Lead Planet Offers PPC Management to Mortgage Companies

In a recent article, Dennis Yu discussed the “Do’s” and “Don’ts’s” of mortgage lead generation using the pay per click model of Google Adwords.  Yu presents the pros and cons of PPC for mortgage leads brilliantly with a comprehensive perspective that only someone who understands search engine marketing could do.  Buying pay per click ads will place your ad in the “sponsored ad” section of the search engine.  The Google ads will be either above the organic search results or to the right of the natural results.  Lead generation has a lot of moving parts that can become costly if you don’t know what you are doing, especially with PPC advertising.

A spokesman for the online mortgage marketing company, the Lead Planet said that search engine marketing can be challenging to say the least and PPC advertising can be very confusing in the mortgage industry, where keywords cost  a lot of money:  According to Keyword Spy, in the United States alone, there are 124 million searches for mortgage related terms on Google per month. The average cost per click is $13.69, but terms like “mortgage refinance” can be as high as $32 per click. Compared with other industries the cost per click in the mortgage sector is extremely high.  Understanding the mortgage guidelines are very tight at the moment, I would ask you the question — What is likelihood of you closing a loan after buying 10 leads.  Probably not very good—One in 50 or 75 leads—that is much more realistic. 

What keywords are important?  Researching and Organizing Keywords takes time and the lesson could be very costly. 

• Most of the traffic comes from about 100 national advertisers, most of which with large mortgage marketing budget. Should you try to compete against them?
• Some mortgage leads are worth more than other, depending on factors such as type of loan (ie. FHA loan, VA loan, Conventional loan) 
• Other factors like Loan to Value, Credit Score, etc.

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