Let a Lender Pay Your Ad Bill!



What is the single biggest expense we as REALTORS® have?  You guessed it — advertising.  In fact, all the so-called “experts” recommend we spend a full 20% of our gross income on bringing in business.  That’s nearly three times what other industries spend for advertising (most industries spend 6-7% of gross revenue.  So here’s an idea that will help you bring your advertising costs to a more attractive level.  Let a lender pay your ad bill.  Let me explain.

Mortgage companies and real estate agents are typically trying to attract the very same people, at the very same time, each spending lots of money in what amounts to a duplication of effort.  But what if you could partner with a lender, and both receive the same leads?

Well for most people who brand advertise, that’s simply not possible.  But you need to rethink your advertising.  Is branding the right approach for you?  For today’s new generation of super-agents, brand advertising has been replaced with direct response advertising.

Direct response advertising differs from brand advertising because it is advertising that expects an immediate and sure result… a direct response.  Brand advertising is about establishing your brand in a general and non-specific marketing push.

Large companies with only one or two major competitors can afford to brand advertise.  Small companies with hundreds or even thousands of competitors, can’t.  And as agents, we are small businesses with thousands of competitors.  Trust me, you will go broke trying to brand advertise hoping the customers will come to you.

So how do you transition to direct response marketing, and then how do you get your lender to help with the bill?  First you need  your own lead capture system like my Ultimate Website system.  The reason you need to have your own system is that direct response advertising is dependent upon identifying those direct responses.  Think of it like fishing.

Brand advertising is like going to a fishing spot, and throwing food into the water every day.  Eventually, fish would learn to come to that spot to eat.  On the other hand, direct response advertising is like putting bait on a hook, throwing it into the water and waiting for a fish to bite.  When it does bite, you need your fishing tackle to capture the fish.  In direct response adverting, lead capture technology is that fishing tackle.

Having the right tools keeps you from just throwing ad money into a bottomless pit hoping business comes your way.  Most agents today are just putting their name “out there” in as many places as possible, hoping it will pay off in top-of-mind-awareness and customers calling.  But by using direct response advertising and lead capture technology, you can actually take the guess work out and generate as many or as few customer leads as you need, when you need them.

And by using lead capture technology and direct response advertising, you can generate your own business for almost nothing, while brand advertising costs thousands and still has no direct relationship to results.  Many of the top agents today are using direct response adverting  and lead capture technology to make literally hundreds of new customer leads every month for as little as $2-3 per lead.

Next you need a client management system or database.  That way you and your lender partner can see each others progress in customer followup.  It’s much easier to keep coordinated when you are both “singing from the same hymnal” so to speak.  (In an upcoming segment I’ll share with you the art of handing off business to a loan partner or another agent, so watch for it.)

Of course I recommend you check out my company’s lead capture and client management, but whether you use ours or get them from one of our competitors, you just need to get them.  Here is the really cool part, though.  If you partner with a lender, you can effectively bring your entire cost of customer acquisition down to nearly nothing, while building a great relationship where each of you depends on and is loyal to the other.

I know of many agents using this strategy who’ve managed to bring their overall advertising bills down to less than 5% of their gross revenue, while increasing their number of closed transactions and minimizing their work load in the process.  Less expense, more business, less work.  Wow!  Now how cool is that?

Share this :
Matt

I give away about 99% of all my technology and digital training content, completely free of charge, because I want to see other agents have the same kind of success that I've had. But one thing I charge for is my Ultimate Website technology. This is the web technology I created for myself that turned my real estate practice around overnight, and now I license it agents everywhere. But right now it's too popular and is currently waitlisted. Click here to get on the website as soon as possible and I'll notify you as soon as new invitations become available.

Comments 7

  1. author Max-Bang Series: Let a Lender Pay Your Ad Bill! « Blog, Matt. Blog! Degree on Me posted March 26th 2010. 10:58 am Reply

    […] from:  Max-Bang Series: Let a Lender Pay Your Ad Bill! « Blog, Matt. Blog! By admin | category: direct lender mortgage | tags: authority, borrowers, credit, […]

  2. author Carolyn Thompson posted March 29th 2010. 12:59 pm Reply

    Thank you for this post. It is essential for agents to recognize they are running a business and calculate overhead accurately.

    Target marketing is essential to reduce waste. Find your niche and work it.

    A contact management system with proper follow up is essential.

  3. author Peter Mastroianni posted March 29th 2010. 1:17 pm Reply

    My company, RealPartner.com, pairs mortgage companies with Realtors in a combined marketing effort using proprietary technologies we offer Realtors at no cost. Contact me for information on how we can increase your business using Matt’s “lender paid” principle.

  4. author download avatars posted April 3rd 2010. 8:34 am Reply

    Good article. thank you

    If you want download avatars for you, click link below

    http://avatarsforyou.net

  5. author Julie posted April 25th 2010. 3:18 pm Reply

    Thank you for this post. It is essential for agents to recognize they are running a business and calculate overhead accurately.

    Target marketing is essential to reduce waste. Find your niche and work it.

    A contact management system with proper follow up is essential.

  6. author Let a Lender Pay Your Ad Bill (Mastermind Call) | Blog, Matt. Blog! posted February 16th 2012. 6:57 pm Reply

    […] Let a Lender Pay Your Ad Bill Did You Like This Training? If you did, please take a minute to check out our LCM Success system. We will teach you to do real estate the "new way" and more importantly, we'll give you the tools you need to do it. Get our state-of-the-art lead capture and lead management technology and let us hold your hand while you learn to use it. No activation fee, no long-term contract, and a cost of only pennies a day! Click here to learn more. Matt Jones is the founder and CEO of FavoriteAgent.com, nationally syndicated columnist, broker, and best selling author of LCM: The Secret to Success in the New Age of Real Estate, The Ultimate Listing Presentation, Traffic: How to Sell Fast and Net More, Becoming a Mega-Producer, The Science of Online Marketing, 10 Steps to Real Estate Success, 20 Questions: Everything You Always Wanted to Know about Real Estate but Were Afraid to Ask, The Virtual Office Model, Max-Bang!, and The NEW Ultimate Listing Presentation. Jones' North Carolina-based company has been profiled by major media outlets as an innovator and a pioneer in the industry, and CNN's Pulse on America claimed FavoriteAgent.com is "changing the way real estate is being done in America." This article is cross-posted in the following locations: BlogMattBlog.com, RealBlogging.com, NewsGeni.us, TheCommissionCheck.com, RevampedAgent.com, and now Amazon Kindle.AKPC_IDS += "6301,"; […]

  7. author Let a Lender Pay Your Ad Bill (Mastermind Call) « Hard Money Loan « Commercial Loans posted February 18th 2012. 3:57 am Reply

    […] Let a Lender Pay Your Ad Bill […]

Leave a Comment!

Your email address will not be published. Required fields are marked *