When I first started generating and selling Internet leads in 1995, training sales teams to work them had an extra challenge we don’t have now: First we had to explain what the Internet was and then sell them a computer so they could work the leads! These days, our firm generates and delivers more than 10,000 exclusive reverse mortgage leads per month to a lender you may be working for or with.
Since the ’90s, most people have used the Web to research products, review them and ultimately make a buying decision based on what they’ve read and learned. The Web is a double-edged sword in this regard, as there is as much misinformation as good information out there on reverse mortgages.
The most important thing I’ve come to understand as a lead generator is that a reverse mortgage is not a commodity product that everyone understands. There are many misperceptions from consumers caused by the word “reverse.” Few people realize that it’s really just a traditional mortgage, but with more payment options and flexibility, as it can “pay” you (thus the “reverse”). How many other loans allow you to choose when and how you pay it back, or not pay it back at all, during your lifetime? I often hear that it’s expensive, and my response is, “Expensive compared with what other loan you don’t have to effectively pay back during your lifetime?”
I fully believe in reverse mortgages and the incredible financial options they offer retirees, and it excites me to introduce so many consumers to this product. Using the proceeds of a reverse mortgage just to defer Social Security until 70 can increase a borrower’s benefits by 76 percent and prevent a borrower from draining their investments, which are also earning a return. Proceeds can be used to start a second career, buy a dream vacation home, downsize through a HECM for Purchase or simply help pay for the golden years. As a salesperson, it’s important to understand that your prospects may have applied for a quote after reading only a few bullet points highlighting the benefits of a reverse mortgage, so they probably need a lot more education and a greater comfort level to make them ready to buy. Although I will cover “how to work leads” in another article, today I want to focus on why leads work and how to choose a lead company.