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08-16-2018, 07:05 PM #1
- Join Date
- Apr 2013
- Posts
- 358
Hitting a Wall -- Tired of the same old. Need better leads, better closings
I've been sticking mostly to UCC's over the last several years but it's no longer a consistent means for funding.
I see a lot of you talking about +$200K deals which are seldom to come by on the generic UCC list.
Are you people calling non-UCC's? ... I have never once funded a business that hadn't already done an MCA. Of the few times that I got those +$200K approvals on non-UCC leads, it was a major waste of time. Dealing with entitled merchants who knew they don't qualify for bank-financing yet arguing on the product.
Where are you guys originating wholly new MCA customers from? SEO was also a huge waste of time for me.
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08-16-2018, 08:04 PM #2
- Join Date
- Jul 2015
- Posts
- 1,202
Go to an industry trade show or two. Learn the nuances and common pain points and cash flow needs of that SIC. Buy data. Call/Email/Mail with a coherent message relentlessly.
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08-17-2018, 05:01 AM #3
I have found social media like the Facebook, Twitter and LinkedIn quite useful at times.
I have had written a piece about "How much Social Media should you use in MCA Lead Generation."
Check it out if you want to.
You will primarily learn about lead generation and the extent to which ISO's are constantly mining data and learning about users online.Last edited by Martinez N; 08-20-2018 at 04:17 AM.
Nadia Martinez | MCA Leads Pro
Business Development Manager | info@mcaleadspro.com
Live Transfers | Realtime Call Back | Aged Leads
www.mcaleadspro.com
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08-17-2018, 05:02 AM #4
This is how we have been using Facebook for generating MCA leads.
https://mcaleadspro.com/generating-m...advance-leads/
I hope the information proved to be useful.Last edited by Martinez N; 08-17-2018 at 03:18 PM.
Nadia Martinez | MCA Leads Pro
Business Development Manager | info@mcaleadspro.com
Live Transfers | Realtime Call Back | Aged Leads
www.mcaleadspro.com
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08-17-2018, 08:17 AM #5
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,485
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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08-17-2018, 09:25 AM #6
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- Apr 2015
- Location
- Louisiana
- Posts
- 299
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08-17-2018, 10:39 AM #7
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
You need to have a good size marketing budget to penetrate the virgin MCA market. I would recommend a combination of mailers and live transfers. To see an example of how to do a mailer correctly, check out Reliant Funding (San Diego). They mail out an actual credit card that can be activated. This is the best type of mailer I've seen.
For live transfers, you need to partner with a call center you can trust and micro-manage. You also should have a sales floor that is made up of fronters and closers for optimal results. I recommend 1 closer to 4-6 fronters. Each fronter should have about 5-10 call center reps feeding him live transfers from a virgin MCA list. The fronter will probably get 3-5 transfers per day. His job is to get apps out, chase paper and bring in subs. The closer will close all deals.
Basically, it's a big sales funnel where the top of the funnel is made up of thousands of outgoing phone calls to virgin businesses. This heavy lifting will be done by your call center and mailers. The bottom of your funnel is where your highly qualified and motivated virgin businesses will pop out of. It's all a big numbers game but there are many companies that use this model very successfully. You just have to be willing to spend a minimum of $20K a month to make it happen and you need to give at least 90 days to build a decent pipeline. You'll lose money for the first few months but you have to trust the process. Continue to tweak and iterate until you see the results you want. The big dogs spend over $100K per month on this exact same model and the ROI justifies it.
You're not going to get virgin MCA businesses by having 2 or 3 reps cold call the phone book or going to a handful of trade shows. Just won't happen. You're not getting enough at bats. Sure you might land 1 or 2 deals a month doing this, but it's not sustainable and won't keep food on the table. Your reps will get easily discouraged and quit.Last edited by MCNetwork; 08-17-2018 at 11:58 AM.
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08-17-2018, 11:47 AM #8
- Join Date
- Jul 2015
- Posts
- 1,202
^^^Very true and honest from Archie. It is all about finding your stride with a diversification of efforts and managing costs (and personalities)
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08-17-2018, 12:37 PM #9
- Join Date
- Apr 2013
- Location
- Basalt CO
- Posts
- 867
I would have to disagree on the snap pack you are referring to. I did this for years, call the activate your card, or a check made out to the merchant. I had an open rate of around 4% a few years back. That number is now under .06% and does not generate enough funds to offset the enormous cost of sending them out. Could be my data, but my data was good at one point.
I put my contact info in here, and
was bombarded with spam from funders
if you need to reach me PM me
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08-17-2018, 12:39 PM #10
- Join Date
- Sep 2012
- Location
- New York, NY
- Posts
- 1,780
Yes the data is key. But the quality of the snap pack and the website it points to should be top notch. And if you have a credit card in the mailer that looks and feels like an AMEX Centurion card, believe me, your open rate will be over 10%. Yes it will cost a lot of money but in this business nowadays, you have to go big or go home lol. Or just keep dialing the same old UCCs that every Tom, Dick and Harry is calling...
Last edited by MCNetwork; 08-17-2018 at 12:42 PM.
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08-17-2018, 02:00 PM #11
- Join Date
- May 2018
- Posts
- 23
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08-17-2018, 02:21 PM #12Karen37aGuest
Technically there are no "mailers"
Data to the dialer to phone person.Dialer to Fronters/ Document gatherers to 1st stage closers to backstage lockdown closer thru pre underwriting to Good Rep at Funder thru underwriting ...Funded ...paid
So ...If I dial 100 uccs I will get 5 -10 yes's, 2-3 days of dialling( 90 day pipeline)...application out, docs in, pre underwrite ...close off to Funder = 1 million a month Funding...then Renewals.. 1 million...add 1 million more ...2 million in renewals ...add 1 million more
Brokers do 1/2 to 1/8th of what you do...want you to close for them and then they yell at you on the daily funder.
the phone calls are not being done correctly and people can't close, sales being backdoored for some if not most people, people are looking for a simple way to close sales...and those are some of the problems. Add Jealousy in...shake and stir ...everyone goes bonkers.
* its was easier to take renewals away from some companies then spend massive money on the first acquisition...and that also causes major fights
(This has to be lead by a Leader, salesperson...or strong character. )
..no one wants to follow a dull disillusioned dang gum cry baby...Art WilliamsLast edited by Karen37a; 08-17-2018 at 02:37 PM.
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08-17-2018, 03:19 PM #13
Please check it now.
Nadia Martinez | MCA Leads Pro
Business Development Manager | info@mcaleadspro.com
Live Transfers | Realtime Call Back | Aged Leads
www.mcaleadspro.com
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08-17-2018, 03:26 PM #14
- Join Date
- Feb 2018
- Posts
- 1,349
$200K+ deals are not the norm. The average funding in this space is around $40K. Sure, some folks may brag about that one time deal, but, it's not the norm. It is true more merchants are carrying balances, espec if you UCC market. In those circumstances your choices are limited to either doing seconds or find a new marketing gameplan. With so much competition, find a niche, and, learn their trade.
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08-17-2018, 03:49 PM #15Karen37aGuest
Its 100% not the norm but each broker has their own Funding Dollar amount Average and sales closed, sales funding ratios vs applications in and defaults.
The stronger you get in sales ...the $$ volume number go UP ( 10k vs 70k) , amount of sales closed ( 3 vs 20)and defaults and non-closed applications Down
Somer brokers have a 10k average and 3 sales closed. Some 30k, some 50k etc
50k is a great average because of the % closed based on gross. Also the industries you like to specialize in e.g Resturants vs Trucking will affect the average.
my personal avg was 50-70k, it is coming down 50k based on tighter underwriting guidelines. Team average is another number.
I have only dialled uccs and 2 cent leads and free since I enter this business with those numbers.
A b c d paper affects the average and your personal ability to break thru the Gatekeeper ...secretary. Most are not getting thru the secretary to get to Gordon Gekko. That is a sales skill and strategy that stockbrokers had to learn or just quit the business. We were dealiing with Accreddited investors only...wealthy.
We had a choice learn how to do this or hit the bricks
hint * Certain Funders will fund a 100k deal with one broker but not with another based on their history...past defaults, renewals etc. Not to mention syndication participation with $$.
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08-17-2018, 04:08 PM #16Karen37aGuest
And that is why I do not post ....New 200k 3rd position, client paid off the first themselves, double their revenue again, 2nd paid off 1st week in sept going to renew in oct for 250k
it pisses people off
** edit. Do not go after big clients " whales" they are a pain in the butt, mean as a snake and you could close Four 50k deals in 24 hours without dealing with the drama. Which is why i moved from venture capital to "mutual funds, loans and insurance". I got tired of them.Last edited by Karen37a; 08-17-2018 at 04:19 PM.
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08-17-2018, 04:21 PM #17
- Join Date
- Sep 2012
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- New York, NY
- Posts
- 1,780
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08-17-2018, 04:29 PM #18
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08-18-2018, 08:29 PM #19
- Join Date
- Apr 2013
- Posts
- 358
Really appreciate this response. I find it's mostly true. These merchants are so entitled, it's no wonder how they got into the position of desperately needing capital in the first place. And even when desperate, they think they can call all the shots. Drives me crazy.
Great advice on this thread.
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08-19-2018, 04:02 AM #20
https://mcaleadspro.com/generating-m...advance-leads/
What about now? Pardon me for that Error 404.Nadia Martinez | MCA Leads Pro
Business Development Manager | info@mcaleadspro.com
Live Transfers | Realtime Call Back | Aged Leads
www.mcaleadspro.com
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08-19-2018, 12:56 PM #21jotucker1983Guest
So I discussed this situation back in 2015:
https://debanked.com/2015/06/the-bro...od-times-over/
https://debanked.com/2015/11/the-ucc-boom-is-over/
What MCANetwork (Archie) listed is actually very good information and it's GREAT to see Archie actually having a more analysis based discussion on the generation of sales, rather than going along the route like he did in prior times, talking about how "just thinking positive or having great sales skills" is all it takes.
It's great to see others are starting to see what I was detailing 3 years ago and it's that success in this industry (like similar Professional Sales industries) is about strategic resources and NOT about some sort of innate, magical, law of attraction, positive faith, Tom Hopkins over come the objections....related sales process.
20% of sales reps make a living and 80% don't, NOT because the 20% have some magical sales ability or "work harder", it's because the 20% have access to strategic resources that the other 80% don't have. This includes but isn't limited to:
- Having large marketing budgets
- Having strategic partnerships to get lead sources flowing in
- Having unique products or underwriting criteria or buy rates
- Having unique advertising positions
- Having unique data that provides good business intelligence on prospects
Recommendation: If your shop doesn't have one or more of the strategic resources I outlined, your best bet is to consolidate your shop with a shop that does, or just become an agent for another company that does. If not, all you are going to do is run through your capital.Last edited by jotucker1983; 08-19-2018 at 01:00 PM.
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08-19-2018, 01:35 PM #22
Quickfunder,
There's many different ways to approach this problem, which is an ongoing problem for most shops.
Why am I getting such small deals in, when it seems like my competitors are closing all the whales? Where do they find them?
The simplest answer I can give you is to simply call on larger merchants. If you are making 100-150 cold calls per day, filter your list by annual revenues over $500K (or even over $1MM) and make your calls to that list. This is the shortest path to finding higher quality merchants.
There is something else to keep in mind -- conversion ratios. If you start calling $5MM+ revenue companies all day every day, your conversion ratios will drop tremendously. This is not necessarily a bad thing; a smaller, yet higher revenue pipeline would give you the free time needed to prospect more often, and each deal could potentially bring in $10K+ revenue for your firm.
Bear in mind you will have to learn new tactics that aren't required for the lower-revenue merchants, such as getting through gatekeepers... Dealing with fierce competition... Going "skinny" to close that $300K deal with only 4 points.
Aim high brother. You can do it. There's no magic. It's just numbers and conversion ratios.Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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08-19-2018, 02:00 PM #23Karen37aGuest
oh for the love of pete lol
I now Hope they pass regulations and each Iso has to be 100k liquid...like they wanted to do
Happy?Last edited by Karen37a; 08-19-2018 at 02:12 PM.
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08-20-2018, 08:25 AM #24Karen37aGuest
I do not know if my Funders tell guys to poke people so that myself and others fund more...or they just do not realize the results of the buffoonery
smh
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08-20-2018, 10:42 AM #25Karen37aGuestSo I discussed this situation back in 2015:
https://debanked.com/2015/06/the-bro...od-times-over/
https://debanked.com/2015/11/the-ucc-boom-is-over/
And now everyone can see where the w/2 WAR ...vs 1099 began
meanwhile, we are all still going posting BIG numbers.
Garbage in Garbage out. Be careful whose advice you take
Summary
Our space is changing and new broker entrants might want to reconsider investing their capital (time, energy, money and mental health) into this venture. Only direct lenders with team members that were pioneers of this space as well as with the right networks and equity sources, are capable of truly seizing The Future. Those just now trying to come in and ride the wave will soon discover that just like with the Stock Market, the real money has already been made and most of the future returns are already capitalized. As a new broker, you more than likely will fall into that dreaded Mom and Pop category, which isn’t a good position to be in for The Future.
___
Wrong... I came in with 2 cent leads refurbished computers and used desks ( not using my resume to gain advantage because no one believed it anyway)
__
You have bled with Wallace , now bleed with me
https://www.youtube.com/watch?v=eclbaC3q94kLast edited by Karen37a; 08-20-2018 at 11:06 AM.
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