Empower your business with lead funnel analysis in loan agreements

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okay it's time to play detective we're gonna take a look at a typical loan officers funnel their sales cycle and we're going to identify where things go wrong but then I'm also going to fix it so I'm gonna fix it and we're gonna take a look at this simulate button and run some numbers through and see how many loans we can close okay so what I'm looking at here is a visual representation of the average loan officer sales cycle now this is the business model that's being taught to loan officers by most trainers out there today so let me show you a couple assumptions that we're making here on this page number one that you're running facebook ads but the important thing here is but the interesting thing is that I can replace facebook ads with any traffic source you might be running Google ads instead you might be running YouTube videos you might be doing organic SEO you might even be buying your leads or Co marketing with a realtor doing Zillow whatever anything whatever it is you're doing I can input it here and we can simulate those numbers but let's show you the assumptions that we've made on the Facebook ads so so we didn't pull these numbers out of thin air we actually got this feedback from loan officers and mortgage companies we averaged out the numbers over what the average loan officer was doing and what we found was that the average loan officer is spending just under $500 a month on their traffic if they're running Facebook ads so that's unjust under $500 a month their average click cost when we we choose a happy medium right in the middle is ninety cents so on the low end we found some as low as about seventy seventy-five cents a click on the high end about a buck thirty to a buck forty so we chose a nice good solid happy medium so you can compare these numbers to what your numbers that you're actually getting so ninety cents cost per click just under a buck a click and just under five hundred dollars a month ad spend now the process that they're using is they're driving that traffic to a lead capture page a landing page or maybe you're using click funnels but whatever it is you're sending that traffic to a landing page okay and that's where you capture your lead name email phone number what are you looking for how much do you need to borrow all those good questions right so it's a pretty typical process but let's let's go ahead and run these numbers through now I'll show you the rest of the numbers that we have in the rest of the funnel but the first thing that I want to do is I want to start off with a baseline so let's go ahead and click the simulate button here and see what happens as far as loan closings okay so I don't think this should come as a surprise to anyone we're actually operating at a loss you lost money five hundred fifty four dollars in the hole so that you may be asking the question well why is it five hundred fifty four dollars if you said that the average loan officer is spending just under five hundred dollars let me answer that for you other expenses remember we're using real-world numbers here and what we found is that the average loan officer is also spending money remember the lead capture software that you need landing page software maybe you have an email autoresponder or a CRM those are all expenses those are expenses that we need to count against our revenue in order to get to our profit right it's some simple math so so I went ahead an input so the number that I input was $50 a month I did again I just I know some of you guys are spending a lot more than that and then there's some of you guys that are spending less or even nothing at all but the bottom line is when we average it out about 50 bucks a month is a good solid happy medium so that puts us at five hundred and fifty four dollars loss per month now how many months can you run at this loss and still remain in business if you were to do this all year you would have lost six thousand dollars so this is obviously not a viable business opportunity any more at least not at this state but let me show you what happens so let's assume that you you let's assume that you've experienced something similar so you've learned this new marketing strategy you think you've done everything right and boom suddenly you're losing money you're hemorrhaging money here this is not a workable scenario so what do you do next well the first thing that most loan officers will do is they'll just put a stop to their spending and they'll walk away and say this sucks this doesn't work but there's still a fair percentage a fair chunk of loan officers that say you know what maybe I did something wrong or maybe I just didn't give it enough time or or or give it a fair chance so I'm gonna run ads again but I'm gonna be a little more careful this time because I don't think I'm want to lose another $554 so here's what they do let's go ahead and open this up and let's change these numbers to what most loan officers will do is they'll they'll pretty much cut their numbers in half is what I found it's it's right smack in the middle there as though they'll cut the numbers in half so so I'm cutting my numbers in half here just in even a little bit more than half but what I found is most loan officers and most people in general like round numbers so so I'm going with 250 so at 250 clicks and 90 cents a click let's see what happens now so nothing really changed outside of I didn't lose as much but I've just added another chunk another 275 dollars on top of what I'd already lost the previous month so now I've got two months invested into this so that's 60 days two months of time wasted time that I should have been closing extra loans but instead what I was doing was was losing money and pouring my money down the drain so $275 plus the initial five hundred fifty four dollars now at this stage is where we see another huge chunk on the loan officers just walk away and they say okay that's it that confirmed it that's all I needed to see I'm almost I'm getting dangerously close to a thousand bucks in the hole I don't want another repeat of this so they just walk away so let's let's take a look let's look at some of the rest of our numbers here watch this this is where things are gonna get really really interesting you know I'm gonna show you how how do we turn this into a moneymaker in just a moment but watch this our conversion rate is 4% why is our lead capture rate 4% well our lead capture rate is 4% because that's well that's what the numbers averaged out to is just under 5% some were all the way down into the the twos and ones some were a little bit over 5% but but we just chose again a number right smack in the middle 4% now here's what I find interesting as most loan officers tell me when I ask them what's your conversion rate for your landing page what's your opt-in rate and it's it's almost always 10% 10% 10% and when I said well how do you how do you know it's 10% most of them can't really answer that other than well you know I just kind of look at my numbers a little bit you know and it seems to be right around 10% very few are actually running full analytics to find out what their number is but that's what we do when we come on board when someone hires us we come on we actually track and they're never anywhere near 10% very very very rarely are they anywhere even close to that number so 4% so this is a problem this is definitely a problem but let's see what happens if we were to fix this what would happen if I actually doubled the conversion right here to 8% what would happen my cost per lead CPL stands for cost per lead so I'm spending less money on a per lead basis but I'm still in a hole that didn't that didn't close any more loans for me and I can see here that out of the 560 people that clicked on my ad 44 of them chose to go forward so out of those 44 people I didn't get a single closing so I know what I need to do is tweak my landing page further if I can get my numbers up even more maybe maybe maybe maybe I'll make money no look even if they got to the imaginary 10% they're still in the hole see here's the ears the interesting thing is this is definitely a part of the problem but the but it's not the problem it's not the only problem there are other issues at play here that are keeping this from making money so even if you hired somebody to run new ads and new and better ads and then come in and set up a new beautiful-looking landing page for you that actually boosts your conversion rate and actually more than doubles it more than doubles it we're still operating at a loss why is that well it's because we're dealing with a multi-layered process here but most loan officers come in and they try to solve a single problem thinking that oh this right here's my problem or that right there's my problem I have a traffic problem I have a conversion problem I have a landing page problem when the reality is is no you have a process problem see let's go ahead and solve a problem a big big big problem and I'm gonna walk you to the process of how I fix it of how I this problem and that is right here I'm sure you'll agree that when a lead comes in what most loan officers follow-up process looks like is a combination of an email follow-up emails so if you have an email autoresponder plus phone calls so what we can see here is that out of those 56 individuals that came in if we're dealing with average loan officer numbers you're only gonna get about four of them on the phone holy crap out of 56 people only four on the phone does that sound about right you chase a lot of people to get a teeny tiny amount of people of individuals on the phone this is a big problem see let's fix this let's fix this right here because if I were to ask you what's your goal when leads are coming in it's actually talked to people who want to talk to you to talk to people who need your services right wouldn't you rather have somebody on the phone than to be chasing them via email so let's take a look at what's going on here all right well first of all this is a big issue we're only talking to 8% of the people that come in eight percent eight percent why are we only talking to eight percent there's there's a very good reason why a very good reason why I'm gonna explain it in just a moment here but let's let's go ahead and fix this let's say I just bump it up let's say I could get you from 8% to 12% of the people so so you're actually gonna be talking to more people here what happens let's go ahead and click this simulate button okay there we go nice nice nice nice okay so what what just happened what we actually moved from a loss to where you're losing money do you were making money now if we look at our profit where we're not making money hand over fist just yet but let's let's let's actually examine what's what's going on here first off we have a revenue of thirty five hundred dollars a month you can input whatever your numbers are okay so you know how much you make on a per lead basis I averaged these out over low dollar states as far as the average loan amount in high-dollar States because when I'm heading to California and a lot of the coastal regions were we're easily looking at eight and twelve thousand dollars per loan that is very very normal in a lot of those states let me tell you I deal with the hundreds of people in those states that's not unusual but in the load in the lower loan amount states it's not uncommon to run across loan officers that only walk away with $2,500 gross only $2,500 revenue or some some cases even less so I just took again a nice happy medium number but we have a couple expenses at play here so we have our traffic cost and we have our software cost and then I also put a split in here now I don't know what your split is with your company but I wanted a more realistic representation so I input a split that needs to be shared with your company I input the traffic cost and I input the software cost so that's gonna leave us with just under net $1,900 now that's not a lot of money I know a lot of individuals look at that and say wow you know I fixed all these things and I'm only making $1,900 well hold on a minute hold on a minute because here's what happens once you have a positive ROI once you have a process where you could take a smaller amount of money and convert it into a larger amount of money now we can scale that and as you've seen we've input 560 dollars so if you hit 560 dollars in your pocket and you could set it on the table and somehow pull almost 1,900 dollars in return you'd be a pretty darn happy person so now all I would need to do once I know I have a process where I can input and replicate where I create a scenario where I can replicate this process an input $560 and pull almost 1,900 dollars in return come back and say okay I'm ready to input a thousand dollars now instead of five hundred and sixty or fifteen hundred dollars or two thousand dollars I can scale it and I can multiply this money but all of that hinges on my ability to solve this problem right here why why was I not getting as many people on the phone talk to me will let me let me walk you through that scenario and let's fix that problem so let me ask you guys this when you go to a mortgage website and you fill out a form and you put your name email and phone number in there and you click that submit button what happens well what happens is you get this little window that pops up and says hey thank you so much for submitting your information we'll be checking out and we'll be in touch very very shortly thank you so much blah blah blah right isn't that pretty much what happens or maybe maybe you're a little more advanced maybe it's a little more advanced and you actually get redirected to a thank you page that the intern says thank you so much for reaching out we'll be in touch shortly oh by the way here's my phone number if you want to talk to me or here's how you can reach me bah blah blah blah blah so now let me ask you now what I need you to be honest here I need you to be 1000% honest and honest here what about that process makes you excited if I mean you if you were the borrower the potential borrower and you saw that message what about that process stands out to you is there anything there that makes you go wow I cannot wait to reach out and talk to this person I can't wait till they call me cuz don't they usually say we'll be calling you soon would you take that call are you excited about it you're a busy person you got a million other things going on you're not too enthusiastic about the sales process right I don't want to talk to a pushy salesperson are you gonna make it a priority see here's the thing when when people end up in the red and that $554 ditch as you were in our example the knee-jerk response is oh I'm gonna blame the leads the leads suck oh I'm gonna blame the platform Facebook Facebook ads just suck nobody's nobody serious on Facebook well if they were serious enough to click on your ad and go and fill out a lead form and they left Facebook where there's a ton of other distractions and it sounds like they there was at least a decent level of interest so why aren't they talking to you it's our fault we're putting the blame everywhere else except for where it belongs and that's ourselves if you're in sales and marketing because that's a combination that's a one-two punch of what you do you are sales in a marketer if you if you're generating your own leads you are now a marketer if you're picking up the phone and talking to people you're now salesperson those are two hats that you've chosen to wear and if you can't take responsibility for that process that's your failure and you're paying the price and lost money lost revenue wasted money and as so long as we're blaming shifting blame to the leads and saying the leads suck or blaming the platform and claiming Facebook Ads suck then we're never gonna fix the process so let's let's see what what do we need to do to fix the process well we fix the process by accepting the blame and saying okay I put them through a process that didn't get them excited I put them through a process that did not prepare them for my phone call I put them through a process I made the decision I chose to not craft a better scenario and to give them a reason to want to talk to me so that's my failure so now I'm gonna fix it so I want you to ask yourself do you think it's possible I think it's possible between this stage here where they see this Thank You page and when they get this email prior to the actual phone call attempt do you think that maybe we could create a process something that happens before this happens that will make more of them take your phone call you better believe it that's why sales and marketing exists right that's what marketing experts are for and we're here it's our job to fix that scenario fix that process and if I could just bump your numbers as we just did we we started off at 8% now we're at 10% or I'm sorry we started off at 8% now we're at 12% that's not a huge jump but it's a big enough jump it's technically it's statistically a 50% improvement in the percentage of individuals that you talk to so if you get eight people on the line instead of the original four you end up with a scenario we've actually closed a loan right here so I was able to put one loan through this process now now that I'm able to do that let's go ahead and simulate this process where now I want to put instead of five hundred sixty people through the process now I want to put a thousand people through the process now I click the simulate button beautiful beautiful beautiful beautiful look at that look at the math here guys ten thousand five hundred dollars in revenue so now I went from losing money a negative it's over ten grand in revenue it might take away still sixty four hundred dollars again this can all be modified to reflect what your numbers are so so so don't freak out if if the numbers are different from what your actual take-home would be but my point the whole point here is that I've fixed two problems now there's other problems as well there are other problems here that we can fix and I can make this a whole lot better a whole lot better but all I did was tweak two steps two steps and then when I found that I was profitable that I was ROI positive I started bumping my numbers up now I don't know how far I want to go I might want to add yet another 500 it's up to you what do you want these numbers over here to be how much revenue do you want on a monthly basis right it's all about scalability it's simple Matt the problem is that most loan officers are fighting math they they think they're gonna force their way to success just by work ethic I'm gonna work hard I'm gonna work more hours because that's what we've always been told is is it takes a lot of work but but we're working harder and not smarter and when you fighting math that's nothing but a losing proposition so now you can see here 21 people what what would it do for you if you could be on the phone with 21 borrowers in the next couple of weeks 21 people who came to you who responded to your ad and wanted to actually talk to you about getting a home loan how many of those people do you think you could close right so my point being is this funnel process still needs a lot of work I can make it a whole heck of a lot better and we want to make it more realistic for you for your scenario so what I need you to do is down below if you want to see one of these created for your sales cycle for your funnel or just to see what does it take to reach the kind of numbers you want to reach so if you want to give me your goals and tell me what profit you want to hit what profit numbers you want to hit we can actually craft a scenario that will get you there show you what does it take or if you just want to run your existing sales cycle through and see what tweaks can be made to it and what impact will they have on your bottom line so the numbers actually mean something to you then down below just fill that out below put in your request below it's free guys it doesn't cost you anything but this is what I do I'm a fixer I'm a problem solver and I am here to help you fix this funnel so I have a couple more videos to send you in the coming days so be sure to click on those as well but in the meantime please put in the requests below we have limited slots available let's run you through the cycle and see what happens I hope you found this very beneficial make it a wonderful day bye now