Marketing expert on the dos and don'ts of bringing in business during a downturn
Times have changed for mortgage brokers and loan officers since the halcyon days of the 2020-21 housing market boom, when low interest rates and access to cheap credit saw homebuying and mortgage application activity take off like a rocket.
Rate hikes and a cost-of-living crisis have poured cold water over that red-hot activity – and with a long line of borrowers no longer queuing up to secure a mortgage, what should brokers be keeping top of mind in their approach to lead generation?
Throwing a wad of money at online marketing might be a tempting way to address a sluggish pace of business. However, the two most powerful tools available to a broker when it comes to influencing prospects through social media are free, according to a well-known reputation coach and marketing strategist: a Google Business profile and LinkedIn.
Darrell Weekes (pictured top), founder of Purple Thread Marketing, told Mortgage Professional America that embracing analog marketing strategies in an increasingly digital profession can reap ample rewards. “Building an effective referral network is a non-negotiable when it comes to lead gen,” he said, “and there is a system for that.
“Having a system to generate multiple referrals from new and existing clients is also a must. But most mortgage professionals don’t have a system to do that, [and] with the right system you can generate up to 30 referrals a year from each new client.”
Online engagement key to driving success
One of the most important steps along that journey is building a powerful online professional persona, replete with “independently verifiable proof” of a broker’s status as an exceptional mortgage pro. The way to achieve that is simple, according to Weekes: amassing five-star reviews through a Google Business Profile page. “Nothing says you’re good at what you do like a bucketload of five-star reviews,” he said.
Mortgage shoppers are overwhelmingly moving online in search of a mortgage professional, meaning a glut of glowing reviews can prove an important way for brokers to stand out from the rest and establish themselves as a trustworthy source of expertise in a crowded field.
Fully 88% of customers read Google reviews to judge the quality of a local business before engaging with them, Weekes pointed out – meaning brokers can’t afford to take online presence for granted. “You need to know what Google is saying about you,” he urged, “so step on, Google yourself, and see what Google says.”
Anthony Casa, CEO of UMortgage, warns that recent changes in real estate fee structures, effective August 17, could disrupt the market significantly, predicting an exodus of underperforming agents and loan officers.
— Mortgage Professional America Magazine (@MPAMagazineUS) August 21, 2024
Read more: https://t.co/1HsbOs0SFl
Controlling that narrative by encouraging and generating strong reviews, he said, is the best way to build a strong online reputation. “If you’re a consumer and you Google someone, what does that say to you? What’s the message there?” Weekes said. The impression given by a slew of five-star reviews: “This broker’s awesome. They’re trustworthy. They know they’re stuff. They’re not saying that – but that’s what’s being said about them.”
Where are brokers going wrong in their approach to lead generation?
A common misstep Weekes sees brokers making? Trying to do too much and work with everybody instead of honing in on their own market. “They believe if they cast a wider net and try and work with everybody in their state, for example, that they will generate more leads,” he said.
“One of the fundamental keys to real success in this industry is realizing that there is more business in your own local area than you can service in a lifetime. Owning your local market is where success lies for the vast majority of mortgage professionals.”
A 30-year veteran of the mortgage industry, Weekes said marketing is one of the most fundamental areas where mortgage professionals, who are otherwise strong in all components of their job, make regular missteps.
That’s something that can be easily rectified, he suggested. “What I’ve discovered is most people in the industry know how to write a loan and understand the products – know how to do most of them right,” he said, “but very few actually know how to position or market themselves.”
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