Commercial Leads For Sale
The typical commercial mortgage broker needs to receive at least eight new commercial leads every business day in order to survive. I am personally a big believer in newsletters to referral sources - such as bankers, commercial real estate brokers, property managers, residential real estate brokers, residential mortgage brokers, other lenders, attorneys, CPA's, and financial planners. This way, when you get slow, you can simply blast out a newsletter. Click here for more commercial mortgage marketing tips.
But there may come a time when you simply have to buy some commercial mortgage loan leads. There are two ways to buy commercial mortgage leads - on a flat-fee basis and on a contingency basis. Most commercial leads are sold on a flat-fee basis. The broker pays a one-time, up-front fee for the lead of between $20 and $50 per lead. This is all you pay, even if you later go on to close the loan.
You can buy leads on a flat-fee basis from competitors of ours, like iBank and CommercialDeals. To find these companies, simply add a dot-com to those names to find their sites. They're friendly competitors of ours, and I don't want to give them a free, Page Rank Level 6, link on C-Loans.
If you knew for sure you were going to close about one out of every ten commercial leads, its probably cheaper to buy commercial leads on a flat-fee basis. The problem is that closing commercial loans depends a lot on luck. You might work on 50 commercial leads and not close a single deal. Now you're really stuck because you just spent your entire marketing budget.
This is why C-Loans sells it commercial leads on a contingency basis. In English, this means that you pay very little for our leads up-front. You can buy most of our leads for between $1 and $3 each, and our leads never cost more than $9 up-front. However, if the loan closes, you will also owe C-Loans a closing fee of 37.5 basis points. One hundred basis points equals one point, so 37.5 bps. is just a little over one-third of a point.
Which is better for you? It depends on the wealth of your company. If you own a hard money mortgage company, and you are making lots of dough, you may want to buy as many commercial leads as possible on a flat-fee basis. On the other hand, if you are a small commercial loan brokerage company, its probably much better to buy your commercial leads on a contingency basis. This way you can afford five times more commercial leads, which should greatly increase your chances of closing a deal.