Reverse

Marketing: In With the Old, but Make Room for the New

Written by Glenn Main, as originally published in The Reverse Review.

I believe that trying new marketing strategies is essential to continued success in this business. But I also believe that there are tried and true tactics that have proved to be an important part of any lender’s marketing foundation. While some may say, “Out with the old and in with the new,” I say, “In with the old, but make room for the new,” because when it comes to marketing, both can serve you well.

What do I consider old strategies? These are the classics, and in my opinion, they have never gone out of style.

The first can be summarized by two of the scariest words in sales: cold calling. While the Internet has ushered in new modes of communication, I’ve never abandoned cold calling; it has been the foundation of my business model since the beginning of my career. When it comes to hitting the phones, I believe that you put in what you get out. My first manager gave me key advice that has stayed with me: “Your phone is an ATM and what you withdraw is up to you.”

The second strategy involves mailers. Don’t underestimate mailers. They instantly became invaluable when the National Do Not Call Registry was put into effect, and they provide a channel to reach many people who have otherwise become inaccessible. Plus, because only those who are interested will respond, you can save your breath on disinterested parties and focus on those who have already displayed a desire to learn more about the loan.

Lastly, always seek referrals from your customers. It is consistently effective, takes very little time and doesn’t cost anything. Yet, I have found that many loan officers don’t ask their customers for referrals. By simply making this a normal practice as you see a loan to its conclusion, you can help your business tremendously. Not only will you remind them to share their experience with friends and family, but you can also gauge how your customers feel about you, your staff and the service you’ve provided.

Now, on to making room for the new. The key to success in many industries is to build a strong professional network. This is especially important with reverse mortgages, as it is crucial that we include financial advisors in conversations about HECMs. Realtors, builders and elder law attorneys are also great professional contacts for HECM originators. Some of these relationships can begin with a simple phone call on a number pulled from an Internet listing. With advisors who are open to meeting with me, I try to schedule a lunch where we can discuss the details of the loan program and get to know one another in person.

A second new strategy involves employing the services of a marketing expert who can help make your phones ring. Recently, those who are most effective at this do so through infomercials, although a quality list of Internet leads can also be useful. While quality Internet leads in any reasonable quantity have been very hard to come by in the past, I believe they will continue to get better as more and more people becoming eligible for reverse mortgages will be computer literate and active Internet users.

The most important piece of marketing advice I can offer my fellow originators is to truly believe in the value of the service you offer. The HECM is a unique financial tool that can be extremely beneficial to our customers. If you focus on the importance of this product as you work to spread the word about your services, the rest will ultimately fall into place.

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