Bartering Fees - An Alternative

99% of the time your fees will be paid in CASH. That is how most clients operate and, frankly, how most debt negotiators prefer to be paid.

Occasionally, though, you will encounter a client strapped for cash but who may possess a skill or merchandise you can use. If you can be flexible on how you get paid, BARTERING your fee in trade for something else of equal value can sometimes benefit both YOU and YOUR CLIENT.

One of my favorite barter situations occurred several years ago when I negotiated a substantial discount on a debt with a local nursery. My fee was set at a percentage of the savings and came to over $2,000. Unfortunately, my client was unable to pay both my fee and the settlement. Since I did not want him to lose the excellent settlement nor did I want to miss the fee, I suggested we barter for a product instead. I had just completed building my new home at the time and needed sod for my front lawn. So, in trade for my fee, my client provided me with a truck load of 20 palettes of sod along with the starter fertilizer.

Of course, I could have purchased the sod with the same money I should have received for my fee, but this made it easier for my client to make payment.

Use your imagination and keep an open mind as you deal with your clients. It need not even involve a large fee... I once worked for a $300 box of cigars from a local cigar shop in lieu of a cash fee.

Bartering your fee can add a new dimension to your practice and benefit both parties.

Scott F. Soape

Networking Groups

Networking groups exist for the sole purpose of promoting business for their members. To find out about networking groups in your area, start by contacting your local Chamber of Commerce and asking who they know that you can call. Chances are there will be several groups in your area to choose from and you may join as many as you want if they are accepting new members.

Most groups try to limit the type of businesses represented in order to avoid competition for referrals. A group may have members consisting of one CPA, one Printing Company, one Insurance Agent, one Restaurant, one Real Estate Agent, one Banker, one Dry Cleaner, one Mortgage Broker, etc. Typically, they like a broad spectrum of business types.

You can almost be sure they won't have any Commercial Debt Specialists and many groups will be more than happy to include you as a member. Join as many as you like. They usually meet once a month but some have weekly meetings either for breakfast or lunch or even early in the evening depending on every one's schedules. Find one (or more) with meeting times that fit your schedule.

These groups are a great way to spread the word about your unique service and you will find most group members have never even heard about your profession.

Include networking groups in your marketing efforts and you will find them to be a very effective and inexpensive way to get referrals.

Scott F. Soape

Negotiation Techniques

Some people thinking about getting into this profession are concerned they will need to be "hard nosed" aggressive negotiators in order to be successful. They are worried they don't have the proper personality or disposition to negotiate head-to-head with the creditor agents and "win" a settlement for their clients.

The good news is you can work this profession in whatever manner best fits your own personal style and attitude. If you want to be a hard-nosed aggressive negotiator, then go for it! If, on the other hand, you prefer to take a more subtle approach, that can work just as well.

My Business Plan System material provides all the information needed to negotiate settlements and you may use it to fit your own personal style and comfort level when dealing with clients and creditor agents.

As I have said before, the negotiation process is not difficult. Often, all that is required is making a properly worded offer or two before a settlement is finalized (see my Blog entry of August 20, 2008). And most of the time there is no need for face-to-face contact or even a telephone conversation with the creditor agents! My sample Settlement Offer Letters usually do all the work.

Anyone, regardless of the personality type, can operate a successful commercial debt resolution practice using my system.

Scott F. Soape

Keep Fanning the Referral Flames

My Business Plan System material provides you with a number of referral sources to contact about your debt negotiation service. These sources will encounter qualified candidates for your service on an ongoing basis and are usually very happy to steer them your way.

Incorporate a system of contacting these important folks on a regular basis into your business so that you are always at the forefront of their minds when potential clients show up.

You may want to start by sending a letter to introduce yourself and briefly explain your service to them. Including a bi-fold or tri-fold brochure will help create an identity for your business and give them something to maintain on hand along with your business card. Ideally, a follow-up phone call should be made to ensure they received your information, provide additional information and ask about any current referrals they may know of.

Once you have made the initial contact, be sure to "touch" your referral sources occasionally with a brief letter, email, newsletter, phone call or personal visit on at least a quarterly basis.

I make a point of dropping in for personal visits whenever possible. This allows my referral sources to connect a face with my name and also lets me provide extra information about my unique professional service. Often, I will even make a "cold call" visit to new referral sources when my time allows. Most folks are happy to take a minute or two for an introduction and almost all are interested to hear about what I do.

Don't make the common mistake of thinking one brief contact with a referral source is all you need. By Fanning the Flames of your referral sources, you will keep a steady stream of qualified leads coming your way... and the fees will follow.

Scott F. Soape

The BEST Profession for this Recession!

It should come as no surprise that the Commercial Debt Resolution profession is experiencing a HUGE SURGE in business given current economic conditions. Not only is this a recession proof profession but our business actually improves when times are bad since companies are experiencing a variety of debt problems stemming from the overall down economy.

Fortunately, we professional debt specialists are here to assist companies with their past due and disputed debts by negotiating discounted settlements with the creditors. Everyone wins when a debt can be settled out of court... the debtor gets a discount and/ or a manageable payment arrangement, the creditor receives money they may not have ever seen otherwise and the professional debt negotiator receives a substantial fee for his or her successful efforts.

Industry forecasts indicate our profession will prosper for the foreseeable future. If you are on the fence about getting into this business, I encourage you to take the plunge NOW. Commercial Debt Resolution can provide you with new or additional revenues and can be worked on either a full-time or part-time basis. Please visit my website for details and feel free to contact my office if you have any specific questions I may address.

Scott F. Soape

Another Reason to Avoid Consumer Debts

As stated in my blog entry of May 29, 2008, there are several reasons I suggest debt negotiators avoid consumer (personal) debts. An additional reason is the pending legislation to regulate that area of debt settlement that will likely soon be adopted in every State of the Nation.

The Uniform Debt-Management Services Act (UDMSA) provides comprehensive regulation of debt counseling and debt settlement services. It provides guidance and regulation to the consumer credit counseling and debt settlement industries and is a comprehensive statute that provides rules for (among other things) registration requirements, bond requirements, certification requirements, disclosure requirements and penalties for non-compliance.

My sources assure me this Act applies only to consumer or personal debt counseling and debt settlement and not to Commercial or Business debt services. Our profession remains basically unregulated and will for the foreseeable future. That is because we are basically acting as business consultants, dealing only with commercial entities on both sides of a debt settlement negotiation.

I strongly recommend you avoid working with consumer debts on any level for many reasons. This pending legislation is just one more reason to stick with Commercial Debts ONLY.

Scott F. Soape

For additional information please visit the official website for UDMSA at http://www.udmsa.org/ .

Who Handles the Settlement Money?

I am often asked by folks new to this profession if they will be responsible for handling the settlement payments on behalf of their clients. (Students of my Business Plan System already know the answer to this question.)

Although some programs require debt negotiators to place settlement funds into escrow accounts and direct payments themselves, my system shows you how to avoid this headache.

As far as I am concerned, the primary function of a Commercial Debt Resolution Specialists is to NEGOTIATE SETTLEMENTS. If you happen to have a background or expertise in other areas such as accounting, law, insurance, investments, etc. you may want to offer to assist your client with these matters as well. Otherwise, I suggest you limit your service only to settlement negotiations.

My system shows you how to negotiate the best possible settlement for your commercial client to include the lowest total amount and, if a payment plan is arranged, the longest time to pay, the lowest interest rate and the smallest monthly payments.

Once a settlement is agreed upon, your job is done and it is entirely up to your client to follow through with and adhere to the payment terms with the creditor or their agent. In other words, after a settlement is finalized, you are "out of the loop". This is specified in writing and a sample document is included in my Business Plan System material.

There is no reason to create extra work, responsibilities or record keeping for yourself by offering to handle settlement payments through an escrow account. Simply negotiate the best terms for each client and move on to the next fee-generating case.

Scott F. Soape