How to Generate 27 Qualified Subprime Mortgage Leads Per Day
Posted by Nick Niesen on October 29th, 2010
There are several benefits to focusing on subprime mortgage leads. One good reason for generating subprime mortgage leads is that the borrowers are less likely to shop your offer. Also, the commissions on subprime mortgage loans can be quite lucrative.
I?ve found that one of the best ways to generate subprime mortgage leads is by direct mail.
So let?s look at the steps involved in putting together a profitable direct mail campaign to generate subprime mortgage leads.
There are two sources I recommend for obtaining your mailing lists ? list companies and credit agencies.
Here are two sample criteria to request from list companies in order to target subprime borrowers:
1) Get a list of home owners who have just filed a chapter 13 bankruptcy. Do a cash out refinance and pay off their chapter 13 bankruptcy.
Here are two list ideas when working with a credit agency to obtain your subprime mortgage lead mailing list:
1) Find homeowners who need help with their finances. Get a list of homeowners who are currently 30 days late on their first mortgage loan. Or, get a list of home owners who have a certain number of consumer lates 30, 60, or 90 in the past 6 to 12 months.
2) Select borrowers with a low credit score. You select the credit score range based on your loan programs.
Combine these with other criteria to better target your prospects. Here are two more list criteria ideas:
1) Homeowners with $15K to $50K outstanding revolving debt
Here are a few important basics you?ll need to incorporate into your mail piece:
* Give sample payments.
Tell them about your unique selling propositions (USP?s)
* 1% mortgage loan options
Be sure to comply with the state banking regulations in your area. Include the following in your mail piece:
* Equal housing lender logo
Here are examples:
Senior Mortgage Planner
To get a complementary refinance letter that has produced more than $2,500,000 in mortgage commissions over the last 12 months visit:
Use Split Testing to Improve Your Conversion Rates
Now that you have a list of prospects and a mail piece, it?s time to mail. The secret to direct mail success is testing. If you test different elements of your direct mail campaign, you will find ways to increase conversion rates. Over time, you will have a mail campaign that will generate huge returns.
How to conduct Split Testing
Instruct your printer to separate your list into 3 groups:
1) Group 1 will be 80% of your list
1) Mail your original letter to group 1
Do you see what you have just done? It?s called split testing. If you do this consistently, you can continue to increase your conversion rate, get more leads, fund more loans and make more money!
Here are some ideas for changes:
* Use a website address instead of a phone number
Be sure to only make one small change at a time. If you make massive changes you won?t know what specific change affected your conversion rate.
Don?t underestimate the power of this testing. If you mail 2,500 letters a week, a 1% increase in response will give you an extra 25 calls per week. That?s an extra 100 calls per month. At a measly 10% conversion rate, that?s an extra 10 loans per month.
That could easily equate to an extra $50,000 to $90,000 in commissions every month!
I am confident that a strong direct mail campaign will help you generate more subprime mortgage leads. Try these tips and you?ll be amazed at your results!
Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked.
About the AuthorNick Niesen
Joined: April 29th, 2015
Articles Posted: 33,848
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