Search Engine Optimization Vs. Pay-Per-Click Advertising

Search Engine Optimization Vs. Pay-Per-Click Advertising

The last few years of the housing boom didn't require much marketing and lead generation effort because new home buyers, home refinancers, and home equity loan seekers were abundant. The income generated was immense within the industry and the future seemed perpetually bright. The low interest rates lead to a sea wave of new mortgage business compelling new mortgage entrants to set up shop. However, now the housing landscape has changed 180 degrees. What we see now are:

• Higher interest rates
• Oversupply of new homes
• Growing foreclosure rates
• Foreclosure properties adding to an already saturated housing market
• Reluctant new homebuyers
• Lower refinancing opportunities due to higher interest rates
• Increasing reluctance towards home equity loans by homeowners
• Tightening of mortgage lending practices by lenders
• Increase in consumers seeking to rent rather than buy a home
• Oversaturation of mortgage companies resulting in too many companies chasing the same business

The mortgage industry, in the midst of a transition finds itself at a crossroad. One path leads to going back to traditional forms of customer acquisition and the second path, the correct path, leads to new innovative forms of customer acquisition. More companies are adopting No Cold-Calling policies; consumers are signing up for the Do Not Call Registry and Privacy Op-out Notices for solicitations. Herein, the heydays of traditional lead generation techniques of cold-calling, direct marketing, and knocking on realtors' doors are becoming less profitable in terms of time-money expended and income generated.