Loan Mod Marketing RoChamBeau Networking Beats Farming Beats Flyers By:Matt Sparks

Recently, a loan modification consultant colleague emailed me, discouraged, because he sent out a flyer advertising for loan mod clients, but he didn't get any responses. He thought maybe his flyer didn't say the right things. I told him the problem wasn't with his flyer. Well, not specifically his flyer as compared with any others. The real problem is that flyers simply don't work very well. That's not to say he won't get some clients here and there from a flyer, but on their own, they're not particularly effective.

Flyers can work as part of an over strategy of farming. Farming is a technique long-used by real estate brokers. This is where you pick a particular neighborhood, and, over time, become the de facto broker for the area. Flyers, door knocking, open houses, local events, local advertising, cold calling, joining local groups, and asking for referrals of neighbors are all used in combination until it gets to the point that when anyone in that neighborhood needs a real estate broker, mortgage broker, whatever, they automatically think of you.

Farming is an effective marketing strategy, but you need to remember two main points. First, that it takes a multifaceted approach, as described above. Second, that it takes a long time to develop a strong network in a particular area, a period of several months to several years even. 99% of unsolicited flyers from unknown sources are 100% ignored.

All that said, professionally designed flyers tend to have a much higher response rate than flyers that aren't professionally designed. I know, I've tried both, and I'm not a designer by training. Also, targeting specific demographics, specific neighborhoods, etc. works a lot better than a shotgun approach.

I believe a better and faster approach is personal networking. Referrals are the name of the game in this business. I've had great, immediate success with all kinds of networking. Networking simply works, especially for loan mods, because people hire people they already know and trust, or, short of that, people that their friends and family know and trust. Lod mod clients are in a vulnerable position. They're scared. Most are about to lose their home. They're less likely to get out the phone book or call on a random flyer. They're more likely to ask their friend, neighbor, or Realtor. That's why loan mod consultants need to get out there and meet as many people as they can.