We all know that the economy isn’t in good health now. Compared to just a few years ago, we are definitely in a rut. Latest figures from the department of statistics indicate that just over 2 million people have lost their jobs this year due to the economic slow down. Leading trend companies have suggested that another 4 million jobs will be lost before any meaningful improvement in the economy will show up. This could be anywhere from 5-10 years.
One of the most obvious knock-on effects of the slow economy and the credit crunch leading to it is that the availability of bad credit loans has all but dried up. Another consequence is that many people are finding that their credit rating has actually dropped when compared to before the recession. This can be explained by a few things, namely credit limits have fallen dramatically as financial institutions tighten their belts. This combined with customers holding onto more debt for a longer time all leads to a less healthy credit score card.
The thing is, it is actually a boom time for companies that want to cash in on the bad credit repair industry. The number of Americans who have dropped into the category of having a “bad credit score” has increased substantially. Initial reports suggest that the number now sits at a very respectable 70 million people who have a bad credit history that needs bad credit repair services. This is set to rise quite dramatically as more people receive bad credit reports. It is because of this that this sunshine industry is one of the hottest places to start a business in now.
Oddly enough, despite the huge and ever expanding demand for bad credit repair services, few entrepreneurs have taken the plunge to invest in this business. The proof is in the number of licenses issued for this business. There is no significant difference between the numbers of businesses registered today versus last year. It is because of this that the playing field is still very open and ripe for the investing. Another factor that makes the bad credit repair so attractive is the amount of money that you stand to make. Most bad credit repair jobs bring in between $800 – $1200 per case, complicated cases can even go up to $2000. You will only need a team of about 5 associates and 2 managers to make up a suitable employee base that is capable of about 50 cases per month. Averaging that, you will gain approximately $40,000 per month.
With the right kit and proper automation the number of cases can be increased significantly. Items like communications can be streamlined with auto-responders, a website to harvest data efficiently. You can obtain macro enabled packages which can auto generate forms and letters with the right headers and address. The number of packages that you can incorporate into the business to make it run smoother is simply outstanding. Below we are going to list some important marketing tips that you can use to build your bad credit repair business.
When it comes to marketing and getting your first clients, you should never underestimate the value of old media and old forms of marketing. For important things like bad credit repair clients will often turn to classic media and also trust in it more. These classic media ads should be on radio, newspapers or even direct mail if you already have a customer base. With these classic media marketing campaigns your cost of sale will be around $200 per new client. Whatever you make above that is pure profit to your company. A well sorted classic campaign will see a lead ratio of about 2-4%
It is important to realize and understand that you are serving a customer base and that your relationship with them is of utmost importance. After all, you are in the service industry. Many entrepreneurs are quite good at scaling their business however often forget that the bad credit repair industry is actually a service industry and that personal relationships with the client is very important. By being nice and building a solid reputation with your current customers you can even sell products up-stream and get their repeat patronage.
We feel that the amount of entrepreneur participation in the bad credit repair market is simply too low at the moment. When you factor in the amount of money that you can potentially make it seems ludicrous to not invest in this sunshine industry. We can only see the general public getting their credit scores lower over the coming years. Investing in and industry as bright as this would certainly bare fruit sooner than later.
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