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Evaluation Question Regarding Sale of Business Marketing Tool

by cherrybowl
4 replies
I'm trying to figure out a ballpark evaluation for a marketing tool that can generate the numbers below in the business loan / alternative lending / merchant cash advance industry



* 4500+ Qualified Applications sent, $7,000,000+ funded, in 18 mths (majority in last 12 mths)
* 10% Net profit (around $700,000)
* 1 of 5 apps out, fund, over a few months time, with constant follow ups, which the tool helps you to do as well.
* 1 of 18 apps fund in first 30 days.


Can be scaled to generate leads faster. Can do 5X that lead volume with the touch of a slider.


* Maxes out at about 6000 apps out a month
* Generates inbound live transfer phone calls
* 1 of 5-9 calls are a qualified lead (meeting criteria and looking for product/service, in this case, funding).

Tool has not come close to max capacity

* Cost per qualified lead (business wants funding application to apply) ranges from $1.50 to $30 per qualified app out.
* Average cost of $16 per qualified application out (around $2 - $4 per lead).



Tool is turnkey. You will have leads ringing to your phone within 15 minutes of turning on.
Does require multiple people available to answer the phone.


Would love to hear some opinions. Thanks in advance. .



(made edit on original post because realized some numbers were from a few months ago)
#business #evaluation #marketing #question #sale #tool
  • Profile picture of the author bizgrower
    I think Warrior "The Big Bee" would be the one to talk to.
    He does those type of loans.
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    • Profile picture of the author savidge4
      Looking at what you have written here, I am going to assume its feeding from a social network.

      The issue would then be saturation. It does one thing and does it well... it pulls leads for the financial sector. run this same program from 10 different sources into the same target market space and the effectiveness would be lost.

      The value of your tool, is YOU using it, and hoarding it for yourself. reselling a tool such as this I think would only be riddled with long term hassles.

      As an example I develop back end tools for my business. One of the greatest values my business has is the back end software. If I were to sell that back end to Joe anyone, my competitive edge falls away. The value is in my own use.. and the value of that proprietary solution when selling the business greatly increases.

      I would be more inclined to progressively develop the business incrementally and sell it and the software off after a years time. A rough estimate of your business value at say $500,000 gross ( being 10% of front side gross ) would put you in the 2.5 million area as a starting point. not saying you would get that, but im not saying you wouldn't either.

      17,000 monthly installments at $149 a month, or the whole deal in one shot by selling the business... or better yet.. keep it all for yourself and it sounds like you have a pretty decent automated cash machine.
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  • Profile picture of the author Jason Kanigan
    Second on a talk with TheBigBee. He has a book on Amazon as well.

    Amazon.com: Merchant Cash Advance: for Newbies...Amazon.com: Merchant Cash Advance: for Newbies...

    Though I hear he is into running shoes these days, so you'll have to move fast to catch him
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  • Profile picture of the author MaxwellB
    I also own a brokerage. Sounds like your just using voice broadcasting press 1's to generate calls that are then qualified, the system emails out an app and follows up automatically?

    We do all of our deals face to face. We set face to face appointments for our agents for the exact metric you mentioned, 1 in 18 funded in 30 days we hit 1 in 4. I didn't have the patience to have a sales cycle averaging 2 months.

    I don't know what your question is though. Are you looking to sell this and wondering what you should sell it for?

    People in this industry are idiots so they're going to say "if it's so good why don't you just close all the deals yourself" so selling this tool might be a little hard.

    Your best bet is to partner with a funder or broker and run it for them sharing in a percentage of revenue having their sales team field the calls.

    If it can work with face to face sales let me know we could make a lot of money together.
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