Marketing Reverse Mortgages in the "Age of Authenticity"

Tuesday, 07 April 2009 23:15

Articles - Sales and Marketing

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Late 2008 and early 2009 have delivered a lot bad news, bad press, scams of grand proportion, and as a result consumers are more wary and skeptical than ever. On the other hand we also have seniors who are in desperate need of cash flow because they have lost more than half, if not all of their nest egg.

As sales people and marketers of Reverse Mortgages, we find ourselves in a situation where it’s more important than ever to educate consumers about our products and services, as well as establish credibility and trust along the way. Even more important than establishing our credibility is maintaining our credibility- making sure that every time we close a Reverse Mortgage – it’s for the right reasons, and has “suitability” written all over it.

There’s also never been a more important time to educate the prospect’s family. Sons and daughters are fiercely protective of their parents in times like these, and sometimes fiercely protective of their perceived inheritance (whether that be appropriate or not!).

Recently an email was sent to me about class action lawsuits and Reverse Mortgages. I’m not sure where it came from or who wrote it, but it became very apparent that down the road we will see more of this. This is the reason why it’s a good idea to have a one price policy for all of your HECM customers.  Although some companies allow loan officers to sell higher margin products and receive higher commission, taking the stance that a one price strategy provides fair value for the client, company and loan officer is the right approach. 

The message: “Do the right thing, or start putting those commission checks in your personal “defense fund.”, Brett Carter, Founding Partner NGFS/1st Mariner Bank.

Marketing in the Age of Authenticity - Come Out from Behind the Curtain

The methodology for marketing our products and services in the “Age of Authenticity” has changed dramatically in only a matter of months. For those of you who have yet to enter the Social Media Marketing landscape, the time to get involved is now. I see your competition working hard on their blogs, Twitter posts, Facebook business pages, Squidoo, Scribd, and other accounts that not only increase their visibility on all search engines, but also allow them to educate prospects- and beat the pants off of you in the online marketing space.

Some other important points to keep in mind:

• Online “social media marketing” means personal first, business second. When setting up a Facebook account, a blog or any other means of communication, let people know who you are as a person- your passion for seniors, your reason for being in this line of work. All of that information allows you to then talk about business, and convey a message of trust. No more hiding behind the corporate “we”. On the other hand, we don’t want to know about your messy divorce, or any other personal problems. Keep it all smiles and butterflies and rainbows for the general public.
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• Your “About Us” page on your main website needs to change. Gone are the days of the corporate “we” unless you are Coca Cola or Pepsi. “About Us” needs to be “About You”. Your name, your face, your personal/professional bio needs to be highlighted instead of a picture of your office building.
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• “Contact Us” better mean what it says. If your “Contact Us” page is a “form” that does not give the phone number or email address or mailing address of your office, you are doing yourself and your clients a disservice. There is nothing worse than wanting to talk to someone, only to be faced with an online form to fill out and no direct email or phone number. Don’t hide behind your website.

Laws Change, Products Change, the Only Constant is Change

In the last 6 months we have seen good and not-so-good legislation pass regarding the HECM product. Marketing messages have changes, loan limits and product offerings have all changed more than once. Companies who offer the Reverse Mortgage have entered the space and then disappeared. Loan officers have left the business, or been laid off as a result of the current economic situation. Big local names are exiting stage left. There is no doubt that consumers might be a little confused.

Take this opportunity to be a world-class expert on the subject, offer education offline and online. Get out there and make a difference in your community. Funnel marketing dollars to programs that work to provide solid no obligation information. Show your staying power.

One Bad Apple Spoils if for the Whole Bunch

Finally, in the “Age of Authenticity” all eyes are on this industry. The media thrives on the one case that they can find highlighting a senior and family who feel they have been duped. Don’t be the bad apple that spoils it for the whole bunch. We need to share the hundreds of stories about seniors’ lives who have been changed for the better. Grab those testimonials and blog about them, post them on your website, write press releases about them (with permissions), and share the good stories that the general public needs to hear.

There is a lot of opportunity for all of us in 2009 and beyond, let’s start sharing the message online and offline as much as possible with passion, credibility, and vision.