With the alternative finance industry rapidly growing, it’s becoming increasingly difficult to generate new invoice factoring leads. This is true whether you’re a factoring company or a factoring broker. With the increase in difficulty comes higher costs per lead acquired, which eats into your bottom line. If you’re a factoring broker working off slim commissions, it can be difficult to survive. That’s why we’ve compiled this list of proven methods to generate new invoice finance leads.
Why is it Hard to Find Factoring Leads?
Many factoring companies and factoring brokers find themselves dumbfound when they are trying to figure out why it’s so hard to acquire new customers. And the truth is that they are just not thinking creatively enough. Usually, they are resorting to archaic methods such as cold calling.
Now, these methods aren’t always the worst, and they are better than nothing. But when you and hundreds of your competitors are all using the exact same sales tactics, you need to do something to stand out from the pack. In the case of cold calling, you need to perfect your sales pitch and learn how to be an aggressive closer.
What Are the Most Common Methods?
Let’s go over a few of the most commonly used methods, how they are used, and how they can easily position your business for failure.
Cold Calling for Factoring Lead Generation
As we mentioned before, cold calling is the most commonly used method. Especially for brokers. It’s time consuming, gruesome, and requires serious sales experience to be successful. But there’s no doubt that it can work. Just not as well as other methods.
This method is commonly used because it is cheap. It only requires time and energy to make cold calls. But naturally, it’s hard to see results. Using this method as your primary marketing strategy will be difficult. It should be used in conjunction with other methods listed here, and as a backup when there is time to spare.
Print and Media Advertising
This is also an old-fashioned approach to it. Advertising in a trade magazine or publication may seem easy, but it doesn’t produce very many results. We don’t even have to note the decline in newspaper and magazine readership. The main reason that this type of advertising for receivable factoring leads doesn’t work is because your business is probably not large enough for it to be effective.
Look at all of those advertisements, or look at all of the television commercials you see. What is one thing they all have in common? Most of the advertisers are companies with established brands. They have spent decades and billions of dollars to create their image. They don’t need very effective marketing campaigns to be successful. They simply need to create brand awareness and make you think of Geico when someone mentions auto insurance.
What Are Some More Effective Methods?
The methods above have worked for countless companies in the past and can be great accompaniments to a large marketing campaign. But these methods are going to be the most effective. Here’s what they are, and how to set yourself apart from the pack.
Pay Per Click Advertising (PPC) for Factoring Companies
These are the advertisements that you see in the search engines like Google and Bing. You essentially pay a specified bid price each time that someone clicks on your ad. The way that you advertise on these platforms makes it an extremely granular form of marketing. You can drive your cost per lead down tremendously if you use PPC effectively.
Many factoring companies are currently using PPC marketing to find factoring customers, but most of them are doing it ineffectively. To be effective, you need catchy headlines, and a call to action that makes people know why they should click your ad.
When the ad is clicked, the lead should be sent to a specifically tailored landing page, not just to your website. The landing page should be simple, easy on the eyes, and make the lead understand exactly what they are getting.
For example, you are most likely trying to get them to enter their contact information to receive a factoring quote. This should be extremely clear. The customer should have no doubt in their mind that the reason that they are on your landing page is to enter their information in order to receive a factoring quote.
Now, there’s a lot more that goes into PPC marketing for receivable finance leads, but that’s just the gist of it.
Search Engine Optimization (SEO) for Factoring Companies
This method is getting increasingly difficult and takes a lot of time to show results. Search Engine Optimization simply refers to the process of trying to get your website to show up on the first page of Google results for a search term.
You’ve got to have your on-site optimization in top notch shape, your content should be high quality, and you need to focus on building quality links to your website. On average, SEO work takes about 6 months to show results, so you need to be in it for the long haul.
The benefits? If you can achieve top results, you get organic visitors to your website. This is a great way to generate factoring leads. They are highly targeted visitors because they specifically set out to search for invoice factoring, just like in PPC marketing. It’s essentially free traffic to your website if you don’t count the time involved in SEO. An alternative to learning it yourself is to hire an agency to optimize your factoring website for the search engines, but this can be costly.
Educating, Not Selling
This can also be known as content marketing. But it’s not required to be a strictly online tactic. Branding yourself or business as a cash flow consultant may sound more professional and refined than just being a factoring company. Unfortunately, factoring companies have gained a sort of sleazy reputation, which may make the service a difficult sell.
You should focus on educating your customers and providing them with the best choice for their specific needs. Do what’s in their best interests. They will learn to trust you, and when they do need help, you’ll be the first person they call.
The Bottom Line
In order to generate new invoice factoring leads, you need to explore the different marketing tactics out there and create your own custom tailored solution. Following the pack will lead to higher costs per lead, wasted spend, and sub-par results.