and he’s now running a pretty good team helping loan officers get more leads with digital ads than they ever imagined possible in a matter of months. 

Because neither he nor I can possibly teach you everything you need to know in a post like this, we wrote a book together, The Ultimate Guide to Facebook Ad Campaigns for Loan Officers 

How to Use Social Media and Google to Generate More Leads, Build Your Network and Close More Deals. It’s a hot new release that has the latest and greatest inside info we know to share with you so you can get on this technology train too. 

If all this isn’t enough to light a fire under you-know-where, know this… if you don’t take advantage of online marketing, your competitors are doing it. Do not let your business get left in the dust! Do not let someone else help your clients! Get over it and get on it by getting your copy of our book today. Seriously. When you do, you’ll see a valuable bonus in there that you are going to want to take advantage of… sooner than later. You’ll see why when you get the book. 

So go get the book, then let me know what you think… if you have questions or want to share your review on the book in a comment below, great! I want to know what’s in your way of using technology, how you’re using online ads, what your online marketing looks like – the good, the bad and the ugly. Bring it below… let’s talk it out… and if you prefer a 1:1 chat about it, we’ll make that happen too. 

Get the book… then tell me how it’s helped you position your business more competitively (even if only in your mind for now). I really want to know – thanks in advance.

Carl White, Chief Officer of Coolness
Article Originally Posted on LinkedIn

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#LoanOfficer #MortgageMarketing #MortgageExpert #LoanOfficers #LoanOriginators #Lenders #MortgagePro #MortgageBroker #FreedomSeeker #Branding #Mortgage #MortgageLoanOfficer #MortgageAdvisor #MortgageBanker #TheMortgageMarketingAnimals #CarlWhite #FreedomClub #LoanOfficerFreedom #MortgageLife #MortgageLifestyle #HomeLoans #LoanOfficerLife #LoanOfficerLifestyle #MortgageBoss #Entrepreneur #MortgageFinanceAdvisor #MortgageAdvisor


What is the Biggest Bottleneck in Your Business?

Because You Don’t More Leads Until You Fix It. Business runs by the numbers. There are different kinds of numbers in that, of course, like the numbers found in the loan documents, interest rates, closing costs, etc. And there are numbers that help loan officers run their business better, like how much money is in their business bank account, how many happy customers they have and their return on investment for advertising. You might not think about it but there is a difference between monitoring a metric, which is just a number, and a Key Performance Indicator (KPI), which is a number that reflects business results. We are going to talk about KPIs because those are the ones that help create results. 

In our business, loan officers need to track five KPIs with great accuracy – leads, conversations, credit pulls, preapprovals, and locks. Meaning, we need to measure how many leads we get in, how many of those leads turn to conversations, how many of those conversations turn into credit pulls, how many of those credit pulls were pre-approvable, and how many of the people we pre-approve end up with a locking or contract with us. 

Within each of those five KPIs exists the possibility for doing better. When I ask loan officers where the bottleneck is in their business, and what’s preventing them from reaching the production numbers they’re looking for, most will say it’s about getting more leads. The primary business growth strategy most loan officers focus on is trying to get more leads. However, when you have five KPIs, chances are that each has about a 20% stake in creating results. That means that the number of leads accounts only for about 20% of your business results. 

The most comprehensive way to build your loan business is to measure where you are with each of these five KPIs so you know where you’re doing well and where you might need to put some time and attention. (And if you need help in any of this, you know that me and my team have your back, right?)

Conversations

Let’s assume you have the leads taken care of… you are maxing out your 20% efficiency and effectiveness there. So what’s the next step? Having a conversation with that lead. Now, I’m talking about having a true conversation, where you exchange words – not an email, text or chatbot. This is about getting someone on the phone and speaking out loud — that’s a conversation. 

Now, if you’re getting leads but aren’t having conversations, what’s going on? I would guess that there is an issue with follow-up. It’s probably one of the top three issues I see when I analyze loan officers’ businesses and their behaviors because LOs make the mistake of calling once or sending a message and that’s it. It is definitely not enough. You might be asking how many times you should be following up, and I would say constantly. Following-up with your leads is never a done-deal until you have a done-deal. Even then, you follow up every few months to make sure your client remembers you for referrals and for their next purchase.

But there could be another issue here because you might not be getting the right leads to have conversations. What is the source of your leads? We know online leads have a lower conversion rate into conversations, especially if the leads were tricked into giving their information or opting into a list. That happens when there is an ad that has false facts or uses hype to get attention but can’t live up to the promise. In either case, it’s not good business. Run your ads past a few friends to see if they pass the real-world test before you put them out online. 

And, of course, you need the right bait as well as the right fishing hole to get the right leads. If you are looking for reverse mortgage leads in a new parenting community, as one example, you’re not going to get the right leads (or maybe ANY leads!). 

So once you have made the connection with a lead, talk to them. Find out what’s important to them, answer their questions and set the stage for a great working relationship (even if that means in the future because they’re not quite ready yet). 

Credit Pulls

Once leads come in, and you have real conversations with them, the next step is to verify credit. What could go wrong here? Low credit pulls. 

When you are getting low credit pulls, there is probably a problem with your scripting. If you have leads engaged in a conversation with you or your team members but they aren’t generating credit pulls, something is going sideways with your scripts. There isn’t a sense of urgency, the leads aren’t comfortable with sharing their information or don’t understand why it’s needed at this point. There are many potential objections. However, the good news is this can be one of the easiest problems to identify and handle because you just need a little tweaking and training with scripting.

Pre-Approvals

At this point, you’ve taken the time to collect the leads, have the conversations and get the credit pulls – that’s great! You’re at about 60% efficiency when you have all that working. But what happens when you find out your leads are not pre-approvable? This happens when the lead source is bad. I have two stories to share with you that describe this perfectly.

In the first, one, I was at a flea market, saw all the people there and got a brilliant idea – I should set up a booth to collect leads. With all those people, I should get a ton of great leads, right? So that’s what I did – I set up my booth, started talking to people and collecting leads. I got a ton of them, as a matter of fact. But guess what? When I started working them, I learned the difference between quantity and quality. Even though I got lots of leads and had plenty of conversations that led into credit pulls, none of them were pre-approvable. That was a hard lesson to learn at the time. Flea markets are not a quality source of leads for qualified buyers. 

My second story is about the importance of tracking a KPI around credit pulls. A metric would be how many I got; a KPI is how many credit pulls are pre-approvable for each of my referral sources. 

So I had this agent who I thought was excellent. I was getting business from her constantly and spent a lot of time and resources following up on the leads she sent my way. One day, Diane pulled me to the side and said, “You know, we’re not closing any of the leads this realtor is sending over.” I was floored. I just couldn’t believe it. But the numbers don’t lie. When Diane and I sat with the agent and started going through lead by lead to track results, it confirmed what Diane had said. This agent was a great source of leads that turned into conversations and credit-pulls, but none of her clients were pre-approvable.

If you are having issues come up with your pre-approvals, check your lead source. Your time is your most precious asset – you cannot afford to waste it. This might sound harsh but when you build your business on broken people, you have a broken business. So look for red flags and patterns in your leads and how they’re progressing through your system. When pre-approvals are down compared to your incoming leads, you know it’s time to upgrade your lead source(s). 

Locks

Now, if you’ve gone through all these steps but still aren’t able to get these people into contracts, what’s left? Well, if you’re getting pre-approvals but no locks, it’s another symptom of not following up.  

Low conversion – as another point of conversion for your leads – means you have low follow-up. 

We need to talk about our PAALs, or those who are “Pre-Approved and Looking.” I’ll share more in my next post on that. 

For now, look at each of these five KPIs, or steps, in your business process to see where you have bottlenecks, leaks, gaps or inefficiencies. In fact, look at the four areas that are NOT more leads because that can have the biggest impact the fastest in your business. And when you are rockin’ and rollin’ in all five areas – conversations, credit pulls, preapprovals, locks AND leads – your business will grow. There’s just no other possible outcome. 

Let me know where you think you might have a bottleneck in your business below. This is not to call you out! (Well, maybe a little…) Instead, I want you to own what’s going on so you can address it. And maybe one of our community will have been through the same thing and can offer some insight or a way to get it handled faster and easier. So share below – you’re among friends here.

Carl White, Chief Officer of Coolness
Article Originally Posted on LinkedIn

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#LoanOfficer #MortgageMarketing #MortgageExpert #LoanOfficers #LoanOriginators #Lenders #MortgagePro #MortgageBroker #FreedomSeeker #Branding #Mortgage #MortgageLoanOfficer #MortgageAdvisor #MortgageBanker #TheMortgageMarketingAnimals #CarlWhite #FreedomClub #LoanOfficerFreedom #MortgageLife #MortgageLifestyle #HomeLoans #LoanOfficerLife #LoanOfficerLifestyle #MortgageBoss #Entrepreneur #MortgageFinanceAdvisor #MortgageAdvisor