Lead Tip #2:
Oversold Leads… Can You Do Anything About It?

A new lead pops up in your L.O.’s email inbox. She grabs the phone, ready to work it while it’s fresh. Instead, she’s blasted with “You’re the thirtieth person to call me in the last 6 hours… ENOUGH!” Instead of an app, she’s got a dial tone… and you’ve got a nagging suspicion you’ve been cheated.

You know your L.O.s aren’t going to take apps from every lead you bring in. But you should count on them to get an honest shot at closing. And that doesn’t mean scrambling after a dozen other L.O.s. for a prospect’s attention. Or watching as they get more demoralized every time they’re hollered at by an overcalled, irate prospect.

What’s even more maddening is these prospects could have easily been ready to close… until your lead company oversold their information.

How To Avoid Oversold Leads

Some companies will do anything to squeeze a dime out of their leads — even if it gets in the way of the quality you need to keep your L.O.s happy. They share the same tired leads with anyone who asks, no matter what they originally promised you.

Even some of the big name companies can’t resist overselling their leads. They sell their leads to an original group of 3-5. Then they sell them again as “vintage” leads a few days later. After a few months they’re dumped in the bargain bin and are picked up for a few dollars or less. Sounds like a good deal, but it’s the same old story. By the time your L.O.s call these people, they’ve been contacted dozens of times and are ready to blow a fuse.

Occasionally you’ll catch your lead company red-handed. Anxious to increase their profit per lead, they try passing off the same one to you twice.

Can you protect your L.O.s and your budget from oversold leads? Yes and no. Once you’ve grilled the lead company over the phone, hoping to get the TRUTH about their lead sources and number of times they’ve been sold, etc., you have take a leap of faith. But if the leads aren’t what were promised, you should have a way out.

No company will crack under your questioning and admit, “Alright. I’m busted! We oversell our leads.” Make do with the information they offer up. Then see if it’s backed up in the real world. Ask other lead buyers. Check out postings in online mortgage forums.

Forums where you can get some honest feedback are:

• http://www.brokeroutpost.com
• http://www.themortgagewire.com
• http://www.mortgagebrokerland.com/forums/

(Buyer Beware! Some postings are obviously other lead companies 'posing' as L.O.s and giving glowing or even 'subdued' testimonials to get traffic. While it may be difficult to tell who’s real and who’s just wearing a mask, you can usually see how active that member is beside their post. Check out their past posts to see if they offer real value, or are just paying lip service to the same lead company over and over again. More on this in another issue.)

Get Answers From Your Lead Company

• What’s the maximum amount of times a lead will be sold?

  If leads are sold over 4 times, it’s time to look somewhere else. Unless of course, your strategy is based on a call center 'churn n burn' — where your new L.O.s cut their teeth on the vintage leads, hoping to salvage some deals. I’m not knocking the approach, because there are some that successfully use this model.

• How many times are leads sold on average?

  Leads sold an average of 2.5 times or less are considered “semi-exclusive.” Your L.O.s have the best chance of closing a lead if it is truly semi-exclusive. They also cost far less than leads sold on an exclusive basis. There is more competition for leads in some regions, so find out what’s the going average for your area.

• Do they replace all duplicate leads?

  It could be intentional or maybe it’s only a computer error, but a quality lead company NEVER forces you to pay for duplicate leads.

If your rep doesn’t give you a straight answer? Be careful. Good companies don’t have an issue with revealing how many times they share each lead. And they don’t leave you hanging with duplicate leads.

Is getting a decent chance at closing leads too much to ask?

Jeremiah Desmarais develops educational programs at ProspectZone, a provider of verified internet leads for loan officers and brokers. He has guided his team to win 4 awards in 2006 for their marketing initiatives to consumers and brokers. He is author of several white papers, and has been a contributor to leading broker publications as well as a guest speaker at various broker events and workshops. He is a member of the Society of Industry Leaders.

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