Mortgage Marketing Radio – Episode Summary

Lead Generation for Loan Officers: Finding the Right Strategy

Release date: March 12, 2025
Host: Geoff Zimpfer
Guest: Alex (Founder, Leadhackers)

Episode Overview

This episode dives deep into lead generation for mortgage loan officers, comparing traditional referral-based growth against consumer-direct/paid ad strategies. Special guest Alex, founder of Leadhackers, joins host Geoff Zimpfer to unpack when and how paid lead generation makes sense, why most originators fail with lead gen agencies, and how transparency, process, and smarter tools can finally make paid leads work for mortgage pros at any scale.

Key Discussion Points & Insights

1. Understanding Ad Spend and Lead Generation ROI

• Recommended Spend:

  • Alex recommends a minimum of $35/day ($1,000/month) as a baseline for sustainable ad campaigns ([00:03], [25:09]).
  • “If you don’t, it’s probably not worth it. Now we have lead hackers who get away with spending $20 a day, but I wouldn’t recommend it.” – Alex ([00:09], [25:14])

• Lead Gen Agencies: The Math Problem:

  • Agencies often ask for high monthly fees ($2,000–$6,000) on top of ad spend, making ROI hard for most LOs given the long mortgage sales cycle ([01:28], [03:45]).
  • “You’re basically signing up for a race against that monthly retainer… Sometimes it takes 90 days to close a loan, right? So by the time you close your first loan, you’re barely breaking even.” – Alex ([02:21])

2. The Case Against Outsourced Lead Gen Agencies

• Hidden Costs & Diluted Results:
  • Much of your marketing budget goes to agency overhead, not ads, effectively doubling your cost per lead ([02:51], [17:40]).
  • “Automatically you’re paying a 100% markup on the cost of leads at a minimum.” – Alex ([03:22])
• Longevity:
  • Most LOs quit agencies in under six months – due to razor-thin or negative profit.

3. When Paid Lead Gen Makes Sense

• Growth Stages:
  • For new LOs: Start with referral partners and friends/family, not paid leads ([05:12], [05:55]).
  • “You shouldn’t start throwing money into [ads]. You should close some deals first from referrals, maybe Realtor. That’s how I would go.” – Alex ([05:10])
  • Paid ads are for those already consistently closing loans and wanting to scale ([05:55], [08:13]).

4. Reality of Lead Quality (and the Fair Housing Act)

• Why ‘Quality’ Is Overrated:

  • Lead quality is essentially randomized due to Fair Housing Act limitations – you can’t target by income, loan amount, or credit score on major ad platforms ([10:45], [11:31]).
  • “Most of you jump around from lead company to lead company searching for better lead quality that doesn’t exist.” – Alex ([11:56])
  • The real objective: maximize lowest possible cost per new customer; filter for quality after they enter your process ([12:51]).

• Addressing the ‘Long Timeline’ Complaint:

  • Prospects often claim "just looking" or "not ready for 12 months" because of lack of rapport or defensiveness on sales calls ([13:27]).
  • “Prospects lie. You just didn’t build enough rapport on the call.” – Alex ([14:13])
  • Effective follow-up can change their tune ([14:27]).

5. Types of Ads and Funnels That Work

• Beyond DPA Ads:
  • While most companies stick to down payment assistance (“DPA”) ads, Alex’s community finds more success with:
    • HELOC: Direct-to-application using tools like Figure 8 ([15:19], [15:47])
    • DSCR Investor Loans: Investors generate repeat business ([16:11])
  • “Our most successful ads are HELOC… another huge one is DSCR… it’s the gift that keeps on giving.” – Alex ([15:47])

6. Leadhackers’ Model: A New Take on DIY Paid Lead Gen

• No Big Retainers:
  • Flat SaaS pricing of $297/month lets LOs direct more budget to actual ads ([17:40]).
  • “It’s a volume play… if you close one loan, it pays for itself for the whole year.” – Alex ([17:54])
• Prebuilt, Proven Ads & Landers:
  • Launch with 3 clicks; all landing pages, creatives, sequences are preset ([19:58]).
  • “It took me three months to learn Facebook ads. It'll take you three minutes.” – Alex ([20:34])
• Community & Support:
  • 60+ live coaching calls/month, twice-daily Q&As, advanced coaching, and CRM/ad training ([20:40]).
  • “If you have an issue, you can reach us every single day of the week.” – Alex ([21:22])

7. Systems for Lead Nurture and Conversion

• Follow-up Automation:
  • Instant SMS and email follow-up; multi-week nurture campaigns done-for-you ([22:00]).
  • Manual dialing is still crucial:
    • Double Dial: Call twice in a row to break through “Do Not Disturb” ([23:25]).
    • Strategic Dialing: Vary times systematically to find best contact windows ([23:56]).
  • “By process of elimination… your contact success rate should pick up substantially.” – Alex ([24:23])

8. Conversion Rates, Myths & What Actually Matters

• Conversion Rates Vary Wildly:
  • No "universal" conversion rate – depends on experience, sales process, and work ethic ([25:09]).
  • “Why do you think there’s a blanket conversion rate for every loan officer in America?” – Alex ([25:16])
• Outsourcing Appointment Setting Rarely Works:
  • Loan officers themselves are always the strongest at converting their own leads ([26:13]).
  • “Nothing’s going to be better than the broker talking to the lead. People try and outsource it… it doesn’t work.” – Alex ([26:19])

9. Branding vs Lead Gen: What’s Actually Being Sold

• Ads: Generic but varied for compliance and direct-response effectiveness ([27:32]).
  • “When you’re running ads, we’re talking about direct to consumer marketing, not necessarily brand awareness.” – Alex ([27:56])
• Social media/brand awareness is separate (offered as a bonus tool).

10. Notable Success & Execution Stories

• Community Examples:
  • Trevor: $84 million annual volume through tight systems/processes ([28:50]).
  • Others with massive HELOC/DSCR production ([15:47], [16:11]).

11. Sales Team Management: Alex’s Takeaways from Alex Hormozi

• Best Practice:
  • Give the best leads to your top performers, worst to the bottom. “You’re squeezing out every last penny… and inspiring others to reach the top.” – Alex ([31:21])
  • “Who cares if you have turnover on your lower guys? The ones who make it through are battle-tested.” ([32:12])
• Cautions:
  • Avoid “irresistible guarantees” like “12 closed loans or your money back” – misleading and often impossible to legally fulfill ([34:15]).
  • “You can't guarantee results… They put stipulations in the contract so you can never hit that guarantee.” – Alex ([34:22])

12. Quick Fire Final Takeaways

• Awareness & Scaling:
  • “Not enough people know that you exist… need more people to be aware of what you offer.” – Geoff ([34:48])

Notable Quotes & Memorable Moments

• “Most mortgage brokers and loan officers don’t succeed in lead generation because lead generation is fundamentally flawed.” – Alex ([02:51])
• “Paid ads are the only scalable and predictably scalable option… but you should be doing all three [referrals, Realtors, paid leads].” – Alex ([08:13])
• “Prospects lie. You just didn’t build enough rapport on the call.” – Alex ([14:13])
• “The expertise guys is built into the community… we have 60+ live coaching calls a month.” – Alex ([20:43])
• “Nothing's going to be better than the broker talking to the lead... People try and outsource it... it doesn't work.” – Alex ([26:19])
• “Give your best leads to your best loan officers and your worst leads to your worst loan officers.” – Alex ([31:36])
• “You can’t guarantee results. And the people who fall for that, you just have to use some critical thinking.” – Alex ([34:22])
• “Not enough people know that you exist and you need to become more well known.” – Geoff ([34:48])

Timestamps for Key Segments

• Ad Spend Recommendations: [00:03], [25:09]
• Agency Model Breakdown: [01:28]-[03:45]
• Referral vs. Paid Lead Readiness: [05:10]-[08:13]
• Lead Quality Limits & Fair Housing Act: [10:45]-[12:51]
• Effective Ad Types (HELOC/DSCR): [15:19]-[16:56]
• Leadhackers Model & Software: [17:40]-[21:22]
• Lead Conversion (Double Dial/Strategic Dial): [22:00]-[24:23]
• Branding vs DTC Lead Gen: [27:32]-[27:56]
• Lessons in Sales Team Leadership: [31:21]-[34:22]
• Scaling Awareness: [34:48]

Conclusion

This episode offers a candid, practical perspective for loan officers considering paid lead generation—with clear advice on when it’s appropriate, how to avoid common agency pitfalls, and how process, automation, and ongoing learning can make paid advertising a predictable, scalable engine for growth.

For more details and resources, check out the show notes and demo links provided by Leadhackers.