Need a Funder or Vendor? START HERE

Results 1 to 8 of 8
  1. #1
    Banned Reputation points: 306
    Join Date
    Jan 2013
    Location
    New York City
    Posts
    409

    $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.
    Last edited by JayBallentine; 09-26-2013 at 10:53 AM.

  2. #2
    Senior Member Reputation points: 325 Ryan Shiroky's Avatar
    Join Date
    May 2013
    Location
    New York
    Posts
    247

    This is pure genius

  3. #3
    love it Jay!

  4. #4
    Quote Originally Posted by JayBallentine View Post
    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.

  5. #5
    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 View Post
    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.

  6. #6
    Senior Member Reputation points: 18328
    Join Date
    Oct 2013
    Location
    Designer
    Posts
    569

    Quote Originally Posted by CASHCASH View Post
    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.

  7. #7
    Quote Originally Posted by Franklin View Post
    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.

  8. #8
    Senior Member Reputation points: 18328
    Join Date
    Oct 2013
    Location
    Designer
    Posts
    569

    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).

Similar Threads

  1. Commission Question
    By Ditty in forum Merchant Cash Advance
    Replies: 19
    Last Post: 06-07-2013, 11:44 AM
  2. Replies: 1
    Last Post: 05-19-2013, 09:55 AM
  3. California Restaurant Funded $700,000 by Yellowstone Capital
    By CO1 in forum Merchant Cash Advance
    Replies: 16
    Last Post: 04-09-2013, 11:59 AM
  4. Replies: 0
    Last Post: 01-23-2013, 10:45 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

BoA launches business loan marketplace
Quickbooks adds new LOC product
Dext Capital upsizes corp note


DIRECTORY