There are few guarantees for success in the debt collection industry. There is no formula you can follow or set of instructions that lead to six-figure profits.
There is, however, a way to set yourself up with a better chance for success – what we call finding your “Debt Collection Corner.” Here’s what we mean.
There are obvious places agencies tend to look for and buy debt – credit card debt, student loans, or medical debt are some examples.
Is there a shortage of debt to be found in these places? Absolutely not. In fact, as of February 2019, there were billions of dollars in defaulted student loans going uncollected. A record 7 million Americans have reached serious delinquency status on their auto loans, meaning they’re at least 90 days behind on their payments.
And most impressive of all, total credit card debt sits just under 4 trillion, and has increased nearly 21 percent over the last four years.
Just because there is a lot of debt in these spaces doesn’t guarantee you’ll turn a large profit. Many agencies see these spaces as an easy target and go after it. And when every agency thinks that way, it creates fierce competition in that space. Meanwhile, lots of other types of debt go uncollected.
So, when we say “Find Your Debt Collection Corner,” what we mean is this: Whether you are about to open an agency or have been operating for a long time, one of your organizational goals should be to find your niche.
As a software provider for collection agencies, we’ve attended trade show after trade show. And we’ve observed it time and time again. Agencies who “make it” have a very distinct niche where they collect.
Some examples of niche debt include:
- Bail bonds
- Small local business accounts
- Even casino checks!
You can even choose to be as granular as going after a certain balance.
If you have been around long enough, you should know your system well enough to predict the balance or industry that you and your agents can collect on most efficiently. And if you are just starting out, one of your long-term goals should be to determine this!
Once you have worked out where you want to look for debt, it’s time to start collecting on it! Click here for a dialer software that can increase your collected amounts by up to 185 percent.
We believe rather than trying to become a “jack of all trades”, it’s better to be a master of one. Get really good at one specific industry, balance, or otherwise and then focus your efforts on your Debt Collection Corner.
About Arbeit Software
Arbeit Software is a team of nerds who create the most efficient and productive cloud-based contact software for businesses of any size. We were founded by former collection agency owners who built their own broadcast dialer that is more powerful and easier to use than anything on the market. In addition, our highly customizable VoIP office phone system will modernize the way your business communicates with the world. Our software won’t drop calls, never lags and is designed to maximize calls per minute, operating on our own tier-1 carriers.
This article courtesy of Arbeit Software and written by Emily Faracca.