Official Sales Tip Of The Day Thread

[Zach]

Hey guys,

I thought it would be fun to have a random daily sales tip thread. Anyone can feel free and post here with whatever tips they think are valuable, important, or even just funny.

Here's a few to start:

TIP #1:

Understand your client's needs, rather than just prequalifying and asking for an app. I see so many sales people run through the usual prequal questions:

What is your monthly revenue?
What is your average ledger balance?
What does your credit, roughly, look like?

And, to be sure, these are important questions, but what about the KEY selling questions, like:

After I deposit these funds into your account, how much revenue can you generate with my money?
Why is this loan important for your business?
What will be the long-term impact of this financing for you personally?

These types of questions make the client SELL YOU on why they need the loan. Important stuff.


TIP #2:

When is the best time to get an app? It's right after getting an app. In that moment you are more confident, self-assured, and more likely to have the necessary enthusiasm to entice a merchant to send their documents to you. Instead of running around the office bragging about that $100K deal you brought in, go make more calls! That state of mind is crucial to sales success. "Success breeds success"


TIP #3:

Don't hem and haw!!! No "UHHH" or "MMMMMM" on the phone! You are a sophisticated professional... act like it! If you don't know what to say, remain silent rather than make these strange, nervous noises.


TIP #4:

Record your phone calls! (legally, of course)

Listen to your pitch and take notes on what you did poorly. Also pat yourself on the back for what you did well. Write down key lines that you ad-libbed that worked. Make a list of smart things that you said... then, even if you aren't smart, at least you can sound like it!

[Zach]

TIP #5

Utilize Tie-Downs

A tie-down, also commonly known as a "yes" question, is a short statement that requests a response from the client. The should be used after every logical point. They keep the customer involved in the presentation and invite them to ask any questions they may have. It prevents you from speaking over the client, rather than speaking with them. It also forces the client to be engaged with you, rather than zone out on their phone or computer while you're speaking.

For example:

This $50,000 loan will help you to purchase the new truck you are looking at, which in turn will allow you to generate the additional $10K of monthly income you mentioned. That is what you are looking for, correct? <---- Tie down

By utilizing tie downs you can keep a customer engaged. This engagement is key to keeping them from getting icy and cold (which happens when you keep TELLING, instead of SELLING). Always ask the customer if what you said makes sense or if it works for them.

Tie downs can also be used as small "trial closes" to gauge interest. Tie downs are indeed a sales tactic, but they have a legitimate purpose. Before anyone says "I don't use sales tactics, I am a true consultant!!!" ..... think about what I am saying here. I am saying to invite the customer back into the conversation. Any true consultant would do that frequently -- tie downs are a simple way to accomplish just that.

Here are several examples of tie downs that can be used on every call:

Would that help?
That makes sense, right?
Fair enough?
Do you see that being beneficial for you?
Is that what you want?
Does this sound like what you're looking for?
If I can secure that for you, would it benefit your business?

[Zach]

TIP #6

Push through initial resistance

Most prospects have a knee-jerk negative reaction to sales pitches. That's why new salespeople get flustered after getting "NOT INTERESTED" for 30 calls in a row.

The business owners we are targeting have learned through social conditioning that if they utilize certain sound-bites it will get them their desired reaction (the salesperson off the phone). It's similar to when a guy goes to talk to a beautiful girl in a public place -- in some cases he is instantly shot down, because she utilizes a sound bite that she, from her experience, knows will make the guy go away. Basic conditioning.

"NOT INTERESTED" before they even hear your offering is one of those sound bites.

The most effective way to push through initial resistance is to do just that: push through it. Don't get argumentative and fight with them. Just make a logical point or emotional connection and proceed like nothing happened.

Here's a few examples you can try to push through initial resistance (the key isn't the WORDS... it's the strategy of PUSHING through in a friendly, professional way):

I understand you get phone calls about financing all the time, Bob. I assure you that we aren't some boiler room trying to get something out of you. In fact, we are trying to introduce ourselves so that way when you DO need financing, we are available for you. Now, if you had an extra $50,000 for your business, what would you allocate that towards that you aren't doing right now?

I get it, Bob. You get bombarded with phone calls every day from all kinds of people making crazy offers. This isn't one of those calls. Now, if you had an additional $60,000 to refinance your current loan and lower your rate or payment, how would that impact your business?

Great, most of my BEST clients weren't interested at first, until they saw the value in what we offered and how we helped them grow their business. Let me ask you, how much money would give YOU that freedom to grow your own business?

Obviously each of these seem totally cheesy; and in fact, they are totally cheesy. That's not the point. The point is that you can say ANYTHING except "OK.... have a nice day then" and you increase your chance of converting that "NOT INTERESTED" into a potentially interested client. Even if you have a 5% chance of converting it, why not do that? Anything is better than accepting the "NO" and having a 0% chance of closing it.

[Triton Financing]

Great stuff!

[Zach]

TIP #9

Self-Esteem

Self-esteem is the single most significant indicator of success in any salesperson. Picture every extremely successful salesperson you know; odds are they are confident and self-assured.

Self-esteem inversely impacts a rep's fear of failure; this prevents "call reluctance".

Self-esteem reduces the fear of rejection; this allows the confident salesperson to ask for the sale, stay strong in the face of a barrage of "NO's", and not be scared to deliver high rates when necessary.

I understand that this tip seems a bit "new-agey" or hokey... but I assure you it is grounded in proper psychology. Self esteem is the gateway to success for salespeople. It effects the their tone of voice, how professional they sound, and how secure they are with their product. It allows them to answer tough questions without hemming and hawing.

Here are a few things you can do to boost the self-esteem of your reps:

1. Buy company gym passes and encourage them to work out (in a legal, non-HR issue kind of way)
2. Require reps to dress in professional attire (ties rather than just collared shirts)
3. Have a sales library and allow reps to check out books
4. Have your reps write out daily affirmations and repeat them out loud once per day at a designated time (super cheesy, but works)
5. Have your reps speak at a louder volume
6. Set realistic daily/weekly goals with small rewards (whoever gets the most apps today gets a $50 gift card to starbucks)
7. Role play and rehearse sales pitches daily or weekly
8. Give them sales training CD's to listen to in their car
9. Have daily or weekly product training so they understand what they are selling

I'm not saying you have to go out and do all of these things... but everything you do that increases the self-esteem of your reps is going to result in a more effective, confident sales force. It will help them improve every area of their lives, which will have a compounding effect on their sales ability.

[Zach]

TIP #8

Continuations Vs. Advances

At the end of two separate calls, you hear:

"Wow that's great! I really can use some money for my business. Why don't you call me on Tuesday so we can talk about it?"

"Okay, what do I need to do? Can you email me over the application? I'll try to get it to you by the end of the day."

What's the difference between these two statements? Is one objectively better than the other?

In fact, one of them is a continuation, whereas the other one is an advance.

A continuation is where the client makes no specific action to move the deal forward. They usually end up leaving you exactly where you started. Typical continuations include:

"I'm a bit busy, can you call me later?"
"Why don't you call me later and we can go over the application together"
"Let me talk to my partner and you can call me back later"

Nothing has progressed. A continuation is typically defined by the customer making positive noises so you FEEL like there is progress, but there is no action taken to advance the sale. A continuation is, in most cases, a polite way of getting you off the phone. A continuation is an unsuccessful call.


An advance is where the client moves the deal forward in some way (Signing an application, agreement on terms, returning a signed contract, a verbal commitment to send documents in). An advance is a successful call.

The reason why it's important to distinguish between the two becomes apparent when you see a new rep, beaming with excitement, saying something like:

"Zach!!! My client just told me he needs $250K!!! He told me to call him next week and talk about it."
"The client said he had an issue with the contract but that he would talk with his wife and call me back"
"This guy said if I call him next Monday he will send the app over!"

Now, none of these situations are terrible... but they are not an unmistakable commitment to push the deal forward, and therefore, are not worth getting excited over. Hell, they aren't even worth thinking about.

One of the key things to teach your new sales people is the difference between continuations and advances. This way they understand and learn how to push the sale forward, rather than getting caught up in a cycle of endless callbacks that lead nowhere.

[Zach]

TIP #10

Manage Your Clients

Depending on the set of data you are using, it might take an excellent app chaser 50-75 outbound calls to get an app. It might take an average chaser 150 calls. It might take a poor chaser 400 or more calls. I've seen a guy who averages 3 applications every day with about 80-100 outbound calls (guy is a BEAST). Often times this relentless prospecting can consume your entire day.

Even after you get the application, there's plenty of work to be done. The client needs to get approved, accept their approval, and sign contract documents. At each stage of this process a certain percentage of applicants will fall out; this is what we refer to as a sales funnel.

Without referencing my KPI's, here's some random numbers to look at:

200 calls = 1 app
10 apps = 6 approvals
6 approvals = 3 fundings

Using these metrics you can, to some extent, assume that it will take approximately 666.66 calls per funded deal. Assuming an average call volume of 150 per day, you could fund a deal roughly once per four or five days.

The point I am making is that it is a lot of work to find a funded deal. In fact, prospecting is usually the most time-consuming part of what we do. It takes a long time to find enough funded deals to build a significant residual portfolio.

Most reps, after funding a deal, don't reach out to their merchant ever again... Until it's time to renew. By the time you call them back, they have stacked your loan three times and have two offers currently on the table. They've forgotten who you are, and are just looking for another money-peddler to give them a 4-month 1.45.

It is incredibly important to maintain constant communication with your funded clients. It is much easier, and less time consuming, to retain an existing customer, than it is to make another 666.66 calls and find a new one.

Long story short... stay in front of your people and make sure when they buy again, they buy from YOU.

[seanquinnn]

Official Sales Tip Of The Day Thread

You're awesome. As usual.

[fredshatz]

If you are plain cold calling off of a targeted list how many calls do you need to make to get a potential merchant who wants money? Are you better off calling ucc lists or just cold calling? If you are new to the business what is the best way to build your business? Anyone have a good script?

Thanks.

Fred Shatzoff
fredshatz@gail.com

[Zach]

TIP #11:

Have a well-defined niche

"What do you guys do that's so different?"
"You sound like all the other cash advance brokers I've already spoken to..."
"Yeah, this is one of those daily payment things, isn't it?"

How many times a day do you get one of those comments?

Do you have a list of what makes you unique? Are you ready to spit it out at a moment's notice?

If you can't show that you are unique in some way, why would a merchant work with you, rather than the 100 brokers who have already called them? You think the tone of your voice is the main determining factor behind them choosing you?

Most successful companies dominate a specific market segment before subsequently expanding. For example, successful companies like Pearl and Yellowstone dominated the high-risk space before moving into longer terms and lower rates. By carving yourself a small, defined niche, you are paving your own path for success.

"But Zach, how does this economic armchair theory apply to my SALES CALLS?

Great question. Here's a few ideas to help you get started:


1. Target a specific industry

Learn a specific industry thoroughly. If you understand that most construction companies receive their project payments on net 30, 60, or 90, you can implement that into your pitch:

Mr. Prospect, my fund specifically focuses on the residential construction space. From our experience, many of our clients end up performing work and incurring expenses for 30, 60, or even 90 days while you wait for your receivables. Has waiting for your project draws ever impacted your cashflow?"

Many of my clients in the construction space have trouble waiting for their receivables. Is the reason you can use this infusion of cash because you are waiting for a net 60 or net 90 payment to come in?

These types of comments help differentiate you from the majority of cash advance peddlers who focus on "we'll fund you fast!!!" and "lower rates!!!"


2. Find a unique lead source

It's tough to dominate the UCC and aged lead marketing channels -- creative prospecting is key to success in a space with increased cost-per-acquisition and reduced commission averages. Here's a few creative ones we've tried:

*Go on the department of transportation website and find the recently awarded contracts. Call the companies who won those contracts to congratulate them and introduce yourself as a project financier.

*Call marketing agencies, bookkeepers, and accountants. Explain that you can help their clients who are experiencing cashflow issues and pay them a referral fee.

*Call UCC's and focus your pitch on a loan consolidation program. "It's designed to help you get out of those short-term loans and into something better. Do you think saving 30-50% of your monthly payment would help you to continue growing your business? Would you mind sending over your bank statements and application while I wait on the phone, to make sure I receive it?"


3. Create Face-to-Face Opportunities

Let's face it -- with all other variables held constant, people want to do business with people they like. What's the easiest way to get a merchant, referral partner, or other valuable relationship to trust and like you? I'll tell you one thing: it ain't done over the phone.

To be clear, I never recommend to prospect face-to-face. I simply find it too inefficient to create a large, sustainable pipeline using that archaic method. However, closing deals and setting up important relationships face-to-face is by far the easiest way to ensure success. It's hard to go ghost on someone who has visited your office multiple times.

There's no real system or complicated methodology here. Just go out for lunch or dinner and talk about business. That's it!

Sounds simple... but I bet less than half of the reps in our space do it. This is my personally favorite "niche", because frankly no one else does it.