Integrating Lead Purchasing into the Marketing Mix

Marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy.  Real Estate and Mortgage Professionals should support their operations with a healthy mix of Marketing: Referral Marketing, Print Ads, Direct Mail, Direct Response Mail, Web Marketing (including email), Telemarketing, Lead Purchasing, and Radio or TV when the budget allows.  Local forms of farming and non-conventional marketing also pay a key role: Door Hangers, Shopping Baskets, Benches, Flyers, Drop Boxes, Local Cable, Etc.

However, many financial services professionals lack the time, expertise, or budget to support a robust internal marketing program.  This is where lead companies often come into the picture.  And while many Real Estate and Mortgage Pros have used leads in the past, upon interview, I find that many of them have either used the wrong type of lead companies and/or misused the lead source; instead of integrating lead purchasing as a part of their total marketing mix. Many professionals use lead companies to shortcut a large part of the marketing process – frequently using leads as the only source of new business.  Purchased leads should be used as a component of your overall marketing strategy.  They should not be used just to make a “quick buck”. Lead services work best when used as an integral part of a continuous marketing program.

Feeding 40 loan officers, keeping 4 processors happy and 15 telemarketers busy can prove very expensive if the budget is not watched properly. So at the last mortgage company I managed, my strategy was to dedicate 20% of the overall marketing budget to purchased leads - I have since adopted that practice as standard procedure.  I had already selected the right sources – with much trial and error – and with the proper tracking software, I knew what type of performance to expect from my purchased leads.  One of my favorite reasons for using purchased leads is the ability to target a certain group by using filters.  So when you combine highly targeted leads with leads generated from your direct response marketing efforts in the correct proportions, its makes for a winning combination!

My process to integrate lead purchasing into the marketing mix is to…
1.    Determine who and where your target market is.
2.    Locate four lead companies to test out.
3.    Conduct small trial runs to determine what form of leads your target market responds to best.
4.    Select two out of the four lead companies to run a trial campaign with.
5.    Track the overall Return on Investment of the campaign.
6.    Determine the mix of purchased leads into your overall marketing strategy.
7.    Duplicate the test campaign.
8.    Track results and refine.  Track results and refine.  Track and Refine.
9.    Did I mention Track and Refine?

Tips: Ask for professional referrals when interviewing lead companies.  Don’t bother with guarantees the lead companies offer; the guarantees are designed for their benefit, not yours.  Next, measure the overall return on investment; don’t try to pick apart the situation lead-by-lead.  Major companies measure the end results.  Finally, do not get lazy and expect the lead company to spoon feed you.  Many mortgage and real estate shops enjoyed being spoon fed during our last 7 years of bountiful harvest.  You must work for it now.  Major companies have never taken marketing for granted.  Major firms don’t call the radio and TV stations inquiring how many leads are they going to get for $500 dollars.  Nor do major firms ask if they will get their money back if no customers call them from the phonebook ad they just placed.  They target their prospects, test the market, run a campaign, measure the results, duplicate and refine.  And last but certainly not least…  Cheaper is seldom better.  Do not expect to get something for nothing.  I have yet to find the miracle lead that cost only $20 and consistently produces $3000 sales – let me know if you find it because I am also hoping to win the Super Lotto.  Hope this helps!

Any questions? Comment below or call me at 866-994-3246 - Doug with Yahoo Home Finance.