Mortgage Protection Agents...marketing strategy.

WIN · 03-31-2008, 01:42 PM

If you are a seasoned mortgage protection agent working primarily direct mail would the following business model work for you?

1.) 10-15 preset appointments per week charged at $50/appointment
2.) 90-100 point contract

It seems like most people I've talked to end up closer to $60-$80 per sit, trying to find a number that works.

susieQ · 03-31-2008, 07:01 PM

Pre-set appointments. I've had friends try those and they get to the appointment and either nobody's home or they didn't remember they have an appointment. You'd have to be doing some big business to make a $50 appointment work. If you closed two out of 10 the numbers just don't work. Sounds like an agent could dig a really big hole very fast! But of course they'll tell you that since it's an appointment not just a lead you'll get much better than 2 out of 10. Yeah, right. Sorry but I'm cynical when it comes to that kind of stuff. Just like the guy that trained me on health insurance when I first started, never got stood up and closed every appointment 100% of the time.

WIN · 04-01-2008, 12:53 PM

Have you ever ran a mortgage protection appointment?

susieQ · 04-01-2008, 03:56 PM

Nope, but I've been naive many times before and I'm trying to use better judgment now.

bluemarlin08 · 04-01-2008, 06:14 PM

I did mortgage protection for 3 years and sold 90% of the cases by phone.

TimLett · 04-01-2008, 08:29 PM

Originally Posted by bluemarlin08

I did mortgage protection for 3 years and sold 90% of the cases by phone.

Care to share the system you used to do this???

TimLett · 04-01-2008, 08:31 PM

Originally Posted by susieQ

Pre-set appointments. I've had friends try those and they get to the appointment and either nobody's home or they didn't remember they have an appointment. You'd have to be doing some big business to make a $50 appointment work. If you closed two out of 10 the numbers just don't work. Sounds like an agent could dig a really big hole very fast! But of course they'll tell you that since it's an appointment not just a lead you'll get much better than 2 out of 10. Yeah, right. Sorry but I'm cynical when it comes to that kind of stuff. Just like the guy that trained me on health insurance when I first started, never got stood up and closed every appointment 100% of the time.

And if NAA's telemarketers are the ones making the appointments, you will dig a very huge hole very quickly. I used to get their tele-marketed leads. I think someone was just trying to fill a quota.

bluemarlin08 · 04-01-2008, 09:22 PM

Shoot straight, tell them that traditional mortgage insurance was decreasing term and assigned to the mortgage holder. Better choice is a 20 or 30 year level term they own, quote a quality A+ company, ask about their other coverage and ask if they want a quote to see if their current coverage is competitive. Folks appreciate the honesty and will appreciate the value.

HomeService · 04-01-2008, 11:46 PM

Start by telling them they are purchasing life insurance to protect a mortgage obligation, amongst other obligations. Do a fact finder to add in the "other obligations." Then, the fact finder also takes into account the insurance already owned. Do a complete job, not just "mortgage protection". That's my advice. You certainly do not have to take it. It's free, and sometimes you get what you pay for.

As a matter of fact, I once told a person at the state board of insurance about "mortgage protection", and how some managers out there discourage using the words "life insurance". The state board was not impressed, and said they wanted anything in writing { from the company or its managers} that told agents not to use the words. Ahhh, the language of the trade, it's a wonderful thing.

WIN · 04-02-2008, 11:06 AM

Thanks everyone.

I guess I should have given a little more backgroud. I wasn't asking if selling mortgage protection was a viable option/how to sell. I was looking for insight from other producers on the strategy of buying pre-set appointments vs. direct mail leads.

I have been using mortgage protection direct mail for over a year to build my business. Have had reasonable success. I sell 50+% of the folks I sit with. The one area that has always proved to be a challenge for me was having enough time to effectively work the phone to set up my week.

theinuranceguy · 04-02-2008, 12:08 PM

Mortgage Protection is great, but seriously, the mortgage industry is hurting, Id look into another niche...

Not to Discourage You... Either Way, I wish you the best of luck!

onlineagent08 · 04-02-2008, 01:12 PM

Originally Posted by WIN

Thanks everyone.

I guess I should have given a little more backgroud. I wasn't asking if selling mortgage protection was a viable option/how to sell. I was looking for insight from other producers on the strategy of buying pre-set appointments vs. direct mail leads.

I have been using mortgage protection direct mail for over a year to build my business. Have had reasonable success. I sell 50+% of the folks I sit with. The one area that has always proved to be a challenge for me was having enough time to effectively work the phone to set up my week.

WIN - Direct mail leads ... If the lead comes from a reputable lead source and if you are confident to "close" over the phone vs. face-to-face, I would go with direct mail leads (or any lead that does not warrant face-to-face interaction).

There are some new products out there by major carriers that fall under the "mortgage protection" product cloud, issued in under 3 days (no blood/urine) and you are paid EFT the next week. Oh and you do not need to be face to face with them.

WIN · 04-02-2008, 04:09 PM

Originally Posted by onlineagent08

WIN - Direct mail leads ... If the lead comes from a reputable lead source and if you are confident to "close" over the phone vs. face-to-face, I would go with direct mail leads (or any lead that does not warrant face-to-face interaction).

There are some new products out there by major carriers that fall under the "mortgage protection" product cloud, issued in under 3 days (no blood/urine) and you are paid EFT the next week. Oh and you do not need to be face to face with them.

I have thought about selling over the phone vs. being in the home. What type of closing ratio do you see on presentations done over the phone?

WIN · 04-02-2008, 04:15 PM

Originally Posted by theinuranceguy

Mortgage Protection is great, but seriously, the mortgage industry is hurting, Id look into another niche...

Not to Discourage You... Either Way, I wish you the best of luck!

Not discourged either way. I'm adding final expense to mix to fill in my schedule during the day. I'd prefer to stay in the mortgage protection market for now for the bulk of my business. It's been a great way to build our client list for the mortgage side of our business. Sooner or later the market will turn and all of those folks will be looking for someone they trust to do business with.

theinuranceguy · 04-02-2008, 04:41 PM

Originally Posted by WIN

Not discourged either way. I'm adding final expense to mix to fill in my schedule during the day. I'd prefer to stay in the mortgage protection market for now for the bulk of my business. It's been a great way to build our client list for the mortgage side of our business. Sooner or later the market will turn and all of those folks will be looking for someone they trust to do business with.

I agree 100%... I wish you the Best

ims01 · 04-03-2008, 08:03 AM

[COLOR=black]We specialize in selling over the phone. Years ago I was selling mortgage protection at the kitchen table. Then we transitioned to selling it over the phone. Now we have completely abandoned the mortgage lead. There are almost the same number of agents as there was two years ago, chasing far fewer leads. [/COLOR]

[COLOR=black]Ours is a business of ratios and averages: close ratio, placement ratio, avg. premium, avg. commission, etc. The ratios and averages with other leads are better than with the mortgage lead, for us.[/COLOR]

[COLOR=black]Of course your close ratio should be higher face to face. But, when face to face you can present to 4 or 5 a day, we can present to 10-12 or more. A no-show face to face costs you an hour, for me it costs 30 seconds. Leads that you would set aside in face to face, you can keep working over the phone. We have some agents that have close ratios as high, or higher, than one would expect face to face.[/COLOR]

[COLOR=black]All things considered, selling over the phone is my strong preference.[/COLOR]

WIN · 04-03-2008, 05:30 PM

Originally Posted by ims01

[COLOR=black]Ours is a business of ratios and averages: close ratio, placement ratio, avg. premium, avg. commission, etc. The ratios and averages with other leads are better than with the mortgage lead, for us.[/COLOR]

Care to elaborate on your agency's ratios? I'd be interested in seeing what the ROI is.

onlineagent08 · 04-04-2008, 01:13 PM

Originally Posted by WIN

I have thought about selling over the phone vs. being in the home. What type of closing ratio do you see on presentations done over the phone?

Great question ... it all depends on your point of reference. From your initial investment (one month out) the closing ratio could be 15 - 20% ... but if your point of reference is 6 months out (from your initial investment) and you are still servicing your leads with communication, sparse phone calls (voicemail's, etc) your ratio could be 30 - 35%.

It truly all depends on the mindset of your lead (which points to how they were marketed in the first place).

Always remember - when you are talking about a closing ratio you need to factor in a time perspective of how many months. I know agents that send out monthly newsletters to leads that they have not talked to in over a years (and those leads come around).

LOL - a lot of agents are looking for a huge closing ratio (a week after the leads come in) ... that is just now how it works.

Jeff · 04-04-2008, 01:24 PM

Does anyone have any feedback on United Brokerage Group? I spoke with them the other day and they have "free" leads with pre-set appointments @ 50% comm or buy leads for $30 at 90% comm. They claim to be able to give an agent 8-12 pre-sets/week.
The idea of pre-set appt's is appealing but that just seems like a lot to give up in commission. The math just doesn't seem to work for me.

moonlightandmargaritas · 04-04-2008, 01:31 PM

Originally Posted by Jeff

Does anyone have any feedback on United Brokerage Group? I spoke with them the other day and they have "free" leads with pre-set appointments @ 50% comm or buy leads for $30 at 90% comm. They claim to be able to give an agent 8-12 pre-sets/week.
The idea of pre-set appt's is appealing but that just seems like a lot to give up in commission. The math just doesn't seem to work for me.

It looks like the "free" leads are not "free"...