Now we will cover how to break through to success in the note business and we’ll start by learning what I call the five R’s. Over the years I’ve worked with a lot of different note investors – large and small – and I’ve come to realize there are a few attributes that really separate the best from the rest in the note business. And I refer to these attributes as the five Rs.
People often say time equals money. The note business is really relationships equals money.
If you fail to develop key relationships in the note business you’ll have a very difficult time even getting started. I want to share something I think will help that I learned from Joe Polish. It’s called The Magic Rapport formula. This is really some of the best advice I’ve heard on building relationships in any kind of business.
Reputation is important really in all industries but when the size of the industry is as small as the note industry reputation is everything it can really make or break you. So let’s talk about the keys to building a great reputation in the note business. Doing what you say you’re going to do is number one, that’s very important. A lot of people just don’t do that.
Don’t over promise. So that could be timing. It could be pricing. Try to do, try to set the expectation which is really the third part here set clear expectations. And finally respect introductions and non-disclosure agreements. What that really means is they’re valuable contacts in this business and you really want to remember who introduced you and be respectful of those introductions, non-circumvention is a big hot topic in the note business as well so make sure you’re you’re abiding by all agreements.
Now many folks that we work with today we have worked with for many years, people that we started working with in the business and those relationships were built over time. And the reason that’s so important is you know people like to do business with others that they know, like and trust. We’ve all heard that before. But it’s particularly true in the note business.
I put a huge emphasis on trust. There’s an unbelievable amount of time spent vetting people in a note business which is a topic. But really what this means is that the feeling out process with somebody, it takes time. And when you don’t have to do that you just get right down to business. It’s much more efficient. It’s much more profitable. So really treasure those relationships.
This is a concept I learned from Dan Sullivan, a Strategic Coach. Dan likes to say the four traits of referability are again always do what you say you’re going to do, always finish what you start, always show up on time and always say please and thank you. This is really just about gratitude and appreciation and respect of your relationships very similar to the nine step formula in The Magic Rapport formula.
To simply say that results are important to your success in the note business is sort of a no brainer. What I’m really talking about here is measuring and understanding results. As with any business you do have to measure results and understand the activities that are driving those results. And if you don’t like the results you really need to look at changing the activities, hope that makes sense.