HOW THE DIRECT MAIL CAMPAIGN WORKS
If you want to make a significant amount of money over the next 3-5 years, then you are going to need inbound leads coming into each one of your agents on a daily basis. Direct mail is the preferred marketing method for consistent success.
You will reach the right people at the exact right time that they are desperately in need of your services. Your respondents will likely have a home loan that is $250,000 - $750,000 with a Loan to Value (LTV) of 100% or greater. These consumers are currently suffering from a hardship, such as (but not limited to) a home loan adjusting to a higher rate, loss of employment, reduced income or divorce.
Your direct mail respondents will typically take a total of 2.5 hours of non-sequential time over a 5-7 day period to submit all the necessary information the agent needs in order to submit their proposal to a loan modifying attorney.
Current evaluations on existing direct mail campaigns indicate that you will need a weekly drop of 2,500 - 5,000 mail pieces per agent in order for that agent to generate a minimum 10-20 (depending upon his/her closing ratio) home loan modification proposals per week.
Your return on investment is best measured when you utilize a separate call tracking number for each agent receiving inbound calls. When you employ one of our copy-written direct mail pieces, you may expect a 2-4% response rate.
LET’S DO THE MATH!
Scenario: 1 Month / 2,500 piece Drops for 4 Weeks
1 Loan Modification Agent creating proposals to submit to their attorney network
WORST CASE SCENARIO:
WEEK 1: 2,500 X 2% Worst Known Response Rate = 50 Responses
50 Responses X 10% Worst Known Closing Ratio = 5 Proposals Submitted
MONTH END RESULTS (4 Weeks):
5 Proposals X 4 Weeks = 20 Proposals Submitted
BEST CASE SCENARIO:
WEEK 1: 2,500 X 4% Response Rate = 100 Responses
100 Responses X 20% Average Known Closing Ratio = 20 Proposals Submitted
MONTH END RESULTS (4 Weeks):
20 Proposals p/week X 4 Weeks = 80 Proposals Submitted
Now that you have seen the best and worst case known scenarios for existing customers, let it be known that the majority of agents who have a minimum of 2 months experience in this role will submit an average of 13 proposals per week off of our copy-written direct mail campaigns.