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
Thursday, October 23, 2008
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
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