Mining for Gold

Posted by May07, 2015 Comments Comments Off
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At a seminar, we bumped into an associate, another mortgage broker. As usual our conversation led to the usual complaints about lender service levels, policy changes, and lack of leads. On that last one, we asked him what he meant.

He had been paying for a newsletter service and made the comment that it wasn’t working for him. We asked him why not? And he said that it was because he felt it was all too hit and miss. It was like using a shotgun approach to generating leads. And it wasn’t working for his business.

We asked him if he had a marketing program, and how did the newsletters fit into that program. That was when we got that glassy look.

So one of us explained: Lead generation is a lot like mining for gold!

What we meant was: let us assume that we had set up a mining company (instead of a mortgage broking business) and we were going to prospect for gold.

If we were going to dig for gold, we would require some equipment. And perhaps we should buy an excavator. And having an excavator does not a mining enterprise make. The key is to know where to dig, and where we could employ our excavator. To do this effectively, we would need to set up an Exploration Program – to find where the most likely location where we can dig for gold is!

And a good exploration program would need some knowledge of geology (where does Gold hang out?), extraction methods, costs to produce, etc., etc.

In our analogy, the excavator is like the newsletter. Just because you have a newsletter system will not necessarily get you to the gold. You need to know where to employ the excavator (or newsletter) to make it effective. And the key to that is to set up a Marketing Plan (aka an Exploration Program).

And like in the analogy, you need to decide what your target is (i.e. We are looking for Gold – not Uranium). This is because the tools needed to locate gold is different from those used to locate another mineral ore. And if you know what you are looking for, it is easier to use the right tools to find it.

Likewise, a newsletter system is like the excavator. It is only a tool – but needs to be employed in the right area, with the right strategy in conjunction with other methods, to maximise our chances of finding gold. To do this in a predictable way, you need to set up an exploration program, or a Marketing Plan for your mortgage broking business.

The moral of the story is this – don’t confuse the tool from the strategy. Employ your tools correctly, with the right strategy.

Define your target market – know what you are looking for, and set up your marketing/exploration strategy to find those customers. This is the most logical way of reaching your business goals.

Try this, and let us know if this works for you.

Masters Broker Group is run by two very successful Mortgage Brokers (Mario Borg and Andrew Tan) who have a passion and a track record in helping Mortgage Brokers succeed in the industry.  To find out more go to http://www.mastersbrokergroup.com.au/category/news/

 


 

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