We all know there is big money being made in the cash flow business today. But many new brokers who fail do not have a well-thought out marketing plan. By contrast, those who know how to stay in front of the right people consistently, have the ability to present themselves as credible, knowledgeable professionals, and offer a high degree of service to the client will more often than not get the lion’s share of the business.
Certainly, every broker needs to have strong basic elements in his/her marketing plan. Letters, flyers, brochures, ads, online posts etc targeted accordingly that say the right things (I can’t stress the importance of this enough) will let people know you buy cash flows. And if you are strong in the basics (and many new brokers are not), you certainly will get your share of business as long as you market consistently.
But it’s the really big earners– those who reach six figures year after year– who have gone beyond a letter, ad, business card, or post in their overall marketing approach and have been able to make a quantum leap to the upper echelon by establishing strong professional relationships with lawyers, accountants, financial planners and real estate professionals who handle people’s financial matters every day. Every single one of these professionals can each refer many noteholder clients to you during the course of a year. Think of all the transactions you could do if you had such a referral system set up and working for you. If you offer client services of a special nature, then it would be even better.
For example, if you can offer professionally-prepared note appraisals for clients, you are not only way ahead of the game (because this can get your foot in the financial professional’s door perhaps better than any other approach), but you also earn professional fees for your services in the process. Additionally, this leads to more brokered transactions for you and your fees are made both on the front end (the fee you charge for the appraisal) and then the back end (your fee for assistance in placing the transaction for funding).
Another service that top-notch brokers always provide is that of educator. That is, they serve as an authoritative source of practical information that noteholders are in great need of, i.e. how to service the payments, keep proper records, what to do if they need to foreclose (this hits a lot of hot buttons), and of course how to go about selling the asset they own for immediate cash. If you want to emulate some of the top earners in the business, make up a “manual” for people who own notes (i.e. “Note Owner’s Manual”) that spells all of these details out (in one form or another) and you stand to see a big difference in your results. Make sure you get these Manuals (or “white papers” or whatever you call them) into the hands of financial professionals who will, in turn, distribute them not only to their clients but also to their colleagues and peers. This is the way your marketing “reach” can snowball in 2012 and effectively transform your financial life.
Yet another way to dispense valuable education to potential clients holding cash flows (that leads to big business) is through the use of a phone “hotline” that they can call into when they see your marketing message. Many people are reluctant to talk to a “live” person before they’re actually ready to do business. If you queue up a professionally-recorded message that helps people learn about their asset and the exact sequence you will take them through in cashing out their note(s) or cash flows when they call the hotline, you have then effectively “warmed up” the client, exuded credibility, educated them accordingly, increased their comfort level with you and also motivated them to call you shortly thereafter to do business. Additionally, many questions about the “discount” have been addressed by the hotline message early on, so the client is thoroughly educated when they call you so you can expect to “get down to business” right away.