Skip to main content

The Four Cs of Coaching

Apr 10, 2008

Champagne marketing on a beer budgetMitch Millertelemarketing, mass mailing, buying leads, past clients, letters The catch-22 of the loan originator is: "I don't have enough money to do any marketing." You will never have any money if you don't do any marketing. It is a longstanding conundrum. However, like most struggles, there is an answer. I think most of the problem is a lack of creativity. We tend to think in terms of telemarketing, mass mailing, or buying leads from someone else. You are much better off doing your own marketing or having marketing done for you, specifically. It is also a fact that marketing does not have to be done on some grand scale with thousands of mailers or television airtime. You don't have to spend thousands of dollars on lists and thousands more on postage. You can develop an excellent list. You can put together a mailer and send it. You can generate a great response by doing it yourself. You just need to know how to do it. Recently, I sent a letter to a list of about 70 people. That's right—only 70 people. You might think I didn't get any response at all to such a small mailing. I actually had 12 responses altogether to the letters, and approved and closed six loans as a result. There is actually a strong possibility that I could close four more loans from that mailing. Do you think you can afford to send 70 letters? I think you probably can. This is what I did to generate the mailing—many of you can do the same thing. I worked off a list of past clients. Guess how much my list cost. If you guessed zero dollars, you guessed correctly. To start out, I gathered a list of clients who had previously used our services to help finance their homes. I sent these clients a letter thanking them again for their past business. I also selected people who had purchased homes approximately one year ago. Many of these folks were sub-prime at the time, and some of them were on a Fannie Mae MyCommunityMortgage loan program. I offered these clients a special low-cost refinance to help in the current mortgage crunch, so they wouldnt be subjected to an adjusting rate. For a couple of hours of work addressing and stamping envelopes by hand and about $28 in postage, I made about $28,000. Now that is return on investment. Here are the keys to making this work for you. Address and stamp the envelopes by hand, and take an extra minute to include a handwritten sentence in the letter. For example: "Hi, Tom. I can really save you some money. Call me." Go through your list and make sure you are sending the letter to people who have the correct title seasoning for your program. If you have clients on a 2/28 mortgage, don't wait until their rate is about to expire! If you wait until the rate expires to contact these clients, they will have already refinanced with someone else. Make a deadline for the special offer. Send a follow up letter. I sent a deadline reminder to any of the original 70 who hadn't responded to my initial letter, and I picked up a few more responses. Do not send anything just once. Needless to say, part of my monthly routine now includes sending these letters. But what if you are new to the business and dont have a big list of past clients to draw from? Depending on where you work, it is possible that your office doesn't have a specific person to follow up with past customers in a personal way. You might go to your manager and offer to follow up with past clients. There are a lot of ways to market yourself which don't cost a bundle. You are better off marketing to a smaller list on a personal level several times than marketing to a huge list once or twice. If you have more time than money, do as much of the work as you can. If you follow these steps consistently, you will soon have more money than time. Then you can look into having some of the work done for you or expanding your marketing efforts. The most important things to remember with all marketing are: Offer yourself as a solution to a problem, find the people with the problem you want to solve and offer them the solution over and over again in a personal way. Right now is a tremendous opportunity to market yourself in our business. I hope you will put in the targeted effort and reap great rewards. Mitch Miller is a 10-year veteran of the mortgage industry, with experience as both a broker and banker. He can be reached through his Web site or e-mail [email protected].
About the author
Apr 10, 2008
The Rise Of Mortgage Influencers

Social selling, the new frontier

Apr 11, 2024
Mortgage Influencers

Three Common Mistakes

Apr 11, 2024
Trimming The Fat

Direct Wholesale Rates is a passion project aimed at cutting the retail margin

Mar 28, 2024
Get The Gig With Gig Workers

Your borrowers might be among 39% of American workforce that freelances

Mar 27, 2024
When Life Hits You Like A Truck, Make Opportunity Fit Your Needs

Think outside the box and visualize all the possible ways to achieve things

Mar 27, 2024
The Difference Between Competing And Closing

Master Non-QM/Non-Agency business purpose lending

Mar 27, 2024