5 Reasons Why Buying Leads is Stupid (And What To Do Instead)

10/10/19 • 24 min

Buying leads has become extremely popular with loan officers who think they’re saving time, but in reality, they’re actually doing it the hard way. Why is buying leads a bad idea? Could they be doing more harm than good? In this episode, we discuss why buying leads is a bad investment of our time and money, and could end up damaging our positioning within the industry.

Takeaways

Avoid wasting money paying for the same leads as competitors. Bought leads are not necessarily exclusive, so they’re definitely an unwise investment.
By spending our time chasing bought leads, we miss out on opportunities elsewhere. Don’t waste time on leads that may not even convert at all.
By buying leads who are probably being pursued by our competitors, we fail to set ourselves apart. If we approach them at the same time as everyone else, we risk competing on cost alone.

At the start of the episode, we learned that most bought leads are poor quality and not exclusive. We discussed that bought leads are a poor allocation of our money, and spoke about why it’s important to upgrade our thinking and stop doing it the hard way.

We also discussed:

Why we should be hiring an expert to find leads for us
The importance of a third party endorsement
Why we should aim to be authorities, rather than prospectors

We may think that buying leads will save us time, but they actually do little to help us and our businesses. They are a poor investment of both our time and money, and stop us from showing potential clients what makes us unique. Buying leads is a poor choice, and one we need to stop making soon.

Takeaways

Avoid wasting money paying for the same leads as competitors. Bought leads are not necessarily exclusive, so they’re definitely an unwise investment.
By spending our time chasing bought leads, we miss out on opportunities elsewhere. Don’t waste time on leads that may not even convert at all.
By buying leads who are probably being pursued by our competitors, we fail to set ourselves apart. If we approach them at the same time as everyone else, we risk competing on cost alone.

We also discussed:

Why we should be hiring an expert to find leads for us
The importance of a third party endorsement
Why we should aim to be authorities, rather than prospectors

Previous Episode

3 Traits of Top Producers (That Separate Them from the Mediocre Majority)

The vast majority of loan officers are earning under $75 000 per year, while the top earners are earning upwards of $500,000 annually. What is it that separates the top earners from this mediocre majority? Do they have a secret recipe that the rest of us don’t know about? On this episode, we’re discussing the traits shown by top producers.

Takeaways

Commitment and decisiveness are vital traits. We need to go all-in on achieving our goals, and refuse to entertain back-up plans or option B’s. Top producers don’t even consider failure an option.
Top producers don’t automatically have a secret recipe; they learn it from other high achievers. To be successful, we need to be willing to learn from others and leave our egos at the door.
We have to be resourceful to win. That means finding a way to achieve, no matter the circumstance.

At the start of the episode, we spoke about the vast difference in income between top producers and the mediocre majority. We discussed the importance of mindset in cultivating success, and learnt that being a top producer doesn’t mean sacrificing more. In fact, if we believe that sacrifice is needed for success, we’re only holding ourselves back.

We also discussed:

Why staying true to our values is necessary
How we need to accept that success doesn’t always come easily
How to view big obstacles as a prelude to big successes

The massive disparities in income between the average, mediocre loan officer and top producers all come down to mindset. Top producers are in the 1% of loan officers because they’re unwilling to compromise on their dreams. However, no one has all the answers right at the start. If we want to get ahead in the mortgage business, we need to be willing to listen to those who have achieved our goals. We can separate ourselves from the mediocre majority, but we have to be willing to find a way to win regardless of our circumstances.

Next Episode

Why Realtors Hate Average Joe LOs (And How to Flip the Script)

A lot of loan officers dread reaching out to Realtors because they’re under the impression that Realtors instinctively hate dealing with them. How can we stop acting like the average loan officer Realtors abhor, and start flipping the script? Should we be less selective or is being too inclusive harming our chances? In this episode, we discuss how to stand out from the pack of average loan officers

Strive to come across as a welcome guest, rather than an annoying pest.
- Doren Aldana

Takeaways

Stop being a loan leech. Realtors can tell when we’re approaching them looking for business without anything to offer in return. Make sure Realtors know we’re coming to give, not just get.
Offer value by showing Realtors how they can make more money. If we show Realtors how they can get more business, they’ll see us as valuable.
Make Realtors feel special by offering them exclusive benefits for working with you. By being more exclusive, we boost our profile and instantly become more attractive.

In this episode, we discussed why it’s so important to set ourselves apart from the rest of the loan officers in our markets. We explained why we need to offer exciting, unique value to Realtors, so they know we’re their only option if they want to be successful.

We also discussed:

Why we should be positioners, not prospectors
How confidence makes all the difference
The importance of behaving like a winner

Reaching out to Realtors doesn’t need to be anxiety-inducing, as long as we know we hold their key to success. To do this, we have to stop acting like the average loan officer: a leech who wants to get more than give. If we can show Realtors how to make more money in less time, we position ourselves as winners in their eyes. We also show them that we are willing to offer the Realtors that work with us outstanding benefits. No one likes being around the average Joe LO, so let’s start separating ourselves from the pack.