You walk into a business, and offer to set them up with some direct mail marketing using EDDM. You add on SMS, plus daily deals so they get cash instantly + opt ins. You sit down and see that in order to get a mailer out it's going to cost about .30 cents a card to you - total. You mark that up to $1 per card because you justify it this way:
- 10,000 people will receive cards; "win free pizza for life."
- 1,000 to 1,500 will opt-in (this projection is based on some research done on Google.
- One person will get a free pizza pie each month for "life."
- 999 to 1,499 people will get a consolation offer; "You didn't win the grand prize, but purchase this coupon for 50% off."
- 99 to 149 people are going to buy (based on Groupon data and other sources.
- The average price of a Groupon is $25, so the busines owner just generated $2,500, and if he does it once per month (one text blast deal), he'll bring in another $30k per year.
Ok, so now that you have justified your price and the business owner is following along and agrees this makes sense ESPECIALLY if they have run a daily deal, how do you get $10,000 out of a guy?
My strategy was to make it easy for them to sign up and apply for an alaternative business loan. It turns out that while everything made sense on paper - folks found it hard to pull the trigger. I had contracts and funding approvals, but couldn't get folks to sign a piece of appear to receive the funds. Getting wired on Monday for $10k, and having me take the entire $10k on Tuesday was a bit much for folks to swallow.
So, I went back on the phone and sold "air." I said to people; "it will cost you nothing to get started, we simply will get paid from your future credit / debit card receivables." Selling that was fantastically easy. The hard part came in actually setting everything up...
Now that you have a $10,000 receivable that you'll get paid on over 6 months, what is it worth if you can't get this guys' mailer done for the $3,000 right now? What are you going to say to the guy; "I am going to collect a few grand from you before I do any work? It's going to take 2 months..." No way in hell anyone buys that.
So, what I did was went out and found a funding company who will operate under the following scenario:
- You go out and close whatever sale you want - direct mail, SEO, etc and get the merchant to sign a document to pay you directly to your bank account - every single day via his future credit / debit card swipes.
- At this point this note has zero value unless you have the upfront cost on hand, so a funding company I am partnered with will purchase the notes.
- You sell them at a discount, passing the risk on to the funding company, let's say you book a $10k sale, they'll give you $6k or $7k to cash out. If your mailers are thirty cents a pop, you are doubling your money - using other people's money.
- The most important thing is that you have now delivered your clients customers on credit, for absolutely nothing down. A ton of marketing, and instant cash - its like magic.
I am pretty pumped up about all of this... However, just because this will be valuable for me to have in ANYTHING I sell, doesn't mean it will be as valuable to you, as it is to me. So, as I contemplate helping Warriors get set up on a program like this, I'd like to know whether or not I am wasting my time? There's a TON of work that goes into tying all of this together to make it all freakishly simple for marketer, business owner, and funding company, and I cannot afford to put in 100 or so hours into this if it's not going to make any of you richer.
Is this something you guys would want / use? Is being able to walk into a business, sell anything you want zero down, and have someone else pay you for your services a game changer for your life and financial situation?
I welcome your thoughts - thanks in advance for your feedback folks!