This article suggests an approach to tele-marketing with note sellers. The most important goal of telemarketing is not buying the note, but getting the note seller to send you the appropriate documents. Telemarketing is the most under used and under rated note finding technique in the discounted note business.
The problem is: What do you say to a potential note seller when you get them on the phone?
The chances for rejection are astronomical, and your tolerance for that rejection will determine your success. This is a game of numbers and the more phone calls you make the more success you will have. If you have the telephone numbers of one thousand note holders, a good list of note buyers and the skill and perseverance to tele-market you are on your way to huge profits. The structure of a successful telemarketing campaign has four phases according to most writers and telemarketing professionals. These are:
- The Opener
- The Description
- The Close
- The Confirmation
The opener means developing credibility with the note holder. This must be done within the first minute. There are many books and ideas on how to develop credibility and they will reward your research. There has been a lot written in the area of “interpersonal attraction theory“. We like people who are like ourselves. Opposites do not attract. So the first thing in telemarketing is to demonstrate that we are like the party with whom we are speaking on the phone, the odds are very good that the person will “like us back“, and we’ll be rewarded with a possible note to purchase.
There is evidence to show that people can tell with 90% accuracy whether we are smiling and whether we have a positive or negative attitude toward them, simply by listening to our voices! Much can be written about how to make the opening very effective.
- You can mail people things. (We have a special report on how to profit on your note, would you be interested in a free copy?)
- You have sent them something already. (We sent you a special report on how to profit from your note. Do you have any questions?)
- The Market Study Approach (We are conducting a market study on note holders, do you mind if I ask you a few questions?)
- The Urgency Approach: (We are buying notes this week only for a special price. Is there any reason you would not be interested?)
- The New Idea Approach: (We have new and interesting way to buy notes that can give you extra cash and you can still keep the note. Is there any reason you wouldn’t be interested?)
An about effective opener depends on your credibility, your manner and your approach.
The second step in your note presentation is to describe what you can do for the note holder. I have found that it pays to mention only two to four benefits. Note holders have short attention spans and tend to be impatient. They will allow you move to the close based on the importance of a few benefits. This is where your active listening skills combine with your ability to communicate the advantages of selling their note to you. If you can determine what the note seller’s needs are, you can craft an offer that will meet those needs.
- “Mr. Note Seller, if we could give you $48,000 now and you would receive the next 84 payments as well is there any reason you wouldn’t be interested in letting us evaluate your note?“
- “We can fund the note quickly, give you best price and service the note for you. Is there any reason you wouldn’t be interested in knowing more?“
A good description is concise and directly meets the needs of the note seller, based on your evaluation of why he needs the cash.
Although this is the most important part of the tele-marketing session it is much easier to close a note telemarketing session than to sell someone a product. The close in a note transaction is getting the note seller to commit to bringing you the documents. This is not the time to have him sign a contract or commit to any money transaction. It is sufficient to have them agree to locate the original note, closing statement and mortgage or trust deed and to meet with you or mail or fax them to you.
Any good sales technique book will describe the many types of “closes“ sales people use. Three seem to be very effective over the phone, according to Dr. Gary Goodman in his book: You Can Sell Anything By Telephone! (Simon and Schuster, New York, 1987); they are:
- The Assumptive Close: You assume agreement, you put your self in control of the conversation so it is relatively difficult for the note holder to say “no“. You might say, “What we will do, Mr. NoteHolder is set up a meeting so we can evaluate the note you wish to sell. We can give you your money in three weeks.“ Notice you didn’t ask if he would sell the note; you assumed it. Unless he says “I do not want to sell,“ you can continue to get him to commit to finding the documents and send them to you or meet with you.
- The Check Back Close: If you find the Assumptive Close too aggressive you can soften it by checking back the note seller to assure him that you are proceeding based upon genuine desire. This is not difficult to do. You can say: “So I’ll drop by your house tomorrow at 4 PM to pick up the documents. Is that okay?“ The word “okay“ is a very persuasive word because the note seller is conditioned to respond positively when they hear it and they can decline if they want to.
- The Choice Close: This is the most common type of close and is very effective. What it does is offer the prospect the choice between one thing or another and in being asked to opt for something, it is unlikely that the note seller will walk away from the conversation with nothing. The choice close is very useful in setting appointments by telephone. You can say: “My schedule shows that a good time for me to meet with you would be on Tuesday morning between nine and ten, or will Wednesday be better for you?“ It becomes difficult for the prospect to decline an appointment at some time because we have phrased the request in the manner of a choice. If we had asked if we could come by at all, this would make it easy for the prospect to decline altogether.
Remember the point of the telemarketing program is not to buy the note, but to get the documents. We have found that if a note seller will go to the trouble of finding the documents on his note we can close the sale about 2/3 of the time.
When the note seller agrees to meet with you it is important to confirm the wisdom of his decision and his understanding of what you expect. You should:
- Repeat that you will him on Wednesday at 7 PM at his house to look over the loan documents.
- Congratulate him on a wise decision.
- Clarify what you will do and what you expect of him.
- Allow him to ask questions.
- See if you can gauge how likely he is to find the papers and follow through on the meeting.
- End the conversation on a positive note.
“Fine, Mr. NoteSeller, we’ll meet at 7 PM on Wednesday at your house. You will have a copy of the note, deed of trust and closing statement for me to review. Once again, we work with national companies. We can get you your money in less than three weeks and you can still retain the payments for the next two years. Are they any questions you would like to ask me? Great, I want to thank you for your time and your patience. I will let you get back to Monday Night Football and I will see you on Wednesday.“
If you have a scripted idea of what you want from each phone call you will have a much better chance of getting the results you want. If you have some knowledge of how to make people like you and can develop rapport with the seller and you will be closer to doing a deal.