[Zach]

Hey guys,

I thought it would be fun to have a random daily sales tip thread. Anyone can feel free and post here with whatever tips they think are valuable, important, or even just funny.

Here's a few to start:

TIP #1:

Understand your client's needs, rather than just prequalifying and asking for an app. I see so many sales people run through the usual prequal questions:

What is your monthly revenue?
What is your average ledger balance?
What does your credit, roughly, look like?

And, to be sure, these are important questions, but what about the KEY selling questions, like:

After I deposit these funds into your account, how much revenue can you generate with my money?
Why is this loan important for your business?
What will be the long-term impact of this financing for you personally?

These types of questions make the client SELL YOU on why they need the loan. Important stuff.


TIP #2:

When is the best time to get an app? It's right after getting an app. In that moment you are more confident, self-assured, and more likely to have the necessary enthusiasm to entice a merchant to send their documents to you. Instead of running around the office bragging about that $100K deal you brought in, go make more calls! That state of mind is crucial to sales success. "Success breeds success"


TIP #3:

Don't hem and haw!!! No "UHHH" or "MMMMMM" on the phone! You are a sophisticated professional... act like it! If you don't know what to say, remain silent rather than make these strange, nervous noises.


TIP #4:

Record your phone calls! (legally, of course)

Listen to your pitch and take notes on what you did poorly. Also pat yourself on the back for what you did well. Write down key lines that you ad-libbed that worked. Make a list of smart things that you said... then, even if you aren't smart, at least you can sound like it!

[Joe Dough]

Good stuff

[Chambo]

Office Tip # 1 - 100

Join me and my team or Die like my other competitors

Join or Die.jpg

[Lenders.Marketing]

Very cool and helpful thread Zach.

What I hear from our clients works best is simply being genuine.

Take an interest in how their business works. Find out what separates them from their competition. Find out if there are high or low periods like the holidays. Find out what their biggest obstacles are.

Once you truly understand their needs then you can find the financial instrument that will best serve them.

[fundgorilla]

My number one tip, seriously, is to go get an english grammar textbook and memorize the damn thing. Nothing has helped me more in business than being able to communicate clearly and effectively, without resorting to the buzzwords and rhetorical devices that my prospects have already heard twenty times today.

I would take on a room of callers single handedly, and I'm currently outgunning five people with that approach.

[Zach]

My number one tip, seriously, is to go get an english grammar textbook and memorize the damn thing. Nothing has helped me more in business than being able to communicate clearly and effectively, without resorting to the buzzwords and rhetorical devices that my prospects have already heard twenty times today.

I would take on a room of callers single handedly, and I'm currently outgunning five people with that approach.

+1

[Michael I]

zach good post
#4 i will recommend having someone else listen to it so they can critique your pitch on what they hear wrong

[John Galt]

But seriously, shouldn't the people selling financial instruments already have good grammar? For those that don't, they'll get eaten soon enough and spit out. If anything, it's good because the poor schmuck that got 6 calls today and is avoiding his creditors breathes a sigh of relief when he actually gets somebody intelligent. Makes our job easier.

[John Galt]

Should also query BK, NSfs, Collateral, previous default, Liens. I think that's more important than wasting his or my time.

[John Galt]

There's an app called tapecall, free and legal (or sort of legal) fo mart cells.

[John Galt]

smart*

[Zach]

Should also query BK, NSfs, Collateral, previous default, Liens. I think that's more important than wasting his or my time.

Absolutely -- prequalification is incredibly important, and I hope I didn't appear to downplay the value of it. What I meant with my tip #1 was that AFTER the prequal stage (which should be immediate) there needs to be a probing phase that most newer salespeople either skip or don't place much emphasis on.

[FUNd]

Control the conversation. People that reach out are looking for guidance and advice, not just money. Money grows on trees. Take a class, read, learn about the industry you are going after. Know how they get paid and what common industry specific hurdles are.

Don't try and be all things to all people, you can't. Pick a state and an industry, and be the big fish in your pond. When a merchant asks what you do, don't be the guy who says, "We do everything! And we have 500 loan programs!". That's not what people want to hear. The rep who truly understands a merchants business will win the deal every time, even at a higher factor in many cases.

[John Galt]

I like to tell people this is a better deal than Shark tank, where someone invests in the unknown company and even after the principal is paid off, the shark owns a piece of that company forever. It might be extortionate, but it is how angels work as well as JVs. Stock Brokerages/investment bankers do the same...sell some of the the stock so the owners get what they need and the shareholders own their share of the stock forever and it perpetuates to the next stockholder. It is capitalism at it's best and that's how people get the american dream, if they don't have their own funds. I liken the stacking issues to owning many credit cards, though an easy way to go down the drain too.

[KTK]

*Under promise & Over Deliver*

Stop promising these guys grossing $40K a month that you can get him 6 figures just to get the app in (unless he has some heavy RE equity of course, right Zach?) knowing damn well you can't get close.

Be the hero and come in higher than quoted, and keep his respect rather than loosing it to me when I get him on the horn, properly educate him, and retain him for the long haul

[FUNd]

*Under promise & Over Deliver*

Stop promising these guys grossing $40K a month that you can get him 6 figures just to get the app in (unless he has some heavy RE equity of course, right Zach?) knowing damn well you can't get close.

Be the hero and come in higher than quoted, and keep his respect rather than loosing it to me when I get him on the horn, properly educate him, and retain him for the long haul

That would require the rep to actually know the products and the UW guidelines. Many brokerages more worried about number of dials and "talk time", than actually training their reps to qualify a deal properly.

[Zach]

TIP #5

Utilize Tie-Downs

A tie-down, also commonly known as a "yes" question, is a short statement that requests a response from the client. They should be used after every logical point. They keep the customer involved in the presentation and invite them to ask any questions they may have. It prevents you from speaking over the client, rather than speaking with them. It also forces the client to be engaged with you, rather than zone out on their phone or computer while you're speaking.

For example:

This $50,000 loan will help you to purchase the new truck you are looking at, which in turn will allow you to generate the additional $10K of monthly income you mentioned. That is what you are looking for, correct? <---- Tie down

By utilizing tie downs you can keep a customer engaged. This engagement is key to keeping them from getting icy and cold (which happens when you keep TELLING, instead of SELLING). Always ask the customer if what you said makes sense or if it works for them.

Tie downs can also be used as small "trial closes" to gauge interest. Tie downs are indeed a sales tactic, but they have a legitimate purpose. Before anyone says "I don't use sales tactics, I am a true consultant!!!" ..... think about what I am saying here. I am saying to invite the customer back into the conversation. Any true consultant would do that frequently -- tie downs are a simple way to accomplish just that.

Here are several examples of tie downs that can be used on every call:

Would that help?
That makes sense, right?
Fair enough?
Do you see that being beneficial for you?
Is that what you want?
Does this sound like what you're looking for?
If I can secure that for you, would it benefit your business?

[Zach]

TIP #6

Push through initial resistance

Most prospects have a knee-jerk negative reaction to sales pitches. That's why new salespeople get flustered after getting "NOT INTERESTED" for 30 calls in a row.

The business owners we are targeting have learned through social conditioning that if they utilize certain sound-bites it will get them their desired reaction (the salesperson off the phone). It's similar to when a guy goes to talk to a beautiful girl in a public place -- in some cases he is instantly shot down, because she utilizes a sound bite that she, from her experience, knows will make the guy go away. Basic conditioning.

"NOT INTERESTED" before they even hear your offering is one of those sound bites.

The most effective way to push through initial resistance is to do just that: push through it. Don't get argumentative and fight with them. Just make a logical point or emotional connection and proceed like nothing happened.

Here's a few examples you can try to push through initial resistance (the key isn't the WORDS... it's the strategy of PUSHING through in a friendly, professional way):

I understand you get phone calls about financing all the time, Bob. I assure you that we aren't some boiler room trying to get something out of you. In fact, we are trying to introduce ourselves so that way when you DO need financing, we are available for you. Now, if you had an extra $50,000 for your business, what would you allocate that towards that you aren't doing right now?

I get it, Bob. You get bombarded with phone calls every day from all kinds of people making crazy offers. This isn't one of those calls. Now, if you had an additional $60,000 to refinance your current loan and lower your rate or payment, how would that impact your business?

Great, most of my BEST clients weren't interested at first, until they saw the value in what we offered and how we helped them grow their business. Let me ask you, how much money would give YOU that freedom to grow your own business?

Obviously each of these seem totally cheesy; and in fact, they are totally cheesy. That's not the point. The point is that you can say ANYTHING except "OK.... have a nice day then" and you increase your chance of converting that "NOT INTERESTED" into a potentially interested client. Even if you have a 5% chance of converting it, why not do that? Anything is better than accepting the "NO" and having a 0% chance of closing it.

[John Galt]

seconded.....

[ridextreme]

Should also query BK, NSfs, Collateral, previous default, Liens. I think that's more important than wasting his or my time.

I really disagree with this unless you know the guy is desparate then I would ask him if he has a lot of NSF's but I hear reps asking all the wrong questions which are only going to scare him off such as "How's your credit? Any tax liens? Any previous BK's?"

Once they start hearing this they are going to think (especially if he's never done this before) "omg he's asking about my credit I'll never qualify. I'm not going to waste my time filling that thing out".

Just keep is simple "Are you in a BK that has not been discharged yet? Any big tax liens?"

I'm going to find this all out anyway. It's not a waste of my time to send out an app in an email and get in his submission.

*Under promise & Over Deliver*

Stop promising these guys grossing $40K a month that you can get him 6 figures just to get the app in (unless he has some heavy RE equity of course, right Zach?) knowing damn well you can't get close.

Be the hero and come in higher than quoted, and keep his respect rather than loosing it to me when I get him on the horn, properly educate him, and retain him for the long haul

this is another big mistake people are making. If a guy grosses 50K and he's asking for 200K, NEVER EVER tell him "There's no way you will qualify for that". Guess what. He's not going to send the app to you, because he's going to send it to me instead after I tell him "Ok great send me this this and that and I'll submit it for 200K". Then when I call him back to close him on 35K "Your credit score is 565 and you have a few negatives in your bank. they wanted to deny you but I talked them into an approval. I think you should jump on this and try to clean up your bank so next time around we can give you more".

Another big one is listening to the customer. There are so many people in this industry who have giant egos and will cut the customer off and say "You're not gonna qualify for 300K you only gross 100 a month!" while they are taking down to them as if they're the dumb one. Guess what. The salesperson is the only dumb one here.

[aych86]

Find the merchants pain and zero in on it. Keep picking at the scab until he bleeds. Emotion is very powerful. Fear is very powerful. Use a conversational approach when trying to figure out what the merchant needs the cash for. Behind the number are a myriad of challenges, headaches, pain points and most of all DESIRES. If you can attach your product to their emotions, you have a much better chance of closing them when the approval comes back.

[John Galt]

But you're not gonna get the 35k if hes in BK, default etc.....and you wasted your time, his time and the underwriters time because you took an app. And the underwriter thinks, here comes another piece of garbage from this salesman. You don't have to just sell MCAs, listen to the customer...maybe there's something else you can help him with. Credit remediation, factoring, collateralized loans, payroll financing etc.....Know your customer. Why lie to him and tell him, yeah you'll get 200K, educate him. Make him a long term guy instead of a shark tank guy. He's got a low score otherwise he wouldn't be where he is, you can raise his score over the long term and keep him as a client, or be some boiler room salesman that has huge turnover and doesn't understand this is probably not a long term market. This is a business payday advance, they'll always be a market but it will probably be eventually regulated much more. Enjoy the bubble while it lasts. You got what sale?, he's rejected. You think he'll want to do business with you ever again? You lied...or misrepresented or gave him an idea he might get approval, you think he'll trust you? I think the most important question is have you ever defaulted on an MCA? Do you have alot of NSFs? First question after opening, cause they're not going anywhere. There are markets open for BKs and liens but the former is almost impassable. As someone in this market since 85, I still have renewals for years until they got smart, increase their paydex and leave the mafia loans. And for those that say ...hey the MCA market is only 15 years old, I call BS as Transmedia and IGT pioneered this (they didn't call them MCAs) in 85 at 1.50.

[John Galt]

If we don't clean up this market ourselves...a regulator will. I won't go on a rant of the miami boiler rooms etc. because ADMIN will delete (yet again) my posts. But if you want to be here in 5 years, our act has to be cleaned up. This is the same as the mortgage refinance game, the S&L games, Enron, Equity Funding, US Financial and more recently Madoff etc. It will get caught. It always does. While legal now, no one likes us and we will become a target because we use unsophisticated kids to sell,who don't disclose and we use boiler room tactics. Try explaining that to a jury later and see what happens.

[KTK]

MONSTER difference between under promise/over deliver, properly educating, and managing expectations VS. talking down, cutting him off, and verbally assaulting his hard earned business revenue by dismissing his wants because of his qualifications. lol

I do get what your saying tho. However, there are situations for both our cases to win the deal. A true salesman can sense it and execute the proper close ;-)

[John Galt]

seconded.