Have you ever found yourself reinvesting every dollar of profit back into your campaign? I have, and it’s not fun.
Some of our clients start campaigns with budgets around $30k – basically their life savings. This money is everything to them. After the campaign launches, it often takes months of organic funding to turn a profit. Unless the publisher/network grants a nice line of credit, campaign owners struggle to take things to the next level.
In situations like this I like to get media funders involved. Media funding is a way to finance direct response campaigns through OPM (other people’s money). There’s a number of private investment firms and individuals in the direct response space that fund media. These groups typically have a background in investment banking and are always looking out for good offers from trusted sources. At Direct Response, we have a rolodex of funders that preapprove offers we bring them – they know from experience that our offers convert and are profitable.
Need funding? Here’s how you get it:
1. Stats Are King
It’s always good to understand who you’re dealing with and where their minds at. Media funders speak the language of numbers. All other talk is cheap. A media funder’s goal is to invest money in projects that are going to make them more money than they invested. The higher the probability of success, the more money they’ll spend. It’s that simple.
Your job is to demonstrate through numbers that your campaign is worth investing in. Even if your personal credit sucks, media funders will often lend cash to a campaign if you can demonstrate that they’ll make a large return on investment.
2. Referral From Trusted Partner
A stamp of approval from a truly trusted 3rd party goes a long way in this industry. In any negotiation, it’s critically important to view things from the other person’s view. If someone asked you to invest in their business, you’d want to know who that someone is. If they just appeared from nowhere, i.e. Googled your name and found you, you’re going to be wary.
Now if the same person was directly introduced to you by a trusted partner, you’re much more apt to listen. Automatically the years of trust and credibility from your partner carry over to the introduced party. As a media funder, you know you have a hot lead and want to not only capitalize off the deal, you want to show your trusted partner that you’re still diligent. If you slip, the leads will stop coming your way.
I have referral agreements in place with a number of media funders. When they lend capital, I receive a percentage of the loan. If a funder stops giving my leads money, I’ll stop sending them leads. The word will quickly travel around that they’re not on top of their game, and soon all of their referring partners will move them down the list of funders. The only leads they’ll get will be leads that we couldn’t get approval on from other parties – these leads are often called “garbage leads.”
Note that we only introduce advertisers that we think are worthy of funding. Our name is on the line, so you’ve got to convince us that you’re on top of you’re game, which brings us to:
3. Make a Good First Impression
You’re asking someone to lend you money – to give you their hard earned cash out of trust. Media funders have money, lots of money. They didn’t obtain their money and keep it because they got lucky. No, they have it because they are calculated creatures that make good financial decisions time and again.
Your job is to demonstrate through actions that you’re worthy or receiving a loan. Prior to reaching out to a media funder, put together a package with stats, professionally written copy on why your offer is going to make them money, and a media campaign goal. Include the direct numbers to all of your vendors: from CRMs to merchant processors.
Have your team ready to turnaround a credit application the same day. You’ll need your articles of incorporation, tax returns, bank statements, and Federal EIN number. As soon as that app hits your inbox, work with an immediate sense of urgency to get it turned around in an hour. If you do this, I can assure you that you’ll significantly increase your odds at receiving funding.
Show these guys that you’re on top of things – it will create the impression that you run a tight ship and are worthy of receiving their investment.
4. Choose a Funder That Is Familiar With Your Vertical
Media funders are not a one-size fits all group. These groups range from the ultra conservative to the gamblers. Contact us and we’ll put you in touch with the right media funder for your campaign.
Media Funders Direct Response Recommends
Or contact us to gain access to our private rolodex of funders.