Marketing your cash flow note services does not have to be a big complex project. In fact, many of the most effective methods rely far more on persistence than creativity or strategy. Something as simple as telling people what you do can have a huge impact on your dealflow.
Many cash flow brokers make the mistake of only telling people who can obviously bring them deals. What they fail to recognize is that the grapevine is complex and invisible. You never know who knows whom, and whom they will meet in the future.
Of course, you want to focus as much effort as possible on primary sources of dealflow. But business people outside of your area should not be neglected. If you’re going to be spending time with people, you might as well tell them what you do.
For example, at a recent family potluck, a friend told a woman that he develops software that helped individuals locate funding for commercial properties. She in turn told her husband, a surgeon. He came over to speak with my friend because a group of doctors had formed a company and were interested in purchasing a building and constructing expensive research labs in the space.
He never would have made the link from spouse to doctor to commercial property buyer. By letting them know what he did, he made the association.
Moreover, you can’t look at one referral, like the one above, as just one referral. Over the course of time, this one referral, statistically, will lead to four or five more, and each of those will do the same. Assuming you provide good service, over time the simple act of telling someone what you do will become a gold mine.
This story highlights a second simple but important thing you can do to increase dealflow: don’t tell people what you are; tell them what you do. If you only say, “I’m a note broker,” you have forced them to try to associate a need with your title. You should always tell them what need that title fills, because people think in terms of needs, not titles. You might want to say, “I help people who want to buy or sell property or mortgages.” That’s when the light bulb goes on. They might say, “Hey, I know someone who is trying to sell the building they’re in!” or “You mean I can sell that mortgage I hold?”
What is imperative in this stage of the introduction is that people come away with an understanding of what you do. Take the time to help them understand your work, and you’re sure to earn their respect.
The third part of your message should include your unique selling position (USP). In this statement, you tell them what it is you offer that others don’t. This might be, “I specialize in finding the best prices for notes,” or “I specialize in hard-to-finance properties,” or “I work a lot on quick turnaround situations.”
Your USP should address a problem or need that people are likely to have. Then, when the situation occurs, they’ll remember you.
A critical factor in generating dealflow through simple introductions is that you impress the individual so he or she remembers you. This is a tricky situation because if you spout off your technical knowledge, they’re likely to be bored and feel you have no interest in them. They may even come away feeling you are self-centered and cannot be trusted. In that case, forget referrals.
Instead, ask them about themselves …what they do, who they know, where they’ve lived, etc. During this period of the conversation you can gauge their level of finance sophistication and tailor you explanation of what you do to that level. You’ll be amazed by how impressed someone will be with you just because you listened.
But it makes sense. How often have you heard someone say, “I like him because he listens.” When someone feels comfortable enough to confide in you, a business relationship can easily follow. More than any other reason, people do business with people they are comfortable with.
In summary, something as simple as telling people what you do can have a significant positive effect on your dealflow, if you follow a few simple rules.
When you have time, sit down and design clear statements for the following:
Your Title/Job Type (Cash Flow Note Broker, Note Buyer, etc.)
What it is you do/what note brokers (cash flow brokers, whatever you want to call yourself) do.
What you do that others don’t.
These three sentences, combined with a little diplomacy, can have as much or more effect on dealflow than if you were to squander capital on extravagant marketing campaigns.
