You might be surprised to learn that most note holders receive few to NO mailings or solicitations from brokers after the first couple of months (after they create the note). That’s because most new brokers are extremely lousy at follow up, so here is a huge opportunity for you to take your competition to the cleaners. Most note holders are flooded with solicitations to sell during the first month when they create the note but then they receive few to no follow ups from those same brokers after that. So, all of those brokers are missing out on a lot of business (and don’t even know it) because they’re not clued in to the fact that MOST note sellers respond after MORE THAN ONE MAILING. Therefore, a good strategy is to send your first marketing message out AFTER the initial “flood” has gone down (usually after the first month) and then follow up accordingly. Since your competition has effectively done the initial work for you by “warming up” the prospect and “planting the idea” in his/her mind of selling their note, you can now swoop in during the critical time period where the note holder typically responds. Trust me, I’ve been at this for twenty years and THE BULK of my closed note transactions come after more than one mailing and AFTER the initial flood of solicitations. At that time, you’re going to have very little competition, and follow up is KEY. Do it well and you’ll make money consistently.
More info on direct mailing note holders
The first mailing or marketing message should serve mainly as an ‘introduction’ (because they don’t know you yet, may not have given full consideration to selling their note yet, may not know how to go about it, what to expect, may even feel intimidated by the process, etc.) and then the recognition and trust factor kicks into play with subsequent follow-up messages. A note holder is FAR more likely to contact you after he/she has seen 1,2 or more of your mailings because the initial mailings mainly serve to plant the ‘seed” (i.e. by getting the noteholder thinking about selling their note, letting them know that the CAN sell their note for cash, etc) and then the follow-up messages build upon the initial one.
Your follow-ups should maintain a consistent “look” visually (with your logo and contact info prominently displayed up top) so that the note holder begins to recognize you and “warm” to your message. This serves to ingrain your “brand” and message in the prospect’s mind. You should also know that EDUCATING the note holder is a big key to success because an educated note holder is MUCH more likely to sell. Most of our closed transactions come from one-timers who have never taken back a note before at any time during their lives, so they desperately need guidance. We give it to them by “taking them by the hand” and explaining, in simple, understandable terms, just how easy the entire process of selling their note really can be– inviting them to call for a ‘no obligation consultation’, walking them through the entire process, etc. In short, a high level of integrity, credibility and professionalism will help you to stand head and shoulders above your competition, and you’ll close a ton more transactions as a result.
(And that should come as no surprise, as this holds true for ANY business– not just the note business).
The bulk of your competition, you’ll find, falls way short in the above areas. And newbies who are ‘dabbling” in the note business are constantly trying to enter the marketplace but most of them really have no idea how to market this business. Oftentimes, they’ll send out one “I buy notes” message with no follow-ups (bad). And then they wonder why they get few or no calls. Meanwhile, YOU can be raking it in through consistent follow up, building a systematized approach to closing new note transactions month after month.
The takeaway here is that FOLLOW UP IS KEY. Keep following up month after month, keep closing transactions, be like a factory, keep the production line moving, keep your mailing costs down, keep your message short but effective, keep building credibility and trust.
I’ve been saying this for years: On any given business day, I’m closing business with people who have seen SEVERAL of my messages OVER A PERIOD OF TIME. And this keeps building upon itself, going on and on into perpetuity. You’re going to be doing a whole lot more business the longer you’ve been marketing. Don’t ever stop, and consider farming out or automating your marketing when you grow your business to a certain point, so that you can concentrate on closing the daily deals while keeping the pipeline full of pending deals at all times.
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