Mortgage Lead Glossary

Autoresponder
Autoresponders are one or more email messages that are automatically sent according to a pre-defined action or schedule. For example, an email autoresponder could send a message to a prospect as soon as they request a mortgage, and then send follow-up messages every week for the next two months.

Email autoresponders are useful for making initial contact with prospects, and for reinforcing awareness of your offer over time.

Conversion
Conversion refers to a prospect taking a desired action. For example, a prospect converts into a customer by choosing to do business with you.

Conversion can be measured according to an overall goal - such as closing on a loan - or according to a short-term goal - like requesting a free quote.

Conversion rate
Conversion rate is a measure of the number of prospects who take a desired action. It is typically expressed as a percentage. For example, if you send a direct mail campaign to 100 prospects, and 2 of them respond, your conversion rate is 2%.

Conversion rate is a key measurement of the success of your marketing and sales campaigns.

CRM software
Customer Relationship Management software allows you to store important information about your prospects and clients in one location. A good CRM package lets you sort data about customers, track their progress through the sales cycle, and run reports on the success of your campaigns.

Most CRM tools consist of a database that contains the customer information, and tools that let you manipulate that information. All ProspectZone accounts include our BrokerOffice CRM tool for free. Your ProspectZone leads are automatically imported into BrokerOffice, in real-time.

Debt consolidation leads
A debt consolidation lead is information about a potential customer who is interested in refinancing their mortgage or taking out a home equity loan to pay off existing debts.

Exclusive leads
An exclusive lead is information about a potential customer that is only sold to one broker. Buying exclusive leads means you don't compete with other ProspectZone brokers for that customer's business. Exclusive leads cost more than shared leads.

Filters
Filters are software-based controls that determine what kind of leads you get. Leads can be filtered according to geography, loan type and amount, property type and amount, intended use, and credit rating. Filters make sure you don't pay for leads you can't use. They also let you focus your efforts and budget on the kinds of loans you want to work.

You can add and remove filters on your account at any time. Adding filters increases your cost per lead. And having stricter lead criteria may cause you to receive fewer leads.

Home equity leads
A home equity lead is information about a potential customer that is looking to cash out their home equity through a home equity loan or a home equity line of credit (HELOC).

Incentivized leads
An incentivized lead is information about a person gathered through free offers, giveaways, special discounts, and other promotions. Common examples include downloading free screensavers or music, online "surveys," contests to win free computers, iPods, or gift certificates.

Incentivized leads are a bad investment because the person you contact is only interested in the promotional offer, not in getting a mortgage quote. Conversion rates on these leads are typically poor.

ProspectZone leads are never incentivized. We only collect information from people who are actively interested in getting a mortgage quote from a professional broker.

Internet lead
An internet lead is information about a potential customer generated using the internet. Reputable lead companies generate this information by creating consumer-oriented websites that offer information and offers for free quotes. A reputable lead company will never incentivize their leads.

Lead generation
Lead generation is the process of finding potential customers who are interested in your service. Lead generation is an integral part of most businesses.

In offline marketing, lead generation is often done through advertising, direct mail, phone campaigns, and networking. In online marketing, lead generation is often done through websites and email campaigns.

Lead management
Lead management is a method of minimizing busywork and maximizing returns. By keeping all lead information - including name, address, progress through the sales cycle, and other useful notes - in one location, you're able to do less paperwork and easily access a lead's info when you need it. And by using a system to track leads and campaigns, you can easily see which marketing efforts are giving the highest returns.

Software tools have made lead management easier and even more productive. All ProspectZone accounts include our BrokerOffice lead management tool, free of charge.

New purchase leads
A new purchase lead is information about a potential customer who looking to buy a new home.

Offline Marketing
Offline marketing refers to using traditional media to build awareness of your service and generate more leads for your business. Offline marketing strategies include print, radio, and television advertising, direct mail, and phone campaigns. Offline marketing is typically very expensive, and results vary widely. Because much offline marketing isn't well-targeted, you end up spending money getting your sales message to unqualified prospects - people who have no need for or interest in your service.

Online Marketing
Online marketing is the use of the internet to build awareness of your service and generate more leads for your business. Online marketing strategies include creating websites, driving web traffic using search engine placement and pay-per-click ads, email campaigns, and buying internet leads. Because online marketing can be highly targeted, you can focus your budget on qualified prospects - people in need of your service who are interested in hearing your offer.

Refinance mortgage leads
A refinance mortgage lead is information about a potential customer who is looking to pay off their mortgage with a new loan. Homeowners usually refinance to get a lower interest rate, or to cash out home equity.

ROI
ROI stands for return on investment. This is a crucial measurement of any business expense.

Second mortgage leads
A second mortgage lead is information about a potential customer who is looking to take out another mortgage on their home. Second mortgages are usually taken out in order to cash out home equity for home improvements or to pay off debts.

Shared leads
Shared leads are sold to more than one broker. This means they are priced lower than exclusive leads. It also means that there is more competition to convert the lead into a client. ProspectZone shared mortgage leads are only sold an average of 2.14 times.

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