Rocket Mortgage and Quicken Loans spent almost a BILLION dollars in marketing and advertising last year!
Holy cow! Could that be right?
Billion with a B?
Yep, that’s exactly right.
In fact, that came right out of a Senior Vice President’s mouth as he shared some new tools that Quicken Loans was providing to mortgage brokers at Originator Connect in August this year.
I was in the audience at that luncheon because I’d just finished presenting on a marketing panel with a couple other awesome companies that serve the mortgage space… SimpleNexus and BombBomb.
And we’d spent the previous hour talking with company owners and individual LO’s about how they could do their marketing better as they tried to compete in the coming years.
All three of us agreed that repeat and referral business is still the most easy, lucrative and fun way to market in the mortgage industry.
Interestingly enough, we also agreed that spending time and money chasing cold leads on the internet was a huge waste for any originator to pursue.
Because cold leads have never led to more than 10% of the overall closed transactions in any year since e-Loan came on the scene clear back in 1996.
That’s 22 years of evidence showing that it just doesn’t work…..for almost anybody.
Except Quicken Loans and their Rocket Mortgage product.
Well, for the same reason that Amazon can do what they do in the retail marketplace. (And possibly entering the mortgage space just like Zillow recently did!)
Let me explain.
Amazon has grown into the largest retail marketplace in the world.
They recently topped $1 Trillion (with a T) dollars in market capitalization.
They did it in the shortest time ever as well. They were founded in 1994.
Amazon is able to do what they do for two main reasons.
- They have the lowest cost of capital to fund their growth than any company ever in history. (Jeff Bezos’ masterful storytelling and vision building are what fuel this investment frenzy)
- And because of this massive amount of capital, they are able to operate at a scale never seen before. This scale is what allows them to do things that even retail behemoths like Wal-Mart can’t do.
So what does that have to do with Quicken Loans, Rocket Mortgage and YOU?
Well, they do the exact same thing in the mortgage world that Amazon does in retail.
Zillow is doing the same thing based on the same scale concept as well.
It’s all about massive traffic and huge ad spend for those guys.
So if you want to compete in the cold lead world doing things like Search Engine Optimization, Pay-Per-Click Advertising, Google AdWords, Facebook Advertising, etc., you better be able to invest massive amounts of money to try to compete!
The good news is that they are fishing in a pond that only has about 10% of the fish, historically speaking.
They’re betting that they will capture more of the market (from you!) based on their ability to outspend you and manage the avalanche of traffic and leads through their call center sales environments.
More good news is that 80-90% of your current and future business is going to come from your sphere of influence and be a result of someone referring you to your new prospects.
The question you should be asking yourself is:
“How do I maximize my online marketing to protect my existing referral business and then use that strategy to get the best leads that are most likely to close and create a new raving fan in my database?”
There is an answer.
And it’s not rocket science.
But it does require starting with the right frame of mind and focus on your desired result.
Luckily I’ve spent the majority of my career asking that question through all of the changes in the industry and I’d like to share my findings with you.
There’s ONE key thing that changed the way people use the internet that has drastically affected you and your business and will continue to grow exponentially in the future.
Watch this short video and I’ll explain it to you.
And there are SEVEN key things that you need to put in place online in order to get the most, best qualified leads that are most likely to turn into loan applications that close and earn you a paycheck.
I’ve even developed a step-by-step roadmap that shows you exactly what the 7 things are and how you must implement them to guarantee your success.
Plus protect your business from the massive advertising and marketing of the Quickens and Zillows who would like nothing more than to eat your mortgage production lunch!
It’s called The Mortgage (or Real Estate!) Professionals Pathway To A Profitable Online Presence and you can download it right here:
Hopefully you find that roadmap helpful.
I’ll be sharing more strategies with you over the next few days.
Watch your email and let me know if you have any questions that I can help you with in your marketing.