Buy Mortgage Leads: A Strategy for Success?
The mortgage lead business has really become extremely competitive over the last few years. About a decade ago there weren’t very many companies attempting to generate mortgage leads for the large mortgage broker companies (banks, credit unions etc.) and this was partially a function of the expensive start up costs of any lead generation business but more so than that it was also a function of the fact that there simply wasn’t a whole lot of interest in lead generation. Consumers as a whole weren’t as interested in obtaining mortgages back then as they are now and also the adventuresome spirit wasn’t there in the consumer. The consumer would usually just go to the bank that they did business with to obtain the mortgage and that would be the end of that.
Nowadays though things are different.
Mortgage leads are all over the place because consumers are looking for the lowest interest rates and the best all around deals on mortgages and are willing to do business with any reputable company as long as the deals are good and the interest rates are low. This has prompted not only a boom in the mortgage broker business but also a boom in the UK mortgage lead business. This in combination with the internet boom has really led to a lot of new openings in the mortgage field for savvy business people that are interested in making some money.
The buy
mortgage
lead business is really based on the fact that mortgage brokers are going to buy the leads. This is common knowledge and something that everyone is aware of. However there is now a start-up strategy that a lot of new buy UK mortgage lead companies have tried in order to accelerate themselves up to the level where mortgage brokers would consider them a permanent fixture and would want to do business with them. These companies have come up with the idea of actually going ahead and buying mortgage leads from another company and selling them for the same price or in some cases even cheaper to mortgage brokers. These types of companies either break even at best or incur a loss in the process of this transaction.
Why do they do it? Well, simply put, they are trying to get their foot in the door. One problem that many new mortgage lead generation companies face is the problem that
lead generation companies have already saturated the market and many mortgage brokers already have partnerships solidified with many of the older companies. This strategy forces them to incur some financial loss at the start but in return they can potentially start building up partnerships with brokers while they work on their own lead generation tactics.
So is it worth it as a plan? Well, the answer to that question is that it depends. It is certainly a risky strategy and one that could have a company go under before it even begins but to a savvy business person who is looking to make a big splash quickly and is going to clean up the rest later it just might be what the doctor ordered.
