Comments on: Are Live Transfers Worth the Premium, Redux

By: Brent

Brent — Thu, 19 Jun 2008 16:03:51 +0000

To LC — I started out as a telemarketer until one day I came in hours early and picked up the phone book on my off time and got 2 leads that would eventually turn into one loan and told my boss at the time that if he wanted it to close he’d have to make me an L.O…

I then made 40%, then 50%, then left that company to go make 55%, then left THAT company to go make 90% (but had to do all my own processing and there was an 850 “Processing fee”) and so left that company to go make 75% — which is where I’ve been ever since, but I only have a 395 processing fee AND I have the greatest processor EVER…

:::phew:::

So, yeah, that took years and years (5?)and I guess that’s why I’m so against L.O.s being treated like cattle, because it’s so difficult to find owners (like the one I have) who will judge each L.O. as an individual, not as a group.

SomeInsider — I do realize, though, that most L.O.s want to have a nice office and phones and a desk and things provided to them and don’t want to actually put their own jewels on the line.

I work from home, buy my own leads, and yeah, you’re right, it’s probably the exception. BUT there are a lot of exceptional people out there working in this business.

I guess it all comes down to motivation. The reason I tried so hard to be an L.O. was because I WANTED to work from home and I WANTED to own all of my own business (profit and loss) without all the legal headaches of actually owning a company. I’ve never lost site of that goal even after I attained it, and not a day goes by that I’m not ridiculously thankful that this is my life.

So, you guys are right, I’ll amend my previous statement — L.O.s: Be exceptional! Owners: Recognize and award the exceptions!

By: SomeInsider

SomeInsider — Thu, 19 Jun 2008 15:33:56 +0000

Brent, great input. But you have to realize, and I am sure you do, you are the exception and not the rule. You are the 20% in the classic 80/20 rule and the other 80% of loan officers don’t really have the work ethic or desire to be on the hook for their own leads. But I actually do agree with you that someone of your apparent caliber should hire their own telemarketers or use live transfers. But for the other 80-90% of the market, costs will need to be monitored more closely to ensure profitability.

By: Lead Critic

Lead Critic — Thu, 19 Jun 2008 15:24:28 +0000

Brent,
Good for you! It sounds like you have got your act together.
I don’t agree with most of what you just said, but …
LO’s are absolutely sales people and that includes calling people, sometimes cold calling people. If this was not then banks and brokers would simply have the processors and underwriters be the order takers and eliminate your role altogether.
I think you are capitalizing on well hot transfers, but don’t fool yourself, your sales. What did you do prior to buying the hot transfers?

By: Brent

Brent — Thu, 19 Jun 2008 15:12:41 +0000

It’s weird that everyone is talking about LO’s as if they’re not the persons actually purchasing these leads…

I work for a “shop” but I purchase all of my own live transfer leads. I’ve used Logicall, Eleadz and have been sticking with Double Positive lately as I get a 1-in-12 closing ratio with them at 50 dollars per lead.

I purchase leads because it is not a Loan Officer’s job to cold call leads/customers. It’s cheap owners who have propogated and tried to convince their loan officers that this is part of their job description. For any L.O.s dealing with that, tell your boss to pay you 80% and remind him/her that he/she works for you — you’re the one paying the bills.

So, as a loan officer and not a telemarketer, I would say either do Live transfers or hire a telemarketer yourself. I only work about 3 hours a day 4 days a week and make around 8K per month. That means that my time is worth $166.00 per hour, which is far less than what I pay for leads.

Know your worth, people!

By: Joseph Bridges

Joseph Bridges — Fri, 13 Jun 2008 17:29:48 +0000

It is all in the follow-up and I really appreciate this post. Time is money but the long term follow-up creates amazing opportunities for agents, lenders, etc to build their own pipeline of business.

By: Alex Orloff

Alex Orloff — Thu, 12 Jun 2008 07:45:48 +0000

Bingo.

By: John DeMayo

John DeMayo — Tue, 10 Jun 2008 17:31:34 +0000

I’m not as directly involved in the call-center side of the business as many of you are these days. Perhaps someone could share the cost of working leads and getting them to the point where they are effectively of the same value as a transfer. For a few of the smaller shops I helped out years ago, the cost was very significant, and a $62.50 transfer was WAY more profitable then $25 leads with a 40% contact-and-basic-prequal rate. And we rarely saw 40% contact-and-basic-prequal rates….the % was normally lower (driving up the cost of the initial calls, and driving up the value of a transfer as compared to a lead).

By: SomeInsider

SomeInsider — Tue, 10 Jun 2008 13:59:19 +0000

Man, I should really proof read before I click submit. Of course, what I meant to say was that, “I would argue that it is NOT worth that much and that’s why I feel a viable traditional lead will return a better ROI.”

By: SomeInsider

SomeInsider — Tue, 10 Jun 2008 13:53:50 +0000

Fair enough, John. I do recognize that the time is worth some amount of money. I guess the question is, then, is your LO’s time worth a 3x premium? I would argue its ot worth taht much and that’s why I feel a viable traditional lead will return a better ROI.

By: John DeMayo

John DeMayo — Tue, 10 Jun 2008 05:02:34 +0000

“Just make sure you understand pricing because as I wrote in my original post, if you are buying a $25 lead and getting a 40% contact ratio, then you really shouldn’t pay much more than $62.50 ($25 / 40%) for a contact. Otherwise, you are just overpaying.”

This assumes you spend no more time calling leads then you do with transfers, or that your time is worth $0.

Most people will pay more for a transfer, then a lead that leads to a transfer, because the transfer takes less work.

If your time is worth money, transfers should be worth some amount more then the “effective cost per transfer” of leads.