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Numbers That You Must Know About Your Mortgage Business

Sep 7, 2007
Successful mortgage people know their numbers. Just for your information...I'm not talking about the normal mortgage numbers that we use every day. You know...mortgages rates, closing costs, yield spread premium (YSP), and all of that kind of stuff.

Instead, I'm talking about these kinds of numbers...how much it costs to find a mortgage prospect and how much it will cost to make them a customer? How much a customer is worth? How much can be spent to get a customer and what are the total marketing expenses? And finally, how much is the Return on Investment (ROI) for each ingredient in their mortgage marketing program.

Many mortgage people are afraid to answer these tough questions, so they just go about their business and ignore them. But getting down to the truth is not only refreshing, it's also liberating. What it does is it prevents you from wasting money and it also tells you where your money is doing the most good. The result: You now have a good idea of where you should focus your attention and where you should put even more your money.

Here's where it can really pay off for you...When the mortgage business becomes more difficult and things get tight, advertising and marketing budgets are usually the first things to get altered and/or cut. In reality, this makes absolutely no sense at all! If marketing and advertising is how you gain new prospects and customers, why would you stop when business is slow? Logic says that if you do anything...you should market and advertise even more.

If you have ever felt this way then this is your warning because, you don't have a clue whether one marketing program works versus another.

People that are successful in the Mortgage Business know this simple fact:

"One or two really good origination ideas can earn you money for years, with almost no changes or alterations, and at a known fixed cost." If some marketing and advertising is classified as the great hidden waste in America by some experts, a truly effective marketing and advertising program can be one of the great success secrets. And it's yours!

You've probably heard this said before..."I know half of my advertising dollars are wasted, I just don't know which half."

All of your marketing programs must be measurable and accountable for Return on Investment (ROI) just like every other aspect of your mortgage business. Apply this principal to your operation and every aspect of your business like rent, processing, customer service, insurance, office supplies, and the like. That's really the only way you know if you're making money or not!
About the Author
Tom Domin is the author of "101 Ways to Originate Mortgages" and publisher of "Tom's Mortgage Tips" a twice monthly Mortgage Newsletter geared for Mortgage Professionals. Increase your pipeline and put your mortgage career on the fast track and sign-up for FREE at http://www.MortgageMarketingToolKit.com.
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