Ask the Expert: Should I invest in online marketing to bring in more business?

by 09 Feb 2015
By Dave Hershman

I am thinking about purchasing an expensive marketing system which will enable me to do extensive online marketing and bring in leads from different areas of the country. I am able to do loans in most all states and I believe I can double my income which will more than pay for this system. Does this sound like a good idea?
Carla from Alabama
I can't evaluate or comment on the system since I don't have enough information, but I do have enough information about your business model to say that it is not a good idea. While I don't doubt that you may increase your business this way, there are two major issues you should consider:
  • Top producers get their business from referrals and their referrals come from their sphere. Bringing in cold leads from across the country will not enable you to build referral relationships. Most of the opportunities you have are right under your nose and instead of looking thousands of miles away, open your eyes wider and see the opportunities which are around you.
  • Secondly, cold leads are going to be a lower quality than referrals. They are more likely to be those who are shopping rates harder or have poor credit. Those with a higher credit quality are more likely to have lender relationships to call upon rather than searching the net. Doubling your income does not make sense if you are doing ten times the work getting leads converted and deals closed. I would rather increase my income, again, through high-quality referrals. They will be less expensive to generate, less stressful and lead to an unlimited supply of leads in the future instead of having to start over again each year.
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Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published.   His website is  If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at   



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