Comments on: Lead Quality Re-defined

By: LeadGuru

LeadGuru — Sat, 20 Oct 2007 16:02:43 +0000

David I agree that most leads have a home, and that a well run home will have measurable success regardless of the “Quality”. My post was to point out that many of us have changed our viewpoint on what Quality actually is and price seems to be the overriding factor these days. I’m looking forward to meeting you at the K – dinner. See you next week

By: David Schneider

David Schneider — Fri, 19 Oct 2007 16:42:48 +0000

As the founder and CEO of a major tier one mortgage lead provider, I have to say that my sales associates are approached daily by many lead buyers looking for the cheapest deals. While it’s only natural that pricing is often the first question put on the table, prudent buyers must also forecast their ROI based upon the method, freshness and exclusivity of that particular lead and the business that procured it. Penny wise and pound foolish? Perhaps sometimes … but not all the time.

Stories of success (and failure) float out of the lead buying experience, BUT lead “quality” is only a single, yet very important, factor. Others include the way in which each lead is worked and by whom, their expertise and mortgage market knowledge they possess. Are they using a lead management system and using it correctly and consistently? Do they have the ability to build lasting rapport and
offer a unique selling proposition that’s truly beneficial to the borrower, etc.? How does the lead buyer perceive the lead and how does the borrower perceive the lead buyer?

Some lead buyers only experience success with old leads that others would consider absolute garbage. And other lead buyers only experience success with more expensive real-time, display advertising
generated leads.

A deep objective analysis of a lead buyer’s surrounding business goals, infrastructure, staff, systems, knowledge and training can help determine which leads would yield the highest ROI. In my
opinion, substantial tests with multiple lead providers is the ultimate determinant. Numbers don’t lie.

By: Lead Guru

Lead Guru — Wed, 17 Oct 2007 15:38:42 +0000

Owen your numbers are right in line with a quality run shop. Kudos to you and your team for running a tight ship. Would like to discuss further. Can you run your contact info to the Lead Critic Admin, they will forward to me?

By: Lead Quality Decline or Market Change? « Better Closer Blog

Lead Quality Decline or Market Change? « Better Closer Blog — Tue, 16 Oct 2007 23:59:15 +0000

[...] 16th, 2007 · No Comments There has been a bit of discussion over "declining" lead quality. Of course, it is easy to lay the blame of declining app and funding rates at the feet of lead [...]

By: owen raun

owen raun — Mon, 15 Oct 2007 19:18:16 +0000

top line rev for us ytd thru august 07 was 9.6M – total bill same period for leads equals 1.73M – 75% of our vol is from purchased leads – say a ratio of 9.6(.75)/1.73 = 3.8 = 416%. I looked back at similar analysis for full year 04, 05 and 06 – and those #’s are 513%, 461% and 499% so I guess we are having a bad year – imagine that

By: lead guru

lead guru — Mon, 15 Oct 2007 04:47:22 +0000

Look for 300 percent at least assuming overhead.

By: ajiny

ajiny — Mon, 15 Oct 2007 01:18:46 +0000

So what ratio of total revenue to lead costs do people on here experience?

What would people consider a good ratio?

By: Dan

Dan — Fri, 12 Oct 2007 21:24:11 +0000

Source 1 might have acceptable “quality” but at the wrong price. So, Guru, I agree, “right price” is key for us lead buyers. The question is, can source 1 deliver at the right price?

By: lead guru

lead guru — Fri, 12 Oct 2007 12:33:18 +0000

Well well well I can bet source one is a tier 1 provider and can probably guess accurately which provider. Lol

By: Dan

Dan — Fri, 12 Oct 2007 01:43:02 +0000

After we evaluate everything… we will try to shift resources from less profitable sources (1) to those that have superior performance (2)(3)(4).

Source 1
3 mo avg
Total Leads 1055.00
Total Amount $41,650.00
Total Apps 379.00
Total Openings 26.00
Total Closings 13.00
Total Revenue $108,362.27
$/opening $1,601.92
$/closing $3,203.85
Revenue Ratio 2.60

Source 2
Total
Total Leads 1567.00
Total Amount $45,128.00
Total Apps 591.00
Total Openings 58.00
Total Closings 26.00
Total Revenue $213,023.23
$/opening $778.07
$/closing $1,735.69
Revenue Ratio 4.72

Source 3
Total
Total Leads 890.00
Total Amount $27,488.00
Total Apps 342.00
Total Openings 26.00
Total Closings 12.00
Total Revenue 95461.00
$/opening $1,057.23
$/closing $2,290.67
Revenue Ratio 3.47

Source 4
Total
Total Leads 793.00
Total Amount $29,323.00
Total Apps 319.00
Total Openings 27.00
Total Closings 18.00
Total Revenue $152,848.00
$/opening $1,086.04
$/closing $1,629.06
Revenue Ratio 5.21