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Compare Exclusive Mortgage Refinancing Leads Vs. Non-exclusive Mortgage Refinancing Leads
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Like most things in business, and life in general, exclusive and non-exclusive mortgage refinancing leads have their pros and cons. When you're deciding which kind of leads to buy, you should consider the differences between the two. Picking the right type for you will help you get more leads that actually lead to something other than a dead end.
Let's Split the Cost
The obvious advantage of non-exclusive mortgage refinancing leads is that they are more expensive than the exclusive type. Because you'll spend less money on the leads, you'll have more funds to pursue other leads. This can help you create a larger client base. We all know that a larger client base can mean more money, which we would definitely put in the "pro" column.
But why are non-exclusive leads cheaper than exclusive leads? Non-exclusive leads are sent to more brokers and lenders, so the cost is lower. You could compare it to buying into a timeshare property. You get to use it, but so do other people. Like a timeshare, this means that you will pay less money for what you get because other people are pitching in on the price. But this low cost comes at its own price.
And Therein Lies the Con
The problem with splitting the cost with several other brokers and lenders is that they will pursue the potential client just as aggressively as you will. This increased competition means that you have less chance of actually getting the refinanced mortgage.
This is advantageous for those who are refinancing their mortgages because it means that they can select from the best offers that are available. But that's not always so good for you because you'll have to offer lower rates just to get the client. With the increased competition, rates frequently drop so low that you might not be willing to take the mortgage or you might not be sure that the profit you could make is worth the potential risk.
Will following the non-exclusive mortgage refinancing lead take you straight a dead end? Not necessarily. By offering potential customers low rates, you might be the broker or lender that wins the mortgage. Someone has to get it, so it might very well be you. This isn't the same as the lottery, which often claims things like "someone's gotta win, why not you?" because in the lottery there doesn't have to be a winner. When someone is looking to refinance a mortgage, though, someone is going to be chosen. If you offer the best rate for the potential client, then you could get the mortgage.
Put Your Offers on the Table
If you're certain that you will offer rates that are as low as any other broker or lender, then non-exclusive leads might be perfect for you. If you aren't certain that yours are the lowest, though, you might want to invest the extra money in exclusive mortgage refinancing leads. Exclusive leads cost more, but they aren't sent to as many brokers and lenders. This means that you will have fewer competitors for the mortgage.
By putting up the extra money to buy exclusive leads, you might end up making more money because you'll be able to charge higher interest rates on the mortgage. It's a gamble, but it's one that could be worth it if you end up refinancing the mortgage. |
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