A good mortgage sales letter that generates leads from a cold list or generates new business from your old client list is worth 1,000 times its weight in gold.
Let’s say you have a list of 50 customers and 50 leads that you haven’t converted. If you send a letter at a cost of only .42 and $ 100 to print. That’s just $ 142 in total costs for a basic mortgage sale letter.
A new loan can generate several thousand dollars in fees. If you get just one new loan from a mortgage sales letter, it will pay off (assuming you’re not mailing a huge list).
As a result, it is important to create an effective mortgage sales letter to maximize your lead generation efforts.
The key is to write an effective mortgage sales letter that people will read and respond to. Most mortgage brokers are unaware of the power of effective writing and rely on publicity and deception in their letters.
The good news is that you don’t need to overdo your letter, and you don’t need to rely on tricks like the old ‘fake-looking check in the window’ letter (this works by the way, but only if you do it without misleading the recipient).
If you want leads and referrals, here are the three most important parts of a successful mortgage sale letter that will help you increase response rates and build your book of business:
1. In convincing title. Almost all mortgage sales letters must have a headline. Why? I’ll let the late great David Ogilvy explain it to you:
“On average, five times as many people read the headline as they read the body. When you’ve written your headline, you’ve spent eighty cents of your dollar.” -David Ogilvy
A headline’s job is to get people interested and excited about what you have to say. For example, a poor title might say, “Introducing your local Home Loan Specialist!”
A better title would be: “Susan Johnson Saved $ 498.95 a Month on Her Mortgage Payment – Here’s How You Can Save As Much or More!”
That headline needs a bit of work, but it’s light years away from the average mortgage broker’s marketing letter.
2. Sell stories. Nothing gets people more engaged and motivated to act than a good story. Instead of cramming your prospects with a speech about your products and services (which puts them in a defensive mindset), tell them a story about a customer who instantly saved money. And as a result of saving this money, you could pay for childcare or buy a minivan, or go on a vacation you’ve been putting off for a few years.
The key is to write a story that fits the mindset of your audience. If you are targeting subprime mortgages, tell a story about a down and hopeless customer. How he got his family out of a rental in a bad part of town to own a nice home in a wonderful school district.
3. Call to action. The next important area of an effective mortgage sales letter is the call to action. You want your prospect to take action and call you or fill out a response card.
For example, a weak call to action would be “Call me at 555-555-5555 between 8 am and 4 pm Monday through Friday.”
A stronger call to action would be: “For a free, no-obligation consultation to see how much you can save on your mortgage payment, call me now: 555-555-5555. We can schedule an appointment to meet and discuss your financial situation, o Please over the phone. You can reach me at 555-555-5555 anytime during normal business hours. Or you can call my toll-free 24-hour voicemail at 1-800-555-5555 and leave your contact information and I’ll send you more information. “
In addition to a headline, story, and strong call to action, your mortgage sale letter should include a Post Script (PS) and testimonials. Studies show that up to 80% of your readers will read the PS first. This is where you reaffirm your benefit in a conversational way. Testimonials are very effective in establishing credibility and reinforcing your claims.
Following these simple guidelines for a more effective mortgage sale letter will generate more leads and more qualified referrals.
Sit back and write a mortgage sale letter tonight instead of watching Fringe or Dancing With The Stars. Send it out to your current clients and former potential clients. You have nothing to lose and much to win.