Learn how to market your cash flow business
The more educated a note broker is, the more successful they will become in the note business. The key to financial success is to “target” your marketing…
Learn how to “mine” the Professional vs. the Private Market
Marketing is the lifeblood of the cash flow business. Market correctly and you will be successful; do not market properly and you have no business. Marketing can be broken into two components: to whom do you market, and what do you market with. This article will focus on whom you should market to.
There are two primary target markets: these are the individual market and the professional market.
The individual market consists of people, businesses or entities that hold cash flows (payees). The professional market consists of the financial professionals (attorneys, accountants, financial planners, etc.) who advise and represent individual payees.
Would you rather market a note holder with one cash flow or one who has many cash flows? The answer seems simple and obvious, and it is. You would choose the latter.
There is an old and very true marketing principle – your best prospect is an existing client. All successful business people understand and abide by this powerful principle. Most new and intermediate brokers choose to ignore the obvious.
If you want to dramatically increase your cash flow, start marketing to financial professionals such as attorneys, accountants, financial planners, realtors etc. The simple fact is– your individual note-holding clients are seeking the advice of these people anyway. What is the old proverb about “going straight to the horse’s mouth”?
When you market to professionals, there is the possibility of endless transactions. What I am talking about are referrals – repeat, ongoing, non-ending leads, which lead to substantial profits. This strategy accomplishes some other important objectives:
(1) Your marketing costs are slashed by up to 80%,
(2) Your closing ratio increases dramatically,
(3) The whole wrestling match regarding the “discount” usually disappears because the financial adviser has already educated the client, and
(4) You make more money. Sound good?
Financial professionals are easy to find – much easier than finding the individual note holder. There are associations and organizations and most make their membership lists available. I personally like to use the “services directories” available for free at any library and look under “financial services” and/or “legal services”. You can, of course, research them online, too.
When you choose to work with professionals, you need to BE professional. This includes all of your marketing material: letters, flyers, brochures, etc. Getting your foot in the professional’s door is not always easy.
It is important that you set yourself apart and above your competition. Two resources I have used with tremendous success are – Note Owner’s Manual and Note Appraisals.
Note Owner’s Manual – I designed a 30-page booklet that I distribute to the professionals. The Note Owner’s Manual educates them, educates their clients, helps create an urgency to sell and puts you above the competition. It can also become a very lucrative profit center, but that is a topic for another time.
Note Appraisals – I designed a professional note appraisal (NOT a real estate appraisal). The Appraisal approach allows you to get your foot in the financial professional’s door, which is your primary goal.
Note appraising also allows you to be paid even if there is no completed transaction and captures future business. Note appraising is very effective and rather simple– once you know a few simple techniques.
(1) Market where you can receive multiple leads, i.e. professionals;
(2) Make sure your marketing material looks professional;
(3) Go the extra mile; do things that your competition does not-
Appraisals, Note Owners Manuals, etc.