$15k Funded for a total $36k Commission

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09-26-2013, 10:33 AM
JayBallentine

$15k Funded for a total $36k Commission

In our "soft launch" yesterday, we came across a gentleman with whom we made a very specific pitch / offer.

Our offer was not for money - we offered him customers and a very specific plan to acquire these customers.

We're going to help him acquire customers through a direct response marketing program that I conceived at a total cost of $50k to the merchant.

It costs us about $15k to actually deliver the the plan. An MCA company will fund that portion of the deal. The balance is $35k is pure profit.

The balance of $35k will be captured "MCA style" through daily debits made to his account.

I'll own the customers I generate for the particular business owner until he is paid in full. His fear of losing customers SHOULD prevent him from doing anything dumb to back out.

If he defaults, I'll sell his customers to a competitor.

We intended for our average sale to be $10k, but this guy is in a "everyone uses this service" type of business so it was easy to upsell to $50k.

Just wanted to share with you all what is possible when you think outside the box. Selling customers and using an MCA as a means should be lucrative for us, and can be for you too.

EDIT: He is also currently in an advance with a premium funder who has been aggressively soliciting his renewal. He declined because based on the renewal amount, he had no idea how to leverage that for a profit... Until we showed him.
10-04-2013, 12:12 PM
Ryan Shiroky

This is pure genius
10-04-2013, 12:18 PM
isaacdstern

love it Jay!
07-29-2014, 04:36 PM
Project Starter

Quote:

Originally Posted by JayBallentine

In our "soft launch" yesterday, we came across a gentleman with whom we made a very specific pitch / offer.

Our offer was not for money - we offered him customers and a very specific plan to acquire these customers.

We're going to help him acquire customers through a direct response marketing program that I conceived at a total cost of $50k to the merchant.

It costs us about $15k to actually deliver the the plan. An MCA company will fund that portion of the deal. The balance is $35k is pure profit.

The balance of $35k will be captured "MCA style" through daily debits made to his account.

I'll own the customers I generate for the particular business owner until he is paid in full. His fear of losing customers SHOULD prevent him from doing anything dumb to back out.

If he defaults, I'll sell his customers to a competitor.

We intended for our average sale to be $10k, but this guy is in a "everyone uses this service" type of business so it was easy to upsell to $50k.

Just wanted to share with you all what is possible when you think outside the box. Selling customers and using an MCA as a means should be lucrative for us, and can be for you too.

EDIT: He is also currently in an advance with a premium funder who has been aggressively soliciting his renewal. He declined because based on the renewal amount, he had no idea how to leverage that for a profit... Until we showed him.

Thanks for sharing. What a great post. Thank you.
07-30-2014, 10:29 AM
CASHCASH

Definitely a unique idea, like it a lot. Unless I'm misunderstanding though, in order for you to be able to hold his customers in limbo so to speak (in case it does default and you have to carry out the action of selling the customers to a competitor), do they have to go through you to get to him? The only reason I ask is because that would probably take a bit of manpower which isn't free, and I assume would take away from that profit. Unless that is factored into the $15k cost of the program? Cool idea though!

Quote:

Originally Posted by JayBallentine

In our "soft launch" yesterday, we came across a gentleman with whom we made a very specific pitch / offer.

Our offer was not for money - we offered him customers and a very specific plan to acquire these customers.

We're going to help him acquire customers through a direct response marketing program that I conceived at a total cost of $50k to the merchant.

It costs us about $15k to actually deliver the the plan. An MCA company will fund that portion of the deal. The balance is $35k is pure profit.

The balance of $35k will be captured "MCA style" through daily debits made to his account.

I'll own the customers I generate for the particular business owner until he is paid in full. His fear of losing customers SHOULD prevent him from doing anything dumb to back out.

If he defaults, I'll sell his customers to a competitor.

We intended for our average sale to be $10k, but this guy is in a "everyone uses this service" type of business so it was easy to upsell to $50k.

Just wanted to share with you all what is possible when you think outside the box. Selling customers and using an MCA as a means should be lucrative for us, and can be for you too.

EDIT: He is also currently in an advance with a premium funder who has been aggressively soliciting his renewal. He declined because based on the renewal amount, he had no idea how to leverage that for a profit... Until we showed him.
07-30-2014, 12:49 PM
Franklin

Quote:

Originally Posted by CASHCASH

Definitely a unique idea, like it a lot. Unless I'm misunderstanding though, in order for you to be able to hold his customers in limbo so to speak (in case it does default and you have to carry out the action of selling the customers to a competitor), do they have to go through you to get to him? The only reason I ask is because that would probably take a bit of manpower which isn't free, and I assume would take away from that profit. Unless that is factored into the $15k cost of the program? Cool idea though!

The business wouldn't lose the customers, just have to deal with more targeted competition as his "book" is sold to a competitor.
May or may not bother him depending on the type of sale and the quality and price of his service/products.
07-30-2014, 02:29 PM
CASHCASH

Quote:

Originally Posted by Franklin

The business wouldn't lose the customers, just have to deal with more targeted competition as his "book" is sold to a competitor.
May or may not bother him depending on the type of sale and the quality and price of his service/products.

I realize this, but regardless of that the new prospects still have to be monitored by Jay somehow. Otherwise it is an empty threat to say the book would be sold to a competitor.
07-30-2014, 09:33 PM
Franklin

Yes all the customers are stored typically in some online database or hub. If they call in for instance, another second number is used that redirects to the client's number. Calls that come in through that number are recorded, with a copy of each recording usually sent to email automatically. All phone numbers from customers can be exported as an Excel csv file and distributed however you want.

Same thing if a customer fills out a form online. All those inbound calls and form entries are captured and held online, accessible at any time, although some places have a limit to how long data is stored on their servers (unless you pay extra).