Why the Resistance to Internet Marketing Channel?

As the mortgage market begins to contract, as it always does, the various components begin the typical adjustments–products change, guidelines tighten, loan officers and processors migrate out or are reduced. All of these adjustments we have seen before, but there is one opportunity in the market that I see constant resistance to accept and incorporate as a sustaining strategy…

This is an open mic question. I would love to hear your thoughts and feedback.

Internet lead generation, as a viable marketing method and revenue model, emerged about the time rates started their record descent and the refinance boom kicked off. This created an interesting dynamic in the market. Almost two completely divergent origination models.

First, and most traditional, was the continued tried and true course of fairly autonomous branch network, dependent on pressing referral networks, and wholesale operations to tap into the 65% or so of the loan production market that are independent brokers.

Then there was the emerging, centrally managed call-center style, origination platforms like Ameriquest, Countrywide, and Quicken Loans. These players created a very consistent and efficient originations methodology that was almost exclusively stoked by Internet leads.

The first model seems to be creaking and groaning in the changing environment and the second seems to be fueling some of fastest ascending originators in the market. Proof? Look at the top 20 loan originators in the market 10 years ago. Quicken Loans is nowhere to be found.

Why does there seem to be such a barrier to adopting this marketing channel to at least be a component of your marketing mix? Even the smallest broker mixes marketing media–mailers, list buying, professional networks, friends and family. Is it that much of a cultural and organizational shift? Have too many people been burned by scam or fly-by-night Internet lead sources? Are referrals really sustaining all of the business you need to be successful? What are your thoughts?

Technorati Tags:
, , ,

Advertisements

5 responses to “Why the Resistance to Internet Marketing Channel?

  1. With the contraction across the board now, prime and sub-prime I fear failing companies will continue to fall if they fail to implement the best practices of lead geneartion, delivery and methodology.

  2. Pingback: Building an Internet Lead Community — Leads2007

  3. I agree. I can’t think of a quicker turn around strategy than getting the ubiquity of the Web and their consumers to stoke your production engine!

  4. Another great post Bill. You may be a competitor, but your doing a good job at demonstrating where lead managment solutions fit into the puzzle, how critical they are in this down market, and that internet leads do in fact work.

    We share the same vision my friend.

  5. Jeff, I think these are critical conversations. I think it is obvious that various changes are occurring simultaneously compressing mortgage market, credit crunch, and buyer behavior is shifting to the Web. If we are not talking or considering agility and adaptation to these shifts–trouble is ahead.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s