Mortgage Daily

Published On: February 3, 2006
How to Improve Internet Lead Conversions

Steve Kropper discusses when to contact leads

February 3, 2006


photo of Paula Parisot
Paula Parisot
Internet leads require a warm-up period before conversion rates improve, according to a mortgage industry sales and marketing consultant who says lenders should do some “incubation,” including phone and email campaigns.

Steven Kropper recently told listeners at Executive Podcast that the industry has found its way back to purchase lending. He advised lenders to abandon direct mail marketing and focus on warming up Web leads.

“Forget direct mail,” said Kropper, a Mortgage Bankers Association Loan Production Committee member. “You are going to end up spending about five thousand bucks per closed loan … You can’t go out there and buy a list of people who are in the business to buy a house, unless you are scraping the MLS and there are some regulatory problems there.”

Lead providers like Eleadz and have stated conversion rates ranging from two to eight percent, as reported on Kropper said these single digit conversion rates have left a gap that can be filled with a few “incubation” techniques.

To address the value gap of Internet and traditional leads, Kropper said, lenders should utilize email campaigns and “occasional touch by phone” to warm up the Web leads. Otherwise, Kropper warned, lenders run the risk of burning out their loan officers or mortgage brokers by giving them weak leads.

In a phone interview with, Kropper, a technology developer and teacher for MBA’s School of Mortgage Banking, said when prospects typically hit Web sites, they aren’t ready to buy and it might be too early to contact them. What lenders should do is develop the processes to stay engaged with the prospect.

“You could email them with something truly of value,” he told, “so when they are ready it will remind them of your brand.”

“Incubate them and find a way to figure out when they move into the buy zone,” he advised. “Contact them before they are ready — and it’s not as effective.”

However, he added, to follow-up aggressively.

Paula Parisot is a feature reporter and a blogger at who has also worked in the mortgage industry.

e-mail Paula at: [email protected]

Tools for Your Next Big Decision.

Amortization Calculator

Affordability Calculator

Mortgage Calculator

Refinance Calculator

FHA Mortgage Calculator

VA Mortgage Calculator

Real Estate Calculator


Pre-Approval Resources!

Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…

Resource Center

Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.

Your mortgages approval starts here.

Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.

Stay Up To Date with Today’s Latest Rates


Today’s rates starting at


5/1 ARM
$200,000 LOAN

Home Refinance

Today’s rates starting at


$200,000 LOAN

Home Equity

Today’s rates starting at


$200,000 LOAN


Today’s rates starting at


$200,000 LOAN