3 Biggest Marketing Mistakes Made By Mortgage Brokers
If you want to scale your mortgage business, you’re going to need to look beyond referrals.
Referrals are great, but they cannot be predicted or scaled and therefore cannot be relied on to grow your mortgage business.
And so when looking at growing your mortgage business, the first and arguably most important step is getting a consistent stream of qualified leads coming into your business.
To do this, you’re going to need to invest in some marketing.
Today I’m going to be revealing the 3 biggest mistakes I see most mortgage brokers make in their marketing.
Mistake #1: Advertising Rates & Rebates
The strange thing about marketing in the mortgage business is that you’re selling something that people don’t actually want.
They don’t want a purchase home loan, they want a home. They don’t want a lower rate on their mortgage, they want to have enough leftover at the end of the year to take their family on a holiday.
And so in your marketing, you can’t simply advertise the products you have access to. No matter how low the rate is or what other rebates are available.
Travel agents don’t advertise the airport lines, waiting, sitting in a seat for hours on end cramped next to one another. They advertise in Hawaii. They talk about how you could be sipping Pina Coladas on the beach.
As a mortgage broker, you need to take the same approach (minus the Pina Coladas).
If you’re seeking purchase or pre-approval leads talk about the peace of mind you can offer them in knowing they’re getting a great deal on their mortgage and how it will allow them to buy a home with confidence.
If you’re after refinancing leads discuss the savings opportunities and what can be done with those savings depending on their goals – live a better lifestyle, retire early, purchase an investment property.
Mistake #2: Outdated Advertising Platforms
If the majority of your advertising spend isn’t going to the online channels you’re doing something wrong.
You don’t need to invest in channels like Radio, Billboards, Magazines, Television, or any of the other outdated channels.
There are 4 key online channels that are more than sufficient to build a huge mortgage business.
Those 4 online channels are Meta (Facebook & Instagram), Youtube, Google & Native advertising.
The truth is, we work with multi-7-figure mortgage businesses that only advertise on one platform.
The key attributes you need to look for in an advertising platform is the following:
- Is it trackable? Can I see what business results my spend has produced in real time?
- Is it scalable? Can I put $1,000 per month of $100,000 per month without exhausting the platform and experiencing diminishing returns?
- Does it produce consistent results? Can I rely on this channel to produce results 365 days per year?
A big indicator of whether a channel is going to meet the above criteria is to see if mortgage brokers & businesses are consistently advertising on it. If they’re continuing to advertise it means they’re continuing to get results.
Something to keep in mind while going down this path is that if anyone in your industry is winning on a particular platform then it is not a platform problem it is an approach problem.
Mistake #3: Spreading Themselves Too Thin
When it comes to getting qualified mortgage leads, you need to put more wood behind fewer arrows.
That is to say, you don’t need any more than 2 or 3 sources of qualified leads that meet the criteria mentioned above.
To begin with, you want to pick one channel that you’re going to focus on to get leads & cash flow. Then, once that channel has become profitable and is scaling you can add another channel.
Once you have 2 or 3 channels producing results, focus on scaling your efforts there rather than adding another channel.
So, there you have it, the 3 biggest marketing mistakes most mortgage brokers make and how to avoid them.