Talk About Timing Start Offering Debt Settlement!!

By Rich Preisig at http://www.richpreisig.com

Open Your Own Debt Settlement Office?!! It’s definitely the right timing and the barrier of entry is minimal – a home office or shared space will suffice for many. And for those of you who already have an office and are not already doing debt settlement – it’s the HOT ticket! We’re talking about debt settlement agents closing 2 to 3 deals a day with an average gross ticket of $4,500. Yes, that’s WOW money and most if not all of the business is done via E-Signature - a one call close!

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 for loan modification may also be suitable for debt settlement and there’s no paperwork, credit score qualification, nothing – everyone qualifies and apparently, everyone is settling.

Quick start - Open Your Own Debt Settlement Office - Input your information here to be contacted. http://merchleads.com/NewOffice.html

Let’s Take A Closer Look;

After your client makes their first payment to the debt settlement company, you can prove that they no longer have the same payments due for the aforementioned credit card debt, etc. You've effectively and very quickly, within as little as two weeks (with written proof from the debt settlement company) lowered your clients' DTI and your client(s) are now qualified to modify their mortgage loans.

As more and more people are finding that settling their debt for approximately 55% on the dollar is a better option than going bankrupt, the providers of this easy exit are making bank. 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 (which is realistic with the right data)

If you received 50% of the 15% (7.5% total)

Your commission would be $2,250

On average, You, the head of an office of say 10 agents can command and receive 50% - 70% 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 dropout rate and 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 Company to choose, you should get the answers to the following questions and make sure they work with your way of business.

What is their client dropout rate or what is their client retention rate.

This means; for every client that enrolls in their debt settlement program, how many of them finish the program.

Remember – You stop getting paid when the Client stops paying. The lower the percentage dropout rate, the better and the higher the client retention, the better!!

What are the setup fees?

This means; some Debt Settlement Co.’s may charge upfront fees. This can be tied to their Company software (displays your clients deals, client payments, etc.) and or they may charge a per-agent setup fee and tie it to some other cost they’re incurring. Either way, watch how your total percentage payout goes up and down with fees vs. no fees.

How do You get paid and when?

You obviously need to know this so you can pay your Agents. Most debt settlement Co.’s will pay your Co. 100% of the first payment. Find out when you will receive that money and is this information in your agreement.

From here, major differences come into play. Some companies will pay you 50% of the 2nd and 3rd payment and 35% of the remaining payments until you get your agreed upon total percentage. Other Co’s are paying far less, as they put more of the client’s collected monthly payment toward the balance owed vs. their fees. In doing so, they feel that the client retention rate to fulfill the program through its term is far greater than taking all the fees upfront.

Read more articles written by Richard Preisig.

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