A good mortgage sales letter that produces leads from a cold list or generates new business from your old client list is worth 1000 times it’s weight in gold.
Lets say you have a list of 50 clients and 50 leads that you haven’t converted. If you send one letter at a cost of just .42, and $100 for printing. That’s just $142 in total costs for a basic mortgage sales letter.
One new loan can generate several thousand dollars in commission. If you get just one new loan from a mortgage sales letter, you are going to be profitable (assuming you aren’t mailing to an enormous list).
As a result, it’s 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 read and respond to. Most mortgage brokers don’t know the power of effective writing and rely upon hype and trickery in their letters.
The good news is you don’t need to hype up your letter, and you don’t need to rely on tricks like the old ‘fake looking check in the window’ letter (by the way, this does work, but only if you do it without fooling the recipient).
If you want leads and referrals here are the three most important parts of a successful mortgage sales letter that will help you boost response rates and build your book of business:
1. A Compelling Headline. Almost every mortgage sales letter must have a headline. Why? I’ll let the late great David Ogilvy explain it to you:
“On the average, five times as many people read the headline as read the body copy. When you have written your headline, you have spent eighty cents out of your dollar.” -David Ogilvy
The job of a 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 Saved $498.95 Per Month On Her Mortgage Payment — Here’ How You Can Save This Much or More!”
That headline needs a little work, but it’s light years ahead of the average mortgage brokers marketing letter.
2. Stories Sell. Nothing gets people more involved and motivated to take action than a good story. Instead of cramming a pitch about your products and services down your prospects throat (which puts them into the defensive mindset), tell them a story about a client who saved money instantly. And as a result of saving this money she could pay for child care or get a mini van, or go on a vacation that she has been putting off for a few years.
They key is to write a story that fits into the mindset of your audience. If you are targeting subprime mortgages, tell a story about how a down and out client with no hope. How he brought his family out of a rental in a bad part of town to owning 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 return reply card.
For example, a weak call to action would be, “Call me at 555-555-5555 between the hours of 8am and 4pm 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 a time to meet and discus your financial situation, or do it on 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, a story, and a strong call to action, your mortgage sales 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 restate your benefit in a conversational way. Testimonials are very effective in establish credibility, and they reinforce your claims.
If you follow these simple guidelines to a more effective mortgage sales letter, you will generate more qualified leads and referrals.
Sit down and write a mortgage sales letter tonight instead of watching Fringe or Dancing With The Stars. Send it to your current clients, and old leads. You have nothing to lose and everything to gain.