Tweaking your private lending marketing message and advertising can boost borrower interest by up to 135% for the average investor.
Imagine this, you're walking down the street and notice a small crowd of people staring up at something. I'd bet my bottom dollar that before you know it, you’ll be looking up too. And so will ten more people who pass by.
Why is that?
There’s a very strong factor of influence going on here. It’s called social proof.
And learning to harness the power of social proof is a key method of having potential clients look up to you as their private lending business of choice.
Why Borrowers Look So Strongly Towards Social Proof
Looking towards social proof is part of human nature. We look to others to indicate and validate our opinions and actions and so will potential borrowers. If other people are doing something or liking something, then there must be some value to it. It's how we are wired.
Do you think you’re above being influenced by social proof? Think again. Ever wonder why there are laugh tracks on television comedies? Or why we look at best-seller lists? Or why anyone cares how many “likes” there are on Facebook for anything?
Using social proof for your private lending
Like it or not, social proof is a strong influencer of opinion and action. In fact, in gaining clients for your private lending business, it can be much stronger than other forms of marketing.
Think about this example. A local private lender decides to attract borrowers and grow his firm, we'll call him "Joe Lender". He can put up ads saying - "Borrowing from Joe is the way to go". His website can tell you why he’s honest, fair, fast, trustworthy, and how can get you that loan you need without all the hassles.
You might believe him. You might not. You might say - "Well, anyone can say that".
But if you heard this exact same message from ten people you trust about how Joe Lender is such a great resource to finance your fix and flip, that's different. What if you saw testimonial after testimonial on his website from other people who had great experiences borrowing from Joe? Add to that other people like you who used Joe’s services and were extremely satisfied? Now you’re starting to pay attention. And if you read success story after success story about how J.Lender saved the day for borrower after borrower - well, you’ll be reaching for your phone, and fast.
Is This Manipulative Marketing?
That depends on whether the testimonials, success stories and word of mouth are true. If you’re paying for fake testimonials your are obviously crossing major ethical lines. But if the social proof you are using is genuine, honestly received, and legitimate - you'd be foolish not to use it.
Use those social proof cues and watch your business grow.
Following the cues of people around us is part of being human. We learn from how others around us are behaving, and feel a greater sense of trust when endorsements come from others.
Using social proof is a very effective tool in your business growth arsenal. Word of mouth, online testimonials, endorsements and client success stories are all terrific methods of getting your private lending business known, trusted, and used. When people see others looking up to you for private lending - they’ll look you up for their business too.