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2011-06-03 14:24:37

Why Buying Mortgage Leads Sucks!

Here are 3 reasons why buying mortgage leads stinks!

Reason #1

They are expensive

Plain and simple. Companies charge incredibly high prices for selling you mortgage leads. The majority of these leads are unqualified so why should you be paying a premium? Given that these leads are often a "shot in the dark" why are you being a charged like they are a sure-fire thing? A struggling Loan Officer should not be gambling with such a high expense.

Reason #2

They haven't been qualified.

What good is a lead if the person isn't interested? What good is a lead to an agent if the person doesn't live in your area? What good is a lead if the person isn't old enough to purchase a home?!

LO's paying for leads have experienced these problems time and time again. Essentially you are paying for a list of email addresses (maybe phone numbers) of people you don't know, who don't know you and are hoping that they have an interest in buying or selling - let alone doing a deal with you! You can't even tell these people you obtained their information through your own work, you had to buy their private information from someone else!

Reason #3

You are not building your asset base.

An asset base is a list of clients (current or potential) that will generate business for you in the future. In purchasing mortgage leads you have not obtained permission from these people to speak with them. You have merely rented their contact details from a third party in order to interrupt them. When you as a Loan Officer cannot state where you got someones phone number from without fear of rejection you are in trouble.

When you rent someones contact details you are not building an asset base. You are not building a relationship with these real estate leads that might bring you business in the future. All you are doing is paying a high price to bother someone who didn't give you permission to speak with them.

Bottom line, while some of you may have had SOME success in the past with buying leads, on the whole, they are an epic failure when compared to generating your own, exclusive leads.

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