Originally Posted by
jotucker1983
Having a different product mix is great, but the fact remains that if you are being hung up on the moment you mention that you are from a lending company, when do you get the chance to pitch the other products? This is a fact with calling UCC records today, the strategy is dead.
Furthermore, as I stated prior, the P2P product with the long terms/low rates, are not for the typical MCA clients. The typical MCA clients are not going to be approved for those types of deals in large percentages like they are for the MCA, just due to the higher criterion in place for said products. Reps pushing the P2P loan should be targeting "bank" clients.
This is still random cold-calling, which in my opinion does not work for our business in terms of longevity. Matter of fact, in my opinion, random cold-calling does not work for any professional sales position. It's lazy, it's unprofessional, it has no real business plan behind it and you can't forecast new sales from the activity.
What the guy ought to do, is some research to look for potential prospects in situations that they could possibly utilize financing. That's called secondary market research. Once a guy "creates" that list, then do the calling. That's called "warm-calling", which does work.
I think that's a part of it, but I don't think that's the "whole" of it.
This business is all about "strategic systems". It's about designing a strategic system that continually produces "leads" of merchants who are in situations to utilize alternative working capital. And that "strategic system" is based on having exclusive data you call on (warm-calling), exclusive referrals, strategic networks/partnerships, and/or large marketing budgets.
Being a good salesman has absolutely nothing to do with it. We are match-makers.
We talk to a lead about their working capital situation and we set their expectation of pricing and approval, such as I should be able to get you $35k at a 1.20 over 7 months. If the merchant says that will work, we take an app and send said merchant to one of our network of funders who based on their lending standards, should be able to approve the deal at the estimated quote provided. Once approved, we spend the rest of our week chasing paperwork to complete whatever stage we are in the underwriting/closing process.
The honest reality is that 70% (or more) of the new brokers coming into our space would be better suited working the drive thru at Burger King. I'm 100% serious, they will make more money there than using the very bad strategy of randomly cold-calling out of a phone book to any SIC.
Nobody really sits these people down to actually teach them how to build a strategic system of lead production, which is the foundation of our business.
- Cold calling random SICs does not produce that strategic system.
- Reading Zig Ziggler books on sales does not produce that strategic system.
- Beating your chest with positive affirmations does not produce that strategic system.
You build the system from having strategic networks to get exclusive referrals, doing research on prospective listings to create exclusive data to call on, and/or you get a large credit line from the bank or you partner with Peter Thiel so you can spend $100,000 a month in marketing.
That's the business.
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