Most mortgage brokers are looking for more leads, clients, and revenue. However, it can be challenging to determine the best approach.
Is it better to prioritise inbound or outbound lead generation strategies? What distinguishes these strategies, and which one is most suitable for your business?
By the end of this article, you will have a better understanding of the advantages and disadvantages of inbound and outbound lead generation strategies.
What is outbound lead generation for mortgage brokers?
Outbound lead generation for mortgage brokers refers to the process of actively reaching out to potential clients through various marketing and sales tactics. This approach involves targeting prospects who have not yet expressed interest in the broker’s services and proactively pursuing them to generate leads.
Examples of outbound lead generation tactics for mortgage brokers include cold calling, direct mail, email marketing, paid advertising, attending industry events, and partnering with other businesses to generate referrals.
The goal of outbound lead generation is to put the broker’s message in front of potential clients and to initiate a conversation about their mortgage needs, ultimately converting them into paying clients.
Outbound Lead Generation Pros
Greater control over lead generation
By actively seeking out potential leads through outbound methods, such as cold calling or email campaigns, mortgage brokers can have more control over the quantity and quality of leads they generate.
Outbound lead generation allows mortgage brokers to reach a larger audience beyond their existing network, potentially identifying new clients and business opportunities.
Outbound lead generation can allow mortgage brokers to personalise their outreach efforts, tailoring their messaging and communication to the specific needs and interests of potential clients.
Enhanced brand awareness
By increasing their visibility and exposure to potential clients, outbound lead generation can help mortgage brokers to build their brand and establish themselves as a credible and trustworthy provider of mortgage services.
Potential for faster results
Compared to inbound marketing strategies, which can take longer to yield results, outbound lead generation can provide a more immediate impact on a mortgage broker’s business, resulting in faster sales and revenue growth.
Outbound Lead Generation Cons
Low conversion rates
Outbound lead generation often involves cold calling or emailing potential clients, which can result in low conversion rates. Many people may not be interested in your services or may already have a mortgage broker they work with, so it can be difficult to convert leads into actual clients.
Outbound lead generation can be expensive, especially if you are using paid advertising or hiring a third-party service to generate leads for you. This can be a significant investment for a small mortgage brokerage, and the return on investment may not be worth it.
Outbound lead generation can be a time-consuming process, as you need to identify potential leads, reach out to them, and follow up multiple times. This can take time away from other important tasks, such as servicing existing clients or networking.
Some people may view outbound lead generation as intrusive or spammy, which can harm your reputation. If you are too aggressive in your outreach, you may turn off potential clients and damage your brand.
Mortgage brokers in Australia are subject to strict regulations, and outbound lead generation can raise compliance concerns. For example, you may need to ensure that you are not making unsolicited calls or sending unsolicited emails to people on the Do Not Call or Spam Register.
What is inbound lead generation for mortgage brokers?
Inbound lead generation for mortgage brokers refers to the process of attracting potential customers who are actively seeking information or assistance with obtaining a mortgage. This is typically done through various digital marketing tactics, such as search engine optimization (SEO), social media marketing, and content marketing.
The goal of inbound lead generation is to establish a strong online presence, provide valuable information to potential customers, and ultimately convert them into qualified leads for the mortgage broker’s business. By building trust and establishing expertise in the industry, mortgage brokers can attract and retain a steady stream of high-quality leads.
In Australia, the use of digital marketing for inbound lead generation is becoming increasingly popular among mortgage brokers as more and more customers are turning to the internet to research their options and connect with service providers. This trend is expected to continue as technology continues to play a larger role in the mortgage industry.
Inbound lead generation pros
Higher quality leads
Inbound lead generation typically results in higher quality leads, as potential clients have actively sought out information about mortgages and are more likely to be interested in working with a mortgage broker.
Inbound lead generation can be more cost-effective than outbound methods like cold-calling or direct mail campaigns, as it relies on creating content that attracts potential clients rather than purchasing lists or paying for advertising.
Builds brand awareness
Creating quality content and promoting it through inbound channels can help build brand awareness for your mortgage brokerage, making it easier to attract new clients over time.
Provides valuable insights
Inbound lead generation can provide valuable insights into the interests and needs of potential clients. By tracking website and social media engagement, you can gain insights into what topics and types of content are resonating with your audience and adjust your marketing efforts accordingly.
Increases trust and credibility
By providing helpful and informative content, you can establish trust and credibility with potential clients. This can make it easier to convert them into clients and increase the likelihood of repeat business and referrals.
Inbound lead generations cons
Creating high-quality content and promoting it through inbound channels can be a time-consuming process. It requires ongoing effort and resources to create and distribute content that will attract potential clients and keep them engaged.
Requires specialised expertise
Inbound lead generation requires specialised skills and knowledge, such as search engine optimization (SEO), content marketing, and social media marketing. Mortgage brokers may need to invest in additional training or hire specialised professionals to manage these activities effectively.
Results may be slower
Inbound lead generation is a long-term strategy that takes time to produce results. It may take several months or even years to build a strong online presence and attract a significant number of leads through inbound channels.
Requires ongoing investment
Inbound lead generation is not a one-time effort but rather requires ongoing investment in content creation, website optimization, and marketing efforts. Mortgage brokers must be prepared to invest in these activities over the long term to see significant results.
Can be highly competitive
Inbound lead generation is a popular strategy for many mortgage brokers and other businesses, meaning that the competition for online attention and search engine rankings can be intense. To be successful, mortgage brokers need to create highly targeted and engaging content that stands out from the competition.
Inbound vs outbound: which is more effective for mortgage brokers?
In conclusion, both inbound and outbound lead generation strategies can be effective for mortgage brokers depending on their business goals and resources.
Inbound lead generation requires a strong online presence and a focus on creating high-quality content, whereas outbound lead generation involves proactively reaching out to potential customers through various channels.
Ultimately, the best approach will depend on the individual needs and circumstances of each mortgage broker. It may be useful to experiment with both approaches to see what works best for your business and target audience.
By finding the right mix of inbound and outbound lead generation strategies, mortgage brokers can successfully generate new leads and grow their business.
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