Business Lending Blueprint program Review – 2 College Graduates built their dream business – Oz Konar

Oz:
Hey, everyone, Oz here. I have two special guests from my community today. I have Sergio and I have Abe. How are you guys doing today?
Abe:
Good. How are you Oz?
Oz:
I am doing great, thank you. We were chit chatting before we started the recording, so I was trying to get to know them a little more. They’ve been in my community for a while, so I know them through their names and what they do and they’re having massive success, but this is actually the first time that I had a chance to have a face to face with them and get to know them a little bit. So, I was asking them about what they’d been doing and how they came into the industry. But I think we’ll just repeat that process guys, if you don’t mind. So, if you can tell me how you know each other, where you are right now, and how you got into this business, if you don’t mind.
Abe:
All right, so first we’re at our office. It’s a little office right here, but I met Sergio in high school. We weren’t friends back then. However, I got into the industry by tutoring some girl in one of my economics class. She got me in the industry, started doing a little of the cold calling myself. The boss saw that it was going well with us energetic students and then told me to hire a few people and Sergio was in one of my classes and he wanted to get on board.
Sergio:
Yeah. So, we got into the industry about two and a half years ago. It was really tough when we branched out on our own to start our own ISO shop because we started off cold calling like any other traditional ISO that starts, that’s the only way they do it in the industry or where we were working. There was only cold calling and they weren’t doing any marketing, any other strategies to get in clients. And they were having massive success because they had been doing it for almost 10 years. So, they knew the industry, they knew how to talk to these guys. They had big renewals coming in. That was a big source of income for them because they had merchants who had been with them for five, six years, so they would always go to them to fund their deals.
Sergio:
When we branched out, we tried to mimic that flow that we saw in that office. And it was tough just because we were relatively new to the industry and the experience. We knew how the programs worked and stuff, but just talking on the phone with these merchants, it’s not the easiest thing in the world, especially when you have no one to mentor you and tell you the rebuttals or how to handle certain situations that do come up when you’re on call.
Oz:
Yeah, absolutely, man. So, you guys started working for a broker shop. You said down in Florida, right?
Abe:
Correct.
Oz:
This guy was running a merchant cash advance company for over 10 years and primary means of generating leads were telemarketing, which worked really, really well for them. And honestly back then it worked well for everyone. If they’d been doing it for a while, especially since the beginning, that was your means of doing it. I did it that way. I was telemarketing and cold calling, but entrepreneurial people like yourself have that spark in their brain saying that, “Ah, if it works great for this company, I can take off and do the same thing and doubling my commissions.”
Oz:
Especially being that renewables is a thing. Right? It surprises people when I tell, well, there are renewables and they make a lot of money. Well, it actually does happen if you have a good system in place. So, you break off and you do your own thing, but then you notice, “Wait a second, it was working there. It’s not working here now. What’s going on?” And it usually has to do with who you’re calling, having the structures in place, the follow-up system. Then you noticed it wasn’t just the phone call, it was the whole business system that they had in place. That’s why you can’t just replicate it breaking off. Is that what you guys experienced after doing your own thing?
Abe:
Yeah. Exactly. We saw that the other company was making a lot of money because of … exactly. It had a good renewal process. They were tracking when the client was eligible for more funds and stuff. So, when we started our own little company, we were just cold calling, but we didn’t have those quality clients that were looking for money or we weren’t calling the people that were looking. For example, you call a renewal client, you know they’ve received funding before and that they might be interested in more funds. However, we were just calling a random list of people that we didn’t know their situation. So, obviously weren’t having as well as conversions as the other company. So, that’s when we started researching and found the Blueprint and luckily with some of the lessons, the different marketing tactics, we’ve been able to actually target the right people and started closing some deals.
Oz:
So, you guys started your own thing. How long before you started the Blueprint? You were kind of struggling. What was that time period? Was it a couple of months? We’re talking about a year?
Sergio:
I mean, no. We started in July and then the Blueprint we started in late December. So, in those six months we did find a couple of deals through cold calling, but it wasn’t what we expected at all. So, basically since we started it was a struggle for us.
Oz:
What was the struggle? So, was it the inconsistency?
Sergio:
Yeah, like the inconsistency.
Oz:
Okay.
Sergio:
We funded one or two deals per month.
Abe:
At most. Like one deal a month. I would say for the six months before the Blueprint, it would be four months of funding, two months not funding, maybe just one deal. So, in December, that’s when we graduated from the university. So, we decided to watch the whole Blueprint, go full-time, focus on this as a real career and about a month later we started seeing that our funding volume was up 10 times than all the other previous months. So, that’s when we really saw the wheels turning and real commissions coming in.
Oz:
Yeah. So, that transformation happened after 30 days? Is that what you said?
Abe:
30, 45 days. Because we were watching the Blueprint. We were taking our time with it, really taking notes, really digesting the knowledge we already had while working. So, that was about really 15 days. I’d say two weeks, three weeks of really watching it, paying attention to the course. And then obviously once we had the different lessons that we were taught in the Blueprint and started applying them. It took about 30 days to start really seeing real results.
Oz:
Okay. And let’s talk about those results specifically. What has been going on since then? Like how many deals are we talking about, the commission, structure and things like that?
Sergio:
Yeah, I mean, last month we did almost 10k in commissions on [inaudible 00:06:30]. It was about four to five deals. The thing is that now we expanded our market. Now, we’re just not pitching MCA. Other ways of getting revenue and that’s, I think ideally what caused that boom. Because when you’re cold calling a traditional merchant, you’re pitching them with cash advance, a daily payment. Sometimes these guys are looking for something better. They’re looking for another way of obtaining that capital with not having to pay daily or such high interest rates. Maybe they’re looking for some other types of projects that don’t require an MCA. So, by expanding our products, we were able to better fit these clients and they see that because most people just offer them an MCA product, which they’re kind of traumatized by it sometimes because they’ve been through the whole process.
Oz:
They are. And it’s also not fair for them, man. For a lot of them, it.
Sergio:
Right. It’s not a good fit.
Oz:
Like just because all you know is MCA doesn’t mean it’s the best product. Right?
Sergio:
Exactly.
Abe:
Exactly
Sergio:
I mean, it does have nice commissions and it does work in some cases where people don’t qualify for anything else, but you always want to give them the best product that fits their business.
Oz:
Right. And even if at that point, even if you set him up with MCA, at least they know that you showed them the options saying that, “Hey, I would set you up with X product but it doesn’t work and these are three products that you would be a good fit for. But in your case, it doesn’t work. That’s why we’re doing MCA.” So, it puts you in a consultative state instead of you just going and pushing for MCA from the get-go because that’s all you know.
Abe:
Exactly.
Oz:
So, that’s great. So, can we say that you found your niche and now you’re going after that niche? You’re kind of niching down in an industry?
Sergio:
Yeah.
Abe:
Exactly. What we’re really doing is we’re targeting now the clients that we’ve noticed that take out the most financing, what’s easiest for us to close at least. Exactly. And then we start focusing on reaching those types of people. So, we got lucky because when we were only doing merchant cash advance, we weren’t doing that much in funding. We didn’t know anything about equipment. However, we just started, like I said, paying attention to the Blueprint and now we have all of our different products. I’m looking at it right now on the commission sheet, most of it came from different types of products that aren’t MCA, which for us was very surprising.
Oz:
Yeah, which is what’s going to happen when you start diversifying. Like I was telling you in of my YouTube videos that guys and ladies too, who are only focusing on MCA will have to face more and more competition because anyone who knows half of it, like 30% MCA, they think they can just jump on the phone and start selling it. You have more of those doing it. That’s why sometimes I get the question, “Oh, is this industry saturated?” Well, it is far from being saturated as you guys know but depends on where you look at it from.
Oz:
If you’re going to pick up a script that you found on Google and start dialing people and pitching MCA, you have a ton of people doing that because that doesn’t require a system and if you keep calling at some point you’re going to break something. You’re going to get some deals funded, but will it take six months, three months, a year, and when will your next paycheck come from and where it’s going to come from you? You don’t know. That kind of approach, if you try to do that, yeah, there’s going to be a lot of competition, but other than that, the universe of alternative lending is massive.
Abe:
Yeah. Yeah.
Oz:
So, where do you guys go from here? What’s the goal for the next six months? What are you guys trying to accomplish?
Sergio:
Well, we’re still trying to expand our products. We’ve actually learned about a few other products that we had no idea about and we’re just trying to scale the business as well.
Abe:
Yeah, we’re trying to implement more of the word. We do exactly what you told us to do, which helped a lot was, first focus in on getting a client before you have your systems set up while working on your systems rather than committing all your time to one. So, we have a system in place, we’ll do most of the day just trying to do client acquisition and then working on upgrading now our landing pages, different marketing tools. Focusing on, we’re getting clients through one channel and it’s working well, but now it’s about using the other channels that we’ve been taught and really learning the ins and outs of those.
Oz:
Good. So, so where you are is you’ve built the foundation right now?
Abe:
Exactly.
Oz:
And you see your funnel is working. Since the foundation, the solid ground, you’re going to just branch off and build from product lines, different streams of income, different streams of lead generation. From this point on, I think where you guys are going to go in a couple of months is to scale that, right? So, we’ve got a system in place, we’re doing say 10-15k per month. How do we get to 50-60k?
Abe:
Exactly.
Oz:
Are you guys trying to keep this operationally small or are you planning to hire people?
Abe:
We need to hire and we had a lot of good university friends of ours at the old company that we were hiring and they were killing it on the phones with the right leads. So, we want to be able to have … because we believe in not just putting all your eggs in one basket. So, not only cold calling and that’s it. Or only digital marketing and that’s it. A little bit of both. So, our goal is to just scale our marketing efforts and build a little sales team calling the hot leads that we’re getting, while also focusing on the different channels and just pumping leads into the business and going from there and doing the closing.
Oz:
That’s very smart, man. Initially, any revenue that’s coming through needs to go back to the business especially if your goal is to build an organization. So, as you know, we have many members who want to run a business from home. For them it’s a very simple equation. Make money, keep it, spend it, whatever. But if you’re building an organization, whatever you’re making, like you guys shouldn’t be making money almost. Like you make it back into the organization until … because scaling costs money. So, 20,000 to 50,000 per month it’s going to require operational systems, especially if you want to build an organization. If you’re going to work from home within a system, well it’s simple, keep repeating what you’re doing and it’s going to build itself up. When you go the organization route, you want to build your systems along the way, but since you have the foundation right, it’s going to be relatively easy and you guys are a ton of experience with the Blueprint. You’ve been applying every bit of that. That’s just a matter of giving yourself another two, three months.
Abe:
Yeah, and I don’t even think we’ve applied most of it. We’ve only applied I’d say 60-70% yet. Not because we don’t want to and we don’t know how to apply it, it’s because when we do it, we want to make sure it’s done perfectly, correctly.
Oz:
That’s the best use of the Blueprint. Like, I tell everyone who’s a little perfectionist, this is not a college class. The goal is not to finish it and the goal is not to see who finishes it first. The skill is not on finishing the modules and the Blueprint. It is the application. Like, if you’re going through module three, you’re applying it. Well, you got to tweak and make it work before you jump onto the next stage and apply that, so you come back and use it as a tool to build your business. Not something to memorize. That’s not the goal. As you guys know, we’re not teaching textbook marketing. Like what is the definition of this? We don’t care about that. Like, how do you go from point A to point B and what is the shortest distance, and this is what you need to do.
Oz:
So, I think you guys figured out the best way to use it. I mean, everyone has different learning styles. Some people need to devour everything and come back and do it again. That’s normal. But entrepreneurial people usually we like to look at things, break them, build them back again, build a foundation, and move on to the next stage. And I see in you guys, I think that worked perfectly when you guys are building an organization.
Sergio:
Yeah, we’ve been going step by step.
Oz:
And you have an experience hiring people, managing people, and things like that, right?
Sergio:
Yeah. Another big thing that we’ve been doing is referral partners. We’ve been talking to a lot of … working with clients and dealerships and banks and stuff like that. We haven’t seen big results yet, but we’ve established the relationships for referral partners.
Oz:
Yeah. That’s planting seeds, so that’s going to happen because what happens with the referral partners, they want to see that you’re doing fine first, right? The ones that don’t have their confident because don’t forget that a referral is their most valuable asset. Like, they’re referring their customers to you. Sometimes a friend, sometimes a family member, they want to make sure they’re in good hands and the people who is referred to, they know what they’re doing. So, it requires some time, but as you plant more seeds, you’d be surprised. Like, you’re going to have a ton of referral sources and one deal makes it worthwhile.
Abe:
Yeah, exactly.
Oz:
They send you one thing and it’s like the perfect client for me and they even say, “Oh yeah, this is not that big of a client.” And I’m looking at it, it’s like a $100,000 MCA. Once you get that done then a lot more stuff’s coming in. You’re definitely planting your seeds. That’s definitely good. So, as a final thought, I don’t want to keep you guys long, what would you say to someone who’s considering getting to this business or considering joining the Blueprint? What would you recommend them?
Abe:
That they can start off … what I love about this is low barrier to entry. I mean, me and Sergio were funding our first three deals out of our school library. People would literally get mad at us because we were trying to talk to clients, but we didn’t want to walk all the way outside because the signal wasn’t good outside. So, we were trying to keep our voices shut in the library. So, look, we could fund deals from there. There’s no reason why someone can’t fund tons of deals from their house. We see Daniel in the videos does it from his home and he’s crushing it. So, the barriers of entries are low. So, that’s what I love about. Anyone who’s looking to join, it’s not difficult to start. Just pay attention, digest it, take your time. And it’s really, I mean, if I didn’t have prior MCA industry knowledge, I would still think this is the easiest route to go, honestly.
Sergio:
Right. This is like the mentorship you need to start. We’ve had industry experience and we didn’t know about all these sources of income that we were open to and we had two and a half years of experience in the industry working for a big ISO shop. So, if you’re getting started, this is a really, really great program to learn the industry and learn how you can make money from home or without prior experience.
Oz:
Yeah, Sergio, thank you. And you touched on a great point because sometimes I get these questions from people who think about joining and they think that, “Oh, should I just go work for an MCA company for a year to learn the business?” [crosstalk 00:17:24]
Abe:
You know, even if they want to go that route, which I wouldn’t want to, but I learned a lot more in the course than I would at the actual shop just because it’s a different type. At the shop, they’re teaching you how to sell, but here you’re teaching about the industry, about the ins and outs, about the different programs, about what there is to offer, about what the actual program is, what you’re offering the client, how it can help them. If you want to work for an MCA shop, great, but this is going to put you ahead in the sales and understanding what you’re doing. You want to start your own MCA shop or just business consultant, this is by far going to teach you the most too. So, you can do both routes really with the knowledge you’re teaching.
Oz:
Yeah, I mean, when you’re starting out, just like you said, if you want to go do it, but know that your boss’s job is not to train you on the industry and the business.
Sergio:
No, he’s not going to tell you everything. He’s just, trying to get you in your little box and tell you a part of the process and then someone else is going to do the other.
Oz:
Right. So, one day he’s not going to get you in his room and tell you all the basics of the business and funding. He’s just trying to keep you busy so he can make more money.
Sergio:
He’s not going to tell you how much commission they can make on a deal. He’s just going to give you 1% and then …
Oz:
Yeah, you’re going to start out that way. So, if they’re looking for a job, again, it’s a great business model, you can go work to make some money. But if the question is whether I want to start this business, whether I should go work for someone first is a horrible idea.
Abe:
Yeah, terrible.
Oz:
Yeah. So, you’re just going to go through so much stuff that you don’t really need to go through in order to learn the business and you’re going to come out more bruised than ever. So, you might want to just start the business the right way. But, guys, any last comments before I let you go?
Sergio:
I mean, this industry is great. The commissions are great. You can make a ton of money if you just get everything right. Get the systems right and I mean, you can work from home, on your cell phone, take time off. If you have everything in place, it’s a really great industry to be in. It’s almost too good to be true, I think.
Abe:
Yeah, and we didn’t think we were going to be our own bosses at 22 honestly. We didn’t choose to start our own company because we wanted to. Things happen. So, we were like, “Okay, we have to make money. We know the MCA industry a little bit.” So, luckily, after the Blueprint, it really helped to get the wheels rolling. So, that was super exciting.
Oz:
Yeah. I mean, you guys are like the dream come true at a young age.
Abe:
Yeah it is.
Oz:
College kids, they graduate and they’re looking for the best job they can get, but you partnered up and you have your own business, your own office, and you have the system in place. I don’t know if it gets better than that.
Sergio:
Yeah. A lot of our friends are working nine to five for a company. They’re amazed that we’re our own bosses, we have our own company, and it’s just mind blowing to them.
Abe:
It’s still strange, but no, it’s great.
Sergio:
It’s really, really great.
Oz:
Amen. Both of you like it. I truly enjoy getting to know you more and we got to do this more often by keeping updated with your progress. I know you guys always plug yourself in within the community and things like that. But don’t hesitate to reach out to me personally if you need anything from me personally. But love this interview, man. I love it. So, I truly enjoyed it, but thanks so much. Great having you guys.
Sergio:
Yeah, I know. Thank you.
Abe:
We’ll have to come to one of the Mastermind sessions next time.
Oz:
Absolutely. I don’t know when I’m going to do it, but I’ll let you guys know when I do it.
Abe:
Awesome.
Sergio:
Awesome.
Oz:
All right. Take care guys.
Sergio:
You too, Oz. Have a good one. Bye-Bye.