1 00:00:00.330 --> 00:00:02.940 Oz Konar: All right, today I'm going to answer two questions 2 00:00:02.940 --> 00:00:05.760 that I get quite a bit. And I thought it would be a good idea 3 00:00:05.760 --> 00:00:09.480 to do this through through my YouTube channel. So the first 4 00:00:09.480 --> 00:00:14.070 question, as you can tell from the title is, is there longevity 5 00:00:14.070 --> 00:00:17.190 in this industry merchant, will merchant cash advance industry 6 00:00:17.190 --> 00:00:21.240 be around for a long, long period of time? The second 7 00:00:21.240 --> 00:00:24.990 question is, is this industry saturated? Is it just too 8 00:00:24.990 --> 00:00:28.530 saturated that you key is not even worth going after? And 9 00:00:28.530 --> 00:00:31.590 getting into? So we're going to answer those two questions 10 00:00:31.830 --> 00:00:35.250 today. And I think it's going to help a lot of you guys who are 11 00:00:35.250 --> 00:00:39.450 considering one considering to get into the industry, to who's 12 00:00:39.450 --> 00:00:42.150 already industry maybe and you've been exposed to the wrong 13 00:00:42.180 --> 00:00:47.040 type of information. And three, learn more about how to go about 14 00:00:47.040 --> 00:00:50.400 or like once you have, the thing with the information is, once 15 00:00:50.400 --> 00:00:53.250 you learn, we, once you have access to the right information, 16 00:00:53.340 --> 00:00:55.560 you got to do something with it, right? If you're not doing 17 00:00:55.560 --> 00:00:59.070 anything with that information, then it's useless. So if you're 18 00:00:59.070 --> 00:01:01.110 not going to do anything with this, I suggest you save 19 00:01:01.110 --> 00:01:03.630 yourself the next couple of minutes. And don't go through 20 00:01:03.630 --> 00:01:06.150 this because it's not going to help you. But if you're if you 21 00:01:06.150 --> 00:01:09.300 already made up your mind about taking action and being in this 22 00:01:09.300 --> 00:01:13.110 business, we just have this, these like hanging questions, 23 00:01:13.290 --> 00:01:16.950 whether this industry will be around for another five years, 24 00:01:16.980 --> 00:01:20.490 10 years, 20 years? Or if the industry is too saturated? Are 25 00:01:20.490 --> 00:01:24.000 you getting into a very saturated industry, that you 26 00:01:24.000 --> 00:01:27.390 know your chances of survival success is very low, you're 27 00:01:27.390 --> 00:01:31.590 gonna find that that's a valid concern or not. So well as an 28 00:01:31.590 --> 00:01:35.700 entrepreneur, whenever I deal with a question or something 29 00:01:35.880 --> 00:01:40.290 that's in my mind that I'm looking for a proper response 30 00:01:40.290 --> 00:01:45.840 for, I try to separate it from how I feel about the situation, 31 00:01:45.840 --> 00:01:49.800 I want to look at certain metrics and numbers in order for 32 00:01:49.800 --> 00:01:53.490 me to get the right information. Because as I always say, your 33 00:01:53.490 --> 00:01:56.610 source of information is very, very important. Because if your 34 00:01:56.610 --> 00:02:00.000 source information is a bunch of your friends and buddies who 35 00:02:00.030 --> 00:02:02.820 maybe dabbled in the industry, or maybe they thought about it, 36 00:02:02.820 --> 00:02:06.210 or they heard someone say something, that's not a reliable 37 00:02:06.210 --> 00:02:10.320 information for you to base your conclusion, right? Because when 38 00:02:10.320 --> 00:02:12.510 you have a question in your mind, the way our brain 39 00:02:12.510 --> 00:02:16.530 operates, you ask the question to your brain, your brain is it 40 00:02:16.530 --> 00:02:20.820 looks for ways to get the response back to you. If it has 41 00:02:20.820 --> 00:02:24.150 the answer, it's going to find it and give it to but a lot of 42 00:02:24.150 --> 00:02:27.990 times this whole process works based on how you feel about the 43 00:02:27.990 --> 00:02:32.040 situation. So I want to clear away the feelings from it and 44 00:02:32.040 --> 00:02:37.050 look at the numbers strictly. So let's tackle the first question. 45 00:02:37.680 --> 00:02:40.260 Is there longevity in this industry? Will this industry be 46 00:02:40.260 --> 00:02:45.150 around for a long time? So let's ask this question a different 47 00:02:45.150 --> 00:02:49.800 way. What decides if an industry will be around or not? Right? 48 00:02:49.800 --> 00:02:52.110 That's a different way to look at that question, what 49 00:02:52.110 --> 00:02:56.760 determines the existence of an industry so if I look at 50 00:02:57.450 --> 00:03:02.730 merchant cash advance industry, I always want to look at from a 51 00:03:02.730 --> 00:03:06.330 broader perspective, I want to look at alternative lending in 52 00:03:06.330 --> 00:03:10.710 the chute because Merchant Cash Advance is a product as a one of 53 00:03:10.710 --> 00:03:14.790 the small products, so the entire an alternative lending 54 00:03:14.850 --> 00:03:17.550 space. So we got to look at alternative lending 55 00:03:17.550 --> 00:03:20.820 collectively. So when I look at it, how do we answer this 56 00:03:20.820 --> 00:03:23.760 question? What drives the demand? What drives the 57 00:03:23.760 --> 00:03:27.870 existence of this industry? Well, the answer is demand. 58 00:03:27.960 --> 00:03:31.920 Right? So if there is demand from businesses for alternative 59 00:03:31.920 --> 00:03:36.060 lending products, then this industry will exist until that 60 00:03:36.060 --> 00:03:40.830 demand is still there. If one day that demand disappears, then 61 00:03:40.830 --> 00:03:44.730 there's no need for this for this industry. So now we get 62 00:03:44.730 --> 00:03:49.110 that baseline right. So we know that the currently there is this 63 00:03:49.110 --> 00:03:54.330 industry is around and you know, every single day, a couple of 64 00:03:54.360 --> 00:03:58.530 million dollars in commissions are being generated, millions of 65 00:03:58.530 --> 00:04:01.110 dollars of commission is generated through alternative 66 00:04:01.110 --> 00:04:06.420 lending. That's every single day. And that's that's just 67 00:04:06.450 --> 00:04:09.900 happens through like, these are individuals making that money, a 68 00:04:09.900 --> 00:04:14.820 lot of my members getting deals funded and small companies, big 69 00:04:14.820 --> 00:04:17.490 companies, anyone and alternative alternative lending 70 00:04:17.490 --> 00:04:21.630 industry, people are making millions per day, not per month 71 00:04:21.630 --> 00:04:22.950 or per per year. Right? 72 00:04:23.100 --> 00:04:26.970 So what's driving that is the is the demand from the businesses 73 00:04:26.970 --> 00:04:31.530 who want funding. So for that to disappear, something needs to 74 00:04:31.530 --> 00:04:35.460 happen, right? So the way if you look at this from a scientific 75 00:04:35.490 --> 00:04:38.760 scientific through scientific method, we got to we got to do a 76 00:04:38.760 --> 00:04:41.820 little experimentation and kind of break it down before we build 77 00:04:41.820 --> 00:04:46.350 it up again. So the belief that the some that she might not 78 00:04:46.350 --> 00:04:50.610 exist, comes from the fear the root of fear, right that all 79 00:04:50.610 --> 00:04:54.240 young people people might not need merchant cash advance or 80 00:04:54.240 --> 00:04:58.170 alternative product or lending products. So for that to happen 81 00:04:58.260 --> 00:05:02.940 a major massive shift needs to happen, let's understand who who 82 00:05:02.940 --> 00:05:06.150 gets these products anyways, who's a good candidate for 83 00:05:06.150 --> 00:05:09.030 alternative lending products, including merchant cash advance, 84 00:05:09.210 --> 00:05:12.900 and I'm going to use a little tool here to draw. So that way 85 00:05:12.900 --> 00:05:20.130 we have our more visuals than than just my face. So give me a 86 00:05:20.130 --> 00:05:28.980 second. I'm just gonna share my screen here. There we go. So I'm 87 00:05:28.980 --> 00:05:32.940 using this little tool. Let's answer let's tackle the first 88 00:05:32.940 --> 00:05:35.550 question. First question if the industry will be around in a 89 00:05:35.550 --> 00:05:38.280 long time. So if you want to get into a business, you want to 90 00:05:38.280 --> 00:05:41.160 make sure that that industry will stay as long as you're 91 00:05:41.160 --> 00:05:44.700 around. And you can take advantage of that. And just like 92 00:05:44.700 --> 00:05:47.850 anything, everything has a lifetime, right? So no one can 93 00:05:47.850 --> 00:05:51.690 claim that x industry will be around forever. But if I if 94 00:05:51.690 --> 00:05:54.960 we're as a business responsible business owners, our job is to 95 00:05:54.960 --> 00:05:58.950 predict the near future, what's going to happen. So I'm going to 96 00:05:58.980 --> 00:06:04.080 use a L for alternative lending. And if I use this, who's the 97 00:06:04.080 --> 00:06:09.150 target audience for that target audience is SBA, sorry, small 98 00:06:09.150 --> 00:06:13.170 businesses, right? So most of them is small businesses, who is 99 00:06:13.170 --> 00:06:20.280 small business, small business is 75% of the businesses in us. 100 00:06:20.790 --> 00:06:26.970 So there's this massive market demands funding? And the the 101 00:06:26.970 --> 00:06:30.300 question is, then why why haven't they gotten their 102 00:06:30.300 --> 00:06:33.780 funding through the banks, right? Instead of going through 103 00:06:33.780 --> 00:06:37.950 alternative lending? Why haven't why haven't been getting their 104 00:06:37.950 --> 00:06:40.980 funding through the banks, instead of dealing with a 105 00:06:40.980 --> 00:06:44.730 merchant cash advance brokers or business loan brokers and things 106 00:06:44.730 --> 00:06:47.760 like that, that's the natural inclination, right? If a small 107 00:06:47.760 --> 00:06:52.890 business, your deli down the street needs $30,000, the logic 108 00:06:53.220 --> 00:06:56.370 would dictate that they would go down to their local credit union 109 00:06:56.370 --> 00:06:59.880 or their small bank or their Wells Fargo Bank of America and 110 00:06:59.880 --> 00:07:06.180 ask for these loans. But the problem is 75% of these loan 111 00:07:06.180 --> 00:07:12.180 applications are decline by the banks. And why is that? So 112 00:07:12.180 --> 00:07:15.870 right, so let's drill deeper into this to find out why would 113 00:07:16.290 --> 00:07:21.390 banks in their right mind the client is something to to most 114 00:07:21.390 --> 00:07:25.860 of the businesses out there 70%, only 5% of the US economy is 115 00:07:25.860 --> 00:07:28.860 driven by small businesses, right? So you would think banks 116 00:07:28.860 --> 00:07:32.850 would be pretty stupid to decline these applications. So 117 00:07:32.850 --> 00:07:38.100 only one out of four gets funded. And even with that, that 118 00:07:38.190 --> 00:07:45.030 50% of these funded deals. They're not for the original 119 00:07:45.030 --> 00:07:48.510 amount they asked for. So this business, even though they got 120 00:07:48.510 --> 00:07:52.470 funded, they're not really happy, because it's not in the 121 00:07:52.470 --> 00:07:56.910 amount that they want it. So the problem is, banks, especially 122 00:07:56.910 --> 00:08:00.030 after the recession, that we've been through the bubble that 123 00:08:00.030 --> 00:08:04.020 burst the real estate bubble in 2008. They've been very strict 124 00:08:04.050 --> 00:08:07.920 on their funding. And don't forget that these are publicly 125 00:08:07.920 --> 00:08:12.420 owned companies usually, right? So they have to take very 126 00:08:12.420 --> 00:08:15.750 calculated risks and getting into alternative lending space 127 00:08:15.750 --> 00:08:19.920 for them is a high risk product that can cost them millions and 128 00:08:19.920 --> 00:08:23.610 millions, and if not billions of dollars per day of loss if they 129 00:08:23.610 --> 00:08:27.240 don't do it properly. So what do they do? Well, that the safe 130 00:08:27.960 --> 00:08:32.670 haven for them is pretty much mid size to large size 131 00:08:32.670 --> 00:08:37.110 businesses. So if I can draw L, so a midsize large sized 132 00:08:37.110 --> 00:08:41.790 businesses, and these are usually 50 plus employees, 133 00:08:41.820 --> 00:08:42.360 right? 134 00:08:43.740 --> 00:08:47.785 So these are 50 plus employees, and that's like the sweet spot 135 00:08:47.850 --> 00:08:51.634 for the banks. Why is that because the risk is much lower. 136 00:08:51.699 --> 00:08:55.549 And also these banks, they own a ton of real estate, right? 137 00:08:55.614 --> 00:08:59.529 They're really exposed and each branch, they have employees, 138 00:08:59.594 --> 00:09:03.313 each branch holds 10 plus employees per branch, they have 139 00:09:03.378 --> 00:09:07.293 to have hundreds of branches, they have to have a branch can 140 00:09:07.358 --> 00:09:11.207 pretty much any every town to access their customers almost 141 00:09:11.273 --> 00:09:15.057 right. So they have this many this many employees and real 142 00:09:15.122 --> 00:09:19.167 estate. So for them to excel, it makes a lot more sense to get 143 00:09:19.232 --> 00:09:22.886 into real estate and fund real estate deals. Fund larger 144 00:09:22.951 --> 00:09:26.996 companies, midsize to large size companies, then deal with Mom 145 00:09:27.062 --> 00:09:30.650 and Pop deli bagel store, construction company trucking 146 00:09:30.715 --> 00:09:34.565 company, that's why they pick they've become really, really 147 00:09:34.630 --> 00:09:38.479 strict, especially after 2008 because prior to that they've 148 00:09:38.545 --> 00:09:42.590 been funding real estate deals, quite liberally, and you know, 149 00:09:42.655 --> 00:09:45.983 they lost a lot of money. They've been saved by the 150 00:09:46.048 --> 00:09:49.767 government. They don't want to do the same thing. But the 151 00:09:49.832 --> 00:09:53.681 problem is then the demand does not change just because the 152 00:09:53.747 --> 00:09:57.596 banks cannot provide funding your small business. The small 153 00:09:57.661 --> 00:10:01.641 businesses need for additional 20 3040 50,000 is not going to 154 00:10:01.706 --> 00:10:05.686 change because they still need that money because why because 155 00:10:05.752 --> 00:10:09.536 they need to improve their physical location, they need to 156 00:10:09.601 --> 00:10:13.320 buy a new fridge, they need to make payroll, they need to 157 00:10:13.385 --> 00:10:17.169 invest, they need to buy the next door neighbor and things 158 00:10:17.235 --> 00:10:21.215 like that they need the money. That's why alternative lending 159 00:10:21.280 --> 00:10:25.325 is in such demand. So if we go by the numbers, again, the size 160 00:10:25.390 --> 00:10:29.435 of this industry, again, it's very difficult to put definitive 161 00:10:29.501 --> 00:10:33.611 number together since these are private companies. But based on 162 00:10:33.676 --> 00:10:37.852 if you consider all the products within alternative lending, and 163 00:10:37.917 --> 00:10:41.701 we're talking about more than 12 products, the size of the 164 00:10:41.766 --> 00:10:45.812 industry is 50 to 300 billion with a B. So what does this mean 165 00:10:45.877 --> 00:10:50.053 if that if we compare it against what is being funded currently, 166 00:10:50.118 --> 00:10:53.250 so that means that's less than 1% of the market. 167 00:10:53.250 --> 00:10:56.594 And I challenge you, if you drive down the strip mall, 168 00:10:56.656 --> 00:11:00.434 nearest your home and walk into 20 businesses and ask them if 169 00:11:00.496 --> 00:11:03.840 they know about equipment, leasing, if they know about 170 00:11:03.902 --> 00:11:07.804 merchant cash advance, most of them will have no idea about the 171 00:11:07.866 --> 00:11:11.768 existence of these products. So this kind of allows me to segue 172 00:11:11.829 --> 00:11:15.236 into the second part of the question. First part of the 173 00:11:15.298 --> 00:11:18.766 question, Will this industry survive in the long term? I 174 00:11:18.828 --> 00:11:22.110 think we kind of answered this right. So what kind of 175 00:11:22.172 --> 00:11:25.888 conclusion and we answer this in a scientific manner kind of 176 00:11:25.950 --> 00:11:29.295 breaking down? So what conclusion do we draw draw from 177 00:11:29.357 --> 00:11:33.135 the first first first question? To answer the first question? 178 00:11:33.196 --> 00:11:36.479 Well, if there's this much demand, if the banks whose 179 00:11:36.541 --> 00:11:40.195 primary goal is to supply that the man is not able to do it 180 00:11:40.257 --> 00:11:44.159 with this decline rate, do you think this industry will go away 181 00:11:44.221 --> 00:11:48.122 anywhere anytime soon. Because whenever there is massive demand 182 00:11:48.184 --> 00:11:52.086 for something, and that thing is going to go out and just gonna 183 00:11:52.148 --> 00:11:55.988 disappear, it has to be must be replaced by something else. If 184 00:11:56.050 --> 00:11:59.952 alternative lending or merchant cash advance or other products, 185 00:12:00.014 --> 00:12:03.977 if they if they will disappear, there has to be something that's 186 00:12:04.039 --> 00:12:07.631 going to replace it. Why? Because of the demand. If demand 187 00:12:07.693 --> 00:12:11.471 does not disappear, then there has to be supply of something. 188 00:12:11.533 --> 00:12:15.001 Since we're supplying very little over this right now. I 189 00:12:15.063 --> 00:12:18.903 don't see any way and under any condition, this industry going 190 00:12:18.965 --> 00:12:22.619 disappearing anywhere, right? It's going to be around for a 191 00:12:22.681 --> 00:12:26.459 while. So don't let that be your excuse for not starting this 192 00:12:26.521 --> 00:12:30.361 business. Because that's that's not an investment and does not 193 00:12:30.423 --> 00:12:34.201 even exist, we're not even close to, you know, the, you know, 194 00:12:34.263 --> 00:12:37.979 having this industry disappear tomorrow, or the demand going 195 00:12:38.041 --> 00:12:41.757 low. And you know, the other question is, what if the demand 196 00:12:41.819 --> 00:12:45.411 goes down? Right, right now? Yeah. This is the number four 197 00:12:45.473 --> 00:12:49.251 now. So what if the demand goes down? So let's think about it 198 00:12:49.312 --> 00:12:52.719 for a second, how would the demand go down? So when you 199 00:12:52.781 --> 00:12:56.683 think of small businesses, how would we get in a position, that 200 00:12:56.744 --> 00:13:00.399 small business world that's driving 75% of the economy, all 201 00:13:00.460 --> 00:13:04.362 of a sudden, they're gonna tell us, you know, what we have, you 202 00:13:04.424 --> 00:13:08.202 have all the money we need, we don't have any money problems, 203 00:13:08.264 --> 00:13:11.856 we have access to capital with no problems and things like 204 00:13:11.918 --> 00:13:15.510 that. So that means somehow magically, we're going to have 205 00:13:15.572 --> 00:13:19.102 the entire industry will stop needing money. I don't know 206 00:13:19.164 --> 00:13:23.128 about you, but at least for the next four or five years, I don't 207 00:13:23.190 --> 00:13:26.472 think any economist is predicting that if anything is 208 00:13:26.534 --> 00:13:30.188 the opposite. So if you look at the certain metrics, we're, 209 00:13:30.250 --> 00:13:33.657 we're experiencing over 10 experience we're going to be 210 00:13:33.719 --> 00:13:37.435 experiencing or 10% growth in demand and alternative lending 211 00:13:37.497 --> 00:13:41.151 until 2023, which is four years from now. So every year 10% 212 00:13:41.213 --> 00:13:44.805 growth is a massive amount of growth every single year. So 213 00:13:44.867 --> 00:13:48.459 economists predicting that so I don't think we're going to 214 00:13:48.521 --> 00:13:52.113 reverse that. And all of a sudden, small businesses do not 215 00:13:52.175 --> 00:13:55.891 need money. That's the first way. The second way that demand 216 00:13:55.953 --> 00:13:59.916 would drop is if something else is supplying that demand. So all 217 00:13:59.978 --> 00:14:03.261 of a sudden, banks start offering alternative lending 218 00:14:03.323 --> 00:14:06.915 products and merchant cash advance. And some, for example, 219 00:14:06.977 --> 00:14:10.693 private companies, I'm sorry, the big companies, but they're 220 00:14:10.755 --> 00:14:14.285 not banks like PayPal, they're currently offering working 221 00:14:14.347 --> 00:14:18.311 capital, than some of the banks are kind of getting into it. But 222 00:14:18.373 --> 00:14:22.150 for them to supply this demand and make this a bigger part of 223 00:14:22.212 --> 00:14:25.743 their business is impossible, because of the risk factors 224 00:14:25.805 --> 00:14:29.211 involved and their size. And like, Do you know how much 225 00:14:29.273 --> 00:14:32.741 effort it takes for a Bank of America to implement a new 226 00:14:32.803 --> 00:14:36.581 product, it takes them millions and millions of dollars to do 227 00:14:36.643 --> 00:14:40.173 that, and it takes massive decision making and there's no 228 00:14:40.235 --> 00:14:43.951 way they're going to be able to saturate this market because 229 00:14:44.013 --> 00:14:48.039 they still want a bigger part of their portfolio to be this sweet 230 00:14:48.101 --> 00:14:51.878 spot for them. Half a million dollar PLUS loans posted, sent, 231 00:14:51.940 --> 00:14:55.656 funded. So that's that's the bigger part of their portfolio. 232 00:14:55.718 --> 00:14:59.558 So for that reason, they're not going to even consider that to 233 00:14:59.620 --> 00:15:03.460 be the bulk of their business side. Then we answered the first 234 00:15:03.522 --> 00:15:07.238 part of the question. So let's go through the second part of 235 00:15:07.300 --> 00:15:11.078 the question, which is is this industry saturated? I think we 236 00:15:11.140 --> 00:15:14.918 clear that. But I want to kind of touch on that a little bit. 237 00:15:14.980 --> 00:15:18.819 So while I'm raising this, where does this question come from? 238 00:15:18.881 --> 00:15:22.721 Right, let's, let's get to the bottom of this, like, why would 239 00:15:22.783 --> 00:15:26.190 someone want to know if this industry saturated or not? 240 00:15:26.190 --> 00:15:29.242 One is, they're looking for a reason not to do anything, 241 00:15:29.296 --> 00:15:32.675 right? They maybe they want to get into the business, but they 242 00:15:32.730 --> 00:15:36.109 they're looking for proof to say to themselves, you know what, 243 00:15:36.163 --> 00:15:39.597 man, I would so do this. But the industry is just so saturated. 244 00:15:39.652 --> 00:15:42.595 If the industry wasn't saturated, I would certainly be 245 00:15:42.649 --> 00:15:45.756 doing this and make a ton of money, right? That's just an 246 00:15:45.810 --> 00:15:49.135 excuse. That just doesn't, does not exist. So if it is not an 247 00:15:49.190 --> 00:15:52.514 excuse, it's a valid concern, then that what is it come from? 248 00:15:52.569 --> 00:15:55.730 Right, then we gotta get to answer that question. So if it 249 00:15:55.784 --> 00:15:58.782 is the first one, I don't really, I'm not going to take 250 00:15:58.836 --> 00:16:02.052 time to answer because I don't if someone is looking for an 251 00:16:02.107 --> 00:16:05.595 excuse not to do something, that they're just going to not going 252 00:16:05.649 --> 00:16:09.137 to do it. Right. Simple as that. But if there's a second part, I 253 00:16:09.192 --> 00:16:12.735 want to make sure that I address that. The second question is, is 254 00:16:12.789 --> 00:16:16.223 the industry really saturated? Right? So let me share my screen 255 00:16:16.277 --> 00:16:19.493 so we can get this going. All right. So what is the what is 256 00:16:19.547 --> 00:16:21.510 the source of that? Second question? 257 00:16:21.510 --> 00:16:24.758 Well, it could be maybe you work for a merchant cash advance 258 00:16:24.813 --> 00:16:28.116 company before, or maybe you talk to your buddies who started 259 00:16:28.170 --> 00:16:30.769 merchant cash advance businesses, and you you're 260 00:16:30.823 --> 00:16:33.964 talking to them, and they're saying, oh, boy, man, this is 261 00:16:34.018 --> 00:16:37.321 this industry is like, there's so many people getting in. And 262 00:16:37.375 --> 00:16:40.245 this industry is just so saturated. And when you hear 263 00:16:40.299 --> 00:16:43.765 that feedback, when I challenge you to do is to figure out where 264 00:16:43.819 --> 00:16:47.177 that's coming from, how do they draw that conclusion? Usually, 265 00:16:47.231 --> 00:16:50.101 they draw the conclusion, because they've been on the 266 00:16:50.155 --> 00:16:53.458 phone all day long, they feel miserable about their business, 267 00:16:53.512 --> 00:16:56.869 but they're dialing 300 phone calls, 400 phone calls a day, or 268 00:16:56.923 --> 00:17:00.064 they have a team of people doing that, right. So what that 269 00:17:00.118 --> 00:17:03.367 happens is, when you're calling that many people, you got to 270 00:17:03.421 --> 00:17:06.725 figure out who you're calling. So for that reason, you got to 271 00:17:06.779 --> 00:17:10.190 buy data, right? You got to buy data from a data source to call 272 00:17:10.244 --> 00:17:13.547 these people, where do the data sources get their leads from? 273 00:17:13.602 --> 00:17:16.905 Well, they buy bulk data, and just they chunk it up, and they 274 00:17:16.959 --> 00:17:20.100 sell it to people like your friends who maybe have been in 275 00:17:20.154 --> 00:17:23.349 this industry, and they sell that data over and over again, 276 00:17:23.403 --> 00:17:26.706 because that's their source of income, right? They can't just 277 00:17:26.760 --> 00:17:30.117 keep generating fresh data, a lot of times they got to do with 278 00:17:30.171 --> 00:17:33.312 what they what they have, and they sell that data over and 279 00:17:33.366 --> 00:17:36.345 over and over again to other providers, other ISOs, and 280 00:17:36.399 --> 00:17:39.431 people call on it. So what happens when you buy the same 281 00:17:39.485 --> 00:17:42.951 data and call on the same people over and over again? Well, then 282 00:17:43.005 --> 00:17:45.929 yeah, then you have the wrong perception that there is 283 00:17:45.983 --> 00:17:49.341 saturation. Because don't forget that these are both of people 284 00:17:49.395 --> 00:17:52.590 have been receiving phone calls from 50 other people. So if 285 00:17:52.644 --> 00:17:56.001 you're the next person getting on the phone with them, they're 286 00:17:56.055 --> 00:17:59.196 not going to treat you very nicely as you can imagine. And 287 00:17:59.250 --> 00:18:02.282 that's going to give you the idea, the conclusion, wrong 288 00:18:02.336 --> 00:18:05.044 conclusion that Oh, wow, everyone knows about this 289 00:18:05.098 --> 00:18:08.455 product, like everyone out there is selling it, everyone knows 290 00:18:08.510 --> 00:18:11.488 about it, everyone's not interested that that that also 291 00:18:11.542 --> 00:18:14.737 means that the industry is saturated, right? So look at how 292 00:18:14.791 --> 00:18:18.094 flawed, that process was right? Got your information with the 293 00:18:18.148 --> 00:18:21.289 wrong sources, you draw wrong conclusion by looking at the 294 00:18:21.343 --> 00:18:24.700 wrong sample size. So if you go back to the previous question, 295 00:18:24.755 --> 00:18:27.949 you notice that we're barely funding in 1% of what's what's 296 00:18:28.004 --> 00:18:31.144 being demand. So is there is there even a possibility that 297 00:18:31.198 --> 00:18:34.393 this industry might be even close to getting saturated? No, 298 00:18:34.447 --> 00:18:37.696 not at all. So if you change your perspective, and look, you 299 00:18:37.750 --> 00:18:41.216 know, a lot of people cannot see the forest from the trees right 300 00:18:41.270 --> 00:18:44.573 there. Look at that one like that. Did you read that stare at 301 00:18:44.628 --> 00:18:47.660 one tree. And that's all they are, that's all their data 302 00:18:47.714 --> 00:18:50.584 sources, pretty much. And they're drawing conclusions 303 00:18:50.638 --> 00:18:54.158 based on that. So if you go with actual data, I can tell you that 304 00:18:54.212 --> 00:18:57.623 we're not even close to close to saturation, certain industries 305 00:18:57.678 --> 00:19:01.035 are like that, right? Saturated, you're just getting into that 306 00:19:01.089 --> 00:19:04.230 business requires a lot of hustle in this industry, you're 307 00:19:04.284 --> 00:19:07.641 offering the sexiest product to your customers, which is money 308 00:19:07.695 --> 00:19:10.836 to small businesses, and we're in an environment that they 309 00:19:10.890 --> 00:19:13.977 can't get it, you know, their way of getting it through a 310 00:19:14.031 --> 00:19:16.955 bank. And if the banks are declining them because bank 311 00:19:17.009 --> 00:19:20.204 wants to perfect customer, right? They need to have a great 312 00:19:20.258 --> 00:19:23.236 credit, they need to have collateral, they need to have 313 00:19:23.291 --> 00:19:26.485 assets, they need to be in business for a certain amount of 314 00:19:26.539 --> 00:19:29.951 time, they need to be generating X amount of dollars. Like like 315 00:19:30.005 --> 00:19:33.092 for a small business, if they had all of that go on, they 316 00:19:33.146 --> 00:19:36.395 wouldn't have needed the money. So it's almost like that. So 317 00:19:36.449 --> 00:19:39.590 when you when we're in that environment, saturation is not 318 00:19:39.644 --> 00:19:42.784 your problem. There's because there it just doesn't exist. 319 00:19:42.839 --> 00:19:46.196 Again, just talk to the business owners that you know, if they 320 00:19:46.250 --> 00:19:49.716 know about alternative lending, if they know about the products, 321 00:19:49.770 --> 00:19:53.073 I guarantee you most of them will have no idea. So saturation 322 00:19:53.127 --> 00:19:56.322 does not exist unless you're looking at a very small sample 323 00:19:56.376 --> 00:19:59.517 size. And just assuming that that's what the market is The 324 00:19:59.571 --> 00:20:02.874 market is much different than that. There are many businesses 325 00:20:02.928 --> 00:20:06.069 who would do great things with their business, if they had 326 00:20:06.123 --> 00:20:09.318 access to capital. I mean, we even have funding options for 327 00:20:09.372 --> 00:20:12.188 startups, like someone if someone does not even have 328 00:20:12.242 --> 00:20:15.653 business, but then they need to get the funding they need. And, 329 00:20:15.708 --> 00:20:19.119 you know, to start a business, try to get that from a bank, try 330 00:20:19.173 --> 00:20:22.422 to get a startup loan from a bank and see what happens. It's 331 00:20:22.476 --> 00:20:25.725 almost impossible. Right? How about equipment? If someone is 332 00:20:25.779 --> 00:20:28.812 buying an equipment, why, why why would they not get any 333 00:20:28.866 --> 00:20:30.870 equipment funding for that equipment? 334 00:20:30.870 --> 00:20:34.254 If someone is doing bad credit wise, why would not be able to 335 00:20:34.309 --> 00:20:37.638 offer them something, even for someone with a bad credit? So 336 00:20:37.694 --> 00:20:41.189 there's so many things that you can do. But one thing you don't 337 00:20:41.245 --> 00:20:44.352 want to do is just focus on let's say, the merchant cash 338 00:20:44.407 --> 00:20:47.791 advance product that on and only know about that product? And 339 00:20:47.847 --> 00:20:51.287 only offer that? Why is that a problem? Because then you can't 340 00:20:51.342 --> 00:20:54.949 be a consultant, if all you know is one product? How can you be a 341 00:20:55.004 --> 00:20:58.166 trusted adviser to small businesses, you can because your 342 00:20:58.222 --> 00:21:01.606 favorite one product is just going to a doctor who has a deal 343 00:21:01.662 --> 00:21:04.991 with a pharmaceutical company to offer one drug only. If you 344 00:21:05.046 --> 00:21:08.486 have, you know a headache, you get the same thing. If you have 345 00:21:08.542 --> 00:21:11.538 a stomach problem, you get the same thing. If you need 346 00:21:11.593 --> 00:21:15.033 colonoscopy, you get the same medication, whatever you need to 347 00:21:15.088 --> 00:21:17.918 keep getting the same medication. So how much if we 348 00:21:17.973 --> 00:21:20.803 How long before you start doubting this doctors and 349 00:21:20.858 --> 00:21:23.965 pensions, because someone is playing with your with your 350 00:21:24.021 --> 00:21:27.294 health. Same thing with the businesses, you're playing with 351 00:21:27.350 --> 00:21:30.790 the most important thing, they have their finances. And if all 352 00:21:30.845 --> 00:21:34.230 you have is just one product, which might be a might not be a 353 00:21:34.285 --> 00:21:37.725 good fit for them, you can cause a lot of trouble to them. And 354 00:21:37.780 --> 00:21:41.331 you're not going to be a trusted advisor for that, right. That's 355 00:21:41.387 --> 00:21:44.660 why most people who join my program, they're a good fit for 356 00:21:44.716 --> 00:21:48.100 that, because they don't just think short term interest. They 357 00:21:48.155 --> 00:21:51.373 don't just think, Oh, how much money can I make right away 358 00:21:51.429 --> 00:21:54.702 because as you can see on my channel, there are many people 359 00:21:54.758 --> 00:21:58.364 who start generating results and getting getting deals funded and 360 00:21:58.419 --> 00:22:01.416 making very high levels of commission within the first 361 00:22:01.471 --> 00:22:04.689 month. But in business if you're truly entrepreneurial, of 362 00:22:04.744 --> 00:22:07.796 course, you want to start funding deals first month and 363 00:22:07.851 --> 00:22:11.402 build your business. But you got to also see the long game. What 364 00:22:11.458 --> 00:22:14.676 are you going to be doing with your business? What are you 365 00:22:14.731 --> 00:22:18.282 going to be doing with your with your with your clients, because 366 00:22:18.337 --> 00:22:21.389 the hustle is not the name of the game hustle is only a 367 00:22:21.444 --> 00:22:24.995 temporary experience that you go through until you build up your 368 00:22:25.051 --> 00:22:28.380 business once your businesses built up that you need to have 369 00:22:28.435 --> 00:22:31.598 systems in place to take over you make a Collaborate your 370 00:22:31.653 --> 00:22:34.926 systems into our business and they took take over a certain 371 00:22:34.982 --> 00:22:38.089 percentage of what you do. So business is predictable in 372 00:22:38.144 --> 00:22:41.418 business predictability is the is the differentiator is the 373 00:22:41.473 --> 00:22:44.691 game changer, that you don't want to have a roller coaster 374 00:22:44.747 --> 00:22:48.187 one month you're doing great. Next one you're not doing right, 375 00:22:48.242 --> 00:22:51.404 you're gonna give yourself a heart attack, it's just very 376 00:22:51.460 --> 00:22:55.066 difficult to operate under those conditions are creating a lot of 377 00:22:55.122 --> 00:22:58.562 stress. Yet most people that you probably get your information 378 00:22:58.617 --> 00:23:01.946 from is living that every single day, they just go through a 379 00:23:02.001 --> 00:23:05.386 telemarketing, they hire more people than do their best heavy 380 00:23:05.441 --> 00:23:09.048 hitter hits on them tomorrow and goes working for some some other 381 00:23:09.103 --> 00:23:12.598 company that goes your marketing and sales sales funnel because 382 00:23:12.654 --> 00:23:15.983 that guy takes it with him. And that's that's the end of the 383 00:23:16.038 --> 00:23:19.034 story. And then you start complaining about well, this 384 00:23:19.090 --> 00:23:22.585 industry is just saturated man, people kind of backstab you and 385 00:23:22.641 --> 00:23:25.969 they leave you and things like that, that has pretty much no 386 00:23:26.025 --> 00:23:29.465 basis in the grander scheme of things. So when you look at the 387 00:23:29.520 --> 00:23:32.516 entire business model of alternative lending our whole 388 00:23:32.572 --> 00:23:35.956 industry, it is much bigger, much bigger than you can conquer 389 00:23:36.012 --> 00:23:39.452 through just having people dial the same old list. Plus, we're 390 00:23:39.507 --> 00:23:43.002 not in 90s anymore, like dialing for dollars and just you know, 391 00:23:43.058 --> 00:23:46.442 packing your basement, but you know human bodies, dialing 300 392 00:23:46.498 --> 00:23:50.104 people 400 people a day is going to be only effective, it's going 393 00:23:50.159 --> 00:23:53.377 to only be effective if you combine it with something else 394 00:23:53.433 --> 00:23:56.429 like online marketing, right? Online presence is super 395 00:23:56.484 --> 00:23:59.980 important. So whether you want to build a massive organization, 396 00:24:00.035 --> 00:24:03.586 or whether you want to just work from home and generate a couple 397 00:24:03.642 --> 00:24:06.915 of $1,000 per month, you got to condition yourself to start 398 00:24:06.970 --> 00:24:10.577 thinking like a business, right? That's why I wanted to eliminate 399 00:24:10.632 --> 00:24:13.961 those two questions from your mind. You know, if that's been 400 00:24:14.017 --> 00:24:17.401 stopping you from getting into this business. So because they 401 00:24:17.456 --> 00:24:20.785 don't, they don't exist. So there's no saturation problem in 402 00:24:20.841 --> 00:24:24.447 this industry. And this industry is not going to go away anywhere 403 00:24:24.503 --> 00:24:27.887 as long as small businesses need funding because don't forget 404 00:24:27.942 --> 00:24:31.327 that you're offering the sexiest product on Earth. And either 405 00:24:31.382 --> 00:24:34.822 they need or they don't need it. Like that's why we don't like 406 00:24:34.878 --> 00:24:37.652 the process that I teach the sales process is very 407 00:24:37.707 --> 00:24:40.870 consultative doesn't require hard sale. You don't need to 408 00:24:40.925 --> 00:24:44.254 hard sell someone on why they need money, they need money or 409 00:24:44.310 --> 00:24:47.805 they don't need money as small businesses, they want more funds 410 00:24:47.860 --> 00:24:51.134 or No. If it is no then we're not going to sell them on why 411 00:24:51.189 --> 00:24:54.574 what they would do with more money like it's silly, right? So 412 00:24:54.629 --> 00:24:57.903 that's why it's important to have a consultative process in 413 00:24:57.958 --> 00:25:01.342 place and also have knowledge about different options. So you 414 00:25:01.398 --> 00:25:04.394 can be The true consultant and offer the not only find 415 00:25:04.449 --> 00:25:07.889 diagnosis, but also also offer the medication to alleviate the 416 00:25:07.945 --> 00:25:11.496 pain that they're going through right now. And you can't do that 417 00:25:11.551 --> 00:25:14.935 with just one one medication one product one solution. That's 418 00:25:14.991 --> 00:25:18.375 what is required from being a successful entrepreneur in this 419 00:25:18.431 --> 00:25:21.871 industry. So I hope this answers your questions. I know it's a 420 00:25:21.926 --> 00:25:25.200 little I won't I got into the numbers and things like that. 421 00:25:25.200 --> 00:25:28.576 I hope I didn't confuse you. But comment below if this makes 422 00:25:28.632 --> 00:25:31.783 sense. And also if you haven't done so, we have a lot of 423 00:25:31.839 --> 00:25:35.328 content on our on our YouTube channel, subscribe to my YouTube 424 00:25:35.384 --> 00:25:38.648 channel and I periodically create more content. So you can 425 00:25:38.704 --> 00:25:41.856 you can get notifications. Alright. Great to be with you 426 00:25:41.912 --> 00:25:45.175 guys. Looking forward to your comments and questions. Take 427 00:25:45.232 --> 00:25:46.020 care now. Bye.