My original discussion was gong to be a year end review of the factoring business, but as we all know it is better to look forward than to look back. So let’s approach this from the prospective of setting up your business for next year.
What makes a successful sales effort?
The most obvious answer is closing lots of transactions.
How do we make that happen?
What will make 2013 a successful year for your factoring business?
One of my most sought-after articles (actually it was a lecture a few years ago) is the one I call the “sales funnel.” As a special year end bonus, I give this to our readers.
What is the sales funnel?
It is an approach to sales that the single largest insurance sales person used at Mass Mutual. This individual year after year led the production figures in product sales for over 15 years, ultimately becoming a regional manager. The process is a simple point system that you develop for accomplishing certain tasks. By using your own results, you can build your point system so that by consistently earning a set amount of points you begin to get consistent and predictable sales results.
First we reverse engineer our past results or research industry statistics to determine; how many leads become a qualified lead, how may qualified leads become a prospect and how many prospects are converted into clients.
Factoring Sales Funnel Definitions:
Lead: Essentially it is a person’s name, business name, email address, mailing address or some other identifying factor that can provide you with the ability to contact someone that may have some possibility of becoming a client.
Qualified Lead: Contact has been made with a lead from which you can determine that the lead can or does use the service/product you have to offer.
Prospect: A qualified lead that has filled out an application for your service/product.
Client: The prospect has completed the application and underwriting process, and has signed contracts to use your services or products.
My personal success statistics are as follows:
125 Leads
become
20 Qualified leads
become
10 Prospects
become
2 Clients
Leads can come from numerous sources to wit; sales lists, yellow pages, manufacturer listings, distributer listings, medical provider listings, networking events, names derived from trade shows, banking relationships and others too many to enumerate. This has to be a large volume of leads based on the “filtration” process of the sales funnel.
For me, my point system looks like this (click on the factoring sales chart to view at a larger size):
You get points for achieving your targeted goals. These are how my numbers usually look. For me it is very predictable and quite accurate.
Notice I only had 358.5 points at the end of this week. I did not reach all of my goals (which would have been 400 pts.). Also notice that I only have 4 work days. There is at least one day per week that I am at a networking event, away from the office or some other kind of distraction. Sometimes a holiday pops up, so I use a 4 day week only. Notice when I over achieved goals, the points were more and when I missed the goal the point were less…all in proportion.
This is the Sales Funnel in a nutshell! A successful sales effort is a numbers game and numbers do not lie! Find your success numbers, quantify them and live by them. Grow them and you give yourself a raise.
Happy Holidays to all and Happy New Year.
About Fred Leder:
Xynergy Healthcare Capital LLC is an industry specific finance company located in south Florida, with nationwide clients and referral sources.
For more information contact Fred Leder at (954) 519 2376 or by email at fleder@xynergycapital.com. You can also visit the company website at xynergycapital.com.
What did you think of the marketing tips? What are your plans for marketing (or starting) a factoring business in 2013? We invite you to take a minute and share in the comments below!
Mr. Leder,
This was a great read. Thanks for sharing. I have a question. What is your process of getting your leads to qualified leads.
Also, if you are able to , I would like a copy of “sales funnel”.
Hi Keith,
Sorry for the delayed response. I’ve been working my funnel for 2013 🙂
The qualified lead has been identified as a business that would, if an application came in, qualify for your service or porduct. So, you get a lead for medical factoring called Jimmy’s Home Care Service…hummmm ! The name tells me that Jimmy could be providing home medical and home aid to the elderly…yes, a qualified medical factoring company. BUT the name also tells me that he may have a janitorial service…or…..he may be a handyman doing odd jobs in people’s homes. The lead becomes qualified for medical factoring if Jimmy is a healthcare provider. SO …. the raw lead has now become a qualiffied lead. Call me we can chat 954 519 2376. Merry Christmas.
Fred
This certainly answered my issue, thank you!
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Mr. Leder,
Great article, I am interested in re-establishing myself in the factoring business. I worked in the industry for about a year in 2012 and still have an account that pays me around $150 monthly. Every month when I receive the payment I tell myself I’m going to do something to get back into the factoring business, my issue has been leads. I read another one of your articles and noticed you mentioned your best lead sources are from relationships. This is the way I got the deal in which I let you know about, I was referred to the business owner through a friend. Nothing came of the lists we purchased through Buyerzone and various other sources. From your experience what would be your best advice for a young professional looking to break into the factoring business?
Great article, spot on with the calcs.