Loan Officer

Facebook ads, are they effective and do we get a positive rate of return, or are we just padding ol’ Mark Zuck’s pockets?

After spending millions of dollars of my own personal money on these things, I’ve learned a thing or 2 of what to do and what to avoid like the plague…. Read on…

First, what to avoid… 
Consumer direct Facebook ads are a colossal absolute no-go for a couple of reasons.

#1: The leads from them convert at between 0-2%.  Usually around 1%.  The problem with that is, it’s not scalable.  We have to wade through 100 leads/conversations to get to 1 “yes”. 

So if you want to close even just 3 loans a month, be prepared to have 300 conversations.  Those are real numbers.  I don’t care to get beat up 300 times in 1 month…
Not a good use of time.

Keep in mind that our referred leads convert at around 25%.  So even just a modest 5 closings only takes about 20 referred leads.  Much more of a “sure thing” and certainly far less work.

Now what actually works…

However, Facebook ads to another 2 groups of people can have far better results.

#1: Your past database
#2: Real estate agents that are closing at least 8 buyer sides in the last 12 months.

Facebook lets you get a list, for example, your past database, and upload it in their system, then run ads to just those people.  Nobody else sees it, just people who know, like, and trust you.  No wasting money on strangers.

So when you are running ads to your past database, those same people that you closed with, the same people that you are calling every quarter, and now they are seeing how you can help them with a debt consolidation loan, can you see how that is so much more effective?

Same thing with the agents who are actually closing deals right now, when you give them a compelling reason to do business together, and when you are making your money making calls to them, it’s no longer a “cold call” because using Facebook ads, you can position yourself as a local celebrity.

And it costs very very little to run these ads to our past database and to qualified agents.

Combine those ads with the “Loan getting” calls, well, that’s how champions are made.

Very simple steps here. 

Just an FYI, with a click of a couple of buttons, you can have access to complete training on
1. How to run those FB ads profitably
2. What is the best way and best script to make these warm and fuzzy calls.

Just Go Here and we can walk you through the process on getting access.

Simple stuff.

That’s how FB ads are done successfully by the pros.

And now you know.

This will explain why so many LOs are having to tap out, while at the same time, some of my clients are having their best year ever… read on.

So likely you’ve heard of “Green time” vs “Red time”… but have you heard of GOLD TIME?

See, “green time” is when we are prospecting to agents and/or our past database to get more referrals.  The more green time, the more green goes in your pocket.

“Red time” is when we are chasing paystubs, calculating income, you know the reactionary stuff.  Don’t get me wrong, it’s important, but it holds you back from prospecting for yet another referral and another closing.

I was talking to Mark Pfeiffer (one of my private clients and a super cool guy who is very successful) the other day and he reminded me of something.

We need to spend at least an hour a day doing “Gold Time”.  Gold time is when we are prospecting to somebody that is not referred to us yet.

You see, if we spend all of our time doing green time, which is prospecting more referrals from those that are already referring to us… that’s actually a problem.

Here’s what happens…

Over time, those people retire, move, quit, have a nephew that becomes a loan officer, life happens, whatever.

And over time, that list will dwindle down.

So even when things are going great, like Nate Carver (a member in the Loan Officer Freedom Club, a mastermind of top producers), who closed 7 loans in October, 9 in November, and 10 in December…
… he isn’t just calling those who are currently referring to him.  No ma’am, no sir…

He’s spending a couple of hours a week calling on those that aren’t referring to him yet!

That’s where the growth is coming from.

Very important point.

So thanks Mark for reminding us of this.

Add some “Gold Time” to your “Green Time”.

Want to go over who to call and what to say to them to get them to start referring to you?  I’ll Hook You Up Here  <no charge>