Here is a free step by step course on how to use Google tools to improve your business. We address marketing, communications, and workflow.
Here is a free step by step course on how to use Google tools to improve your business. We address marketing, communications, and workflow.
Treasure is REAL. Not just movie fantasy.
I’m based in Vero Beach Florida. This area is called the Treasure Coast. Not just because the area is a treasure in natural beauty. In 1715, there were 12 ships carrying Silver and gold from Havana, Cuba back to Spain. A hurricane sunk 11 of the 12 ships just offshore. In 1965, the first of these ships was discovered, and to this day, coins often wash onshore, and there are “NEW” discoveries made all the time.
It’s exciting to see and touch gold bars that have been underwater for almost 300 years. Yet, the bars are shiny, and the stamping is clear and crisp.
Where is your MAP? Where are your beautiful gold coins?
If you’re in Payday, or Autotitle, you’ve already jumped into a dynamic and exciting, and profitable business.
It doesn’t matter if your doctor friends call you a loan shark. You’re the smart one. You have total control over how much money you make, and WHO you take on as clients.
You’ve already done most of the work. We have maps for you. We’ve created courses that provide information and resources.
Our courses aren’t just about making more MONEY. They’re about attracting MORE and BETTER clients. Our courses have practical and PROVEN plans to improve not just your lifestyle, but also your LIFE!! You shouldn’t have to work 80 hours per week to be successful. If your staff isn’t making your LIFE better? You’re doing it wrong.
Collections? New opportunities?
If you buy a treasure map on the street, there are no guarantees, only empty promises.
There’s no risk here. All of our maps(courses) are guaranteed 100% to be useful, and practical.
Get out there. Do the work. Dig into resources. Participate. Engage. Connect.
I promise you. It will be worth it. You’ll make more money, create a business that’s impervious to competition, or regulatory changes. And we’ll help you have fun doing it.
Last week, we got a note from Ralleigh Grandberry IV.
“Jer and Miro, why do Autotitle lenders fail? I’ve seen a few guys open up and close. What went wrong?”
Ralleigh is starting out in Payday, and wants to expand into Auto Title lending. Here are Jer’s comments, and I’ll follow it up.
Seriously, Failure? Let me count the ways… undercapitalized, poor collection skills, lack of focus, wrong state, one catastrophic error in the 1st 12 months, infighting amongst your Team, internal theft, poor customer service, failure to think long-term in all aspects of your business particularly regarding customer retention/remarketing/building referrals, not incentivizing your CSR’s in alignment with your short/long-term goals… Need I go on?
Having said this, there is serious money to be made and I like the future of car title much more than PDL’s and installment products.
I’m sure the “mercurial” Miro will COMPLETELY disagree with me on ALL my ramblings :o)
This is free counsel so implement at your peril.
Jer – Trihouse
Jer covers most of the big issues. UNDERCAPITALIZED is a big one. I had a conference call with a lady that was intending to open an auto title operation. She had $15k to open the store. I assumed that was her budget to get a small store open. NOPE. That was her entire budget PLUS her working capital. She had projected that she’s earn $3375.00 per month on that amount. This is fantasy.
If she’s extra careful, MAYBE she can open a 10×10 office with a laptop, printer and camera for $10,000.00. She’s not even considering signage, permits, 1st, last & security, etc. That leaves her $5k for the street. That’s enough for 5 customers. After that she has to turn people away.
Having deep pockets in this industry is an absolute must. You’re going to have to experiment to find your sweet spot as far as underwriting goes. It’s going to take some trial and error. That means, you’re going to give out money, and NOT get it back. Especially when you’re new. You’re going to attract every professional debtor within a 200 mile circle of your store. If your bank balance is FAT, you can take your hits, keep going, and then it’s going to magically turn around for you.
I think if I had to offer a few key suggestions:
1: Have deep pockets
2: It’s a people business. Be amazing with people.
3: Supervise and verify everything. Especially employees.
PS: My Auto Title course is going to be released very soon. Watch out for it.
As you are doing your homework, your first decision is which software company you are going to use to operate your business(LMS Loan management system).
Some programs provide you with a Total turn-key solution that includes a website template. Some programs provide an interface that you can use to LINK your website directly into your LMS.
Before you sign the contract get the technical and interface specifications. With these specifications, you can interview different web contractors and determine IF they can make the interface WORK. If the LMS is using .NET (Microsoft based internet structure), then you need to find a .NET guy.
If you’re in a store front, it’s nice to have a website that can gather leads for you, and looks professional. If you’re ONLINE? Having that interface working perfectly is critical.
The LMS vendor will blame the web guy, and the web guy will blame the LMS company.
This is a long standing tradition in the tech industry. But it leaves you out in the cold. Whatever gets built for you, make sure that YOU test it. You want to enter clients into the website and see how they turn up. You want to try it on a fancy computer, Apple, Ipad, phone, etc. You want to make certain that it works. You can always make it pretty later.
Hire somebody that’s experienced. Preferably a person that has done this type of job before. Many computer guys “learn as they go”. That’s awesome for them, but you don’t want to pay for somebody’s education.
For a small project, I hired a guy out of college. He looked great on paper, and at only $40/hr a total bargain! Can you guess what happened? He spent 4 weeks doing a 2 day project, and when it was done, it was a steaming pile of crap.
Before you hire ANYBODY for any technical work, you have to understand and create a very specific and detailed project. If YOU don’t know exactly what you want, then how will they know?
They’re going to nod politely, and promise the world to get the contract, but if what you need is OUTSIDE their ability? You have to know.
This detail should include the programming language, the LMS information, as well as other interfaces that may be required.
AS a Title loan operator, you’re going to want to:
Interface to you LMS system
Capture client information
Have a window that clients can use to estimate their cars value
Have videos for marketing and client education
Have interactive maps for locations
Perhaps have a client interface where the client can view/change payment structures.
Send receive SMS messages.
I HIGHLY recommend that you view competitors’ websites. At least 20-30 different sites. Make notes of common elements. What’s important. Simplicity is beautiful.
When you write the text, write clearly. Don’t expect the web design company to write the copy, and legal disclosures for you. That’s not their job. You want them focused on making your website work.
By the time you create a RFQ (request for quotation), you should have your entire website, and work flow mapped out on paper. If you’re not organized, your website won’t be either.
You’re creating a technical, marketing and operations funnel for your business. Make it good.
You want as few surprises and changes as possible. Because any changes or issues are going to cost you extra $$$ and time. If you’re building an online organization, you don’t want the whole project sitting while some computer guy is messing with code.
Should you use an offshore web design company? That entirely depends on how capable and patient you are with project management. If you’ve created a comprehensive plan, then your project won’t be that hard.
I’ve had mixed results with offshore. Very capable and skilled programmers, but they are more interested in the money transfer than in completion of your project. In any venture or business, the last 5% of a project is the hardest to get completed. This happens most of all with this type of work. Most will get you 95% of the way there, and then lose interest and wander off.
My suggestion is to find somebody that’s done these before, and if you can, find somebody local. If you have to go to their house and pound on the door? Then you can.
I use: Tino Sebastiani
954 529 7633
As a funny side note, Tino’s web page makes you answer a math question as part of the verification process. I suspect he’s using this as a way to filter out potential clients that are very bad at math.
Final note: Don’t pay until everything is 100%. Keep at least HALF the money until you get that final 5% done.
The Payday Loan Tsunami, ACH, Virtual Wallet, Paytoo: Thoughts and Interpretations
By: Jer Ayler Trihouse
It’s Tuesday, Sept. 10th and I’m in Paris contemplating the TSUNAMI that hit the payday loan industry!
As YOU know, this is an incestuous industry. Billions $$ are at stake! We’re in the midst of a hurricane! Operators are bailing, consumers can’t get a loan – they’re calling out-of-state stores and literally begging for cash. Loan portfolios are being abandoned or sold at fire sale prices, call centers are shutting down right and left…
I’ve been on the phone 6 AM to past midnight with EVERYONE for the past 14+ days non-stop; Saturday’s & Sundays’ included. You know me! Until this firestorm hit, I woke-up whenever I felt like it ) Half the time, I was kayaking on the back-bay when I pontificated on our industry.
As you digest this, remember, “Disruption rarely comes from within.”
So what happened?
New York Banking Commissioner Lawsky launched a series of punches to banks and online payday loan lenders demanding they stop making loans to residents of New York. Additionally, he said all outstanding loan principals and fees with NY borrowers are “void and uncollectable.”
Then the NY AG piled on with more…..
ACH providers, NACHA and banks were attacked for enabling payday loan lenders to “skirt NY usury laws.” The Native American Financial Services Association walked the halls of Congress demanding the State of NY back-off on all this “ACH noise” and “end their attack on tribal sovereignty.” ACH providers reacted in knee-jerk fashion and began shutting-off lender access to the ACH system – virtually overnight without warning! Even state licensed payday loan lenders were cut-off!
The bottom line? The online payday loan industry had its business model cut-off-at-the-knees. Lacking the ability to utilize the (ACH) Automated Clearing House, the industry couldn’t deliver funds (debits/credits) to borrowers nation-wide.
Payday loan lenders having “bricks-n-sticks” were jubilant! Suddenly their online competitors – the offshore, the tribes, the choice of law lenders were out of business! Phone calls to stores by consumers “looking” for a loan increased 1000% overnight. Little payday loan stores in places like Lake Forest, California (Danny Verette – Paid2Day.com) were receiving 20, 30 40+ calls per day from consumers all over the country!
During this “firestorm” of attacks and, what APPEARED TO BE eminent destruction of the payday loan industry, a company called Paytoo arrived! What IS Paytoo you ask? Simple! A “virtual wallet.” Literally, a consumer’s financial purse or wallet “in the cloud.” Cash-in, cash-out and money management all from a mobile phone, a tablet, a computer, an ATM machine… The Paytoo virtual wallet platform enables a consumer to access ALL their financial data, bill pay, payroll loan request, transfer funds to friends, family, merchants, load a Discover or MasterCard, get cash at an ATM machine, create a virtual check, deposit payroll proceeds, manage their finances… a Paytoo virtual wallet is literally a depository for a consumer’s dollars made available anytime, anywhere, 24/7 “LIVE.”
What’s this mean for consumers? NO need for the 30,000,000+ so-called “unbanked” to physically visit their local check casher and pay 3% – 9% of their net payroll proceeds to cash their check. Paytoo does this FREE! No one gives a crap about having a bank account. YOU NO LONGER NEED ONE! ASTOUNDING! Via Paytoo, a consumer can deliver money to merchants, family members (in Mexico City, San Diego, or Paris ) FREE! Cash savings with each “spend.” “Virtual” pay by check is featured. A consumer having a bank account, can choose to “tie” it to their “Wallet.” Paytoo’s platform subscribes to the philosophy of 1 wallet/1 consumer/1 lender. Paytoo brings “real-time” 24/7 comprehensive money management tools to the masses.
What’s this mean for lenders and the AFS industry? No more “check is in the mail.” No more waiting for an ACH to be batched, submitted and wait 2-4 days for transactions to clear. No more 3-5 days of “reserves” to be held by your ACH provider. The lender is at the “front-of-the-line” to be paid by the consumer. The Paytoo platform lowers your “scrubbing” and due-diligence costs on the front-end. Check cashers are DEAD! MoneyGram ?? Western Union?? The stored value cards we’ve all been trying to peddle with ridiculous consumer fees; DEAD! Implement the Paytoo API and launch today.
What’s this mean for Regulators? 1 consumer = 1 payday loan. (Hm.. appears to be a state data base “killer.” States may not be happy to lose the revenue many of them currently receive from Veritec. Think Florida for example.) KYC (Know Your Customer) issues? Solved. Paytoo Corp, a wholly owned subsidiary of Paymotech Finance Corp., is a registered Money Service Business (“MSB”) with The U.S. Department of Treasury.
Mobile phone owners have already achieved “KYC.” Should Paytoo become the “de facto” payday loan lending platform, a federal solution to multiple, simultaneous PDL’s would be moot.
So, what’s been the reaction by the payday loan industry to the intro of the Paytoo platform? “Every lender wants to keep this for themselves.” Not possible. Could not keep the “lid” on this thing. All hell broke loose! It’s like a shark frenzy )
And, how is it that Paytoo just “happened to appear” on the scene at this moment in time? Just as this “ACH TSUNAMI” nearly annihilated a $50B industry?
Paytoo CEO Michael Poignant has been quietly laying the groundwork for the Paytoo virtual wallet “killer application” since 2005. Michel P. has been beating on our vertical for years! He was used, abused, disrespected, left waiting in lobbies…until “The Perfect Storm!”
You might ask at this juncture, why Jer finds himself in the enviable position of playing a role in helping Michael Poignant, Brett Hudson and the rest of the Paytoo Team re-introduce the Paytoo platform to the AFS industry? All I can say is, “Thank god I promptly responded respectfully (and with humor) to the communications Michel P. shot out to me over the past many, many months!
Those of us in the AFS industry who survive, and come out on the other side, bent but not broken, will be rare. The “Virtual Wallet” is the future. ACH will remain but there are better, cheaper options. Europe, S. America, Mexico… even Africa is ahead of the States with adoption of digital, virtual currency, bill pay, money transfer…
Is Paytoo the “killer app” for our space and more? Will Paytoo become the “default” $$ delivery platform for the AFS industry as Google is for search? How far along are Paytoo’s competitors? Can Paytoo scale fast enough to meet demand? Can DLLR, CSH, EZPW… or any other behemoth build/employ/scale as robust a platform as Paytoo has already deployed in Europe and S. America and now the USA? Paytoo is inundated with Demo Requests and “sandbox” setups for testing. Lenders with $100M + are testing now; they’ve only dipped their toe in the waters so far… afraid they could be eaten by a SHARK. Afraid of what happens to their data, their customer… Can Paytoo sell-out? Get eaten?
Remember: 1 wallet; 1 consumer; 1 lender. If Paytoo IS the “killer app,” lenders better “jump-on board” and secure market share FAST! Are you listening Al Goldstein., Mark C., CSH, DLLR, EZPW, FCFS, OLA, CFSA, FISCA, NAFSA…?
Paytoo has 4.5M world-wide consumers currently using the Paytoo virtual wallet! Only 300,000 are U.S. based. These numbers are increasing daily. Who wants to partner with Paytoo? Who wants to do business with Paytoo in the USA NOW?
“Apple will sell a few to its fans but the iPhone won’t make a long-term mark on the [financial services] industry.” Bloomberg, January 14, 2007. (THX to Bank 3.0 by Brett King. Attention: READ THIS BOOK or die! Better! Buy Brett’s book and bring it to FISCA for his autograph )
No single Lender has a large enough market share to slow adoption/integration with the “virtual wallet.” A complete and irreversible DISRUPTION is upon us. Fail to embrace the “Wallet” and your business will perish. We are in the midst of a MAJOR SHIFT in financial services. The $$ distribution system HAS changed.
Today’s consumer has grown-up with Facebook, Twitter, iPhones… Lenders who fail to figure out this new paradigm will soon be irrelevant. As a lender, your costs will come down, your market share will increase, Big Data loan decisioning algorithms will improve your ROI, human loan officers will soon be archaic, consumer rates and fees will fall…
OK, ENOUGH NAME! Signing out from Paris. I’m hiding out from all the flack… :o) Use this in its entirety!
You’re kidding me? You’re a lender and YOU STILL have not seen the “Paytoo Wallet demo?”
GO HERE: http://trihouse.wufoo.com/forms/request-for-demo-of-wallet-via-trihouse-consulting/
WHAT? You’ve demo’ed the Paytoo Wallet and you’re still on the side lines? Then get out of the way. You are about to be crushed.
My friend Maria is a Marine Biologist. Her profession and experience is very different from mine.
Maria is also an employer, and has almost two decades in managing smart and nerdy people.
So, my question to her was this: Do you seek out the regular, steady employee. The employee that follows directions, shows up everyday, gets along with others, and causes no drama.
DO you seek out GENIUS? Do you want the brilliant mind working for you? Are you willing to manage and put up with the EGO, randomness and the DRAMA that comes with a creative, and powerful thinker?
I assumed that in the world of science, you wanted people to follow direction. I assumed that compliance and control was MORE important than having some MacGyver type going off in their own path.
I was surprised by Maria’s response: ”No question, I’ll take the egomaniac smart person, over the plodder. Even though there will be days where the STAR is having a mood, or a pout. Over the course of time, that creative problem solving, the ability to see through the mess has tremendous value.”
“I’m willing to do the extra work to babysit them, and try to keep them focused, but you’ll get a lot more done with this person in a week, than a plodder will accomplish in a year.”
We mostly hire “entry-level” people, with entry-level pay. AFTER some terrible experiences, most of us become so frustrated that we’re willing to accept an employee that shows up on time, and mostly SOBER.
I’m going to ask you to stop doing that. Don’t settle for Mediocre. Look for the STAR.
Who is a star?
You want a person that is friendly, outgoing, and has a way with people. The operations and procedures – all that crap you can teach. But CHARISMA is rare.
Let me tell you WHY you want a STAR:
I’ve been lucky and have had a few stars in my operations at any one time. Pay close attention to this: We had opened up a new location about 50 miles from any of our other stores. We transferred a manager from another location. Blah. The numbers were terrible. The location had a BUSY street and great signage but after six months, it wasn’t even at break-even. We tried a few other managers but never got above $5,500 per month in revenue. I wasn’t willing to close the location, because I KNEW it was a great spot. We were missing something.
I got to know a guy named LARRY that was running a little family cafe. LARRY had just closed down his business and needed work. (Regardless of my comments about hiring men, I’ve had a few great ones). I liked the guy a lot and hired him. Larry was in a tough spot financially and needed to work ALL the hours he could get. I put him into the stagnant store. Open to close, six days per week.
Within three months, the location had doubled to $10,000 per month. At the end of Larry’s first year, the store was doing $27,000 per month in revenue. Steady. That’s a $21,500 MONTHLY difference.
Here’s the thing: Larry wasn’t that smart. He wasn’t great with collections. I had to send somebody up there once a week for half a day to clean up the paper, and I’m pretty sure that he was skimming a few hundred per week from NSF charges/late fees.
But, Larry was a charming guy with the ladies. When any woman walked in, 18 or 88, he would greet them enthusiastically with a “Hello BEAUTIFUL lady!” With a disarming smile and a slight accent he pulled it off perfectly every time. Even the most jaded, angry and bitter woman was putty in his hands.
Larry spoke four languages.
Larry would connect with the guys as he was a car and motorcycle enthusiast. As Larry drove a 1950′s truck to work everyday, it was an instant ice-breaker. There was never any attitude back or forth. Larry was their buddy. Their friend.
Most employees develop favorite clients, but they tend to treat the new clients like crap. He didn’t do that. Everybody loved him. He could find common ground with anybody. Larry made each person feel special.
Hiring the **STAR** made a $258,000 difference on my bottom line. Per year. He stayed with us for three years and after he left, the numbers went down about 20%.
In total, hiring him made me $850,000 in additional revenue over his tenure. Not counting the residual clients that stayed on after he left. I think that justifies the extra time and effort I took getting to know him a little before I hired him.
He eventually left for a better paying job and moved out of State. We paid him pretty well. Going back in time, reviewing the numbers as I did for this example, I should have doubled his pay, created a FAT bonus structure, and chained him to the store forever.
Maria was right. Look for the STARS. Allow them to work to their strengths. Find ways to prop up their weaknesses.
Our industry isn’t about money, it’s about PEOPLE. The first, and most important hiring decision you make on your front line is people skills. Charm. Charisma.
Don’t settle. Be GREAT out there!
PS: If you want to know our secrets to finding and KEEPING stars, you should check out our Powerhouse operations course. Click HERE to buy.
Every time we share tips, or resources we have a simple criteria for doing it.
“Will this information HELP the operator? Will our efforts be positive and create a positive change or difference in their operation?”
If you are in the payday/loan business, want to get into this business, or are trying to GROW (we should all be trying to grow). Then you need $$$. Our industry is all about the cash. And getting funding has always been a big challenge.
Back in early June, I was having coffee with my old friend Ray Sims (Capital Solutions Funding Group). Ray was telling me about this funding program that he’d developed. I’ve known Ray for years, and I had trouble believing that this type of lending was now available. But Ray is a straight shooter. I had to trust him and I wrote it all up and shared it will all of you.
On June 24, 2013 I had posted a write up about a new bank-based funding program for new and existing business.
And the crowd went WILD!
My phone rang off the hook. People were accusing me of running a SCAM, and that this type of funding didn’t exist. And to be honest, it didn’t exist 3 months ago. This program is entirely new, and innovative.
Most people were VERY skeptical.
Ok, they were more than skeptical. They were HOSTILE.
A few brave souls actually filled out the form, and got the process started.
The video is an interview with Jerry Evans. Jerry was the very first person from our site to apply and get funding. Jerry is a gentleman that has 12 years in the Payday loan industry. He’s worked with the big guys and has ventured on his own. Here’s the interview and he tells his story of what it was like to work with the group.
Up to $200k on new business (per well qualified signor)
Up to $350k on established business (per well qualified signor)
The funding is a combination of loans, lines of credit, and sometimes even credit cards. These are established with real banks and credit unions.
Application fee: $0.00
Depending on the individual credit strength and the structure of the deal. In same cases, there is a loan at regular interest rates, lines of credit are usually prime +2-3, and the credit cards are often no interest no payment for the first year.
There is a 12% fee to establish these lending facilities. This is paid out from loan proceeds at closing.
How to apply?
Step 1: Go to www.creditKarma.com and pull your own credit. If you score over 680, then you qualify for this program. When you create this account you will get a CLIENT CREDIT ACCESS USER and CLIENT CREDIT ACCESS PASSWORD. The user is usually your email address and the password is something you choose. Write these down, as you’ll need them to apply. This is a SOFT credit pull. This does not affect your credit, and when the banks look at your file using this information, they’re not pulling a credit report either.
Step 2: Fill in the form below. If you included your client username and client password for Creditkarma, you will get an approval letter in 2-3 days. If you wish to talk to somebody first? No problem. Just complete the contact information, and you will be contacted. But understand that the soft pull information will be required to move forward. ***you are not committed to anything, and you’re not being charged anything at this step. Capital Solutions funding is exploring HOW they can help you meet your goals.
Step 3: You will be sent a pre-approval letter with an application form. At this point you have a pretty good idea of what’s available to you, you’ll see all the rates, and how the funding is setup. If you want to move forward, you complete the forms and send them in.
Step 4: Final signatures and funding. You’re presented with the funding plan. At this point you can walk away and you’ve spent $0.00. If you like the program, then you sign the papers, and your funding becomes available to you. The 12% fee is taken at this time.
Here is the special LINK that takes you to an application page. This page allows the company to KNOW that you are coming from Payday University and that you should be well treated.
“Technology to change the world one student at a time,” crowd funding micro-lender Vittana CEO Robin Wolaner. Small loans to students: $750 avg. size loan triples their income after matriculation. Interestingly, Ms. Wolaner stated, “Traditional micro finance loans are focused on women because men do not tend to pay their loans back.” However, Vittana serves a roughly 50%/50% mix of male to female loan recipients with a 99% payback average.
Muhammad Yunus, famous for launching the micro lending movement via Grameen Bank and winning the Nobel Peace prize, made the same statements about males failing to payback their loans.