Is It Time To Become A Debt Settlement Affiliate Net Branch Office? It's definitely the right timing, and the barrier of entry is minimal - a home office or shared office space will suffice for most.
And for those of you who already have an office and are not already offering debt settlement - it's the HOT ticket! We're talking about debt settlement agents closing 2 to 3 deals a day with an average ticket of $4,500.
Yes, that's WOW money.
If you're in the market to add another product to your existing operation, Debt Settlement looks to be the answer.
Many in this growing Industry agree that debt settlement goes hand-in-hand with loan modification and, of course, mortgages.
The same person you're speaking with over the phone regarding loan modification might also need you to first settle their debt, so you can then lower their debt to income ratio (DTI)...
and then you can modify their loan.
There's no paperwork, credit score qualification, nothing - everyone qualifies and apparently, everyone is settling.
As more and more people are realizing, settling their debt for approximately 55% on the dollar is a better option than going bankrupt.
With 15% of fees on the table to go around, what percentage of that you'll see is generally up to the size of your organization and how many deals your organization can do a month.
With the right bureau data & marketing setup, debt settlement agents are closing 2 - 3 deals a day.
Shall we do some math? Let's say the average deal is $30,000 If you received 65% of the 15% (9.
75% total) Your commission would be $2,925 On average, You, the head of an office of 10 agents should be able to command and receive 60% - 65% of the 15% in collected fees, but the highest commission payout shouldn't be your only concern.
Many other variables, including the debt settlement company's client retention rate, as well as how and when you get paid, are important to know, as managing your cash flow can be sink or swim.
When investigating which Debt Settlement Program to go with, you'll want to make sure you have these following items in place.
1st - Does the debt settlement company charge service or maintenance fees to the client each month? If so, walk away or you'll be holding the red flag! This means that, on top of the 15% you're going to charge the client to settle their debt, you're adding another 7% to 10% in monthly service fees.
Let's Take A Closer Look: Average Debt Settlement Deal is $30,000 If you charge the Client 15% to settle their debt, they're going to pay $4,500 in total fees.
But Wait - Now add up the monthly service fees that are apparently tipping $49 a month.
If the average time it takes a Client to settle their debt is 36 months, then you're adding an additional $1,800 to the total fees which are already 15%.
You're adding an additional 40% to the 15% - 22%! Are You Charging Your Clients 22%? 2nd - Client Retention - Clients stop paying into their debt settlement program when the program stops making sense.
If you're working with a back-end debt settlement company that doesn't charge its clients monthly junk fees, you're likely to see substantially greater Client retention.
Companies that pay affiliates a majority or even the entire first payment made by the client (meant to settle their debt) are also likely to be frowned upon by society, as it almost looks like you're stealing money for a living.
3rd - What are the setup fees and upfront costs when choosing a debt settlement company? "Paying up-front fees or set-up fees, so you can send debt deals to a back-end debt settlement company is amateur," states John Moore.
" If you're presented with a company that wants upfront money to send them debt deals, walk away.
They're likely to be around for only a short period of time and prey on those new to the Industry.
4th - How do You get paid and when? Be sure to work with a debt settlement company that puts half (50%) of every payment that the client makes (especially their first payment) into their client's Special Purpose Account.
Many companies out there will take 70% - 100% of the first payment, so they can pay the affiliate office that referred the deal; but statistics show that this greediness pushes as much as 80% of payees to not make their second payment.
Put yourself in the shoes of the Client or, better yet, pitch the Attorney General of your State and see if it passes their litmus test.
Are you on the phone pitching 15% in fees to settle the debt, but failing to mention the other 7% in fees? Your best bet is work exclusively with a debt settlement company that doesn't charge monthly service and maintenance fees, and you'll close more deals and have no legal liability.
Rich Preisig thanks you for reading this article.
And for those of you who already have an office and are not already offering debt settlement - it's the HOT ticket! We're talking about debt settlement agents closing 2 to 3 deals a day with an average ticket of $4,500.
Yes, that's WOW money.
If you're in the market to add another product to your existing operation, Debt Settlement looks to be the answer.
Many in this growing Industry agree that debt settlement goes hand-in-hand with loan modification and, of course, mortgages.
The same person you're speaking with over the phone regarding loan modification might also need you to first settle their debt, so you can then lower their debt to income ratio (DTI)...
and then you can modify their loan.
There's no paperwork, credit score qualification, nothing - everyone qualifies and apparently, everyone is settling.
As more and more people are realizing, settling their debt for approximately 55% on the dollar is a better option than going bankrupt.
With 15% of fees on the table to go around, what percentage of that you'll see is generally up to the size of your organization and how many deals your organization can do a month.
With the right bureau data & marketing setup, debt settlement agents are closing 2 - 3 deals a day.
Shall we do some math? Let's say the average deal is $30,000 If you received 65% of the 15% (9.
75% total) Your commission would be $2,925 On average, You, the head of an office of 10 agents should be able to command and receive 60% - 65% of the 15% in collected fees, but the highest commission payout shouldn't be your only concern.
Many other variables, including the debt settlement company's client retention rate, as well as how and when you get paid, are important to know, as managing your cash flow can be sink or swim.
When investigating which Debt Settlement Program to go with, you'll want to make sure you have these following items in place.
1st - Does the debt settlement company charge service or maintenance fees to the client each month? If so, walk away or you'll be holding the red flag! This means that, on top of the 15% you're going to charge the client to settle their debt, you're adding another 7% to 10% in monthly service fees.
Let's Take A Closer Look: Average Debt Settlement Deal is $30,000 If you charge the Client 15% to settle their debt, they're going to pay $4,500 in total fees.
But Wait - Now add up the monthly service fees that are apparently tipping $49 a month.
If the average time it takes a Client to settle their debt is 36 months, then you're adding an additional $1,800 to the total fees which are already 15%.
You're adding an additional 40% to the 15% - 22%! Are You Charging Your Clients 22%? 2nd - Client Retention - Clients stop paying into their debt settlement program when the program stops making sense.
If you're working with a back-end debt settlement company that doesn't charge its clients monthly junk fees, you're likely to see substantially greater Client retention.
Companies that pay affiliates a majority or even the entire first payment made by the client (meant to settle their debt) are also likely to be frowned upon by society, as it almost looks like you're stealing money for a living.
3rd - What are the setup fees and upfront costs when choosing a debt settlement company? "Paying up-front fees or set-up fees, so you can send debt deals to a back-end debt settlement company is amateur," states John Moore.
" If you're presented with a company that wants upfront money to send them debt deals, walk away.
They're likely to be around for only a short period of time and prey on those new to the Industry.
4th - How do You get paid and when? Be sure to work with a debt settlement company that puts half (50%) of every payment that the client makes (especially their first payment) into their client's Special Purpose Account.
Many companies out there will take 70% - 100% of the first payment, so they can pay the affiliate office that referred the deal; but statistics show that this greediness pushes as much as 80% of payees to not make their second payment.
Put yourself in the shoes of the Client or, better yet, pitch the Attorney General of your State and see if it passes their litmus test.
Are you on the phone pitching 15% in fees to settle the debt, but failing to mention the other 7% in fees? Your best bet is work exclusively with a debt settlement company that doesn't charge monthly service and maintenance fees, and you'll close more deals and have no legal liability.
Rich Preisig thanks you for reading this article.
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