Genworth Acquires Reverse Mortgage Lead Provider’s Websites

Genworth Financial Home Equity Access has acquired the reverse mortgage websites of Premium Reverse Leads, a lead company based in Chicago, IL.

RMD has been aware that the two companies were discussing a deal for quite some time, but it’s clear the acquisition recently closed after seeing the domain ownership was transferred to Genworth late last week.

Premium Reverse Leads was founded by Darrin Nix, who also owned Equitable Reverse, a reverse mortgage lender that he decided to shut down earlier this year.  Nix recently enrolled in the MBA program at the Massachusetts Institute of Technology (MIT), but has been retained as a contractor to help transition the day to day activities.

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As part of the deal, Genworth now owns − ReverseMortgageGuides.org and Reverse.org − two of the most popular websites consumers use to find information about reverse mortgages.  In 2008, Nix said the company was spending $100,000/month on Google Adwords − a significant amount for a small operation − to drive traffic to the sites and Genworth has the resources to continue and even expand their reach.

When contacted about the acquisition, Pete Engelken, President of Genworth’s reverse mortgage division said it will use the sites to “educate more consumers about the reverse mortgage product, as well as generate additional leads for the industry’s key players.”

Much like Reverseit, a division of Urban Financial, the company plans to offer high quality, low cost leads to select wholesale partners starting in 2011.  Expect an official announcement from Genworth early this week.

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  • Marketing is marketing; let us not delude ourselves. Our compensation is based solely on product sold and the value of that product on the secondary market, not the quality or sufficiency of “the education” we provide. That concept gets old.

    No one believes this transaction would have gone down if the websites simply educated and did not provide profitable leads. As Admin states, the website was owned by a lead generation entity, not an educator.

    We are not the University of Phoenix.

      • Kevin,

        Free? Really? That is very doubtful. With my father it is free because he does not use the Internet. Unless you are using the computer down at your library, you are at least spending money on electricity. (Oops even the library costs are paid from local tax revenues.) Oh yeah, there is that computer and the cost of your provider — oops the costs are now adding up….

        You forget about the value of the time you spend also. It is not just dollars spent….

        Let’s see take the dollars in revenue generated subtract the total costs and then divide that difference by the total number of hours you have spent in all on the Internet related to reverse mortgage marketing and reverse mortgages generally and what is the NET income per hour????? Profitable maybe but maybe not as profitable when you consider your own labor.

        Once again just ol’ school speakin’.

    • Kevin,

      I have reported you to THE federal agency overseeing “Internet” fishing matters citing THE federal regulation prohibiting chumming on “Internet waters” for THE dying breed of us still clinging to THE ol’ school marketing philosophy for dear life. Those agents always get Internet chum violators. So be prepared for THE worst, THE very worst. (LOL)

      You probably did not mean 1oo,oook as you wrote but probably $100K. This lead generation company is another model for you to “critic”-ize. You claimed Golden Gate Financial (“GGF”) overspent on Google Adwords. Here is more readily available fodder for your “cannon.” Maybe this is the price one pays for trying to have a significant presence on the portion of the Internet where ad response is highest?

      Ol’ school teaches there is not one right marketing source which will always work – “Don’t sink all your marketing dollars and time into just one source or medium; diversify but concentrate your dollars and time to where they are most effectively spent.” In other words one needs a flexible strategy, not a single medium or source. The experience of the lead generator and GGF speaks to the advice of some gurus who say: “You can never overinvest into Internet marketing.” Those of us from the ol’ school believe we can and these two companies in particular did.

      $1,200,000 per annum could be very reasonable depending on its purpose. They could have even been building a brand or developing a strategy to sell the business at a peak. BUT with less than 80,000 endorsements last year, they spent $15 per lead on Google Adwords for each and every HECM endorsement which occurred last year. That does not include costs for anything else. I am no marketing guru but unless they were capturing over 15% of the leads which resulted in those endorsements, their marketing seems ever so slightly FLAWED, excessive, and overly concentrated but then again that is “ol’ school thunkin’.”

      Kevin, THE ol’ school comes down on the side of Google, not reverse mortgage related companies who excessively market on it because of their undue fascination with Internet and social media marketing tied to the false belief that spending on the Internet will be rewarded, no matter how excessive it may be. Google was the real winner. With such suicidal business dedication to a company (if that is what it really was), is it any wonder Google has survived and excelled where others have failed?

      • At this point, I don’t understand your point. You have no data on my costs, and better yet, zero data as to the income that comes as a result of the low/ no cost marketing that I do online. Keep on guessing and supposing, and I’ll keep on using my time as I see fit. Bottom line – you have NO IDEA what you are talking about when it comes to this topic!!! I have authored a book on the topic, (last year) I’d be glad to send it to you. We do agree on this – just like the gold rush – sure there are a few “miners” making their money online, yet we know for sure that the sellers of the picks and shovels did better that most! (search engines, online marketing companies, and the companies that build the websites) Last question – do you REALLY think that I’d be commenting on my success online if there really were no results to outweigh the time invested? Lastly, YES, my marketing online is only a small piece of the overall plan!!!!

      • Kevin,

        Like many of us you “speak” and write what comes to mind. You also hate criticism. All of us are like you in many ways but most of us admit our “errors” and simply move on.

        I love the way you add the word low to no cost marketing.

        One does not need any data to smell misleading statements for exactly what they are — misleading. Do I really have to go through your checking accounts to know Free ain’t exactly FREE?? It is called sales person’s puff, exaggeration, you name it. But that does not mean there is no value in what is written.

        It is finding the value which always proves most perplexing. Real estate gurus like Mark Haroldsen, David Del Dotto, Carleton Sheets, Larry Pino, Russell Whitney, and Russell Dalbey (just to name a few) have all written books on real estate but there is little gold in the pyrite they sell. Good luck to those who try to find it. I have a few of their vanity but profitable writings.

        Bravo for writing a book. The question is what value is it? Were your words hot air or did they have redeeming value? I have read a dozen books on and about reverse mortgages. My wife sighs every time she sees me with another. Writing a book is no real accomplishment; bringing value in your writing is. I will allow others who are more experienced with what you do (actually peers) to write their evaluations. I am sure it will be enlightening. They could all be commendations and recommendations; we’ll see.

        I hope you had a great Thanksgiving!

  • Mine as your visitor? Anyway I don’t see how anyone hanging out in the comment section can be profitable unless Yedinak is paying you guys 😉
    rmguides has one of the best conversion methods online, I give Darrin props for his sem work.

    • All Reverse,

      Yeah, BIG Bucks. I will split half of my revenue with you net of my expenses. Let’s see zero revenue minus the cost of being on the Internet. Yeah about $8,000 net loss this month. Send the four grand to John and he will get to me.

      Thanks.

  • In excess of 95% of my Reverse Mortgage originations resulted from the internet during the past 6 years. During the first few years, approximately 70% of the consumers were children, assisting their parents. The other 30% were tech savy seniors. The past couple years I’ve been hearing less from the children, and more from the Seniors themselves. With the exception of http://www.PuertoRicoReverseMortgages.com … 95% of the folks who contact me from that website are the children, and most are living in the States.

    I haven’t used “pay per click” in quite a while, so the only cost are the website templates I lease from lenderlab, a little over $300.00 per month. I’d like to try replacing some of them with Kevin’s website offerings, to see if the contact rate would increase, but am kinda afraid of disturbing the existing SEO. And Kevin’s offering costs a bit more too.

    I wish I could design and build my own websites, like Cliff at All Reverse. His SEO is so good, you’ll always find one of their websites on the first page of google for all the important search terms used in our industry. And his landing pages are warm and friendly – I’ll bet he has a terrific conversion rate.

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