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mmorelli
Dud?


Joined: 07 May 2009
Posts: 3
Location: Los Angeles, CA

Closing a lead...the secret sauce.
PostPosted: Thu May 07, 2009 8:34 pm Reply with quoteBack to top

Raise your hand if you have bought leads before.

If you can say "I got burned!" keep your hand raised.

Looking around, I see all of the same people with their hand still in the air.

If your first inclination is to say "The leads sucked!" keep your hand up.

Still looking around, I see a lot of people whose arms are getting tired.

That was an interesting exercise. My name is Matt and I am a veteran of the lead generation industry working with companies like LoanWeb.com, 411web, Leads360, and now ZipSearch. The one constant with every prospect I speak to is "I got burned in the past, the leads were all garbage!"

I'm here to say -- you're only partially correct. There is a science to closing a lead, which if you are not following...whether you are looking at the best lead in the world, or the worst, you're not going to close it.

But someone else will.

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Matt Morelli
800-949-2919 x112
matt@zipsearch.com
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syd
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Joined: 15 Jul 2008
Posts: 244

Re: Closing a lead...the secret sauce.
PostPosted: Fri May 08, 2009 3:43 am Reply with quoteBack to top

Okay so please let us know how to close them!!!
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mmorelli
Dud?


Joined: 07 May 2009
Posts: 3
Location: Los Angeles, CA

Re: Closing a lead...the secret sauce.
PostPosted: Fri May 08, 2009 3:49 pm Reply with quoteBack to top

I could very literally sit here and type a 20,000 word response but I will do my best to be brief.

There are some things that need to be understood about leads while you are in the buying process, that all too often are not. This can be due in part to your salesperson's desire to just sell the deal of course, but in most occasions, correct expectations are not set. I do my best to make sure I set expectations, and even I mess this up sometimes.

The bottom line is that there are going to be some percentages of your metrics that will always occupy a certain space in the spectrum. There will always be a percentage of the following groups:

- people who you call, and NEVER speak with.
- people who you call, who pick right up.
- people who you call, who pick up and hang right up on you.
- people who you call, who say they never filled it out.
- people who you call, and close.
- people who you call, who qualify, but go dark on you and never get back.
- people who you call, who qualify, but decide they don't want to do it.
- etc.

These are truths, and they are part of the cost of doing business. Your job, and your goal is to do things to manipulate those metrics and increase your chances of encountering the more favorable ones, more often. Shops that do this, close a lot of business.

So how do you do it? Well first of all you and your lead provider need to be on the same page with expectations. If you know and accept that a percentage of your leads are always going to be garbage, and you are a hunter who likes a challenge, well you will do better than the guy who gets three wrong numbers in a row (which does happen), and lets that shoot down his whole experience with the lead provider. Expectations, expectations, expectations!

Once you have come to grips with the fact that $250 out of the $1000 you just spent is going right in the garbage, you need to make sure that your sales workflow, process, and lead management practices are in line. Whether you are an individual loan officer, or a mega huge national lender...if you are not using a lead management software system, you're leaving money on the table. Period. If you are buying the same leads that a company who has drilled down their best practices for lead management is getting, they're going to win that business...not you...almost 80% of the time. The good thing is that a very, very, TINY percentage of shops out there who buy leads are really truly utilizing a lead management system, so if you are not, you can get one now and set yourself apart from almost all of your competition, today.

When you have your expectations in line, and your lead management set up, you then need to make sure that you actually do what you are supposed to do. M.I.T. did a study of web leads. They found that consumers who decided to buy, did so 78% of the time (or 72%, sorry I do not recall the specific figure) with the first person to call them inside of a five minute window. I tell this to all of my clients. Every single one of them, without fail, tells me they call within five minutes. I know they are lying to me. The overwhelming majority of people who buy leads, DO NOT call that fast. I spent two years at a lead management software company. I could see people's speed to contact, it averages well over five minutes. Every single person who buys the lead, whether it goes out to one person, or four, has the opportunity to call it immediately. The one who does, wins the business. Looking at this figure, speed to contact beats out price, it beats our rapport built, it beats our geographic proximity, it beats out everything. 72/78% is the majority, and the sub five minute call time is the differentiator.

There are a million other small things but we can get into that later. I have to try to sell some leads today. Laughing But these are really important things that every lead buyer needs to understand. You find a lead provider that you like and trust. You do your research, you talk to your account executive, and then you make the leap. Before you receive leads, you need to get your processes in line and make sure they are dialed in. You MUST make sure that you have the correct expectations set. Then you need to get your head in the right place. If your head is in the right place, and your processes are good, you will see the ROI you are looking for. As of November of last year, our loan modification leads for example, were closing at 24%. That means that someone, somewhere...was doing well with them. Several people were. What I can tell you for sure, is that some of our clients were closing 3%, and others were closing 18%. Now ask yourself why.

And don't get me wrong. Every lead provider has their down day(s). There are times when from me, you will get a day full of wasted time. It happens, it's unfortunate, and it's a part of doing business. But then there will be times that the next day, man you have a 100% contact ratio, and 80% qualification ratio, a 65% application ratio, and a 30% closing ratio. Again, it's just how things work. At the end of the month if you average things out...if you are set up correctly and you do what you need to do, and you find some good lead providers to work with...you will win the game.

If you have any specific questions I am more than willing to help. Tell me about your own experiences, your processes, etc.

_________________
Matt Morelli
800-949-2919 x112
matt@zipsearch.com
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syd
Dyn-o-mite!


Joined: 15 Jul 2008
Posts: 244

Re: Closing a lead...the secret sauce.
PostPosted: Mon May 18, 2009 3:19 am Reply with quoteBack to top

Will have a reply to this soon. Make sure you get ready for it please.


Thanks


SYD
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Re: Closing a lead...the secret sauce.
PostPosted: Fri Dec 04, 2009 5:27 pm Reply with quoteBack to top

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Re: Closing a lead...the secret sauce.
PostPosted: Fri Dec 04, 2009 5:29 pm Reply with quoteBack to top

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SeniorLendingSpecialist
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Joined: 15 Jul 2010
Posts: 5
Location: New York City

www.getreversemortgagehelp.com
PostPosted: Thu Jul 15, 2010 10:24 pm Reply with quoteBack to top

is a helpful source but you have to listen to the borrower and control the conversation and address there concerns then help the senior understand why they are doing this. not because you are making commission but because the loan is the right thing for this client.

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The Industry has cleaned up alot of the garbage that killed our industry, National and state testing this rid us of the LO's who are Dumb, the requirments or stringent got rid of alot of garbage. Industry will get better day by day.
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