Calculate the return on investment for your mortgage lead generation
Your lead generation is profitable. Consider scaling up your spend.
LendLinker delivers real-time notifications when potential borrowers post in Facebook groups. Higher intent leads at a fraction of the cost.
Book a DemoA good ROI for mortgage lead generation is typically 3:1 to 5:1 (300-500%), meaning for every $1 spent, you earn $3-$5 in commission. Top performers often achieve 10:1 or higher. An ROI below 2:1 may indicate you need to improve conversion rates or find better lead sources.
Mortgage lead costs vary widely by source and quality. Purchased leads range from $20-$100+, while organic leads (referrals, social media) can be nearly free. The key metric is cost per closed loan, which should be under 10-15% of your commission to maintain healthy margins.
Mortgage lead conversion rates vary by source: purchased internet leads convert at 1-3%, referrals at 25-50%, and warm leads from social media at 5-15%. Industry average across all sources is around 2-5%. Improving follow-up speed and process can significantly increase conversion.
Key strategies include: 1) Focus on higher-quality lead sources with better conversion rates, 2) Improve your speed-to-lead (contact within 5 minutes), 3) Develop a systematic follow-up process, 4) Track and analyze which sources perform best, 5) Cut underperforming channels and reinvest in winners.
Yes, your time has value. If you spend 10 hours per month on lead follow-up and value your time at $100/hour, that's a $1,000 cost. Including time cost gives a more accurate picture of true profitability and helps you decide whether to scale, automate, or try different lead sources.