Originally Posted by
Zach
TIP #11:
Have a well-defined niche
"What do you guys do that's so different?"
"You sound like all the other cash advance brokers I've already spoken to..."
"Yeah, this is one of those daily payment things, isn't it?"
How many times a day do you get one of those comments?
Do you have a list of what makes you unique? Are you ready to spit it out at a moment's notice?
If you can't show that you are unique in some way, why would a merchant work with you, rather than the 100 brokers who have already called them? You think the tone of your voice is the main determining factor behind them choosing you?
Most successful companies dominate a specific market segment before subsequently expanding. For example, successful companies like Pearl and Yellowstone dominated the high-risk space before moving into longer terms and lower rates. By carving yourself a small, defined niche, you are paving your own path for success.
"But Zach, how does this economic armchair theory apply to my SALES CALLS?
Great question. Here's a few ideas to help you get started:
1. Target a specific industry
Learn a specific industry thoroughly. If you understand that most construction companies receive their project payments on net 30, 60, or 90, you can implement that into your pitch:
Mr. Prospect, my fund specifically focuses on the residential construction space. From our experience, many of our clients end up performing work and incurring expenses for 30, 60, or even 90 days while you wait for your receivables. Has waiting for your project draws ever impacted your cashflow?"
Many of my clients in the construction space have trouble waiting for their receivables. Is the reason you can use this infusion of cash because you are waiting for a net 60 or net 90 payment to come in?
These types of comments help differentiate you from the majority of cash advance peddlers who focus on "we'll fund you fast!!!" and "lower rates!!!"
2. Find a unique lead source
It's tough to dominate the UCC and aged lead marketing channels -- creative prospecting is key to success in a space with increased cost-per-acquisition and reduced commission averages. Here's a few creative ones we've tried:
*Go on the department of transportation website and find the recently awarded contracts. Call the companies who won those contracts to congratulate them and introduce yourself as a project financier.
*Call marketing agencies, bookkeepers, and accountants. Explain that you can help their clients who are experiencing cashflow issues and pay them a referral fee.
*Call UCC's and focus your pitch on a loan consolidation program. "It's designed to help you get out of those short-term loans and into something better. Do you think saving 30-50% of your monthly payment would help you to continue growing your business? Would you mind sending over your bank statements and application while I wait on the phone, to make sure I receive it?"
3. Create Face-to-Face Opportunities
Let's face it -- with all other variables held constant, people want to do business with people they like. What's the easiest way to get a merchant, referral partner, or other valuable relationship to trust and like you? I'll tell you one thing: it ain't done over the phone.
To be clear, I never recommend to prospect face-to-face. I simply find it too inefficient to create a large, sustainable pipeline using that archaic method. However, closing deals and setting up important relationships face-to-face is by far the easiest way to ensure success. It's hard to go ghost on someone who has visited your office multiple times.
There's no real system or complicated methodology here. Just go out for lunch or dinner and talk about business. That's it!
Sounds simple... but I bet less than half of the reps in our space do it. This is my personally favorite "niche", because frankly no one else does it.
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