Loan Officers and Originators: Knowing The Difference Between Proactive and Passive
Recently I met with a childhood friend of mine that works for a large mortgage company in the Midwest. As with many loan officers in this market, he was struggling to close a decent amount of business. Being that I work as a marketing consultant for loan officers, I offered to review his business and see if I could see any areas that he could improve in order to generate more business.
After a few minutes of reviewing his marketing strategies, I saw right away what his problem was. He was relying too heavily on passive marketing, and it was draining his business.
Do you know what the difference between "proactive" and "passive" marketing?
Let's briefly see how Merriam-Webster's Dictionary defines the two words:
Proactive: acting in anticipation of future problems, needs, or changes
Passive: existing or occurring without being active, open, or direct
It basically boils down to the amount of control you have in the situation. Proactive marketing strategies force you to find the prospects that you are looking for.
Passive marketing strategies causes you to sit back and wait for the prospects to come to you.
From my personal experience, it seems that far too many loan officers and originators are relying on passive methods for generating business. And they are struggling.
Examples of passive marketing campaigns:
-putting a vanity classified ad in the newspaper
-your company provided website
-sending a mailing campaign to your database without asking for a call to action
-buying a Yellow Pages ad
Now there is nothing wrong with these methods. You will get a trickle of business from people who need your services right now. But these methods should be the first step and not the last one. By being proactive, you squeeze many more prospects from the same amount of marketing dollars.
If you are on a tight budget, you MUST be using proactive marketing strategies. Yes, they are a little more complicated to set up, but you get much more bang for your marketing buck.
Here is an example to crystallize my point:
You are in desperate need of some new business. So you follow your manager's advice and place an ad in the real estate section of the newspaper. It costs you $100 of your marketing budget and it results in one new loan. Sounds great, right? With the commissions you earned on this transaction you probably made five to ten times your investment back. Great, right?
Now let's see what a mortgage professional using proactive marketing strategies handles the same situation.
This loan officer also places a classified ad in the paper and also invests the $100. But here is where the proactive and passive strategies differ. In his ad, he lets readers know that if they are interested in purchasing their own home in the next three years, they can go to his website to download a free report on the best ways to make it happen.
The loan officers also gets one new loan from someone that is looking to purchase a home this month, but he also got 50 people to download the free report. Here is why this is important.
Those fifty prospects are automatically placed in his email follow-up system. Without him lifting a single finger, he is going to send those prospects emails a few days later, two weeks later, a month later and so forth. He is going to build rapport with them and provide them with the information they need. And by doing so, this next year he will turn 5 of those prospects into new clients.
So which is the better way? Turning $100 of your marketing dollars into one closing, or turning that same $100 into six new loans this year plus placing fifty people into your marketing pipeline who may do business with you in the future or who may recommend you to their friends, family and co-workers.
And consider this: what if the second loan officer ran that add every week? What if he also placed identical ads in the smaller newspapers in his area? What about advertising in the Home For Sale magazines? You get the picture.
Yes, proactive marketing strategies are a bit more complicated and do take more time to set up. But look at the results!
So if you are like many mortgage professionals and are in need of increasing your commission checks without increasing your marketing budget, then you need to be looking at proactive marketing methods to make it happen.
Related Tags: loan officer, mortgage broker, mortgage professional, prospecting, mortgage marketing, originator
Joe Pahl is a marketing consultant and co-creator of the Loan Maker Gold System for Loan Officers. To learn more proactive marketing strategies targeted at loan officers and orginators, please visit http://www.loanmakergold.com
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Tips To Better Prepare Yourself For The House Buying Process
Everybody who has been through the process of buying a home will attest that it can turn into a very - Gain Qualified Prospects With The Cash Cow Sales Funnel
I've had the privilege to work with hundreds of sales and business people all working hard to make m - How To Write A Good Telemarketing Sales Script
By defining your specific selling process you will be able to apply a system that works over and ove - The Popularity Of Antique Cabinets Over The Years
Ever since collectors have been hoarding pieces of value and interest, antique cabinets have been ar - Guide In Selecting Clothes Hangers
One of the least respected areas in your home is your wardrobe. Most of the time it is stuffed with - Does Mattress Manufacturer In China Reliable?
The time we spend on bed is almost 1/3 of our whole life! So it's very important for everybody to se - What Makes A Good Salesperson
This fact is not hidden nor is this thesis cutting edge. There are a lot of personality and professi - Proper Preparation Prevents Poor Performance: Tips & Tools To Increase Productivity
Prior proper planning prevents poor performance. It may be a tongue twister, but it's important to r - Attractive Votive Candles
Impeccable range of candles and lanterns enhance home interiors. Simple yet elegant in design and fi - Sales Articles - Do You Want To Find Building Maintenance Supplies In Your Area?
Building maintenance supplies are among key factors to protect buildings against excessive depreciat
Most viewed articles in this category:
- Cold Calling - A Surprising Way To Gain Insider Information
If you knocked on all the doors in your neighborhood, you'd learn a lot about the people who live ar - How To Touch More Clients For Referrals
Interested in more referrals? Want to guarantee success in any referral marketing program? Here is a - How to Embrace and Thrive in Today's Buyer's Market
As fun as the last few years were to be in a piping hot real estate market, it's now time to accept - The Power of One
One is a very tiny number. However, it can have a tremendous impact on your revenues. Here are some - Sell Your Customer What They Need
When it comes to selling your products it is important to ask your potential customers probing quest - Profiting With Private Label Rights
There are three basic rights you should know about when it comes to resale rights marketing. T - The Lazy Way to Increase Your Sales Immediately... without spending a penny!
Let’s start at the beginning… First up, how do you define an affiliate program, or affi - Your Sales Self-Image
All sales success is the result of a foundation grounded in right attitudes and positive self-esteem - Sales And Marketing - Let Others Do The Work
There are many different ways in which businesses of today approach potential prospects and customer - The Financial Influencer
In my last article, I talked about the four influencers you have to deal with in a B2B sale. The fou