With the new year upon us, you might want to consider making a resolution to improve your marketing campaign for 2009.
Review your business card format and ensure it projects a professional image and clearly states your business information and what you do. Be sure to use the back of your cards for added impact with little extra cost. Your cards may be the first and only thing prospective clients see about your service.
Create a bi-fold or tri-fold brochure. A local print shop can assist with a format or you can experiment with your own basic word-processing software. If you can include a photo of yourself, that will help to create a more personal relationship and give clients an idea of exactly who they are dealing with. Take a tip from all the real estate agents that ALWAYS include their own pictures in their marketing material. They've been doing this for a long time and they know it works.
Research the possibility of running inexpensive ads in local newspapers, or on local radio and TV stations. The ad departments with these media will assist you at little or often NO COST in creating a professional message.
Incorporating an effective marketing campaign into your other regular prospecting efforts with enhance your overall business. Use this new year to get off to a great start in 2009.
I wish you all a very safe, happy and PROSPEROUS New Year!
Scott F. Soape
Wednesday, December 31, 2008
Tuesday, December 16, 2008
FREE Website Hosting
There are several FREE website hosting services where you can quickly & easily build a decent website for your commercial debt resolution practice. Here are just a few...
www.snappages.com
www.weebly.com
www.wix.com
www.squarespace.com
www.synthasite.com
These sites offer a great way to present a professional looking web presence at no cost and very little effort. In addition, most of these allow you to upgrade for a small price and add extra bells & whistles.
Internet exposure for any legitimate business has become a MUST. Be sure your business has a website so that prospects and clients can find out more about what you have to offer.
Scott F. Soape
www.snappages.com
www.weebly.com
www.wix.com
www.squarespace.com
www.synthasite.com
These sites offer a great way to present a professional looking web presence at no cost and very little effort. In addition, most of these allow you to upgrade for a small price and add extra bells & whistles.
Internet exposure for any legitimate business has become a MUST. Be sure your business has a website so that prospects and clients can find out more about what you have to offer.
Scott F. Soape
Thursday, December 4, 2008
Enlist Independent Associates & GROW Your Practice!
Although a steady stream of local leads and referrals can be counted on in this profession, there may come a time when you will want to expand your reach to other geographic areas. I experienced this desire early in my career as a commercial debt negotiator.
After a few failed attempts to find a reliable way for locating additional leads, I finally developed a truly innovative program for getting OTHER PEOPLE to pay me to send me leads. Now, I market this Associate Program as an "Income Opportunity" and receive an ongoing stream of qualified leads from around the country on a regular basis without spending any personal time or money (I pay my Associates only if I receive a fee).
By enlisting the services of independent Associates, YOU can also tap into all the commercial financial disputes arising anywhere you desire. I'll show you how.
My Associate Program System is available to anyone in the commercial debt resolution profession and it will allow you to exponentially GROW your fee revenues.
Whenever you are ready to take your practice to the next level, contact my office for additional information on this extraordinary fee-enhancing program. You may end up with MORE BUSINESS THAN YOU CAN HANDLE!
Scott F. Soape
After a few failed attempts to find a reliable way for locating additional leads, I finally developed a truly innovative program for getting OTHER PEOPLE to pay me to send me leads. Now, I market this Associate Program as an "Income Opportunity" and receive an ongoing stream of qualified leads from around the country on a regular basis without spending any personal time or money (I pay my Associates only if I receive a fee).
By enlisting the services of independent Associates, YOU can also tap into all the commercial financial disputes arising anywhere you desire. I'll show you how.
My Associate Program System is available to anyone in the commercial debt resolution profession and it will allow you to exponentially GROW your fee revenues.
Whenever you are ready to take your practice to the next level, contact my office for additional information on this extraordinary fee-enhancing program. You may end up with MORE BUSINESS THAN YOU CAN HANDLE!
Scott F. Soape
Web Networking
There are a number of FREE networking websites for businesses available. I have been a member of StartUpBiz for several months and receive quality referrals on a regular basis. Feel free to add your own business information to this site and / or do your own search for others. The wider you can spread your name, the more business you will get!
Scott F. Soape
Scott F. Soape
Tuesday, December 2, 2008
An Average Case
During your career as a professional debt negotiator, you will encounter small cases generating minimum fees of $300 or $400 as well as large cases generating fees of several thousand dollars. You will also quickly find the actual work and time involved with each negotiation is practically the same. Typically, it takes no more skill, time or effort to close a large case than it does to close a small one.
Here's an example of an average case I recently closed...
On October 31st, I located a courthouse lead where a local Yellow Pages book was suing a business for $14,800 in past due billings for an ad (these are very common). I sent the business owner my powerful "Prospect Letter" then followed with a phone call a few days later.
On November 5th, the business owner hired me to negotiate a settlement and I quickly faxed a low-ball offer to the creditor's attorney.
On November 11th, I received a fax with a counter offer from the attorney. Interestingly, the attorney's letter indicated his client "does not appear to be very amenable with negotiations from this point, but it may not hurt to counter offer". That same day, I sent him another offer for a higher amount but still considerably below his offer.
You will often find the biggest hold up in closing a case is on the creditor's end. Since an answer date for the lawsuit was coming soon, I requested and was granted an extension of several weeks from the attorney while we were in negotiations.
On November 24th, I received a fax with a final settlement offer from the attorney. The terms allowed for a substantial discount and an 18 month payment period without interest. I quickly relayed this to my client. Since this was Thanksgiving week, he asked for some time to think about it before deciding. In the meantime, I put everything in writing along with my "Closing Letter" and sent him the details.
On December 1st, my client accepted the terms and I notified the creditor's attorney who then prepared the paper work.
Although this case took just under 4 weeks to close, it really only involved a couple of short phone calls and a couple of quick faxes & form letters. My fee was $750 (a flat fee based on my initial interview with the client and my expectation for the probable outcome). The final settlement was for $11,200 to be paid in 17 monthly payments of $625 each and a final payment of $575. My client saved over $3,600 on the principal amount of the debt plus over $5,000 in potential plaintiff's attorney fees, court costs and interest on the debt.
I have closed much larger cases in less time and I have closed smaller cases that took even more time but my actual time spent in negotiations is usually about the same. Keeping your "pipe line" full of a variety of cases will ensure a steady revenue stream with cases closing on a fairly regular basis.
Scott F. Soape
Here's an example of an average case I recently closed...
On October 31st, I located a courthouse lead where a local Yellow Pages book was suing a business for $14,800 in past due billings for an ad (these are very common). I sent the business owner my powerful "Prospect Letter" then followed with a phone call a few days later.
On November 5th, the business owner hired me to negotiate a settlement and I quickly faxed a low-ball offer to the creditor's attorney.
On November 11th, I received a fax with a counter offer from the attorney. Interestingly, the attorney's letter indicated his client "does not appear to be very amenable with negotiations from this point, but it may not hurt to counter offer". That same day, I sent him another offer for a higher amount but still considerably below his offer.
You will often find the biggest hold up in closing a case is on the creditor's end. Since an answer date for the lawsuit was coming soon, I requested and was granted an extension of several weeks from the attorney while we were in negotiations.
On November 24th, I received a fax with a final settlement offer from the attorney. The terms allowed for a substantial discount and an 18 month payment period without interest. I quickly relayed this to my client. Since this was Thanksgiving week, he asked for some time to think about it before deciding. In the meantime, I put everything in writing along with my "Closing Letter" and sent him the details.
On December 1st, my client accepted the terms and I notified the creditor's attorney who then prepared the paper work.
Although this case took just under 4 weeks to close, it really only involved a couple of short phone calls and a couple of quick faxes & form letters. My fee was $750 (a flat fee based on my initial interview with the client and my expectation for the probable outcome). The final settlement was for $11,200 to be paid in 17 monthly payments of $625 each and a final payment of $575. My client saved over $3,600 on the principal amount of the debt plus over $5,000 in potential plaintiff's attorney fees, court costs and interest on the debt.
I have closed much larger cases in less time and I have closed smaller cases that took even more time but my actual time spent in negotiations is usually about the same. Keeping your "pipe line" full of a variety of cases will ensure a steady revenue stream with cases closing on a fairly regular basis.
Scott F. Soape
Thursday, November 20, 2008
First Contact with Prospects
Your first contact with a prospective client may be your only contact so it is important to make a convincing case for them to use your service.
Your message needs to be professional, concise and compelling. This is true whether the communication is by phone, letter or email. Of course, those who have purchased my Business Plan System know I am a proponent of sending a letter first then following with a phone call most of the time. My sample "prospect letter" included with my material has proven to be a great tool in getting a prospective client's attention (and often prompting them to call you).
You only have a short amount of time to convince a prospect your service is valuable to them. My sample script provides a good guide line for the phone conversation but I encourage you to alter the wording to fit your own personal style. To close the deal, I have sometimes found it helpful to tell a prospect they can always hire an attorney if I am unable to negotiate an acceptable settlement first. Since there is no cost unless I am successful, they have nothing to lose.
Always take your first contact seriously and ensure the communication reflects favorably upon you and your service. It may be your only opportunity to turn a prospect into a fee paying client.
Scott F. Soape
Your message needs to be professional, concise and compelling. This is true whether the communication is by phone, letter or email. Of course, those who have purchased my Business Plan System know I am a proponent of sending a letter first then following with a phone call most of the time. My sample "prospect letter" included with my material has proven to be a great tool in getting a prospective client's attention (and often prompting them to call you).
You only have a short amount of time to convince a prospect your service is valuable to them. My sample script provides a good guide line for the phone conversation but I encourage you to alter the wording to fit your own personal style. To close the deal, I have sometimes found it helpful to tell a prospect they can always hire an attorney if I am unable to negotiate an acceptable settlement first. Since there is no cost unless I am successful, they have nothing to lose.
Always take your first contact seriously and ensure the communication reflects favorably upon you and your service. It may be your only opportunity to turn a prospect into a fee paying client.
Scott F. Soape
Saturday, November 8, 2008
How to Make $100,000 + a Year
You've heard me say a six figure income is possible in the commercial debt resolution profession. Earning fees of several thousands of dollars per case is certainly one way to get there... but there are also other ways.
Let's look at 3 different examples:
EXAMPLE 1. If you can close 5 cases per week generating a fee of just $400 each, you will earn $2,000 per week. With 52 weeks in a year that gets you $104,000 per year. Since most cases take no more than a couple of hours TOTAL time to negotiate & close once you land a client, that's about 10 hours per week. (Keep in mind a $400 fee is about the minimum you should earn on a case, so lets look at another example.)
EXAMPLE 2. If you can close only 3 cases per week generating a fee of $700 each, you will earn $2,100 per week. That comes to over $109,000 per year.
EXAMPLE 3. Now figure you earn the average fee of about $1,200 per case and close only 2 cases per week. At $2,400 per week you will make nearly $125,000 a year!
You can assume you will have a wide mixture of cases earning a wide range of fees. Some may only earn you $350 while others generate fees of $3,000, $5,000 or $10,000+. That's the nature of this business. Sure, some weeks you may not close ANY cases, but other weeks you may close numerous cases each day. Other weeks you may only close one case but that case might earn you a fee of $2,000 or more.
The business is out there and making $100,000 + per year is possible if you incorporate ALL of my recommendations for getting leads & closing cases. Making more money just means contacting more prospective clients and closing more (or bigger ) cases each day or week. Of course, nobody says you have to make a six figure income. If all you need or want is an extra $400, $800 or $1,000 per week, then it will take fewer cases to get there. Follow my program and the potential is absolutely there to earn whatever level of income you desire.
Scott F. Soape
Let's look at 3 different examples:
EXAMPLE 1. If you can close 5 cases per week generating a fee of just $400 each, you will earn $2,000 per week. With 52 weeks in a year that gets you $104,000 per year. Since most cases take no more than a couple of hours TOTAL time to negotiate & close once you land a client, that's about 10 hours per week. (Keep in mind a $400 fee is about the minimum you should earn on a case, so lets look at another example.)
EXAMPLE 2. If you can close only 3 cases per week generating a fee of $700 each, you will earn $2,100 per week. That comes to over $109,000 per year.
EXAMPLE 3. Now figure you earn the average fee of about $1,200 per case and close only 2 cases per week. At $2,400 per week you will make nearly $125,000 a year!
You can assume you will have a wide mixture of cases earning a wide range of fees. Some may only earn you $350 while others generate fees of $3,000, $5,000 or $10,000+. That's the nature of this business. Sure, some weeks you may not close ANY cases, but other weeks you may close numerous cases each day. Other weeks you may only close one case but that case might earn you a fee of $2,000 or more.
The business is out there and making $100,000 + per year is possible if you incorporate ALL of my recommendations for getting leads & closing cases. Making more money just means contacting more prospective clients and closing more (or bigger ) cases each day or week. Of course, nobody says you have to make a six figure income. If all you need or want is an extra $400, $800 or $1,000 per week, then it will take fewer cases to get there. Follow my program and the potential is absolutely there to earn whatever level of income you desire.
Scott F. Soape
Saturday, November 1, 2008
Repeat Clients - The "Icing on the Cake"
There are always new clients in need of our service. Financial disputes are constantly occurring and lawsuits between businesses are an ongoing certainty all over the country. So, our service is always in demand.
However, as I teach in my Business Plan System, repeat business from current clients is "the icing on the cake".
Once you have identified a potential client with a problem debt, you can bet they have several other creditors hounding them for payment. ALWAYS ASK!
This is the easiest source of new business you will encounter. After your client sees what a great service you have to offer with their first problem debt, they will gladly allow you to negotiate settlements with their other creditors. After all, they have nothing to lose... and potentially, thousands of dollars to gain.
Ask about their other problem debts when they hire you AND ask about their other problem debts once you negotiate a settlement on the first debt. A satisfied client is your BEST source for new business!
Of course, my Business Plan System explains all you need to know. Please visit my website at http://www.debtresolutionbiz.com/ for details on this profession and feel free to contact my office with specific questions.
Scott F. Soape
However, as I teach in my Business Plan System, repeat business from current clients is "the icing on the cake".
Once you have identified a potential client with a problem debt, you can bet they have several other creditors hounding them for payment. ALWAYS ASK!
This is the easiest source of new business you will encounter. After your client sees what a great service you have to offer with their first problem debt, they will gladly allow you to negotiate settlements with their other creditors. After all, they have nothing to lose... and potentially, thousands of dollars to gain.
Ask about their other problem debts when they hire you AND ask about their other problem debts once you negotiate a settlement on the first debt. A satisfied client is your BEST source for new business!
Of course, my Business Plan System explains all you need to know. Please visit my website at http://www.debtresolutionbiz.com/ for details on this profession and feel free to contact my office with specific questions.
Scott F. Soape
Thursday, October 23, 2008
How to be REALLY Successful
I am often asked: "How much money can I expect to make in this profession?"
Well, the answer is: "It depends."
I can teach you how to be a professional debt negotiator and where to find the business, but it is entirely up to each individual to decide what to do with these skills and this knowledge. A six figure income is certainly possible; it just depends on the amount of effort you are willing to put forth.
I think the best and easiest to understand comparison is with individual real estate agents. When you think of all the real estate agents you know, I'm sure some are making a great deal of money while others may just be doing OK. And some may only work part-time. Simply being in the business is not enough to ensure financial success.
Although all licensed real estate agents start with the same knowledge of their profession after completing their training, it is their individual effort that differentiates their financial success. Knowing how to sell real estate does not mean an individual agent will necessarily make a lot of money. Most highly successful ones have to hustle for business, especially when they are just getting started and until they build a reputation.
The same can be said for professional debt negotiators. The cases are ALWAYS out there but some effort has to be put forth in order to really make a LOT of money. By following my recommendations for locating court case leads as well as for building ongoing referral relationships with as many other sources as possible and sticking with it, you can be assured a substantial stream of fee revenues.
Schedule a portion of each day or week for prospecting new clients, building new referral relationships and for reinforcing those already in place. Tell everyone you know and meet what you do. Network with other business people. Create a professional looking website. Advertise when it is in your budget. Send direct mail information to bankers, accountants, CPAs, business brokers, etc. In short, create an identity as the "go to" person for any business experiencing debt problems in your area. (As your business grows and as your budget allows, you can add some of these marketing strategies. There is no need to spend a lot of money up-front.)
Sure, you can work this profession on a part-time basis and some debt negotiators are perfectly happy earning just a little extra income. There is absolutely nothing wrong with that. However, if you want to be at the TOP TIER of this profession, take the extra effort to build relationships and a reputation early in your career... it will quickly translate into BIG fees and financial success.
Scott F. Soape
Well, the answer is: "It depends."
I can teach you how to be a professional debt negotiator and where to find the business, but it is entirely up to each individual to decide what to do with these skills and this knowledge. A six figure income is certainly possible; it just depends on the amount of effort you are willing to put forth.
I think the best and easiest to understand comparison is with individual real estate agents. When you think of all the real estate agents you know, I'm sure some are making a great deal of money while others may just be doing OK. And some may only work part-time. Simply being in the business is not enough to ensure financial success.
Although all licensed real estate agents start with the same knowledge of their profession after completing their training, it is their individual effort that differentiates their financial success. Knowing how to sell real estate does not mean an individual agent will necessarily make a lot of money. Most highly successful ones have to hustle for business, especially when they are just getting started and until they build a reputation.
The same can be said for professional debt negotiators. The cases are ALWAYS out there but some effort has to be put forth in order to really make a LOT of money. By following my recommendations for locating court case leads as well as for building ongoing referral relationships with as many other sources as possible and sticking with it, you can be assured a substantial stream of fee revenues.
Schedule a portion of each day or week for prospecting new clients, building new referral relationships and for reinforcing those already in place. Tell everyone you know and meet what you do. Network with other business people. Create a professional looking website. Advertise when it is in your budget. Send direct mail information to bankers, accountants, CPAs, business brokers, etc. In short, create an identity as the "go to" person for any business experiencing debt problems in your area. (As your business grows and as your budget allows, you can add some of these marketing strategies. There is no need to spend a lot of money up-front.)
Sure, you can work this profession on a part-time basis and some debt negotiators are perfectly happy earning just a little extra income. There is absolutely nothing wrong with that. However, if you want to be at the TOP TIER of this profession, take the extra effort to build relationships and a reputation early in your career... it will quickly translate into BIG fees and financial success.
Scott F. Soape
Thursday, October 16, 2008
Case Closed in ONE Week!
Although this case cannot be considered the "norm", it is another great example of how quickly these cases can play out...
On Thursday, October 9th, I contacted a court case lead and offered my service. The business owner asked for details on the case since he had not yet been served the citation for the lawsuit so I offered to call the plaintiff's attorney and find out for him. The attorney was out until the next week but promised to call me with the details upon his return. I relayed this information to the business owner.
On Tuesday, October 14th, the attorney called me with the details and I called the business owner who immediately hired me. I faxed a contract to him and got a signed copy back a few minutes later.
By the way, when I called the attorney I also asked him how much of a discount his client might accept to settle the lawsuit quickly. He indicated a 30% discount would probably be acceptable but it would need to be a lump-sum payment.
That same afternoon, I faxed an offer to settle at a 46% discount (you never know unless you try).
On Wednesday, October 15th, the attorney countered at a 33% discount so I knew that was as good as it would get. I conveyed this to my client and he accepted.
Just ONE WEEK after first contacting a lead I had earned a $930 fee! And as usual, all parties benefited: my client saved several thousand dollars & the creditor received money without additional collection expenses.
Scott F. Soape
On Thursday, October 9th, I contacted a court case lead and offered my service. The business owner asked for details on the case since he had not yet been served the citation for the lawsuit so I offered to call the plaintiff's attorney and find out for him. The attorney was out until the next week but promised to call me with the details upon his return. I relayed this information to the business owner.
On Tuesday, October 14th, the attorney called me with the details and I called the business owner who immediately hired me. I faxed a contract to him and got a signed copy back a few minutes later.
By the way, when I called the attorney I also asked him how much of a discount his client might accept to settle the lawsuit quickly. He indicated a 30% discount would probably be acceptable but it would need to be a lump-sum payment.
That same afternoon, I faxed an offer to settle at a 46% discount (you never know unless you try).
On Wednesday, October 15th, the attorney countered at a 33% discount so I knew that was as good as it would get. I conveyed this to my client and he accepted.
Just ONE WEEK after first contacting a lead I had earned a $930 fee! And as usual, all parties benefited: my client saved several thousand dollars & the creditor received money without additional collection expenses.
I think its important to note this case was the result of a referral from an independent Associate who will be sharing a percentage of the earned fee. Please contact me for information on how you can work with your own independent Associates and receive an ongoing stream of qualified leads from different jurisdictions.
Scott F. Soape
Wednesday, October 15, 2008
The Tricky Part
You may wonder after reviewing my website "how can this profession pay so well and why aren't more people doing it?".
The answer is: this profession pays so well because we are providing a very needed and valuable service AND precisely because so few people are doing it.
The actual "work" is not that difficult and my Business Plan System explains everything in detail on what to do. But that is not to say it is effortless. As I have said before, the tricky part is not necessarily negotiating the settlements... the really tricky part is convincing business owners our service is better than the alternative.
What is the alternative?
1. If a debt has been incurred, the alternative is a lawsuit.
2. If a lawsuit has been filed, the alternative is a money judgment.
3. If a judgment has been awarded, the alternative is legal collection of the entire debt plus attorney's fees, back interest on the debt, court costs and collection expenses incurred.
As strange as it may seem, many business owners are in denial and just ignore the issue even when confronted with these alternatives (no matter how far along they are in the process). This means we sometimes have to offer our service to lots of people before we land a client. That's the tricky part and that's why there is not much competition in this profession AND why we get paid so well. The more people you can contact, the better your chances of landing a fee paying client!
By working several jurisdictions for court cases and broadening your referral base, you will ensure a steady stream of leads and increase your odds for fee paying clients. Keep at it and you will see the BIG PAYOFF in substantial, ongoing fees... and the very real potential of a six figure income.
Scott F. Soape
The answer is: this profession pays so well because we are providing a very needed and valuable service AND precisely because so few people are doing it.
The actual "work" is not that difficult and my Business Plan System explains everything in detail on what to do. But that is not to say it is effortless. As I have said before, the tricky part is not necessarily negotiating the settlements... the really tricky part is convincing business owners our service is better than the alternative.
What is the alternative?
1. If a debt has been incurred, the alternative is a lawsuit.
2. If a lawsuit has been filed, the alternative is a money judgment.
3. If a judgment has been awarded, the alternative is legal collection of the entire debt plus attorney's fees, back interest on the debt, court costs and collection expenses incurred.
As strange as it may seem, many business owners are in denial and just ignore the issue even when confronted with these alternatives (no matter how far along they are in the process). This means we sometimes have to offer our service to lots of people before we land a client. That's the tricky part and that's why there is not much competition in this profession AND why we get paid so well. The more people you can contact, the better your chances of landing a fee paying client!
By working several jurisdictions for court cases and broadening your referral base, you will ensure a steady stream of leads and increase your odds for fee paying clients. Keep at it and you will see the BIG PAYOFF in substantial, ongoing fees... and the very real potential of a six figure income.
Scott F. Soape
Friday, October 10, 2008
Answer Date Deadlines
As indicated in my Business Plan System, it is always important to stay aware of the answer date deadlines for pending lawsuits. Most jurisdictions allow a defendant between 2 to 4 weeks to file an answer (response) to the court after they have been served the citation (notice of the lawsuit). The citation will indicate the deadline. If they fail to file an answer within the prescribed time, they risk a default judgment being issued against them for the full amount claimed plus additional expenses.
Always ask your new client if they have been served and, if they have, when they were served. Make note of the answer date deadline so you can request an EXTENSION if your negotiations are not completed by that date.
Most creditor attorneys are willing to grant an extension to the answer date if you ask. Getting it in writing is always a good idea but some attorneys may just grant an informal verbal extension. Either way is fine.
If you ever encounter a case where the answer date cannot be extended, be sure to notify your client and recommend they hire an attorney to file an answer on their behalf in time. You will lose a client but it is much better than the alternative of a default judgment.
Scott F. Soape
Always ask your new client if they have been served and, if they have, when they were served. Make note of the answer date deadline so you can request an EXTENSION if your negotiations are not completed by that date.
Most creditor attorneys are willing to grant an extension to the answer date if you ask. Getting it in writing is always a good idea but some attorneys may just grant an informal verbal extension. Either way is fine.
If you ever encounter a case where the answer date cannot be extended, be sure to notify your client and recommend they hire an attorney to file an answer on their behalf in time. You will lose a client but it is much better than the alternative of a default judgment.
Scott F. Soape
Tuesday, September 30, 2008
Another Actual Case
On September 12th, I contacted a business owner who's company had been recently sued. After explaining my offer to negotiate an out-of-court discounted settlement on a no results / no charge basis, he agreed to let me try. I quickly faxed him a contract.
This case involved a worker compensation insurance company suing for past premiums that were due. Since I deal with the attorney for this company on a regular basis, I knew going in what to expect in the way of a settlement. However, I always start my negotiations with them low just in case they're not paying attention. You never know!
The principal amount of the debt was almost $19,000 (plus court costs, attorney's fees and back interest on the debt) so I initially offered $8,500 as a lump-sum payment. I also indicated any higher amount would require at least a two year payment term. They rejected this offer and countered at $15,000 payable with a down payment of $1,000 followed by 24 monthly payments of about $633 each. There would be an 8% interest rate applied to the outstanding balance and the settlement would be secured by an Agreed Judgment (please see previous blog entry of July 4th). My client would also have to pay the court costs of $272 but no attorney's fees (these could have amounted to over $6,300 or 1/3 the principal). This counter offer was comparable to other settlements I had worked with this same creditor and I knew it was their best deal... approximately a 20% discount with some standard provisions.
I presented these terms to my client on September 25th and they accepted on the 29th. As usual, the plaintiff's (creditor's) attorney is preparing all the documents and sending them to me. I will forward them to my client upon receipt of my fee. For this case my fee was set at 30% of the savings and came to over $1,100. The entire process only took a little over 2 weeks and involved a couple of phone calls and one settlement offer letter but ALL parties benefited.
As I have previously stated, the negotiation process need not be complicated or difficult. A simple offer to get the ball rolling is all it takes once you land a client.
Scott F. Soape
This case involved a worker compensation insurance company suing for past premiums that were due. Since I deal with the attorney for this company on a regular basis, I knew going in what to expect in the way of a settlement. However, I always start my negotiations with them low just in case they're not paying attention. You never know!
The principal amount of the debt was almost $19,000 (plus court costs, attorney's fees and back interest on the debt) so I initially offered $8,500 as a lump-sum payment. I also indicated any higher amount would require at least a two year payment term. They rejected this offer and countered at $15,000 payable with a down payment of $1,000 followed by 24 monthly payments of about $633 each. There would be an 8% interest rate applied to the outstanding balance and the settlement would be secured by an Agreed Judgment (please see previous blog entry of July 4th). My client would also have to pay the court costs of $272 but no attorney's fees (these could have amounted to over $6,300 or 1/3 the principal). This counter offer was comparable to other settlements I had worked with this same creditor and I knew it was their best deal... approximately a 20% discount with some standard provisions.
I presented these terms to my client on September 25th and they accepted on the 29th. As usual, the plaintiff's (creditor's) attorney is preparing all the documents and sending them to me. I will forward them to my client upon receipt of my fee. For this case my fee was set at 30% of the savings and came to over $1,100. The entire process only took a little over 2 weeks and involved a couple of phone calls and one settlement offer letter but ALL parties benefited.
As I have previously stated, the negotiation process need not be complicated or difficult. A simple offer to get the ball rolling is all it takes once you land a client.
Scott F. Soape
Wednesday, September 24, 2008
Referrals From Bankers
As I have mentioned before (and in my Business Plan System), building a good referral network for new leads is essential to building a strong commercial debt resolution practice. A regular stream of referrals from several different sources can enhance and perhaps even exceed your court case leads.
When you think of the type of business or professional that might come into contact with companies experiencing financial difficulties, bankers should quickly come to mind. Loan officers deal directly with local business owners and are often the first to know when a company is having a problem. It is part of the banker's job to help their commercial loan customer figure out ways to resolve their cash flow problems... primarily so they won't default on their loan(s) with the bank.
Make a few phone calls each week and find out the names of branch managers and / or presidents of banks in and around your area. Send these bankers a short letter offering your service to their commercial customers that might find themselves in financial difficulty. It is important that you let the bankers know you will not be trying to negotiate discounts on the bank loans. Rather, you will assist their customer with their other obligations making more funds available for loan payments.
As with most other marketing efforts, a follow-up phone call will greatly increase your odds of developing a good relationship.
There are many different sources for referrals you can tap into that can help you build a thriving practice. Make a point of contacting these folks on a regular basis and you will soon see a difference in your revenues.
Scott F. Soape
When you think of the type of business or professional that might come into contact with companies experiencing financial difficulties, bankers should quickly come to mind. Loan officers deal directly with local business owners and are often the first to know when a company is having a problem. It is part of the banker's job to help their commercial loan customer figure out ways to resolve their cash flow problems... primarily so they won't default on their loan(s) with the bank.
Make a few phone calls each week and find out the names of branch managers and / or presidents of banks in and around your area. Send these bankers a short letter offering your service to their commercial customers that might find themselves in financial difficulty. It is important that you let the bankers know you will not be trying to negotiate discounts on the bank loans. Rather, you will assist their customer with their other obligations making more funds available for loan payments.
As with most other marketing efforts, a follow-up phone call will greatly increase your odds of developing a good relationship.
There are many different sources for referrals you can tap into that can help you build a thriving practice. Make a point of contacting these folks on a regular basis and you will soon see a difference in your revenues.
Scott F. Soape
Monday, September 1, 2008
Helpful Websites
There are dozens of great websites that can assist you with your commercial debt resolution practice... locating people, calculating loan payments, identifying company owners, finding phone numbers, identifying referral sources, etc.
Here are just a few FREE sites I use on a regular basis with my practice:
www.ZabaSearch.com lets you plug in a name and state of residence to get all possible listings of past addresses and phone numbers.
www.YellowPages.com will give you phone numbers based on input of an individual or company name & city or an address. It will also give you an address if you input a phone number.
www.Calculator.com will help with calculating payments for payment plan settlements.
www.USPS.com can provide a 4 digit zip code for a specific address.
Of course a simple Google or Yahoo search can provide websites for companies and information about who the owners are. All these free sites make our job easier and ensure we are presenting our service to the right people and providing the right information. Please feel free to leave your comments here for other sites you find helpful in your own practice.
Scott F. Soape
Here are just a few FREE sites I use on a regular basis with my practice:
www.ZabaSearch.com lets you plug in a name and state of residence to get all possible listings of past addresses and phone numbers.
www.YellowPages.com will give you phone numbers based on input of an individual or company name & city or an address. It will also give you an address if you input a phone number.
www.Calculator.com will help with calculating payments for payment plan settlements.
www.USPS.com can provide a 4 digit zip code for a specific address.
Of course a simple Google or Yahoo search can provide websites for companies and information about who the owners are. All these free sites make our job easier and ensure we are presenting our service to the right people and providing the right information. Please feel free to leave your comments here for other sites you find helpful in your own practice.
Scott F. Soape
Wednesday, August 20, 2008
Negotiating Settlements
I think it often comes as a surprise to many people new to this profession that negotiating settlements can be the easiest part of the job. Remember, BOTH parties (creditor & debtor) are motivated to settle their financial disputes.
Creditors know the assurance of some money now is always better than the hope of more money later. Even if a creditor receives a judgment in their favor after filing a lawsuit, they still have to try and collect the money. This can be a long and expensive process with no guarantee they will ever see any money for their efforts. Debtor businesses even have the option to simply close up shop and walk away if there are limited or no assets. They can also hide assets or channel them into areas that cannot be touched by creditors.
Debtors, of course, are almost always happy to pay less than what is actually due or at least set up a manageable payment plan with the creditors. Also, since their income is reliant on staying in business, they prefer not to close up shop and walk away.
There is really no trick or special skill to the negotiation process. Often, simply making an offer to the creditor and waiting for a counter or acceptance is all that is entailed. My turn-key Business Plan System provides all the information needed to successfully begin negotiating settlements immediately and includes suggestions and guidelines for all types of situations.
Don't be put off by thinking you have to be some kind of master negotiator to succeed in this profession. With my guidance, anyone can prosper as a professional commercial debt negotiator.
Scott F. Soape
Creditors know the assurance of some money now is always better than the hope of more money later. Even if a creditor receives a judgment in their favor after filing a lawsuit, they still have to try and collect the money. This can be a long and expensive process with no guarantee they will ever see any money for their efforts. Debtor businesses even have the option to simply close up shop and walk away if there are limited or no assets. They can also hide assets or channel them into areas that cannot be touched by creditors.
Debtors, of course, are almost always happy to pay less than what is actually due or at least set up a manageable payment plan with the creditors. Also, since their income is reliant on staying in business, they prefer not to close up shop and walk away.
There is really no trick or special skill to the negotiation process. Often, simply making an offer to the creditor and waiting for a counter or acceptance is all that is entailed. My turn-key Business Plan System provides all the information needed to successfully begin negotiating settlements immediately and includes suggestions and guidelines for all types of situations.
Don't be put off by thinking you have to be some kind of master negotiator to succeed in this profession. With my guidance, anyone can prosper as a professional commercial debt negotiator.
Scott F. Soape
Friday, August 8, 2008
Ethics - Client Relations
As expressed in my Business Plan System, you must always remember your service has been retained to reach the very best possible settlement terms for your client.
It may be tempting to think the quicker you reach any settlement, the quicker you get paid, but that is a sure way to also quickly work yourself out of this business. Sadly, there are (and probably always will be) a small number of people in this profession who place their own interests ahead of their clients' interests. This unfortunate situation reflects poorly on the rest of us doing our best to provide quality service to our clients and will eventually lead to stricter regulation of the industry.
Here are a few recommendations you may want to incorporate into your practice:
1. Maintain client confidentiality.
2. Initiate negotiations and complete settlements in a timely manner.
3. Clearly state fee arrangements in a written and signed agreement.
4. Accept cases only when legitimate benefits can be provided.
5. Provide written documentation to clients on all settlements.
6. Refer clients to competent legal counsel as needed.
7. Never offer legal advice.
8. Maintain truth in all communications.
9. Avoid conflicts of interest in all cases.
10. Maintain a professional attitude in all communications.
As with all endeavors, if you know you have done your best, you can always be PROUD of your results... and your business should flourish!
Scott F. Soape
It may be tempting to think the quicker you reach any settlement, the quicker you get paid, but that is a sure way to also quickly work yourself out of this business. Sadly, there are (and probably always will be) a small number of people in this profession who place their own interests ahead of their clients' interests. This unfortunate situation reflects poorly on the rest of us doing our best to provide quality service to our clients and will eventually lead to stricter regulation of the industry.
Here are a few recommendations you may want to incorporate into your practice:
1. Maintain client confidentiality.
2. Initiate negotiations and complete settlements in a timely manner.
3. Clearly state fee arrangements in a written and signed agreement.
4. Accept cases only when legitimate benefits can be provided.
5. Provide written documentation to clients on all settlements.
6. Refer clients to competent legal counsel as needed.
7. Never offer legal advice.
8. Maintain truth in all communications.
9. Avoid conflicts of interest in all cases.
10. Maintain a professional attitude in all communications.
As with all endeavors, if you know you have done your best, you can always be PROUD of your results... and your business should flourish!
Scott F. Soape
Monday, July 28, 2008
Referrals From Creditors
I have had a few inquiries lately about getting leads outside the court cases. Although I do suggest most people new to this profession begin with recent lawsuits filed in their area (this is the quickest way to earn fees), building a good network for ongoing referrals is the best way to really GROW your business over time.
One referral source worth researching is through creditor businesses. You can identify possible companies by scanning lawsuits and looking for the same business listed as plaintiff on more than one case. These will probably be companies that have an ongoing problem collecting on past due accounts.
Once you have identified a few of these companies, send them a brief letter or call and offer your service to "collect" on their past due accounts at no charge. After you have their attention you can explain how you will be compensated by the debtor business but the creditor will benefit by receiving payments. They may only be willing to accept payment in full on these debts but you might be able to get them to take payment plans or a small discount or both. The more wiggle room to can get them to agree to, the easier job you will have when you approach the debtor companies.
Over the years I have developed relationships with several such creditor companies and they will occasionally provide me with a list of past due accounts to contact with all the information I need. When I talk to the debtor business owner, I let them know I can probably settle this dispute for them at a discount or at least set them up on a manageable monthly payment plan. Since I know exactly what to expect from the creditor and there is very little actual negotiation involved, I typically keep my fee at my minimum rate of $350.
If you can establish relationships with just a few creditor businesses like this, you may be assured several easy cases each month and an additional stream of ongoing fees. Set aside a few hours each week solely for the purpose of building your referral network from several different sources (see my previous Blog posts on Business Brokers & Factoring Companies) and you will soon see a substantial increase in your revenues.
Scott F. Soape
One referral source worth researching is through creditor businesses. You can identify possible companies by scanning lawsuits and looking for the same business listed as plaintiff on more than one case. These will probably be companies that have an ongoing problem collecting on past due accounts.
Once you have identified a few of these companies, send them a brief letter or call and offer your service to "collect" on their past due accounts at no charge. After you have their attention you can explain how you will be compensated by the debtor business but the creditor will benefit by receiving payments. They may only be willing to accept payment in full on these debts but you might be able to get them to take payment plans or a small discount or both. The more wiggle room to can get them to agree to, the easier job you will have when you approach the debtor companies.
Over the years I have developed relationships with several such creditor companies and they will occasionally provide me with a list of past due accounts to contact with all the information I need. When I talk to the debtor business owner, I let them know I can probably settle this dispute for them at a discount or at least set them up on a manageable monthly payment plan. Since I know exactly what to expect from the creditor and there is very little actual negotiation involved, I typically keep my fee at my minimum rate of $350.
If you can establish relationships with just a few creditor businesses like this, you may be assured several easy cases each month and an additional stream of ongoing fees. Set aside a few hours each week solely for the purpose of building your referral network from several different sources (see my previous Blog posts on Business Brokers & Factoring Companies) and you will soon see a substantial increase in your revenues.
Scott F. Soape
Thursday, July 17, 2008
A $3,000 Fee
The copy of the check shown above dated July 15, 2008 represents the balance of a $3,000 fee I recently earned (less $100 for a retainer I had already received). Here's how the case played out...
During a regular courthouse visit, I came across a case where an insurance company had brought a lawsuit against a trucking company for past premiums due on a policy. The lawsuit was for $80,059 plus attorney fees, back interest on the debt and court costs of $317 for filing the suit.
I sent a letter to the debtor business (defendant) at the address shown on the lawsuit and followed with a phone call a few days later. Once the owner of the company heard I was offering to settle out-of-court at a discount on a no results / no charge basis, he agreed to let me try. I got his side of the story & immediately faxed over an agreement for him to sign.
Although he had some dispute with the amount the insurance company claimed was due, this was basically a result of being short on funds to pay the debt in full in one lump sum. The owner gave me some general guidelines on what he could afford. HINT: clients will often give you a much lower amount than they can really afford thinking that will save them some money.
I quickly sent the attorney for the insurance company a low-ball offer of $29,200 (a hefty 63% discount), payable in 23 monthly installments of $400 with a balloon payment in the 24th month of $10,000. She rejected this offer but after a couple of counters she indicated she would accept $56,042 payable in 24 monthly installments of $2,483.82 bearing an interest rate of 6%. The settlement would be secured by an Agreed Judgment (see previous blog post). I saved my client over $21,000 even after he paid my fee! Although my fee was based on savings on the principal amount of the debt, I also saved him attorney fees which could have amounted to 1/3 of the debt (another $26,600).
Now, for this case, I had initially set my fee at 25% of savings rather than my usual 30% for 2 reasons: first, I knew what to expect from this creditor from dealing with them over the years, second, I knew my fee would be well in excess of my cap of $3,000 even at 25%.
There were some delays involved since the creditor requested financial information from my client in order to justify the discount but everything was completed within about 6 weeks and only took a couple of hours of my time.
This is only one example and these cases are filed all over the country, every week. Of course, while I was working this case, other cases were being worked and fees were being received. Keeping your pipe line full of cases and constantly prospecting for clients through courthouse searches and referral networking will ensure you a steady stream of fees.
The business is always out there and, using my proven techniques, YOU CAN GET IT!
Scott F. Soape
Tuesday, July 15, 2008
Building Synergy Referral Relationships
At the risk of giving away one of my trade secrets, I'm about to reveal one of the best reciprocal referral relationships of this profession. If you happen to be a competitor, please avert your eyes...
There exists a specialized area of alternative commercial finance known as FACTORING. Basically, the companies that work this business will issue "loans" against accounts receivable from a small business, collect on them and keep a small percentage of whatever they collect. The money they "loan" is not typically considered as debt since they are really buying the accounts receivable. As you might imagine, this helps the small business in many ways . These Factoring Companies provide an indispensable service for their small business clients:
1. They can help reduce bad debt loss.
2. Make cash quickly available for any use.
3. Provide a professional collection & credit service.
4. Give constant detailed reporting of progress.
5. They get paid from proceeds of their collections.
Most factoring companies are very flexible and will custom fit their service for each individual client depending on their needs. Some or even all of the cash your client receives for their accounts receivable from the factoring company can be used to make payment on the debts you settle (making your job much easier).
Now, here's the BONUS part for YOU, the factoring company will pay you a referral fee for any business you send their way that becomes a fee generating client. The standard rate is 10% of whatever fees they receive... for as long as they receive fees... and this can easily translate into thousands of dollars for you and continue for months or even years.
Most of your clients will be businesses experiencing cash flow problems and could qualify for factoring if they have enough and the right kind of accounts receivable. You will not only be doing a favor for your client by suggesting this alternative financing but you could earn yourself a substantial ongoing referral fee.
Also & importantly, if you build a relationship with several of these companies, they will send business to YOU! Face it, their clients are probably having cash flow problems or they would not have approached them in the first place. If you can offer to negotiate discounted settlements on their clients' problem debts, that leaves more money available for their other pressing needs.
Do a little Internet search for "factoring" or "accounts receivable financing" companies in your area and send them a letter about your business. As always, follow-up with a phone call and you will be on your way to building some of the best referral relationships for your business you can find. But keep this under your hat... I would hate for my competition to find out about this idea!
Scott F. Soape
There exists a specialized area of alternative commercial finance known as FACTORING. Basically, the companies that work this business will issue "loans" against accounts receivable from a small business, collect on them and keep a small percentage of whatever they collect. The money they "loan" is not typically considered as debt since they are really buying the accounts receivable. As you might imagine, this helps the small business in many ways . These Factoring Companies provide an indispensable service for their small business clients:
1. They can help reduce bad debt loss.
2. Make cash quickly available for any use.
3. Provide a professional collection & credit service.
4. Give constant detailed reporting of progress.
5. They get paid from proceeds of their collections.
Most factoring companies are very flexible and will custom fit their service for each individual client depending on their needs. Some or even all of the cash your client receives for their accounts receivable from the factoring company can be used to make payment on the debts you settle (making your job much easier).
Now, here's the BONUS part for YOU, the factoring company will pay you a referral fee for any business you send their way that becomes a fee generating client. The standard rate is 10% of whatever fees they receive... for as long as they receive fees... and this can easily translate into thousands of dollars for you and continue for months or even years.
Most of your clients will be businesses experiencing cash flow problems and could qualify for factoring if they have enough and the right kind of accounts receivable. You will not only be doing a favor for your client by suggesting this alternative financing but you could earn yourself a substantial ongoing referral fee.
Also & importantly, if you build a relationship with several of these companies, they will send business to YOU! Face it, their clients are probably having cash flow problems or they would not have approached them in the first place. If you can offer to negotiate discounted settlements on their clients' problem debts, that leaves more money available for their other pressing needs.
Do a little Internet search for "factoring" or "accounts receivable financing" companies in your area and send them a letter about your business. As always, follow-up with a phone call and you will be on your way to building some of the best referral relationships for your business you can find. But keep this under your hat... I would hate for my competition to find out about this idea!
Scott F. Soape
Friday, July 4, 2008
Agreed Judgments to Secure a Settlement
It is not uncommon for a creditor's attorney to request an "Agreed Judgment" when they settle on a pending lawsuit.
An Agreed Judgment is basically an agreement from the debtor business that they owe a specified amount to a creditor without going to court. Typically it will include the original amount claimed by the creditor, attorney fees, back interest on the debt and court costs for filing the original lawsuit.
When a creditor agrees to an out-of-court settlement after filing a lawsuit, this is their collateral for the settlement in case the debtor defaults on the settlement terms. It is used primarily when a payment plan is accepted by the creditor (rather than a lump-sum payment) and saves them from having to file a new lawsuit if the debtor business defaults on the payment terms with a settlement. Typically, the agreed judgment is dropped once all payments are received and they do not reflect on the client's credit report.
By signing an Agreed Judgment, a debtor business indicates they "agree" to the full amount due (plus extra expenses) if they do not comply with the terms of the settlement.
These are very common and should be expected under the above circumstances so let your clients know it is simply part of the deal once a settlement is negotiated.
I suggest you NEVER OFFER an agreed judgment during negotiations, rather wait to see if the creditor's attroney will require one. If one is required, ask if they will hold it and not FILE it for record unless & until there is a default on the payment terms. This is always negotiable.
Do not be surprised if you encounter these during your negotiations and ALWAYS feel free to contact me if you have any questions during your negotiation process. I am here to provide whatever guidance I am able for those that have invested in my commercial debt resolution Business Plan System.
Scott F. Soape
An Agreed Judgment is basically an agreement from the debtor business that they owe a specified amount to a creditor without going to court. Typically it will include the original amount claimed by the creditor, attorney fees, back interest on the debt and court costs for filing the original lawsuit.
When a creditor agrees to an out-of-court settlement after filing a lawsuit, this is their collateral for the settlement in case the debtor defaults on the settlement terms. It is used primarily when a payment plan is accepted by the creditor (rather than a lump-sum payment) and saves them from having to file a new lawsuit if the debtor business defaults on the payment terms with a settlement. Typically, the agreed judgment is dropped once all payments are received and they do not reflect on the client's credit report.
By signing an Agreed Judgment, a debtor business indicates they "agree" to the full amount due (plus extra expenses) if they do not comply with the terms of the settlement.
These are very common and should be expected under the above circumstances so let your clients know it is simply part of the deal once a settlement is negotiated.
I suggest you NEVER OFFER an agreed judgment during negotiations, rather wait to see if the creditor's attroney will require one. If one is required, ask if they will hold it and not FILE it for record unless & until there is a default on the payment terms. This is always negotiable.
Do not be surprised if you encounter these during your negotiations and ALWAYS feel free to contact me if you have any questions during your negotiation process. I am here to provide whatever guidance I am able for those that have invested in my commercial debt resolution Business Plan System.
Scott F. Soape
Monday, June 23, 2008
Business Broker Referrals
I strongly encourage anyone in this profession to build referral relationships with as many Business Brokers in your area as possible.
Business Brokers list various businesses for sale and match them with interested buyers. They earn a commission based on the sale price of the business (usually 10%). They also assist in valuing a business and make recommendations to enhance that value before a sale. This sometimes entails cleaning up existing debts.
Due to the current economic conditions, there are many business owners trying to sell their businesses but finding it difficult given their problem debts. You will find most Business Brokers very receptive when you approach them and offer your service in negotiating discounted settlements before a sale. Your successful efforts not only benefit the business owner but also the broker by making the business more marketable and increasing their commission with a higher net sales price.
Most businesses in this situation will have several cases to work. In addition, your fees will be higher since there is no need to cap them. By tying the settlement payments AND your fee into the proceeds of the sale, everyone is assured payment from escrow at closing.
All parties benefit:
1. The owner gets more money.
2. The broker gets an easier sale and a higher commission.
3. The buyer gets a clean balance sheet.
4. The creditors get cash.
5. You get a substantial fee with assured payment.
Do a little on line research soon and locate business brokers in your area. Send them a short letter about your service and follow-up with a phone call a few days later. You will be surprised at how easy it is to build several steady referral relationships with these folks and have them send business to you.
Scott F. Soape
Business Brokers list various businesses for sale and match them with interested buyers. They earn a commission based on the sale price of the business (usually 10%). They also assist in valuing a business and make recommendations to enhance that value before a sale. This sometimes entails cleaning up existing debts.
Due to the current economic conditions, there are many business owners trying to sell their businesses but finding it difficult given their problem debts. You will find most Business Brokers very receptive when you approach them and offer your service in negotiating discounted settlements before a sale. Your successful efforts not only benefit the business owner but also the broker by making the business more marketable and increasing their commission with a higher net sales price.
Most businesses in this situation will have several cases to work. In addition, your fees will be higher since there is no need to cap them. By tying the settlement payments AND your fee into the proceeds of the sale, everyone is assured payment from escrow at closing.
All parties benefit:
1. The owner gets more money.
2. The broker gets an easier sale and a higher commission.
3. The buyer gets a clean balance sheet.
4. The creditors get cash.
5. You get a substantial fee with assured payment.
Do a little on line research soon and locate business brokers in your area. Send them a short letter about your service and follow-up with a phone call a few days later. You will be surprised at how easy it is to build several steady referral relationships with these folks and have them send business to you.
Scott F. Soape
Wednesday, June 11, 2008
Realistic Fees
I would like to address a question that often arises regarding the kind of realistic fees that can be expected in this profession.
As you research different commercial debt resolution / debt negotiation training courses, you may come across some programs that promise huge fees. I know of one in particular that cites a "case example" resulting in a fee to the debt negotiator of $17,500. (This same training material sells for about $5,000 and I suspect the huge fee is used to justify the huge cost.)
Although large fees are certainly possible, we need to always be cognizant of our client's ability to pay both our fee and the settlement. Setting your fee too high will only result in another problem debt for your client and create a collection nightmare for you. In most cases, I recommend capping your fee to avoid this problem. My program provides some general guidelines, but it is entirely up to each professional to set your own limits. An alternative is to set your fee at a flat rate to ensure your client can afford your service and avoid "sticker shock" at the end of negotiations. A thorough interview early on with your client will help you determine the best fee structure.
HOWEVER, there are a couple of situations where this is not necessary. Negotiating discounted settlements to debts hindering a real estate sale or a business sale can be worked without any limit to the fee. Since your fee will be paid from the proceeds of the sale and your successful efforts will always result in more money for your client, there is no need to set a cap. These situations can easily result in fees of tens of thousands of dollars for large or multiple debts.
As an example, I am currently negotiating settlements with 10 creditors on behalf of a business seller with debts totalling over $100,000. To date, I have negotiated a discount of over $60,000. When the business sells in early July, my fee will be in excess of $18,000 and my client will still see a net benefit of more than $40,000. I am assured payment because my fee will be paid out of escrow from the proceeds of the business sale.
Substantial fees can always be expected in this highly rewarding profession and a comfortable ongoing income is possible, but don't get carried away by setting your fees so high they can never be collected.
Scott F. Soape
As you research different commercial debt resolution / debt negotiation training courses, you may come across some programs that promise huge fees. I know of one in particular that cites a "case example" resulting in a fee to the debt negotiator of $17,500. (This same training material sells for about $5,000 and I suspect the huge fee is used to justify the huge cost.)
Although large fees are certainly possible, we need to always be cognizant of our client's ability to pay both our fee and the settlement. Setting your fee too high will only result in another problem debt for your client and create a collection nightmare for you. In most cases, I recommend capping your fee to avoid this problem. My program provides some general guidelines, but it is entirely up to each professional to set your own limits. An alternative is to set your fee at a flat rate to ensure your client can afford your service and avoid "sticker shock" at the end of negotiations. A thorough interview early on with your client will help you determine the best fee structure.
HOWEVER, there are a couple of situations where this is not necessary. Negotiating discounted settlements to debts hindering a real estate sale or a business sale can be worked without any limit to the fee. Since your fee will be paid from the proceeds of the sale and your successful efforts will always result in more money for your client, there is no need to set a cap. These situations can easily result in fees of tens of thousands of dollars for large or multiple debts.
As an example, I am currently negotiating settlements with 10 creditors on behalf of a business seller with debts totalling over $100,000. To date, I have negotiated a discount of over $60,000. When the business sells in early July, my fee will be in excess of $18,000 and my client will still see a net benefit of more than $40,000. I am assured payment because my fee will be paid out of escrow from the proceeds of the business sale.
Substantial fees can always be expected in this highly rewarding profession and a comfortable ongoing income is possible, but don't get carried away by setting your fees so high they can never be collected.
Scott F. Soape
Sunday, June 1, 2008
Judgment Collectors
I have recently begun an email marketing campaign offering my Business Plan System to judgment collectors as an additional source of revenues.
Since developing my training program, I have tried to occasionally target specific professions with people possessing complimentary skills for commercial debt resolution. Many of these professionals have found they can quickly add extra income to their existing practices by incorporating my proven techniques. CPAs, Bookkeepers, Insurance Agents, Financial Planners and other professionals have found this business offers a new way to generate cash flow and often create new clients for their regular business.
If you have received an email regarding my program, I hope you will take the time to seriously consider how commercial debt resolution might fit with your existing business and add a new source of revenues without detracting from or diluting your other efforts.
Scott F. Soape
Since developing my training program, I have tried to occasionally target specific professions with people possessing complimentary skills for commercial debt resolution. Many of these professionals have found they can quickly add extra income to their existing practices by incorporating my proven techniques. CPAs, Bookkeepers, Insurance Agents, Financial Planners and other professionals have found this business offers a new way to generate cash flow and often create new clients for their regular business.
If you have received an email regarding my program, I hope you will take the time to seriously consider how commercial debt resolution might fit with your existing business and add a new source of revenues without detracting from or diluting your other efforts.
Scott F. Soape
Thursday, May 29, 2008
Commercial vs. Personal Debt
Those of you using my Business Plan System know I am a proponent of only working commercial debt cases rather than personal debt cases. There are a few reasons for this.
First, there are a number of consumer protection laws and requirements for debt negotiators representing individuals. These can be cumbersome and complicated requiring lengthy disclosures to all parties involved. Commercial (or business related) debts do not typically carry this requirement.
Second, emotions usually run higher for both creditor and debtor for personal debts making a discounted settlement much more difficult. If the creditor is an individual, they often won't rest until the debtor (be they a person or business) feels the "pain" of having to pay in full. Similarly, if the debtor is an individual, they may have too many personal feelings attached to making a payment of any kind. For the most part, business owners on both sides are more interested in getting back to running their businesses and would rather just put the matter to rest as quickly as possible.
Third, debtor individuals may have fewer resources available to make a settlement payment and pay the debt negotiator's fee.
Although anyone in this profession may work either type of debt case if they are properly equipped, I recommend sticking with only commercial debts to make the best use of time and resources. The cases are numerous, the dollar amounts are often larger and the fees are usually easier to collect.
Scott F. Soape
First, there are a number of consumer protection laws and requirements for debt negotiators representing individuals. These can be cumbersome and complicated requiring lengthy disclosures to all parties involved. Commercial (or business related) debts do not typically carry this requirement.
Second, emotions usually run higher for both creditor and debtor for personal debts making a discounted settlement much more difficult. If the creditor is an individual, they often won't rest until the debtor (be they a person or business) feels the "pain" of having to pay in full. Similarly, if the debtor is an individual, they may have too many personal feelings attached to making a payment of any kind. For the most part, business owners on both sides are more interested in getting back to running their businesses and would rather just put the matter to rest as quickly as possible.
Third, debtor individuals may have fewer resources available to make a settlement payment and pay the debt negotiator's fee.
Although anyone in this profession may work either type of debt case if they are properly equipped, I recommend sticking with only commercial debts to make the best use of time and resources. The cases are numerous, the dollar amounts are often larger and the fees are usually easier to collect.
Scott F. Soape
Thursday, May 22, 2008
Ethics - Dealing with Colleagues
A recent event I experienced has compelled me to address the issue of ethics as they relate to dealing with other commercial debt resolution professionals. I will address other specific ethics related topics in subsequent writings on an ongoing basis.
Last week, I received a call from an individual asking about my Business Plan System for the commercial debt resolution business. After a while, he indicated he was not only interested in the program but was also a business owner with some debt problems. Through the course of our phone conversation I attempted to address his questions as best I could and explained the business and how I operate as plainly as possible. He sounded genuinely interested and asked if I could email a sample of my contract so he might consider retaining my service to resolve his problem debts (and continue to consider my training program).
After I sent him the requested sample contract, I began to suspect something didn't quite feel right about the conversation. A quick Internet search verified my suspicions. This person turned out to be the husband of a fellow debt negotiator in California.
It seems they had come across my firm on-line and were simply fishing around for information about my business. Apparently, the husband thought he could pull off his telephone impression of James Bond and garner some proprietary information about how I conduct my highly successful practice in order to help out his wife's business. Unfortunately, his clumsy attempt at corporate espionage failed and he was "busted" before I released any special information.
Sadly, had he or she simply called and inquired honestly about my practice, I would have been more than happy to share my information.
Unfortunately, this profession is populated with a few unprofessional and dishonest individuals, so it is important for the rest of us to conduct our business at the highest ethical standards with clients, creditor's agents and EACH OTHER. Sharing information with colleagues should not pose a threat since there is already more business available than we can all handle anyway. In the 10 + years I have been in this profession, I have never crossed paths with this other company and I doubt I ever will in the future (certainly not if I can avoid it).
I hope everyone involved in this business will feel free to share ideas, techniques and success stories with our colleagues. An atmosphere of openness can only serve to help our overall industry and business practices. After all, although most of us are fiercely independent, we are all in this together.
Scott F. Soape
Last week, I received a call from an individual asking about my Business Plan System for the commercial debt resolution business. After a while, he indicated he was not only interested in the program but was also a business owner with some debt problems. Through the course of our phone conversation I attempted to address his questions as best I could and explained the business and how I operate as plainly as possible. He sounded genuinely interested and asked if I could email a sample of my contract so he might consider retaining my service to resolve his problem debts (and continue to consider my training program).
After I sent him the requested sample contract, I began to suspect something didn't quite feel right about the conversation. A quick Internet search verified my suspicions. This person turned out to be the husband of a fellow debt negotiator in California.
It seems they had come across my firm on-line and were simply fishing around for information about my business. Apparently, the husband thought he could pull off his telephone impression of James Bond and garner some proprietary information about how I conduct my highly successful practice in order to help out his wife's business. Unfortunately, his clumsy attempt at corporate espionage failed and he was "busted" before I released any special information.
Sadly, had he or she simply called and inquired honestly about my practice, I would have been more than happy to share my information.
Unfortunately, this profession is populated with a few unprofessional and dishonest individuals, so it is important for the rest of us to conduct our business at the highest ethical standards with clients, creditor's agents and EACH OTHER. Sharing information with colleagues should not pose a threat since there is already more business available than we can all handle anyway. In the 10 + years I have been in this profession, I have never crossed paths with this other company and I doubt I ever will in the future (certainly not if I can avoid it).
I hope everyone involved in this business will feel free to share ideas, techniques and success stories with our colleagues. An atmosphere of openness can only serve to help our overall industry and business practices. After all, although most of us are fiercely independent, we are all in this together.
Scott F. Soape
Tuesday, May 20, 2008
Unlicensed Practice of Law (UPL) Risk
It is extremely important in this profession that you make clear to all parties you are not an attorney and cannot provide legal advice (unless, of course, you happen to be a lawyer). Those in the legal profession take this very seriously and some can be quick to accuse a careless debt negotiator of UPL.
Since starting my practice in 1997, I have never had a problem with this. All of my correspondence includes a disclaimer indicating I am not an attorney and I preface all my initial conversations with prospective clients and creditors' agents with this same information. I strongly encourage everyone in this profession to state this as obviously as possible in all business related communications.
However, this is not always enough. Since we are often dealing with debts that have escalated to lawsuits, our clients may look to us for guidance with their cases. Be careful that you do not give advice that could be construed as "legal advice". Be clear that you only specialize in negotiating discounted out-of-court settlements and you should not have any problems with UPL accusations.
As an additional service, I also suggest that you check your area for 1 or 2 reputable civil defense lawyers as referrals for any of your clients that you are unable to help with a settlement. This may not earn you any fees but it goes a long way in "good-faith" relations with your clients and may get you a referral from a happy one later.
Following these guidelines and using the wording provided in my sample correspondences will help ensure you a long and profitable career in this exciting profession.
Scott F. Soape
Since starting my practice in 1997, I have never had a problem with this. All of my correspondence includes a disclaimer indicating I am not an attorney and I preface all my initial conversations with prospective clients and creditors' agents with this same information. I strongly encourage everyone in this profession to state this as obviously as possible in all business related communications.
However, this is not always enough. Since we are often dealing with debts that have escalated to lawsuits, our clients may look to us for guidance with their cases. Be careful that you do not give advice that could be construed as "legal advice". Be clear that you only specialize in negotiating discounted out-of-court settlements and you should not have any problems with UPL accusations.
As an additional service, I also suggest that you check your area for 1 or 2 reputable civil defense lawyers as referrals for any of your clients that you are unable to help with a settlement. This may not earn you any fees but it goes a long way in "good-faith" relations with your clients and may get you a referral from a happy one later.
Following these guidelines and using the wording provided in my sample correspondences will help ensure you a long and profitable career in this exciting profession.
Scott F. Soape
Wednesday, May 14, 2008
An Actual Recent Case
Locating cases, obtaining clients, negotiating settlements and getting paid can be a very simple and quick process in the commercial debt resolution profession.
As an example, on April 15th I identified a potential case lead at the local civil court records division of the county court. The debtor business had been sued by a local phone book for not paying on their yellow pages listing and the plaintiff was asking for $11,755.20 in principal, $3,900 for attorney fees, reimbursement of court costs (usually about $275) and post judgment interest on the entire debt until paid.
I immediately sent a letter offering my service to the owner of the business listed in the lawsuit at the address indicated. I followed up a few days later with a phone call and discussed my service. The owner expressed an interest but wanted to think it over first. On April 25th, he called me back and I faxed him a contract.
Since I knew from years of negotiating with the attorney representing this plaintiff (creditor) that a discount would be tough to get on the debt, I set my fee at a flat $350. It was also clear this business had very limited resources and a higher fee might be hard to collect.
After a phone call and 2 emails to the attorney, I had a final settlement offer of $12,000.00 payable in 24 monthly installments of $500 each (basically a 2 year loan with no interest). The client accepted the settlement on May 1st and I received a check for my fee immediately thereafter.
The total turn around time from identifying a lead to getting paid was just over 2 WEEKS but took only about an hour of actual hands-on work time for me.
This is just one example and the fee was set at my absolute minimum but you can see the results.
By the way, my client told me he had been contacted by another debt negotiator who offered to work for 35% of whatever he could save the business on the debt. I had intentionally set my fee as I did knowing I had competitors and knowing what to expect in the way of a final settlement. This helped me win the business.
My commercial debt resolution Business Plan System will teach you everything you need to know to operate your own business in this highly profitable profession. Please visit my website at http://www.debtresolutionbiz.com/ for details.
Scott F. Soape
As an example, on April 15th I identified a potential case lead at the local civil court records division of the county court. The debtor business had been sued by a local phone book for not paying on their yellow pages listing and the plaintiff was asking for $11,755.20 in principal, $3,900 for attorney fees, reimbursement of court costs (usually about $275) and post judgment interest on the entire debt until paid.
I immediately sent a letter offering my service to the owner of the business listed in the lawsuit at the address indicated. I followed up a few days later with a phone call and discussed my service. The owner expressed an interest but wanted to think it over first. On April 25th, he called me back and I faxed him a contract.
Since I knew from years of negotiating with the attorney representing this plaintiff (creditor) that a discount would be tough to get on the debt, I set my fee at a flat $350. It was also clear this business had very limited resources and a higher fee might be hard to collect.
After a phone call and 2 emails to the attorney, I had a final settlement offer of $12,000.00 payable in 24 monthly installments of $500 each (basically a 2 year loan with no interest). The client accepted the settlement on May 1st and I received a check for my fee immediately thereafter.
The total turn around time from identifying a lead to getting paid was just over 2 WEEKS but took only about an hour of actual hands-on work time for me.
This is just one example and the fee was set at my absolute minimum but you can see the results.
By the way, my client told me he had been contacted by another debt negotiator who offered to work for 35% of whatever he could save the business on the debt. I had intentionally set my fee as I did knowing I had competitors and knowing what to expect in the way of a final settlement. This helped me win the business.
My commercial debt resolution Business Plan System will teach you everything you need to know to operate your own business in this highly profitable profession. Please visit my website at http://www.debtresolutionbiz.com/ for details.
Scott F. Soape
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