Tele-Marketers.. good or bad idea?

tbickle · #1 (**permalink**) 03-07-2006, 10:00 AM

We just completed construction on an area to house 10 telemarketers that will call leads for 15 LO's.
I was wondering if anyone would share good/bad feedback regarding the overall costs and benefits of this source of marketing.
It has been proven over the past year that our strongest months as a Company have been the months that our former tele-marketers generated the most applications for our LO's. However, the LO's become dependent on this source, which is not good in my opinion.
I would appreciate any feedback.
Thanks.

rgloans · #2 (**permalink**) 03-07-2006, 12:14 PM

having people telemarket for an LO is dream come true, I dont think that this is a bad idea if you really want to hire and keep quality LO's and you can make thier split lower than normal if i'm being fed leads... These are my 2 cents. good luck rgloans

tbickle · #3 (**permalink**) 03-07-2006, 01:43 PM

Thanks for the feedback rgloans.
My broker pays 45-50% split on every deal. I think this is way generous if leads are being provided, but I have only compared compensation in my central area.

COLOANHound · #4 (**permalink**) 03-07-2006, 02:21 PM

How much are you paying these telemarketers, and do they have any sales training? I've been thinking of giving this method a shot, but wasn't exactly sure of the overall cost.

David Polaniuk · #5 (**permalink**) 03-08-2006, 09:51 AM

I agree that telemarketing CAN be a great source to increase the "bottom-line" of any business. A few things to keep in mind:

1) There are many lead providers out there now. Many are simply garbage and can cause you unwanted hassle and headaches. However, there are some great ones out there, you just have to look for them. Get a feel for what the company is about, check out their website, get to know the frontman for their marketing division, and use your intuition.

2) Look the company up on the Better Business Bureau. I've saved myself money by researching every lead provider I seriously consider. Some companies have had user ratings sent in even though they are not part of the bureau. Although, not being part of the Bureau is not a sign of credibility one way or the other. One reason why they might not be registered is that they are a new startup. For example, I took a small risk with a smaller start-up provider and have been very pleased with my results.

3) Any lead provider advertising conversion rates is straight baloney. I personally don't see how they could know MY business before speaking to me. Again, any promises of "You will close 20%-30%" should not be taken too seriously. I advise looking for providers who disclose everything about themselves and seem honest.

In closing, telemarketing is a double-edged sword. I wholeheartedly recommend it if you find the right lead provider.

jonc · #6 (**permalink**) 03-08-2006, 10:14 AM

So the question as usual becomes...which company's can you trust?

I sappose that those who have found one don't want to share

rgloans · #7 (**permalink**) 03-08-2006, 10:22 AM

Quote:

Originally Posted by jonc

So the question as usual becomes...which company's can you trust?

I sappose that those who have found one don't want to share

this is so true I just purchased a list from wholesalelist.com and they sucked, everyone on that list was not what I asked most of them had already refied or were just plain angry. and I do live in South FL so maybe that might have something to do with because of all the New yorkers, haaaa LOL!!

rgloans · #8 (**permalink**) 03-08-2006, 10:31 AM

Maybe if you don’t want to spoon feed your LO why don’t you get an predictive dialer which connects a live customer to an LO each time they hang up, and that will surely keep them on their toes.
If that is to expensive for you, then get a speedy dialer it wont connect you to a live person every time but, it will make them dial at least double their dialy calls. I purchased to speedy dialers, and its pretty fast and no lag time. I got a deal on www.nextcenturytalk.com hope this helps.

tbickle · #9 (**permalink**) 03-15-2006, 08:46 AM

I really appreciate all the feedback and by now I am sure you have all figured out that I am not very good at responding right away.
I do appreciate all the advice.
To answer some questions, I personally interview all the tele-marketers and only hire folks that have some tele-marketing experience, however I do not train them on the mortgage industry and feel very strongly about them actually not knowing anything for fear of them giving incorrect information or rates to a potential borrower.
I test pilot them for a week, typically 15-20 hours to see how many applications they can generate. I have them track the number of the calls they make but stress that I don't care about the quanity of calls vs. the quality of each attempt. We do not use a script and try to generate conversations prior to obtaining an application.
I pay them 7.00 hour and give them 2.00 for the 1st three applications and 3.00 for each application after that. I also have little incentives for them once a month to create some excitement and friendly competition.

Any additional feedback would be great.
Oh yeah, my Owner does not work with a large budget so I am thinking real time leads and auto dialers are out of the question.
Thanks

Secret! · #10 (**permalink**) 03-17-2006, 10:56 AM

Most LO's consider themselves to be salesmen and most employers see Loan Officers as salesmen. That said, salesmen worldwide cold-call ... why pay extra for telemarketers?