Where will your next lead come from?


As mortgage brokers, we’re always on the lookout for our next client and sometimes this mentality can lead to a bit of a scatter-gun approach when it comes to prospecting.

For most of us, because we are one man bands or have a small team of staff, our time is very limited so when it comes to prospecting it pays to have a more strategic approach.

In relation to generating leads, the three main sources for most brokers are

  1. Referrals from strategic partnerships such as accountants, real estate agents, financial planners and solicitors
  2. Referrals from existing clients
  3. Online marketing and social media

Whilst it is absolutely a hot topic right now in our world, as I’ve mentioned here before, online marketing and social media has not traditionally been the way the mortgage brokers generate business. The term ‘digital disruption’ is something that I’m hearing a lot about right now. In fact, that is going to be the main topic discussed at the MFAA’s upcoming Broker 2020 Series. And whilst I’m absolutely on board with online marketing (hint – I could be working on something in relation to this for everyone right now to be released later in the year!), it’s something that I think should be more of a hobby/interest for brokers as opposed to a marketing strategy you should be spending a great deal of your time on.

For me, the first two sources of lead generation remain, and I think always will be the main sources of leads for brokers.

However, I haven’t come to this conclusion merely based on my own feelings, this has come about by analyzing my settlement numbers by tracking where each lead has come from.

Tracking and analysing your numbers

If you aren’t doing this in your business then you are seriously missing out on some low hanging fruit. Most aggregation groups will have software available for you to track by a whole range of means exactly where your leads are coming from. In my business, I break it down by whether or not the lead has come from a referrer, existing client or internet marketing. Then I’ll further categorise by tracking, which referrer, which client and which internet marketing strategy brought about any lead.

However, simply tracking where your leads are coming from is only step one. Step two is actually analysing the numbers.

A very simple thing you should be doing at the start of every year is exporting your settlement numbers into an excel spreadsheet and then seeing where most of your deals came from.

Where exactly your leads come from will vary depending on the type of business you have and there is no right or wrong answer to this. However, as I’m sure you’ve heard before, numbers don’t lie…

For me, looking at my settlement numbers from last year 80% of my loans came from strategic partnerships, 19% came from referrals from existing clients and 1% came from social media.

Of course, I’m trying to increase each category further this year but where do you think the majority of my time is best spent?

Further to that, once you’ve confirmed which is your strongest category, break down who were the top performers in that category. Again, in my business of my strategic partners over 50% of all settlements came from two firms so this year it would make sense to continue to cement my relationship with those two firms.

We can go deeper into what you should be tracking in your business and I will explore this in future posts but for now, do me a favour and go through your settlement numbers from last year and then ask yourself a simple question, “Where is your time going to be best spent this year?”

Committed to your success,

Tim Russell