A good mortgage sales letter that generates leads from a cold list or generates a new business from a list of old clients is worth 1,000 times its weight in gold.
Let’s say you have a list of 50 clients and 50 leads that you haven’t converted. If you send one letter it costs 0.42 and $100 for printing. That’s just $142 in total costs for a basic mortgage sales letter.
A single new loan can generate several thousand dollars in commission. If you get just one new loan from your mortgage sales letter, you’ll be profitable (assuming you don’t mail to a huge list).
As a result, it is important to create an effective mortgage sales letter to increase your lead generation efforts.
The key is writing an effective mortgage sales letter that people will read and respond to. Most mortgage brokers do not know the power of effective writing and rely on hype and deception in their letters.
The good news is that you don’t need to promote your message, and you don’t need to rely on gimmicks like the old “fake-looking window check” letter (incidentally, this works, but only if you do it without fooling the recipient).
If you want leads and referrals, here are the top three parts of a successful mortgage sales letter that will help you increase response rates and build your workbook:
1. A compelling headline. Almost every foreclosure sales letter should have a headline. Why? I’ll let the late, great David Ogilvy explain it to you:
“On average, five times more people read the main headline than they read the basic copy. When you write the headline, you’ve spent eighty cents of your dollars.” – David Ogilvy
The job of the headline is to get people interested and excited about what you have to say. For example, a poor headline might say, “Introducing Your Local Home Loan Specialist!”
A better headline would be, “Susan Johnson Saves $498.95 A Month On Mortgage Payments – Here’s How You Can Save That Much Or More!” “
This headline needs a little work, but it’s light years ahead of regular mortgage brokers’ marketing rhetoric.
2. Sell stories. Nothing gets people more engaged and motivated to take action than a good story. Instead of cramming a pitch about your products and services down your potential prospect’s throat (which puts them in a defensive mindset), tell them a story about a customer who saved money right away. As a result of saving that money, she can pay for childcare or get a van, or go on a vacation she’s been putting off for a few years.
The key is to write a story that fits the mindset of your audience. If you’re targeting subprime mortgages, tell a story about the hopeless client. How he brought his family from renting in a bad part of town to owning a beautiful home in a great school district.
3. A 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 contact you or fill out a response card.
For example, it might be a weak call-to-action like “Call me at 555-555-5555 between the hours of 8 a.m. and 4 p.m. 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 payments, call me now: 555-555-5555. We can schedule an interview and discuss your financial situation, or do it over the phone. You can Call me at 555-555-5555 anytime during regular business hours. Or you can call my free 24-hour voicemail at 1-800-555-5555 and leave your contact information and I will send you more information.”
In addition to the headline, story, and strong call-to-action, your mortgage sales letter should include a body text (PS) and testimonials. Studies show that up to 80% of readers will read PS first. This is where you reaffirm your interest in a conversational manner. Testimonials are very effective in establishing credibility, and they reinforce your claims.
If you follow these simple guidelines for a more effective mortgage sales letter, you will generate more qualified leads and referrals.
Sit down and write a letter to sell the mortgage tonight instead of watching Fringe or Dancing With The Stars. Send it to your current clients, and old potential clients. You have nothing to lose and everything to gain.