If you are reading this, I’m assuming you are either a mortgage broker or direct lender looking to scale your business to multiple 7 figures or even 8 figures.
But the current Mortgage market is riddled with traps and challenges that are preventing you from scaling and your goals.
For example:
- We are near the end of the refinance boom, and everyone has already refinanced. Getting refinance leads becomes more expensive to acquire.
- Purchase leads are still going strong, but the problem is nobody is closing with all the overtaking cash deals there are out there.
So, what do you do? Do you just pump more money into the Facebook ads or maybe Google ads hoping to get more leads?
You can do that but let me be frank. Unless you know exactly what you’re doing with these channels or else you will simply burn more money and get little to no return on your investment.
Here’s what we did instead…
Instead of asking our clients to burn more money, we thought we would leverage the low-hanging fruits that are already existing in their business (and every business has them).
Our clients were so focused on trying to acquire more “leads”, they missed the opportunities that were just right in front of them…
Which is marketing and selling to their existing, past customers, and the past leads that didn’t convert!
So we put together a past customer/lead reactivation campaign using a sequence of email and SMS and boom, it worked like a charm.
In just a few days were help our clients generated an additional 50 to 100+ highly qualified to refinance and purchased appointments using these reactivator campaigns.
The best part is, it didn’t cost our client an additional penny on advertising.
We just helped them pick up the money they were leaving on the table.
Sound too good to be true?
Let me break it down and do the math for you.
Let’s say you have a database of 2,000 past funded customers that we can run the reactivator campaign to.
Out of those 2,000, we typically get about 60% response to our messages.
2,000*0.6 = 1,200 will respond.
And typically about 15% of the 1,200 people who responded will be interested to jump on a call or an appointment. The rest will either be not interested or not qualified
1,200*0.15 = 180 people are interested.
From here on, I’m going to make some assumptions. Because these are past customers, they already know and hopefully, like your company compare to leads coming in from advertising.
Most of our clients will close these leads at 20 – 40%, but let’s say your sales process is not as refine and can only close 10% of those leads.
180 * 0.10 = 18 closed application.
On average most of our clients will fund or refinance a loan amount of no less than $200,000 with 2.75 points in profit.
18 * (200,000 * 0.0275) = $99,000 in additional growth revenue.
This may not sound like a lot but keep in mind that an additional $99,000 has virtually no cost to acquire.
But what if we run another campaign to the 800 customers that didn’t respond 3 months later?
- 800 * 0.60 * 0.15 = 72 interested
- 72 * 10 (close ratio) = 7.2 new application
- 7.2 * $5,500 = $39,600 in additional revenue.
And it doesn’t have to end here, there are so much more missed opportunities you’re leaving on the table.
What if we take a similar campaign change it a little bit to apply it to all your past leads you never closed 3, 6, and 12 months ago?
If you’re spending any money to acquire a lead, you probably have hundreds if not thousands of leads that you didn’t convert from the past 3 – 12 months.
I know this because the average conversion rate from lead to a close application is probably less than 10% for most mortgage businesses.
This means, 90% of your marketing spend has not yet been converted.
I know what you’re thinking… we have a drip-email campaign for that.
Great, but typically the average drip-email campaigns only an additional 1% at best because most people ignore these emails or they just end up in the spam box.
And if we run a past leads reactivator campaign every 4 to 6 months to convert those leads that didn’t convert right away.
(Assuming you generated 2000 leads in the past 6 months)
1) 2,000 – 200 (10% that converted already) = 1,800
2) 1,800 * 0.50 (50% reponse rate) = 900
3) 900 & 0.08 (8% interested) = 72
4) 72 * 0.10( 10% close ratio) = 7.2 new additional closed application.
5) 7.2 * $5,500 (based $200,000 loan sizes) = $39,600 additional revenue.
Now we rinse and repeat the process to create what we like to call the revenue multiplier growth effect.
Nearly $150,000 in additional revenue with any additional spend on advertising. And member I’m not taking into account potential referrals and multiple property opportunities that we get out of these campaigns