One of the main problems note brokers experience is convincing note owners to take a discount and sell now. Many note buyers have told me “no matter how hard I try I can’t persuade note sellers of the time value of money, etc.” I will confess that I was never very good at convincing unmotivated note sellers, either. To be successful in any selling endeavor, you must create urgency. Once you learn how to create urgency, your profitability will take a dramatic turn for the better.
One of the most successful marketing resources which will help you SUPERCHARGE your note business is something called a Note Owner’s Manual. I got this idea at one of the note conventions. It took a lot of time and energy to implement this idea, but it was very worthwhile.
I am talking about an owner’s manual for people who own notes. It is similar to the owner’s manual you get with a car, appliance,
etc. What struck me about this idea is that people do not throw away owner’s manuals (and if online they bookmark them), and it is an authoritative written source. The written word is a powerful tool.
My Note Owner’s Manual, like any other owner’s manual, is a primer on what note owners need to know about the asset they own. The Note Owner’s Manual is easy to read and to understand. Scattered throughout the Manual are highlighted areas called helpful hints. These helpful hints work like magic in doing the one thing that is essential if you want to make money in this business, and that is create urgency.
One of many helpful hints deals with insurance. The Note Owner’s Manual discusses in detail the importance for the note owner to be covered by insurance. This hits a lot of hot buttons. It is amazing how many calls you get from folks who were blasé and uninterested about selling their note. Now there is an urgency, at least to get more information. ‘Why do I need insurance’, they want to know, ‘didn’t my attorney take care of this’, etc.? I have made the following statement to many note holders (and I mean it,) “do not go to bed tonight until you know you are adequately covered by insurance”. I have even helped place insurance binders for note owners. But the important thing is you never would have had the conversation about this unless they read about it in the Note Owner’s Manual.
It is almost impossible to create urgency in an owner who is naïve and uninformed, who thinks the only thing they have to worry about is depositing the payment. It is easier to deal with an informed seller. One who has some understanding about the need for insurance, record keeping, legal issues, inspection of the collateral, etc. (of course, these topics are all covered in The
Note Owner’s Manual).
If the potential note seller is informed and still wants to keep their note, that’s fine. But you will soon discover that many hard core ‘I won’t take a discount’ types become much easier to deal with.
My original goal in using the Note Owner’s Manual was for the long term marketing benefits. I never anticipated the short term
immediate results that this resource generated. I have actually had note owners call in a panic seeking more information about various topics covered in the Note Owner’s Manual. Talk about creating urgency- wow!
There are many additional benefits you get when you use this powerful resource. Getting potential note sellers to remember you
is critical if you desire long term success. The Note Owner’s Manual works as good as or better than any marketing tool in
achieving this goal. My marketing motto is “give them something they will keep” (See previous posts). All your marketing efforts
are wasted if the note seller does not have your name and contact info when it comes time for them to sell. Because note owners as a rule keep these manuals for ready reference, you have achieved a major marketing goal. Even better, people will actually pay for your Note Owner’s Manuals. If they paid you for it, they will almost certainly keep it. See what my Note Owner’s Manual looks like and, if you’re interested, how you can use it just the way I use it: