A high performance sales person is one of the most valuable assets a company can have.
The purchase opportunity a consumer will pass up if left to their own isolated mind and will, the consumer will buy and pay twice the price if helped by a good sales person.
To better explore this notion let's take a look and explore some thoughts on home loan lending and the loan agent.
The loan agent for the modern day private lender is there for one reason. They are there to hold the borrowers hand, keep them happy, and most importantly to see them through the entire closing process. This is important because the borrower and home buyer has a lot to deal with. The never ending list of closing costs can be overwhelming and borrowers often want to back away as they become overwhelmed with all the financial obligations and contracts.
Because good sales people are hard to find and historically impossible to control, the typical employee to employer arrangement has proved a poor performance strategy.
Salary is a commitment and if the employer is wrong about the hired employee than they are out quite a bit of money. Sales people have a reputation of taking their own interest to the extreme. If they are guaranteed money this is gonna make managing them even worst. Why go the extra mile if there is no perceived self benefit?
Thus the commission has proven to be a great fit for the marketing and sales side of business operations.
Sales people are also good at extracting the highest price tolerable by any one given borrower. Thus loan origination points are a great match for originating loans. The sales guy is able to pull huge commissions and thus make a fruitful living and the lender carries zero risk.
By giving sales people a optional margin and commission take depending on the price obtained for any given product a company is able to give their sales reps greater opportunity for tremendously less risk. The price and risk is passed on to the consumer. If the consumer or borrower negotiates the price down to the bare minimum than they have avoided the extra cost of the reps allowable premium. The rep in this scenario still gets a commission. The commission is not as high as it could have been if they were able to get the consumer to purchase the product for a higher premium.
Sales people learn to live and cope with this uncertainty.
Related Articles
Understanding Risk and the Certainty of Uncertainty
Showing posts with label small business. Show all posts
Showing posts with label small business. Show all posts
Saturday, January 1, 2011
Friday, December 31, 2010
Google Advertising - The Basic Landscape of AdWords
Google makes the vast majority of it's money through advertising revenues. More specifically Google generates advertising revenue through there advertising program known as AdWords.
The heart and soul of Google's advertising success is the ability to target advertisements to the target market. When a consumer searches for a product or service the most applicable advertisements will be shown to that consumer. Thus Google has introduced an unsurpassed relevancy to advertising.
Google advertisements are distributed through two main channels. The first, most effective, and thus valuable is the search based advertisements. The second and ever growing source of Google advertisements is through the content network.
Two AdWords Distribution Channels
Advertisers can place ads on content websites or search engine result web pages.
Search
The search advertising or search engine marketing which is often abbreviated as SEM has and remains Google's bread and butter when it comes to revenue and advertiser success. The success of search advertising derives from the three R's of online marketing.
The ability to reach the interested consumer at the time of interest was never possible before AdWords. This ability to target both relevance, and peak interest is amplified by the ability to track the performance of almost every aspect of an advertising campaign. Advertisers can track almost anything whether it be time of day, location, demographic, search query, landing page, ad copy, or practically any other variable you can think of. This ability to track performance allows advertisers to hyper focus their advertising budget like never before.
Another big advantage of SEM is the notion that you only have to pay when a user clicks on your advertisement. Instead of the pay for display method of advertising Google search advertising only charges an advertiser if a user clicks on the ad.
Content
Google search advertisements are not always clicked on. In fact the majority of the time a search user will elect to click on a organic search listing. So what is an advertiser to do once the user has left google and found a site or online resource with the information that they are looking for? Google came up with a solution.
Google partnered with online publishers and content providers through a program called AdSense which allows advertisers to obtain an enormous advertising reach via the websites participating in AdSense. Websites that partner with Google through AdSense allow Google to place advertisements on their website. Google in return shares the advertising revenue with the websites.
Related Articles
How Google Makes Money
Niche Article Essentials
Online Advertising - Spending Round-Up
History of Online Advertising
The heart and soul of Google's advertising success is the ability to target advertisements to the target market. When a consumer searches for a product or service the most applicable advertisements will be shown to that consumer. Thus Google has introduced an unsurpassed relevancy to advertising.
Google advertisements are distributed through two main channels. The first, most effective, and thus valuable is the search based advertisements. The second and ever growing source of Google advertisements is through the content network.
Two AdWords Distribution Channels
Advertisers can place ads on content websites or search engine result web pages.
Search
The search advertising or search engine marketing which is often abbreviated as SEM has and remains Google's bread and butter when it comes to revenue and advertiser success. The success of search advertising derives from the three R's of online marketing.
The ability to reach the interested consumer at the time of interest was never possible before AdWords. This ability to target both relevance, and peak interest is amplified by the ability to track the performance of almost every aspect of an advertising campaign. Advertisers can track almost anything whether it be time of day, location, demographic, search query, landing page, ad copy, or practically any other variable you can think of. This ability to track performance allows advertisers to hyper focus their advertising budget like never before.
Another big advantage of SEM is the notion that you only have to pay when a user clicks on your advertisement. Instead of the pay for display method of advertising Google search advertising only charges an advertiser if a user clicks on the ad.
Content
Google search advertisements are not always clicked on. In fact the majority of the time a search user will elect to click on a organic search listing. So what is an advertiser to do once the user has left google and found a site or online resource with the information that they are looking for? Google came up with a solution.
Google partnered with online publishers and content providers through a program called AdSense which allows advertisers to obtain an enormous advertising reach via the websites participating in AdSense. Websites that partner with Google through AdSense allow Google to place advertisements on their website. Google in return shares the advertising revenue with the websites.
Related Articles
How Google Makes Money
Niche Article Essentials
Online Advertising - Spending Round-Up
History of Online Advertising
Sunday, December 19, 2010
Business Basics - Understanding Risk and the Certainty of Uncertainty
Anyone who has been responsible for a business for some amount of time knows or quickly finds out that one of the biggest mistakes a business operator can make is not expecting to make a mistake. It can even get worst at times. Sometimes disaster will strike with no notice and no fault. This potential disaster, this uncertainty, this certainty of uncertainty is known as risk.
This post will outline some potential risks of doing business and more specifically the typical horizons of which risk tends to rise.
A key to risk management is to catch problems early. The best way to do this is to be looking for the problem before the problem even exists.
Below are seven common horizons where risk in known to arise.
Seven Potential Risks of Doing Business
1) Industry Demand
Perhaps this is the worst. Nothing is worst than trying to sell that of which no one wants to buy. Depending on your product and industry you may be likely to encounter a fluctuation in market demand (not in your favor). The best way to hedge this risk is to use one or a combination of three risk adverse safeguards prior to the strike of a lacking market demand.
a) Have savings and a cost cutting plan for the occasion and wait out the storm. Extra financing does not hurt.
b) Diversify your revenue and have plenty of sources
c) Tweak your revenue streams to yield a residual income
2) Outside Regulation from Authorities
Nothing sucks more then the government stepping in and suddenly squashing your means of making a living. The only way to beat them is to join them (aka getting into politics some how and beating them at their own game.)
3) Fluctuating Demographics and Populations
This can creep up on you if you have been in business for a long time. If the surrounding market population steadily gets older, or changes some how with out replenishing the "meat and potatoes" of your target market then you better move or find a new business.
4) Competition of the Third Kind
Everyone in business typically has a good nose for the direct competition. However if you are the unfortunate soul to encounter a new competitive technology that you have never seen before because ... well... they never existed before (aka new competitive technology) then you can be in for a very rude and humbling experience.
For example = NY Times meet my friend she is called "the Internet".
5) Long Term Supply Disruption
If you rely on something that suddenly goes out of style or perhaps worst is suddenly used for something totally different and totally more profitable thus increasing your costs out of your league then you are gonna have to figure out how to do what ever is smarter then what you were doing.
6) Loss of Competitive Edge such as Patent
Did you invent something? Time sure does fly huh?
7) Legally Taken to the Cleaners
Lawyers suck. No doubt about it. If one sees a way to gut you for everything you got expect a bill for at least twice that. This may be the worst and most infuriating.
Related Articles
Business Basics - The 3 Fundamental Functions of Every Business Explained
This post will outline some potential risks of doing business and more specifically the typical horizons of which risk tends to rise.
A key to risk management is to catch problems early. The best way to do this is to be looking for the problem before the problem even exists.
Below are seven common horizons where risk in known to arise.
Seven Potential Risks of Doing Business
1) Industry Demand
Perhaps this is the worst. Nothing is worst than trying to sell that of which no one wants to buy. Depending on your product and industry you may be likely to encounter a fluctuation in market demand (not in your favor). The best way to hedge this risk is to use one or a combination of three risk adverse safeguards prior to the strike of a lacking market demand.
a) Have savings and a cost cutting plan for the occasion and wait out the storm. Extra financing does not hurt.
b) Diversify your revenue and have plenty of sources
c) Tweak your revenue streams to yield a residual income
2) Outside Regulation from Authorities
Nothing sucks more then the government stepping in and suddenly squashing your means of making a living. The only way to beat them is to join them (aka getting into politics some how and beating them at their own game.)
3) Fluctuating Demographics and Populations
This can creep up on you if you have been in business for a long time. If the surrounding market population steadily gets older, or changes some how with out replenishing the "meat and potatoes" of your target market then you better move or find a new business.
4) Competition of the Third Kind
Everyone in business typically has a good nose for the direct competition. However if you are the unfortunate soul to encounter a new competitive technology that you have never seen before because ... well... they never existed before (aka new competitive technology) then you can be in for a very rude and humbling experience.
For example = NY Times meet my friend she is called "the Internet".
5) Long Term Supply Disruption
If you rely on something that suddenly goes out of style or perhaps worst is suddenly used for something totally different and totally more profitable thus increasing your costs out of your league then you are gonna have to figure out how to do what ever is smarter then what you were doing.
6) Loss of Competitive Edge such as Patent
Did you invent something? Time sure does fly huh?
7) Legally Taken to the Cleaners
Lawyers suck. No doubt about it. If one sees a way to gut you for everything you got expect a bill for at least twice that. This may be the worst and most infuriating.
Related Articles
Business Basics - The 3 Fundamental Functions of Every Business Explained
Thursday, December 16, 2010
Chapter 11 Bankruptcy
Chapter 11 bankruptcy allows businesses to obtain debt relief by restructuring the existing financial obligations of the distressed business. This type of bankruptcy is ideal for businesses that would be profitable if not for unmanageable levels of debt.
What is Chapter 11 Bankruptcy?
Chapter of bankruptcy that is used for businesses that have to much debt but are worth more as an operating business then the sum of all proceeds that could be raised from a total asset liquidation sale.
How Chapter 11 Works
A trustee will overlook the reorganization of the debt and efficiency of a business.
Once this process is complete the business is simply to follow the terms of the restructured debt agreements.
Remember...
Bankruptcy is not usually thought of as a nice or relieving experience, nor is the process of bankruptcy cheap. There are many consequences to bankruptcy that can last a long time.
Bankruptcy is a legal process and decision so one should discuss bankruptcy with there own qualified attorney.
What is Chapter 11 Bankruptcy?
Chapter of bankruptcy that is used for businesses that have to much debt but are worth more as an operating business then the sum of all proceeds that could be raised from a total asset liquidation sale.
How Chapter 11 Works
A trustee will overlook the reorganization of the debt and efficiency of a business.
Once this process is complete the business is simply to follow the terms of the restructured debt agreements.
Remember...
Bankruptcy is not usually thought of as a nice or relieving experience, nor is the process of bankruptcy cheap. There are many consequences to bankruptcy that can last a long time.
Bankruptcy is a legal process and decision so one should discuss bankruptcy with there own qualified attorney.
Wednesday, December 15, 2010
Small Business Marketing - A Warning to Small Business Owners
As you may or may not know there are many outlets for dentist, family physicians, lawyers, and any other common local business owners to obtain professional help with advertising, marketing, and related efforts and needs.
What you may not know is that there is most likely no other consumer with in the marketing and advertising industry that is more sought out by marketing firms then this target market.
The reasons behind this is simple.
They meet the perfect sales and marketing business model.
Professionals such as yourself have a lot of money and excellent sources of cash flow. This is true of many folks. There are much bigger and fatter wallets out there that firms don't bother with because those “wallets” don't have the other key characteristic.
The consumer (you) has no idea of what to expect or what is possible in terms of results, cost (margins or the premiums you guys pay), or knowledge of what is involved in terms of providing the marketing and advertising services. This is really appealing when you couple that notion with the idea that you guys are as busy as you can possibly be. No time to explore your options.
These services, that local dentist and other medical professionals buy into, will charge very high prices for services the sales guy will promise to do for you. The services provided will often be much different and will account for much less of the firms cost then probably any other type of expense.
On top of this they will be sure to lock you down on some sort of residual service that will be about as much as a cell phone bill or a little less. This is so that in large volume the fees will add up but the amounts are small enough that the customer (you) will more or less forget about, not think about, or perhaps not care about. The margins are enormous.
If you own a small business you may find it more beneficial in both a financial sense as well as the overall marketing performance.
Related Articles
Articles of Organization - LLC
How to Market and Advertise Small Local Business
What you may not know is that there is most likely no other consumer with in the marketing and advertising industry that is more sought out by marketing firms then this target market.
The reasons behind this is simple.
They meet the perfect sales and marketing business model.
Professionals such as yourself have a lot of money and excellent sources of cash flow. This is true of many folks. There are much bigger and fatter wallets out there that firms don't bother with because those “wallets” don't have the other key characteristic.
The consumer (you) has no idea of what to expect or what is possible in terms of results, cost (margins or the premiums you guys pay), or knowledge of what is involved in terms of providing the marketing and advertising services. This is really appealing when you couple that notion with the idea that you guys are as busy as you can possibly be. No time to explore your options.
These services, that local dentist and other medical professionals buy into, will charge very high prices for services the sales guy will promise to do for you. The services provided will often be much different and will account for much less of the firms cost then probably any other type of expense.
On top of this they will be sure to lock you down on some sort of residual service that will be about as much as a cell phone bill or a little less. This is so that in large volume the fees will add up but the amounts are small enough that the customer (you) will more or less forget about, not think about, or perhaps not care about. The margins are enormous.
If you own a small business you may find it more beneficial in both a financial sense as well as the overall marketing performance.
Related Articles
Articles of Organization - LLC
How to Market and Advertise Small Local Business
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