Saturday, February 27th, 2010 at
12:26 am
By Doug Huggins
I have received several e-mails recently stating that they had tried direct response mail and it had failed miserably. Most of us who teach marketing methods hear that same complaint. I would suggest that there are two probable reasons so many people are disappointed with their direct mail:
One – The Message – The message delivered by most mortgage and real estate companies couldn’t sell free water to an American GI in southern Iraq. The marketing pieces I see are poorly designed, with absolutely no thought given to communicating to the needs and wants of the receiver.
In my manual, “Why Most Mortgage Marketing Fails and What to do About Yours”, I discuss in detail the top 10 reasons most mortgage company’s and originator’s marketing efforts fail to work. We show many actual examples of marketing pieces and literally “rip them to shreds” to show you how to better view what you are currently doing and how to make simple, no cost changes to dramatically increase the response to your current marketing.
Two — The second major reason many direct mail campaigns fails is the mistaken idea that One Mailing a Campaign Makes.
How often when you are sitting at home watching your favorite TV show do you see the exact same commercial over and over and over again?
Sometimes it becomes really, really irritating, doesn’t it?
So why do advertisers spend the millions of dollars to deliver the same exact message over and over to the same audience?
Because, for better or worst, frequency is a MAJOR factor in getting your marketing message across and acted upon.
A single exposure equals minimal impact but repeated exposures will have a positive impact, disproportionate to the number of exposures.
Here’s one example – say you’re doing an apartment mailing for First Time Home Buyers to the occupants of 5,000 apartment units. From one type mailing you might pull anywhere from as low as one quarter of 1% to 1% response. Maybe 12 to 60 responses. The variants between the 12 and the 60 may depend on the effectiveness of the offer.
But if you mail to those same 5,000 prospects six times over a three-month period your overall response might be 3% to as high as 20%, 150 to 1,000 people. That’s about 12 times the response from the single mailing not just six times.
See the multiple context doesn’t just increase response proportionately they increase it disproportionately. Is this always true? No. Sometimes there’s something else wrong, such as the list selection, the offer, the company’s credibility, whatever and no amount of mailing will overcome it but presuming the list has been chosen with reasonable care and intelligence, the offer is good, the mail piece is good then this kind of effect should be achieved.
If you have been disappointed with the response you have received to your direct mail pieces – do NOT assume that it is because direct mail doesn’t work for mortgage marketing – it does. Direct mail was a vitally important part of the overall marketing system that allowed me to generate over 280 inbound – purchase money – lead calls each and every week for 107 consecutive weeks! It works! Maybe you need to discover why yours doesn’t.
Now, I’m not suggesting that you just go out and blindly start doing direct mail marketing. That is another reason so many would-be mortgage marketers fail – they do not have an overall plan to succeed. Marketing should be a planned event – specifically planned to target a precise market segment to get specific results. Plus, the marketing plan should be just one part of an overall success plan for your business and your life.
Your business may not be your life; and success in business doesn’t guarantee success in life. But, the more money you have the more option you have. I’d rather be miserable and rich than miserable and broke!
By: doug huggins
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Wednesday, November 11th, 2009 at
9:23 am
It can be hard figuring out where to start in order to find pre-foreclosures to invest in. Marketing mortgage short sales is a cinch with the right tactics and good information, such as the lis pendens list. To start, there are three points to marketing mortgage short sales that are absolutely crucial to know; the importance of marketing, competition, and there are multiple methods of marketing.
Importance of marketing
You need to use all tactics and resources you have available in marketing. Show those homeowners and banks that you are a professional property investor and set yourself apart from the amateurs. Preforeclosure investing is one of the most competitive real estate niches. Make sure your marketing stands above everyone else’s.
There is no one true method of marketing to the preforeclosure market. You can use at least three forms of advertising at all times when marketing to these preforeclosure owners and really saturate the market with your name. Now that you know the three points of marketing mortgage short sales, you’ll need to learn some of the more effective methods of reaching that potential client.
There are two main types of marketing; Shotgun marketing and Sniper marketing. Shotgun marketing has a broad range with no specific target audience. It catches all types of people including some your competition may not be reaching. On the downside, many of the potential clients you reach may not be qualified or may not need your services.
Sniper marketing is direct and you’ll know it will get to a certain type of homeowner. On the downside, many other preforeclosure investors are using this method, so you will have a lot of competition in this type of marketing.
Advertising to the Lis Pendens
Many investors involved with marketing mortgage short sales talk about marketing to the lis pendens list. After a homeowner is 90 days behind on mortgage payments, the bank issues a Notice of Default or the lis pendens. This is the first time that the client’s situation becomes public as it’s filed at the county courthouse.
Now the investors know that the homeowner is having difficulty making payments and is in a preforeclosure situation. You can look up properties on the lis pendens and approach the homeowners about purchasing their property. It’s not uncommon in high-density foreclosure areas to see 50 different individuals using the same marketing tactics.
Always go through the lis pendens list. Get used to the process then you can try hiring someone else to find potential clients for you. The financial newspaper, published every day or every few days is a good place to start. It has all the homeowners published in the lis pendens listed by name and address. Pull new names every day or so to remain ahead of the competition and get you’re marketing out first.
Looking the Professional Investor
Marketing mortgage short sales is really easy once you know all about reaching potential clients. Below are three additional tips to set yourself up as a credible investor:
1) Toll free or local vanity number: A good vanity number can show that you are focused on marketing mortgage short sales with something like, ‘1-800-Bad-Debt’.
2) Website: Website templates are available for a very low cost. These allow your clients to check you out and see your testimonials from past customers.
3) Logo: This brand image instantly gives you credibility that 95% of investors won’t have. It only takes a few minutes to create a simple logo on your computer.
Marketing Mortgage Short Sales Strategies
Now that you have the list, there are many marketing strategies you can use. One of the most popular ways is direct mail. There are many types of direct mail campaigns.
• Check letter: You can send the potential preforeclosure client a letter with a perforated check on it including an amount such as $1300. You will actually give the seller $1300, sometimes more depending on equity, if you complete a successful deal with them. The check is not valid for deposit, but when they call, let the homeowner know that you will pay for the deal.
• Radio: It is great marketing mortgage short sales to reach a large amount of people. You might not want to do radio as your first step, but if you want to take your marketing up a notch, its something to consider.
• Newspaper Ads: Many other investors are marketing in the paper. The reason so many people do classifieds is it works. Newspaper ads can be expensive depending on where you live, but if they get you one preforeclosure deal, ads make sense. Set yourself apart from other investors using newspaper ads is market to preforeclosure owners. Use fun slogans like “run away from your house,” “escape your debt forever,” etc.
• Television: TV is effective, but it takes time to create a professional piece. It can also be expensive. If you want to completely set yourself apart, no other medium can give you the kind of credibility commercials provide late night TV has good advertising rates and reaches folks who are in trouble and probably have trouble sleeping. Just make sure your piece is professional and to the point.
• Greeting card: The greeting card is a more personal touch in marketing mortgage short sales . The greeting can say, “We know what you’re going through and have helped out a lot of people in this process in the past. We are behind the phone, an actual person, not a huge company.” The homeowner will know that they are dealing with a real individual rather than a large conglomerate.
• Postcards: These work very well because they are cheap and you can send many. Don’t just do postcards by themselves in your marketing. However they are a great addition to other types of marketing programs. Postcards give the ability to have your message get to the homeowner at a very limited expense.
• Post-It Notes: Placing post it notes around the area, also gives you very detailed results of what neighborhood to focus on, although you won’t know if those particular homeowners need help. Stick post-it notes around a neighborhood.
• Signs: Signs work great for catching people’s attention. These are expensive and make sure to check with your municipality to make sure you are allowed to do it.
This is all you need to know to get started in marketing mortgage short sales. Make sure you know, realize and implement the points above and you’ll have some success in your chosen preforeclosure market. It’s as simple as taking action to find those potential homeowners.
By: Colin Andrews Egbert
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Friday, August 7th, 2009 at
12:26 am
You may be very happy contacting and schmoozing Realtors/Agents/Builders and begging for their business or, possibly purchasing leads and then competing with three or more originators for the mortgage. But, there are many loan officers and mortgage brokers working with prospects, home buyers and sellers, many months before they even think about contacting a Realtor/Agent.
It’s called “Consumer Direct Marketing” and the mortgage professionals that are incorporating this principle into their marketing programs, are way ahead of you. And yes, it’s simply marketing to consumers, prospects, and clients long before they decide to make a mortgage decision.
The mortgage professionals that are using this principle have seen the handwriting on the wall and the changes taking place in the mortgage industry. I’m sure you’ve experienced the fact that many Realtors/Agents and even some Builders now have their own mortgage companies. They are competing with you head-to-head and originating loans themselves. They control the listings and now they are trying to control the entire transaction including the mortgage process and eliminate you from the deal.
By marketing directly to consumers well in advance you’re circumventing this possibility. You’re establishing a rapport, a bond, and enhancing your position as a trusted financial advisor with your contacts. You’re also approving them for a mortgage in advance further solidifying your position and totally eliminating the competition. A Realtor/Agent/Builder would be out of their mind to suggest that your client start the mortgage process all over again with a new loan officer and a new company. After all, the mortgage is approved and a quick closing is all but guaranteed, isn’t it?
Here are a just few “Consumer Direct Marketing” methods you could be incorporating into your marketing program to ensure your mortgage success:
1. You can market to your existing database ever month with timely mortgage and credit information, postcards, articles, and reports.
2. You can market to For Sale By Owners (FSBOs) and assist them in selling their homes and pre-qualify and pre-approve their prospects for them.
3. You can market to first-time home buyers and pre-approve them for a mortgage loan in advance and before a Realtor/Agent is involved.
4. You can market to anyone by providing free articles and reports such as Refinancing Tips, Home Buyer Tips, Credit Tips, Mortgage Tips, Mistakes People Make When Shopping For A Mortgage, and the like.
5. You can market to Divorce Attorneys, Financial Advisors/Planners, and CPA’s to gain referral partners and new mortgage prospects.
Yes, the mortgage business is changing. Don’t be left behind…and don’t be that “Old Dog” that can’t learn new origination tips. Change the way you originate loans and you’ll continue to prosper in the mortgage business.
By: Tom Domin
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