The 5 step system smart MLOs are using to generate a flood of new apps on auto-pilot, even during the Pandemic.
Nobody could have predicted it…
But nonetheless, it’s here.
And this pandemic is the black swan originators have been dreading.
Growing a business during an economic contraction is a radically different beast.
But while everyone around you is panicking.
Frozen by fear.
And as your natural tendency is to go into survival mode and contract.
Remember, your perception is your reality.
We are here to help you persevere in the downturn and fully prepare for when the market opens back up.
As Warren Buffet says:
Now is the time to double down.
I am not an originator. I don’t know the first thing about mortgage-backed securities, rate fluctuations or underwriting.
However, I do know how to use paid advertising and technology to help businesses grow.
So here is the GOOD news…
#1 Facebook Advertising is ON SALE!
If you are unaware, Facebook’s Ad platform is an exchange.
Simply put, it acts just like every other supply and demand economic model.
You have advertisers bidding to show their ad to their target audience.
Facebook Advertising is fueled mainly by e-commerce, travel/leisure, restaurants, and consumer goods.
One month ago, the same consumer who was looking for a new home or to refi would also see advertisements in their feed for luxury travel, local eateries or a new Peloton bike.
Over the last 3 years, the Zuck was running out of digital real estate to place ads in front of his huge audience, so the cost for Facebook has risen dramatically…until now.
With the majority of businesses being forced to close down, all major advertising categories (e-commerce, travel/leisure, restaurants, and consumer goods.) have slashed their ad budgets…many of them stopping completely.
While at the same time, millions of Americans are sitting at home scrolling through Facebook at historic rates.
Facebook has more supply than demand for ad space which is driving the cost WAY DOWN.
This pricing is similar to the good old days 4 to 5 years ago..
Now is the time to be placing REFI offers in front of every potential prospect in your local or national market for pennies on the dollar.
#2 Google Search Traffic for REFI Keywords has DOUBLED!
Rates are not going to stay this high forever.
Americans are actively searching for ways to save money and access cash.
They are not caught up in the daily rate fluctuations…they just want solutions.
Thousands of people in your area are searching Google for refi quotes while you are reading this article.
They are raising their hand and asking you for help.
The largest lenders in the world are capitalizing and scooping up all these hot prospects.
Just like Facebook, Google works on an exchange. You bid to place your ad in front of people who are actively searching for refi keywords.
Increased traffic has lowered the cost so anyone can generate highly motivated leads without a huge budget.
Before I go into the solution let’s briefly discuss why most independent brokers and regional lenders are not able to take advantage of this online lead goldmine.
- They don’t have the expertise or systems to compete with the larger lenders who buy up all the online real estate.
- They don’t have the budget to pay a digital marketing company or consultant high fees every month.
- They don’t have the time to figure out everything needed to be a successful online marketer. Including creating good ads, high converting landing pages, followup system and much more.
- They don’t have access to technology to help them consistently turn ad dollars into apps.
- They don’t have the systems in place to work through 50, 100, even 1000 leads a week.
- They have focused solely on feet on the ground marketing, referrals, and their own database.
The main reason why MLOs never scale is that online advertising is complicated and as the wisest business owners say:
“Complexity is the enemy of execution.”
#1. Generate 2 to 6X more leads from the same budget.
Generating leads on Facebook is fairly easy. Plenty of the online, overnight “gurus” and digital agencies who fill up your own Facebook feed can do it.
The key to predictable online success is CONVERSION.
Let me explain in the most basic example:
Mortgage Company A & B place the same exact ad, word for word on Facebook & Google.
They pay the same exact amount per click, let’s say $10.
The potential borrower goes to a sales page and hopefully fills out the form.
Most will not.
The average conversion rate for most pages is sub 5%.
So for every $10 click, only 5 in 100 will fill out the form, effectively creating a lead for $200.
What if you create a sales page that generates a 20% conversion rate or even 30%?
Then you would drop your lead cost from $200 to $50 (20% conversion) to $33.33 (30% Conversion).
Conversion is king.
The top marketers who get paid the big bucks focus solely on conversion, while all the amateurs chase vanity metrics.
Learn how we improved form accuracy, with fewer fields and are helping originators convert up to 6X more leads to sales.
#2 The On-Demand Offer
Once you have pages that convert at 30-40% (Hint Hint we show you how in the video above.) then you will need to master how to turn that lead into an appointment.
This is where even the big boy lenders fail.
A lead fills out a form only to land on a generic thank you page that says someone will call them within 24 hours.
This is the lead graveyard.
The modern borrower wants an on-demand experience.
They do not want to wait for you to call them back or be forced into a long application.
So…we threw out the old, slow model and built a better way.
Give the customer the small reward they want: A free credit score, instant pre-qualification or a customized home valuation and refi report.
By giving the consumer what they want we have seen 80% of qualified prospects book a meeting or dial in WITH ZERO follow up.
#3 Save Time & Resources Chasing Bad Leads
Whether a recession hits or not, you still need systems to properly work your leads with as minimal effort as possible.
Most people fill out forms incorrectly and lie about their credit scores.
Over 73% of the leads we have captured this year have self-reported false credit ratings.
So we created a better solution…Leverage soft credit reporting to pull credit score with just name and address then give them an instant decision that they qualify.
So while every other originator is chasing down bad leads you can laser focus on the 20% who are credit qualified prospects while building a pipeline of fair credit leads who may qualify when credit guidelines ease.
Every digital mortgage marketer out there touts how they can help LOs schedule appointments on auto-pilot, but what they regret to tell you is that only 10-20 out of 100 will be good prospects…especially for purchase.
You end up wasting time and money talking to people who will never qualify.
#4 Cut the cost of paying admins, marketing consultants, and expensive, dated software.
If a recession hits then every dollar you invest in your business is an important decision.
Many lenders are tricked into paying digital agencies to set up ads for them. (Read this article for more info)
Or you pay that company that rhymes with Pillow and lead aggregators to share leads with your competition.
Don’t waste your money…Hire Arlo.
Arlo (my company if you have not already guessed) is a 24/7 sales and advertising assistant.
All you need to do is fill out a form and let Arlo build your campaigns.
Watch me set up a campaign below in 60 seconds
Arlo does what a large team of highly trained advertisers cannot for $195 a month.
#5 The Fortune is in the Follow Up.
If your qualified leads do not call or schedule then it is paramount to follow up with them across every channel.
You need to show up everywhere and often.
71% of customers do business with the 1st person they meet. – Zillow
MIT did a study that shows if you engage your leads within the first 5 minutes you have a 500% better chance of turning them into a customer.
Arlo has an omnichannel suite of tools so you can engage your leads and customers on auto-pilot across Facebook Messenger, Text (SMS, Audio, MMS), ringless voicemail, call routing, and even dynamic “handwritten” postcards.
All you have to do is plug in, push-button and Arlo handle all the follow-up.
The Moral Of The Story…
Don’t go into hiding.
Don’t worry about rates, they will come back down.
Don’t worry about the things you cannot control.
Build up a nice, healthy pipeline NOW, while advertising costs are low.
Use Arlo and new technology to save money and automate customer acquisition.
Start building out your tech stack while times are slower.
When we come back from this you will be primed to maximize returns.