Marketing and Business Development
Registered Guest Crash Course at the Learning Lab
Lesson 1.07: Marketing and Business Development
As you will learn, this is a business that is all about “lead-generation”. Factoring brokers have virtually no paperwork. They do not get involved with contracting at all but simply submit their leads to a factor who will close the deal and subsequently, pay them a commission for the referral. It is a very simple business and one where you can earn an exceptional living if you become a “master” at lead-generation.
View the video at left and then view the lesson below on marketing and lead generation.
Marketing and Business Development
Just as our industry has many different types of brokers, some working full time, some working part-time, all brokers will have a different marketing mix. The ways brokers choose to market are usually dependent on their soft skills and the working capital they have to invest in marketing campaigns. The good news is, when it comes to factoring and business development, poll after poll taken in the industry reveals that both networking and direct marketing are rough split 50 / 50 as far as effectiveness in developing new clients. And from the brokers’s standpoint, that means there is no bad path to take when it comes to lead-generation.
For factoring brokers and consultants, your business is all about generating leads. In fact, lead generation is your most important task. As brokers, you have no contracting requirements or paperwork to do to submit a deal. Your business is 100% about lead generation so if you become an expert at this function, you will be successful beyond your wildest dreams.
Lead generation is the process of converting a target (business owner) into someone that has an interest in your services and it falls within the second stage of inbound marketing. With the first stage being to create or attract an audience (list/targets), marketing tools and techniques you employ for lead-generation will convert that audience of list members into leads.
We are serious when we say that your business is all about “lead generation”. As a broker, you will never actually “close” a sale. That is because you cannot contract. Contracting is the job of the factor and it’s the factor and the factor’s account executives that will actually close sales. You, like a factor’s BDO, are only concerned with lead generation.
The process of lead generation is a function of inbound marketing and the steps of the process are basically as follows:
- A business owner in need of financing locates you through one of your marketing channels such as direct mail, your website/blog, social media, or face-to-face networking.
- The business owner is directed to your website where additional “valuable” information is available and the business owner clicks on a CTA (Call to Action) button.
- The CTA directs the business owner to a special landing page where he/she can download your FREE offer. In your case, it is the booklet, “When Banks Say No! The Small Business Guide to Factoring”
- To download your FREE booklet, the business owner must complete a form which provides his name and contact information.
- BINGO!!! You now have a lead to qualify and prospect.
An offer is content or something of value that’s being “offered” on the landing page, like a free quote, a course, or a booklet. To be effective and do it’s job, an offer must have enough perceived value to a visitor for them to provide their personal information in exchange for access to it. Your FREE offer is a booklet on factoring and it’s a powerful tool in your lead generation process because by completing a form to download it, a business owner is basically confiding in you. He/she is telling you his business has a financial problem.
In years past, using direct marketing methods such as direct mail, the most common method of responding and requesting an offer was to complete a response card with pre-paid postage and drop it in the mail. The free offer was then mailed to the interested party. The internet has rendered that method of response now so antiquated that it is seldom used. While direct mail, for example, is still a commonly used marketing channel, those that receive your offer by mail will be directed to your website where they can download you offer immediately. It is this ability to “deliver” an offer and create an immediate lead that makes having a website or business blog so critical.
Critical Lead Generation Components for Freelance Brokers
There are dozens and dozens of ways to generate leads for factoring. Most will involve an offer. But to collect and manage the lead-generation functions of your business, you will absolutely need a professional looking website and an easy to master CRM (Contact Relationship Manager). Here are two suggestions for all freelance consultants.
- Pipedrive CRM: Incredibly efficient and with a very modest monthly subscription price. Once you spend a little time viewing the company’s training sessions online, we guarantee you will sold on this CRM and as an IACFB Member, we provide you with a 30 FREE trial.
- WordPress Website: IACFB provides quick and ready WordPress factoring broker website templates constructed with a fantastic new drag and drop website building app called Elementor. Everyone, and we mean everyone can learn to operate, modify, and expand stunning websites using WordPress and the Elementor plug in.