[FUNd]

TIP #10

Manage Your Clients

Depending on the set of data you are using, it might take an excellent app chaser 50-75 outbound calls to get an app. It might take an average chaser 150 calls. It might take a poor chaser 400 or more calls. I've seen a guy who averages 3 applications every day with about 80-100 outbound calls (guy is a BEAST). Often times this relentless prospecting can consume your entire day.

Even after you get the application, there's plenty of work to be done. The client needs to get approved, accept their approval, and sign contract documents. At each stage of this process a certain percentage of applicants will fall out; this is what we refer to as a sales funnel.

Without referencing my KPI's, here's some random numbers to look at:

200 calls = 1 app
10 apps = 6 approvals
6 approvals = 3 fundings

Using these metrics you can, to some extent, assume that it will take approximately 666.66 calls per funded deal. Assuming an average call volume of 150 per day, you could fund a deal roughly once per four or five days.

The point I am making is that it is a lot of work to find a funded deal. In fact, prospecting is usually the most time-consuming part of what we do. It takes a long time to find enough funded deals to build a significant residual portfolio.

Most reps, after funding a deal, don't reach out to their merchant ever again... Until it's time to renew. By the time you call them back, they have stacked your loan three times and have two offers currently on the table. They've forgotten who you are, and are just looking for another money-peddler to give them a 4-month 1.45.

It is incredibly important to maintain constant communication with your funded clients. It is much easier, and less time consuming, to retain an existing customer, than it is to make another 666.66 calls and find a new one.

Long story short... stay in front of your people and make sure when they buy again, they buy from YOU.

Nice post Zach.

[AndyYSCISOdept]

Zach, again I find myself very impressed with the daily sales tips you throw our way.

[thefundingdiaries]

TIP #10

Manage Your Clients

Depending on the set of data you are using, it might take an excellent app chaser 50-75 outbound calls to get an app. It might take an average chaser 150 calls. It might take a poor chaser 400 or more calls. I've seen a guy who averages 3 applications every day with about 80-100 outbound calls (guy is a BEAST). Often times this relentless prospecting can consume your entire day.

Even after you get the application, there's plenty of work to be done. The client needs to get approved, accept their approval, and sign contract documents. At each stage of this process a certain percentage of applicants will fall out; this is what we refer to as a sales funnel.

Without referencing my KPI's, here's some random numbers to look at:

200 calls = 1 app
10 apps = 6 approvals
6 approvals = 3 fundings

Using these metrics you can, to some extent, assume that it will take approximately 666.66 calls per funded deal. Assuming an average call volume of 150 per day, you could fund a deal roughly once per four or five days.

The point I am making is that it is a lot of work to find a funded deal. In fact, prospecting is usually the most time-consuming part of what we do. It takes a long time to find enough funded deals to build a significant residual portfolio.

Most reps, after funding a deal, don't reach out to their merchant ever again... Until it's time to renew. By the time you call them back, they have stacked your loan three times and have two offers currently on the table. They've forgotten who you are, and are just looking for another money-peddler to give them a 4-month 1.45.

It is incredibly important to maintain constant communication with your funded clients. It is much easier, and less time consuming, to retain an existing customer, than it is to make another 666.66 calls and find a new one.

Long story short... stay in front of your people and make sure when they buy again, they buy from YOU.

Where did these numbers/estimates come from?

[John Galt]

I love this diatribe. I have to get to merchants getting 20 calls a day from boiler room felons that truly have no idea of what this market is. They are already hanging up on creditors and fast talking sales people who do not explain properly what the industry is (a pay day advance for businesses). I send my clients a bottle of wine and a thank you card, a birthday card and if I am trying to get into their pants; a shoe with the note that I am trying to get my foot in the door.....

[FUNd]

i love this diatribe. I have to get to merchants getting 20 calls a day from boiler room felons that truly have no idea of what this market is. They are already hanging up on creditors and fast talking sales people who do not explain properly what the industry is (a pay day advance for businesses). I send my clients a bottle of wine and a thank you card, a birthday card and if i am trying to get into their pants; a shoe with the note that i am trying to get my foot in the door.....

lmfao, "boiler room felons"... you crack me up dude. You think a bottle of wine or a shoe with a 'trying to get my foot in the door' approach is clever? It's about the most cliche **** I've ever heard. Why does everyone have such an ego? News flash: Millions of people can do what you do. You're not special.

Hard work, dedication, and some luck is what you need.

[John Galt]

Yeah it does, I also have 3 pretty ladies that paper the local businesses and BS; I do very well. Too compete against the boiler room felons and homeless is easy. Too add in term loans for 3- 5 years, get the business real credit with a decent paydex on D&B, too arrange for a net 30- net 90 for payroll, too arrange for real factoring at 3% above prime requires more than the (oh my I'm gonna add an app fee to this account for air) average boiler room sales guy.

[John Galt]

PS: I don't work hard, I work smart.

[John Galt]

and damn.. I just saw the "too" spellcheck mistakes.

[omegafund]

Where did these numbers/estimates come from?

Zach has excellent points and seems to be the most helpful though..
I also question are these inhouse numbers? "Using these metrics you can, to some extent, assume that it will take approximately 666.66 calls per funded deal. Assuming an average call volume of 150 per day, you could fund a deal roughly once per four or five days."
I use to do 500+ calls a day but that was right out of high school selling long distance 20 years ago.

With the right marketing and connections you dont have to make any calls, they call you. Lots of deals we close without even talking with the merchant.


Though I do see this as a need for the big shops with UCC leads, you have to hammer at those to make a return.

[FUNd]

Yeah it does, I also have 3 pretty ladies that paper the local businesses and BS; I do very well. Too compete against the boiler room felons and homeless is easy. Too add in term loans for 3- 5 years, get the business real credit with a decent paydex on D&B, too arrange for a net 30- net 90 for payroll, too arrange for real factoring at 3% above prime requires more than the (oh my I'm gonna add an app fee to this account for air) average boiler room sales guy.

John, stop drinking. No, seriously.

[John Galt]

FunD, are you out of rehab?

[FUNd]

FunD, are you out of rehab?

At least I went. When are you going to?

[FUNd]

PS: I don't work hard, I work smart.

BTW, this one broke my cliche meter. You owe me $29.95.

[John Galt]

Sorry, at my age, they won't admit me- Plus I can't do meds or alcohol.

[FUNd]

Did you say clit meter? I might have missed it since I am so old.....

This was a bit of fun. I like you John. Goodnight sir.

[John Galt]

Good night funD.

[Zach]

https://www.linkedin.com/pulse/sales...?trk=prof-post
https://www.linkedin.com/pulse/daily...?trk=prof-post
https://www.linkedin.com/pulse/daily...mp-reader-card

[Funder Mark]

Imitation is the sincerest form of flattery... Take it as a compliment!!!

[rick_clsfunding]

https://www.linkedin.com/pulse/sales...?trk=prof-post
https://www.linkedin.com/pulse/daily...?trk=prof-post
https://www.linkedin.com/pulse/daily...mp-reader-card

and a team leader at Yellowstone...way to set a good example...

[Zach]

and a team leader at Yellowstone...way to set a good example...

Yellowstone is an awesome company -- I love them and you'll see me sing their praises frequently on this board. I just don't want my work to be taken as someone else's.

[FUNd]

https://www.linkedin.com/pulse/sales...?trk=prof-post
https://www.linkedin.com/pulse/daily...?trk=prof-post
https://www.linkedin.com/pulse/daily...mp-reader-card

Didn't you get most of these from some sales book you read anyway? I mean, these are cool and all, but really fundamental stuff that has been said a million times before. Nothing proprietary here. I'm sure he's not trying to profit from your posts.

[Michael I]

Wow Andy . Don't step on the nicest guy on this forum

[Lenders.Marketing]

https://www.linkedin.com/pulse/sales...?trk=prof-post
https://www.linkedin.com/pulse/daily...?trk=prof-post
https://www.linkedin.com/pulse/daily...mp-reader-card

Yoda would say:

An apology in your future, I see

[Funder Mark]

Wow Andy . Don't step on the nicest guy on this forum

If Zach is the nicest guy on the board, (very likely) who is the least?

[FUNd]

If Zach is the nicest guy on the board, (very likely) who is the least?

I would like to self nominate.