2017

I would have loved to see that business plan (the 5 card stud business plan!) LOL

Apparently there is a lot of mathmatics that is calculated into “games of chance” and therefore you can predict with a bit of a degree of certainty what the outcome is going to be. Luke hit it on the head when he was asking about a business plan for FinTech. You can, by the math, work one out. It’s never done because the “odds” of succeeding are opposed to the rhetoric used.

In gambling its easier because most people gamble and some people are risk takers (play the odds). They tell you upfront that the house generally wins and you will generally lose.

If I remember correctly the business plan for 5 card stud was about 36 pages long and most of it was math. Oh, and the outcome was bad enough that I don’t gamble for a living.

Learn more at My Money Five

It’s the thing as a whole

Marketing, recruiting, selling and comp. are all part of distribution. Maybe not comp.

If a business is using telemarketing, and you have 1000s of distributors making calls, saturation in a given area will occur in a couple of years maximum, and less than a year in smaller centres. So, once the product has been marketed to everyone in a given area, then what?

You can’t continue to recruit in an area in which everyone has heard of the program and has either rejected or accepted it. To bastardize a John Lennon phrase, more people have heard of CashWay than have heard of Jesus Christ. To recruit for CashWay one would have to be deceived, deceptive or ignorant of the facts.

I live on an island. This only emphasizes the fact of local saturation and makes my “territory” very obvious. While some Paydayloaners may argue that their market is the entire world, that is nonsense. Most lenders are limited in the territory they can access,  just like I am.

All finorganizations will very quickly saturate a given area. Are they going to start asking their contractors to relocate? Travel long distances to make a sale that doesn’t even cover the expenses of the trip?

Maybe the internet will change things, but even on the internet there are limits to the number of people you can market to.

Maybe instead of distribution system, I meant the payday loan operation as a whole. They are ALL destined to quick saturation of a given area, and yet they continue to recruit selling “hopes and dreams” when the reality is, the local market is saturated.

Got downsized last week

At 60 decided to retire from engineering after 40 years and start working from home(NO not Credit, CDM, whatever).

Dirty Trick
#1

Anyway the rest of the users were going to a job fair and lunch there after so I tagged along. I was shocked to figure out that about a third of the companies (mostly service and sales jobs) there were Lenders!! Pre-paid legal, CashForUS, LenderLoan, BestCash, etc. I stood by their booths and not one of them admitted to anyone they were payday lender. They were distribution companies looking for District Sales Managers. Blood suckers! Only Prepaid Legal used their real name.

Dirty Trick
#2.

Nikken distributors rented an Executive Suite, hired a headhunter and ran ads in the newspaper for District Sales Managers. Got resumes, and set up interviews. Can you imagine showing up for an interview to find out it’s lender.
The good news is after 6 months and many thousand dollars they got NO ONE. We are getting smarter I guess.

My advice if this happens to you, complain to your State Attorney General and tell everyone you can. You can be sure my ex coworkers know the truth.