S&MM SoundOff: A Tool to Help with Reference Selling

Unless your sales method provides processes, tools, training, and measurements for leveraging existing customers as references, you are probably leaving money on the table. ...

One way savvy salespeople can leverage referrals is through the online service LinkedIn.com, a business networking site. This company provides an invaluable tool to many of their 6.8 million members.

... Your reps can learn where their targeted prospect worked before and with whom. The rep can then see whether the target connects with anyone in his or her business or personal network. There may be people within your company with connections to the target executive.

LinkedIn shows you those connections. The site eases the rep's pitching duties and is less intrusive for the prospect. It makes getting in contact much easier from the rep's point of view and much more acceptable for the prospect. LinkedIn is one technology helping salespeople sell more effectively.

Speaking of useful Web sites, be sure to check out Sales & Marketing Management's new online home: http://www.managesmarter.com/. You'll enjoy the same management tools and resources you rely on--and a whole lot more. Click here to enter the Smart Sweepstakes!

Posted by dsteinSMM in Business Technology, Marketing Strategy, Sales Strategy Permalink

S&MM SoundOff: A Tool to Help with Reference Selling

Fannie, Freddie to ease some mortgage payments

Reuters

Tue Nov 11, 2008 6:14pm EST

By Patrick Rucker

WASHINGTON (Reuters) - ...Homeowners facing foreclosure who are spending more than 38 percent of their income on mortgage payments could have monthly payments reduced by Fannie Mae and Freddie Mac in an effort to keep their homes, [James Lockhart,] the head of the Federal Housing Finance Agency said....

Soaring mortgage defaults are at the root of the global credit crisis that threatens the U.S. economy with a deep and long recession, and some economists say putting a floor under the housing market is a prerequisite to recovery. ...

Lockhart said eligible homeowners could see their mortgage rates cut, the life of their loans extended or their principal reduced in an effort to ease payments. Borrowers would need to be delinquent 90 days or more to qualify for new loan terms. ...

FDIC Chairman Sheila Bair, however, faulted the new plan for focusing so narrowly on Fannie Mae and Freddie Mac, which means it will not cover the 60 percent of seriously delinquent home loans held by Wall Street firms and other investors. ...

TRYING TO INSPIRE

Lockhart said he hopes other mortgage finance companies will adopt the new plan as an "industry standard," but mortgage investors often stand in the way of changes to failing loans.

In recent weeks, Citigroup Inc, Bank of America Corp and JPMorgan Chase & Co have all said they will ease some loan terms.

But critics say those efforts are also part of a piecemeal approach to the housing crisis that has so far failed to reverse the trend of increasing delinquencies. ...

The plan outlined on Tuesday was conceived in part by Hope Now, an industry group midwifed by U.S. Treasury Secretary Henry Paulson last year to help troubled homeowners.

Hope Now has spurred mortgage finance companies to ease terms for borrowers, but those voluntary efforts have not been enough to halt the growing pace of foreclosures. ...

MORE AID COULD COME

Bush administration officials for weeks have been trying to agree on a fresh program to aid borrowers, and Tuesday's announcement could mark the first step in a wider effort.

[FDIC Chairman Sheila Bair] has emerged as a strong proponent of more-aggressive action, but others fret too much government aid could create a perverse incentive for homeowners to game the system.

The Department of Housing and Urban Development is mulling how to expand its Hope for Homeowners program, which gave the Federal Housing Administration a $300 billion kitty to underwrite failing loans...

That program ... went into effect in October. However, it got off to a slow start and officials are eager to loosen the terms and cut some red tape to make it more appealing to mortgage companies.

Under the program in its current form, a mortgage finance company must have a home reappraised and then erase 10 percent of its value before the loan can win a government guarantee. Officials are considering lowering that required write-off, sources said.

(Reporting by Patrick Rucker; editing by Gary Crosse)

© Thomson Reuters 2008 All rights reserved

Early Stage Algae Biofuel Company Closes $10.5M Funding Round; Additional $5M for Pilot Plant

Green Car Congress

11 November 2008

Solix calculations on the theoretical maximum production of algal oil. (See below.) Click to enlarge. Source: Kristina Weyer, Solix Biofuels

Solix Biofuels, a Fort Collins, Colo.-based early-stage company focused on algae-based intermediates for fuel and chemical production (earlier post), has raised $10.5 million in its first round of outside funding, and has reached an agreement with investors for an additional commitment of $5 million, to be used to build an algae biofuel facility near Durango, Colo. The pilot project is intended to showcase Solix’s ability to produce biofuel and feedstocks for the chemicals industry at commercially-feasible production levels and costs. ...

Two primary factors contribute to algal oil yield: the productivity of the algae, and their lipid content as a percentage of the biomass. Both vary with the species of algae. ...

Solix says that currently, algae grown in photo-bioreactors at its headquarters yield more than five times the amount of fuel per acre of land per year than agriculture-based fuels including ethanol from corn and biodiesel from soy and canola, at their current commercial yields. ...

Solix engineers have created systems that automatically adjust for environmental changes such as sunlight and temperature to optimize growing conditions. The Solix system has the ability to capture emissions directly from power plants and factories.

Solix Biofuels is a spin-off and technology partner of Colorado State University in Fort Collins, Colo. Solix seed funds were used to sponsor research by CSU faculty and graduate students to identify algae species with the best potential to grow at large scale and produce high yields of fuel and chemical feedstocks, and to develop technology that can bring the process to commercial scale. ...

Commercial-real-estate bust is coming, report warns

But downturn will present buying opportunities over the next 18 months, industry expert says

InvestmentNews

By Janet Morrissey October 26, 2008, 6:01 AM EST

Economists and market experts say a doom-and-gloom report on commercial real estate released last week confirms the industry's worst fears about an imminent major correction.

The widely respected annual report, "Emerging Trends in Real Estate," by the Urban Land Institute of Washington and PricewaterhouseCoopers LLP of New York, predicts that in 2009, commercial real estate will suffer its worst year since the industry's crash of 1991-92, with a noticeable rebound unlikely until 2011 at the earliest. It also forecasts a decline of 15% to 20% in property values, on average, from their 2007 peaks, with even sharper declines coming in weaker markets.

Amid the gloom, however, there will be pockets of opportunity for cash-heavy investors in discounted loans, distressed debt, raw land, apartment buildings and other niches, the report said. ...

"If you look back, there were tremendous opportunities available to anyone who would take the leap and buy properties at a discount from the [government-owned] Resolution Trust Corp. — and that set the stage for strong growth among REITs," said Robert Bach, chief economist with Grubb & Ellis Co., a commercial-real-estate-services and investment company in Santa Ana, Calif.

At the time, though, there were dire predictions "that there would be no need for another square foot of commercial real estate until about 2010 or 2015," which spooked investors, Mr. Bach said. "But people who bought properties back then did very, very well."

Nevertheless, the report throws cold water on any hope for a speedy turnaround. ...

"This is going to be the worst year since the 1991-92 industry depression," Stephen Blank, senior resident fellow for real estate finance at the Urban Land Institute, said in a webcast. "We expect to see drops in value, negative returns, sharp increases in delinquencies and foreclosures — it's a bleak picture." ...

"The private commercial markets need to correct; they're lagging everything else," said Jonathan Miller, a partner in Miller Ryan LLC, a real estate marketing advisory firm in New York, and author of the ULI/PWC report. "That [correction] is going to happen over the next 12 to 18 months." ...

Of the 50 metropolitan markets tracked, the study found only two — Dallas and Houston — where prospects for investment and development in 2009 were better than in 2008, thanks to their exposure to the energy industry. ...

In general, the report urges investors to sit tight and be patient "because the markets have yet to correct as much as they're going to," Mr. Miller said.

However, the report cited investment opportunities for those with cash and low leverage, noting bottom-fishing opportunities among distressed sellers and lenders, whose highly leveraged loans are upside down. ...

On the bricks-and-mortar side, rental apartment properties should continue to show strength due to the reeling housing market. Infrastructure and transportation projects are also good bets, the report said.

Mr. Miller added that residential lots and raw land should offer good investment opportunities over the next 12 months, but investors should avoid hotel and retail properties. "It's going to be ugly in retail," he said. ...

In a recent report of its own, The Goldman Sachs Group Inc. predicted that commercial real estate values will tumble 19%, and vacancy rates will approach 1990s levels. The New York firm recommends that investors avoid REITs with high leverage, near-term refinancing risk and a reliance on development and merchant building for growth. ...

The report predicted that the debilitated housing market will bottom in 2009, but not before pricing levels tumble to 2003-04 levels. Distressed Florida condos with ocean views could offer good long-term investments when they bottom sometime in 2009, Mr. Miller said.

Fitch Ratings Ltd. in New York thinks that 75% of the housing correction is already behind us and that prices may tumble only another 10% before hitting bottom in the next few quarters.

"2009 will be downer, and 2010 may not be much better, but maybe by 2011, a slow recovery will be under way," Mr. Miller said. "It all depends on the economy — we need a jolt."

E-mail Janet Morrissey at jmorrissey@investmentnews.com.

Wellness critical for advisers in stressful times

During rough patches, scheduled exercise and eating right are even more important

InvestmentNews

By Joni Youngwirth October 26, 2008

...Rising to this occasion, being able to manage your clients' expectations and calm their fears — all while you might have fears of your own — requires advisers to be at their very best. With that in mind, here are some tips to help you stay healthy in mind and body.

• Breathe: The Internet is a treasure trove of instructions on how to improve your breathing, especially when you are stressed. ...

For now, simply being aware that stress tends to make us breathe more shallowly may help us to reverse the tendency. Taking just a few deep breaths three or four times during the day may be the best thing you can do.

• Talk to other professionals: ... What advisers need to share is not just the technical aspect of what they are doing with accounts but also how they are coping with their own emotions.

• Exercise: If you have a regular exercise routine, be sure to stick to it. If you don't have a regular exercise routine, consider starting slow and easy with something of which your health care professional approves. The obvious choice is simply to take a 15- to 20-minute walk a couple times a week. Taking the walk at lunch or some other time during the workday provides the added benefit of removing you from a stressful physical environment. Consider providing this healthy boost to your entire office by scheduling a walking break for everyone.

• Diet: Nutritionists recommend we eat a variety of foods, especially whole grains, fruits and vegetables. ... If you don't have healthy habits, it is going to be difficult to make a major change right now.

But perhaps you can focus on one or two incentives for healthy eating for you, and possibly for others. For example, one adviser I know sent a fruit basket to his office to thank employees and colleagues for their extra efforts.

• Sleep: Have you ever noticed how things don't seem nearly as bad the next morning as they do if you dwell on them during the night, when you can't sleep? ... Make a concerted effort at least to relax, even if you aren't getting the deep sleep you are used to.

Disclaimers aren't just for financial professionals.

With all the above, remember to use good judgment. If you have doubts about making any changes, contact your health care professional.

Certainly, more serious issues such as substance abuse require professional help.

These are unprecedented times for clients and advisers. So much is outside of our control right now that it is easy to feel despair.

But the attitude with which we choose to approach each day is key. Healthy individuals, consciously or unconsciously, choose the attitude they apply to life's experiences. ...

Take a minute and list all the things for which you are grateful. Then take that gratitude and turn it into one random act of kindness — it may be the most important stress reducer of all.

Joni Youngwirth is the managing principal of practice management at Commonwealth Financial Network in Waltham, Mass. She can be reached at jyoungwirth@commonwealth.com.