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Pathway to Offering E-Services (3/22/2017) - Duration: 1:28:11.
Kathryn Baxter: Good afternoon, everyone. Welcome to our March Webinar, Pathways to Offering E-Services. We think you're going to love this webinar today. My name is Kathryn Baxter. I am your moderator, of course, for today's webinar.
I'm joined by my partner in crime, Mr. Dominic Carullo. Before I turn the console over to Dominic, let's go to our administrative announcements so that we can get you ready. So please adjust the volume on your computer as loud as you need it so that you can hear this webinar.
If you'd like to resize the slides, please drag the bottom corner of the slide to do that. From this website, you will need to allow pop-ups. We have an Ask a Question feature on the left-hand side of your console. What we'd like you to do is to ask questions to our speakers throughout the
webinar. So you'll see - you'll listen to their names when Dominic announces the speaker. So please address that speaker in your question. Before we go into our Q&A, I'm going to push out a very brief survey. Please fill it out. We do need to have your comments. We'd like to know what you thought
of this webinar and any future suggestions that you have for us. And, of course, as always, in approximately three weeks, this webinar will be close-captioned for on-demand viewing. As I mentioned, this is a very interesting webinar that we're offering on E-Services. We have a dynamic duo here from
CU24 and they're joined by our dynamic guide, Dominic Carullo. Dominic has something he loves to say to credit union. What's that Dom? Dominic Carullo: You know it, Kathryn, I do. And I absolutely love credit unions. Credit unions are my passion. I've been working with credit unions for 30 years
now - Kathryn Baxter: And counting. Dominic Carullo: And they are the best thing going. Kathryn Baxter: All right. Dominic Carullo: And all you volunteers out there, thank you so much for your service. Kathryn Baxter: There you go. Dominic Carullo: Okay, everyone, my name is Dominic Carullo and I am host for today's webinar. Now, as Kathryn said, we do, we have a terrific webinar for you today with two
awesome guest speakers. Now, as always, we very much want to keep involved with our webinar and keep it as interactive as possible. Now, with that, please make sure to answer all our poll questions, and we have five of them today. In addition, make sure you type in your questions for our
speakers throughout the webinar, and I know you're going to have a lot of questions and these guys are going to answer them very, very well for you today, very frankly. And to make sure the proper person addresses your question, when you ask a question, please let us know whether you want James or Joe to answer it and I will make sure we get that question to them
and in some cases they both will answer your question. And so utilize the question function on your screen when submitting your question. That's pretty easy. It's just like sending a text. Now, here is our disclaimer. This webinar is offered for informational and educational purposes
only. NCUA does not endorse any particular credit union or vendor or their employees, products or services. Now, here's what you're going to hear today. We're going to talk about your credit union's E-Path, we're going to talk about the E-Services environment, which is the electronic
services environment, we're going to discuss debit cards, ATM, ATM and point of sale income and expenses, we're going to discuss credit cards and mobile options. And I know you folks out there are going to have a lot of questions. We're going to go through and tell you a little bit about each one of these.
If you have any additional questions, by all means, type them in and we'll try to get to as many questions as we can with the webinar. If we don't get to all of them, we will be sending out the answers. I personally will send an email out to each and every one of you with all the answers to all the questions.
As with our other webinars, you may qualify for a certificate of completion with this webinar. Now, to qualify for the certificate of completion, you must be online for 45 minutes, you need to answer the five poll questions and correctly
answer 12 of the 15 quiz questions after the webinar. Now, for your convenience and to allow for you to listen to the full webinar, we're going to leave the console open for one full hour after the webinar to allow you sufficient time to answer the quiz.
Now, it's time for me introduce our speakers. I'd like to introduce first of all James Gukeisen, who is the Product Coordinator and Assistant Director Prepaid Business Development with CU24. Welcome, James. James Gukeisen: Hey. Good afternoon, Dominic. It's great to be here. Dominic Carullo: Great to have you. Next,
we have Joe Woods, who is the Vice President of Sales and Relationship Management with CU24. Welcome, Joe. Joe Woods: Dominic, I appreciate it. It's great to be here. Dominic Carullo: Glad to have you. Okay. What are E-Services? I just figured we would break this down in simplistic
terms. E-Services are the use of electronic technology by an organization to provide services to it's members, and simple as that. Okay. Remember what we talked about earlier about making this interactive. Here's our first poll
question, and I'd like all of you out there in our audience to answer this poll, what is your credit union's asset size? If you're less than 10 million, please click on the first circle, and so on and so forth. Now, if you're out there in the audience and you are not with a particular credit union, just kindly click on the N/A function.
And while I'm waiting for the answer, Kathryn, how are we doing with those - with the questions? Are we starting to get them in? Kathryn Baxter: You know we are. In fact, we just got one in. A credit union wants to know if we're going to have a discussion of digital branch services and its impact on E-Services
environment. Dominic Carullo: What do you think guys? Are we going to discuss that? James Gukeisen: Yeah. It depends on the path that they want to take. If they want to talk about a fully integrated teller-less environment where you have the full service kiosk that allow for cash recycling, deposit acceptance and interactive teller machines or interactive
video machines that allow for loan acceptance. We can have that discussion if we go over three to four hours. Dominic Carullo: Well, perhaps if you could formulate that into a question, we will go ahead and we will address that at the end of the - at the beginning of the Q&A. Kathryn Baxter: Sounds good, yeah. Dominic Carullo: And here is the breakdown of the asset size out there.
It looks like the majority of the folks out there are with credit unions between 10 and 50 million. We have a good percentage, about 17% less than 10. Between 50 and 100, we have about 17%. And there, we have some large credit unions, larger credit unions, at over 100 million, we have about
8.6%. And we have some very large ones over there, over 250 million. So we have pretty good spread. And as expected, most of the credit unions in the audience are the smaller size credit unions. Okay. Let's get started. Take it away, James
and Joe. But before you go guys, before you get started, just tell us a little bit more about yourselves. James Gukeisen: All right. Thank you, Dominic. Well, my name is James Gukeisen and I'm the Assistant Director of Prepaid Business Development for CU24. I've been in the credit union industry almost 17 years now. I started at Suncoast
School's Credit Union down in Tampa. I worked there for 11 years, basically all things operations, from debit cards, ATMs, vendor management, so on and so forth. And then about - almost six years ago, I moved over to CU24, took care of relationship management and a couple of different areas there.
Joe? Joe Woods: Thanks, James. I'm Joe Woods with CU24. I am their Vice President of Sales and Relationship Management. I've been with the credit union movement for 16 years now. I got my start with Liberty Enterprises back in the day, for those of you who remember Liberty check printers, and then spent some time with Corporate One Federal Credit
Union, the corporate in Ohio, as well as starting up Legacy Member Services, a small credit union check provider, and now have been with CU24 for just over three years. So with that, let's get into the agenda. I'll walk you through everything. Keep in mind that we are
providing a very general path today to starting and growing your EFT programs. We begin by making some very general statements and perhaps even restating some questions you may have already asked internally. We don't make assumptions and we'll avoid using jargon, acronyms and we'll explain some of the acronyms to you so that the presentation is helpful –
as helpful as possible. With that in mind, EFT stands for electronic funds transfer. And that term, EFT, is often in a generic manner pertaining to many things related to debit cards and automated teller machines or ATMs, another acronym. Certainly, each
of your situations is very unique and you're at different points in the development process. In a whole, this program will speak about today's competitive environment in a logical progression as we see it. As your credit union addresses an ever changing and hyper competitive marketplace, it may be tempting to try to accomplish
all of these programs, all of your EFT goals, simultaneously or in very quick succession. If you have the staff and limitless funding, go for it. But if not, we recommend a somewhat specific course of action that is mindful of your member's demands while allowing for your team to maintain all of your vendor management protocols,
any new compliance requirements as you strive to meet your credit union's growth goals. While we start with the snapshot of the current EFT environment, please keep these questions about your team and your potential partners in mind, do we already have some expertise or experience on staff that we can leverage? How much will I need to staff up?
And if so, when do I need to add that staff? How much of the back office can I outsource at the start if I don't have the appropriate staff to handle this? And when considering potential partners, remember that you and your members always have options, that the OSCUl here could likely provide some best practice, recommendations on contract terms
and other items related to these types of services. And please be mindful of bundled services that come with incentives. That shiny penny, that large check at the front end of the deal will usually cost you more than a dime in the long run so you have to be careful. So - and with that, Dominic, I think we're sending it back to you for
poll questions. Dominic Carullo: All right. Here we go. Thanks, Joe. Okay. Which statement best describes your credit union? We currently offer E-Services. We currently offer E-Services and want to expand. How about we do not offer E-Services but we are interested. And then
the last one is we believe we are too small to offer E-Services. And then finally, the last option is N/A if this doesn't apply to you. And with that, we'll give you a moment to answer that question. Kathryn Baxter: Dom, we had one credit union that was interested
in whether we're going to talk about how to prevent fraud in our E-Services. Are we going to broach that at all today? Dominic Carullo: Well, we're not going to be addressing that specifically today. Kathryn Baxter: Okay. Dominic Carullo: Possibly in one of our follow-up webinars. Kathryn Baxter: Sounds good. Dominic Carullo: Okay. And with that, let's take
a look at our answers here. It looks like about 27% out there already offer E-Services. But more importantly and very important for today, about close to 50% of you out there want to expand them, which makes a lot of sense.
We have about 8.9% or 9% that don't offer E-Services but they're interested and a small percentage of folks out there, 3.4% believe that they're too small. So we may be able to discuss some options that might be available for the very, very small credit unions out there.
And with that, I'm going to turn this back over to James. James Gukeisen: All right. Thank you, Dominic, and great numbers. We can certainly discuss many options available to credit unions. Okay. And with that, how do we start to understand our environment and how do we navigate debit card programs, ATM management solutions and credit card programs
as well while developing a solution that generates income and minimizes the associated expenses? Well, first, we understand that, as credit unions, we have options, plenty of options. As you can see on the slide, while the field of organizations that
offer EFT services as not as robust as it once was, they all are to borrow a phrase, plenty of fish in the sea. Now, as small credit unions, you may not be visited by or have a direct relationship with some of the organizations listed. And they
often resell their services through service corporations, state leagues or regional affiliations. So your particular state league or association may be the phase of one of the processors shown here. Note that the lines leading to and from the different
to the other. The dividing line is often at the level of service, the pricing or both. As we look
at the poll results, certainly at least 85% of the respondents have significant interest in starting up or expanding their services, and that's spectacular. It will certainly help to keep you competitive. If you're just starting out or if you're looking to expand, you may one to
consider a debit card to start or expand your EFT program. A debit card accesses a member-shared draft or checking account and your credit union becomes an issuer. Purchases and ATM transactions made by your members are initiated by that
debit card and are routed to be on network by your processor between your credit union and the various merchants. The industry refers to the merchants, both stores and ATMs, as acquirers. So your member is card holder, your credit union
is an issuer and any merchant is an acquirer. Now, for all practical purposes, your debit card will carry a Visa or a MasterCard logo, and in some cases, maybe a Discover logo. This is often referred to as the debit card's brand. Additionally, your debit card will
likely be tied to a couple of different PIN networks. One item that we will not cover in great detail but needs to be noted is the requirement to have a company to actually produce and melt out the pieces of plastics that are the debit cards. There are plenty of third party
providers for card production in addition to the fact that most processors or core solutions have reseller agreements with those same card production companies. Now, with a very high level of understanding of what a debit card is and how it functions, let's take a look at networks and processors
and get a better understanding of what they do for your credit union. Now, your debit card program is closely tied to the processor and networks you select. Each is interrelated and, just as important, interconnected. Before we really dive into functionality,
let's take a moment to better define interconnected. By that, we mean virtually every processor has a direct or indirect connection with most every other processor and that fact holds true for merchant connectivity. No organization wants to miss out on transactions,
be it from big box stores or ATMs. So no matter what processor and network mix you choose, your member's card will likely work just about everywhere. And I like to think of networks as rail cars and processors as the
railroad tracks. The rail car, our network, on the railroad tracks, the processor, moves transactions back and forth between your core and the merchant acquirers over and over again every single day. Now, within the process of passing the
financial transactions, your networks and processor are busy checking the structure and content of the transaction, routing it down the correct line and basically documenting the transaction. Now, your networks or processor may even stand in for you and approve
transactions if the connection to your core is momentarily down. And, of course, at the end of every day, your networks and processor, several of a day's activity, they'll send you a debit and make available to your credit union the reports you need to balance. Now, ancillary
to those functions, you can expect monthly and quarterly billing in other reports, the need to establish a dispute resolution procedure normally through your processor and staff training to assist members with debit-related questions. And with that, I'll pass it over to
Joe. Joe Woods: Thanks, James. So now, assuming that your credit union has debit cards in the hands of your members, your team may be thinking about adding an ATM or two, whether it's at the main branch, your home office or possibly credit union sponsor location. Adding an ATM is a –
excuse me. James Gukeisen: Bless you. Is a natural progression from the ATM. Due to time constraints, during the ATM discussion, we will not differentiate between a cash dispenser-only ATM
and a full service unit that accepts deposits. Know this, in general, there is a significant cost difference between the two types of units. With the full service unit more expense of the purchase and maintain. Luckily, just like selecting your networks and your processor,
your credit union will have plenty of options when selecting an ATM. Additionally, your credit union has the option of owning the ATM or the leasing terminals. Your decision will be influenced by many factors which we will explore in the subsequent slides. Now,
as we more through some of the factors, please keep in mind your team should have a lot of information coming back to you in the form of various reports including member and non-member activity. And that data may help you in the future decisions about when and where
to add those ATMs. So you can purchase or you can lease the ATM. There are major ATM deployers such as Diebold, NCR and Hyosung. And there are countless local and regional ATM management companies and resellers. Additionally,
your networks or your processor may offer ATM cells and manage services as well. Now, an important note here. Like the automobile industry, there are many models of ATMs that offer a wide array of functionality. From the economical, reliable types
without many bells and whistles, to cutting edge, interactive, full-service kiosk type units, something you may use in a digital branch, for example. As we explore some of the specifics, keep these two things in mind when dealing with vendors. Really explore and attempt to parse
out any type of bundled pricing and be very wary about any time sensitive offers. Again, just like the automobile industry, there are those that make the first deal so that you come back for the second and there are those that sell terminals that they're used cars. Now,
when you are buying or leasing an ATM, double check the addendum or the fine print of the agreement to ensure you are getting the whole unit and there are not hidden or buried fees or something like - for something like the branded topper that list your ATM name and logo and contact information.
Now, whatever path you choose, that ATM is going to need to communicate to the outside world. If you lease a terminal, the management company you signed will do all the terminal driving and keep the telecom services working. If you buy the unit, it is likely you will have your processor,
probably the same one that handles your debit card traffic, drive the terminal, and they will in turn guide you through the process and charge for the telecom services. Now, with that being said, I think we'll bounce it back to Dominic for the next poll question. Dominic Carullo: All right, James. Thank you. Does your credit union
offer debit card services? First circle for yes; the second circle for no, but we're interested; third circle, no because we believe we're too small. And finally, N/A if you're not a credit union. Kathryn, do we have a question we want to post? Kathryn Baxter: You know, we don't. So I want to encourage our audience to start
asking us some questions because that's why we're here. Dominic Carullo: That's why we're here. Kathryn Baxter: And we've got - Dominic Carullo: We will answer your questions. Kathryn Baxter: And we have the dynamic duo here and they're ready to answer some questions. Dominic Carullo: Okay. Let's see what the answers are to our polls here. All right, it looks like - oh, look at this, A, almost 81% of the credit unions out there already have debit cards. We have
about 5% out there that don't, but they're interested in getting into the debit cards. And we have about 3.6% that believe they're too small. And we have about 11% out there that aren't credit unions. So it looks like the vast majority are folks that already do offer debit cards. And back to you, James.
James Gukeisen: Thank you. Those are good numbers. Surely for the 10% that are looking to offer debit cards, great opportunity and relatively easy to get a program up and running. For the 80% that already have them, let's look at how dynamic you can make your debit card progress.
But with that being said, back to ATMs. The security and cash management for the ATM go hand in hand. There are a lot of variables to keep in mind. The first of which is if your ATM is going to be attached to your credit union, physically attached or at a remote location.
If it is an attached ATM, it is possible that your staff can handle the cash management and replenishment activity directly. If not, the same company that delivers cash to your branch may be able to do the same for your remote ATM. And note
here, lease options may sometimes include the cash services at a fixed or a variable cost and will most likely use your vault cash for the ATM replenishment. Now, your reconciliation process may be handled by your staff
or outsourced to one of the third party vendors that you will discover through your process. Besides the obvious need to reconcile the ATM cash in order to stay in balance and schedule replenishment services, any overdues or shortages are typically researched as part of the dispute
process. What this means is that your staff will likely have a workstation through your processor where you can receive and initiate adjustments for cash dispensing and deposit errors. Now that you have your ATMs in balance, remember that
every transaction, member and non-member alike is an opportunity to market your services. Being part of the credit union movement, we all know it isn't about selling as much as you can to all that you can. But do not allow these opportunities to pass without sharing some
of the good that you can do for that particular member. Stay on top of your on screen marketing messages. Do not let a car sale or a member meeting go by without a message showing on that ATM screen. And it almost goes without saying,
ensure your terminal and ADA and fee disclosure environment, and that those accommodations and disclosures are rugged and not easily manipulated. And lastly, if your credit union does decide to outsource, ensure that your team
has marketing access and compliance responsibilities are clearly defined in the agreement. And so with your debit card and ATMs set up, let's take a look at the income and expenses associated with those programs. I think we'll start with Joe on that. Joe Woods: Thanks, James, I'm
back. I think my kids call it a frog in their throat. But all right, so income and expense. For this section, everybody, please assume for the moment that your credit union does have a debit card program and at least one ATM. And as we know, already, just over 80% of you do have that debit card program in place. So now with the stage set,
let's jump right back into what bills you will pay and how you can even earn somebody in this program. James? James Gukeisen: All right. Thanks, Joe. Because you own your ATM and your members use their debit cards at ATMs that do not belong to you, your credit union is both an issuer and an acquirer.
That is pretty cool. Now, when your member uses those foreign ATMs, foreign meaning you do not own it, that transaction will cost you your credit union money. Your credit union will pay interchange to the terminal owner along with the switch fee of a few pennies to both the network
and the processor. Now, interchange and switch fees are new terms. And we will get a little deeper into both over the next couple of slides. After that, if any of the attendees would like a more detailed discussion of the interchange, please just ask and we could provide the details during the Q&A portion
of the webinar and I promise we can discuss interchange from 30 seconds to 3 hours, whatever makes the group happy. Now, when a non-member uses your ATM and the interchange is paid to you, you're still paying a switch fee to both the network and the
processor. If one of your members uses your ATM, no interchange is involved. That type of transaction is generally referred to as an On Us transaction and you will likely pay your processor, also known as your terminal driver, a fee for processing the
transaction. Now, one big difference between owning your ATM and leasing your ATM is that all transactions on a leased ATM are normally network transactions. So you will likely have an interchange expense which is often offset by other savings.
One of the other aspects of ATM transactions is the foreign terminal fee and terminal surcharge. The foreign terminal fee is normally a fee your credit union charges a member to cover the interchange expense. Now, this fee is often lower or waived
by a credit union if the transaction occurs at a surcharge-free location. A surcharge is the fee a terminal owner charges a non-member to conduct the transaction at their ATM and is income to the credit union if you happen to be that ATM's
owner. There are several surcharge-free reciprocal networks a credit union may choose to join to help them keep the cost down directly for their members. Now, point of sale or POS interchange is the income your credit union earns when your members make purchases to stores
using their credit either with a PIN number of by phone. Your credit union can expect both the network and processor to charge a switch fee as well. Now, there may be additional quarterly or other fees associated with the transactions. So make sure to check your fee schedules thoroughly and question your
vendor reps extensively. Joe? Joe Woods: Thanks, James. When we are discussing vendors, there are many covering your different programs. We may be speaking about the brand, say Visa or MasterCard for instance, the networks, the processor you choose, security companies that you're working
with that provide your courier services and even whomever you select to produce and mail out your plastic cards. So this list is definitely not exhaustive, rather just an example of the relationships that you will need to maintain as you move forward. James? James Gukeisen: Thanks, Joe. So let's take a little deeper look at POS interchange
since it is 10 times more complicated than ATM interchange. And yes, I readily admit that ATM interchange alone is enough to give anyone a headache. Many potential vendors may offer examples of blended or average interchange.
Be very careful using those averages in any projections. So what you will want to know is what constitutes that average because I can assure you that if 80% of your member transactions occur at Big Box or grocery stores, the vendor's blended average and your real number
may be completely different. So your POS interchange income may also vary seasonally due to holiday shopping or vacations. For instance, members will use a credit card to secure a hotel room and that in turn may cause them to skip a trip to the grocery store while
they're out of town. Now, multiply that occurrence by the number of active card and card holders and seasonal various patterns do tend to emerge. And of course, the bottom line is the point. So be mindful of the fees, including the transactional fees, the
monthly fees and sometimes quarterly fees that impact your income. All that being said, there is nothing that will make our Wednesday wonderful like explaining the income and expense component of a debit ATM program. But just remember, when it is your
members out in the world, you are the issuer and you will make money on POS transactions and pay out money on ATM transactions. When non-members come to your ATMs, you are the acquirer and you will earn money. Your members at your terminals are
On Us transactions and it is ultimately up to you how you determine if an On Us transaction is a net benefit to the credit union. Now, before we move on, I'll just mention that the net benefit of an On Us transaction, and what is that? Well, determine the total cost
of your ATM program including any one time cost and staffing cost for things like processing adjustments and divide that by the total number of On Us transactions. Then compare that to the cost of a teller transaction. Which costs more? Do you have a very complicated spread sheet you can
use if you ever want to spend a couple of weeks on that type of research? It's there for you. Now, before we get into credit cards, there are other program options as well for credit unions, starting up our spending. Specifically, a prepaid debit program or
proprietary card program. The prepaid card program is normally a good funds model solution so there is very limited risk to a credit union, which may be very attractive to the smaller credit unions. A proprietary card is a card that can access ATMs and conduct
PIN, POS transactions at merchant locations, but does not carry the Visa, MasterCard or Discover logo. So the member cannot sign for the purchase. Dominic Carullo: And James, I have a question. James Gukeisen: Go ahead. Dominic Carullo: Some of the smaller credit unions earlier said that they thought they were too small for a debit card program, would a
prepaid debit card work better for a smaller credit union? James Gukeisen: Yeah, yeah. It mitigates the risk and eliminates a lot of the need for things like staffing for adjustments. It pretty much takes care of the risk management aspect of it unless you're looking to overrun, just to take on that type of risk. Dominic Carullo: So that
option is out there for the very small credit unions that want to offer such a service. James Gukeisen: It is. And it's out there from a lot of organizations. Dominic Carullo: Okay, very good. I think we're moving on to Joe now, right? James Gukeisen: Yeah, yeah. Joe Woods: We are. Thanks, Dom. The next big step for some credit unions that you may want to consider after establishing the EFT program through debit and ATM
is a credit card solution. I can see how that could be attractive to round at a book of business that may already include your signature loans, mortgages, auto loans and maybe even a little of MBL (member business loans). Here are some things to consider. The list of processors we reviewed earlier can likely provide the connectivity you need to support credit program.
So you can have the same organization for debit, ATM and credit. However, it is not uncommon in this industry to have your debit and ATM programs with one processor and your credit card solution with another, again, reiterating that you have options out there. An important note on the modules you will use from your core to support a credit
union program or credit card program. Before going out to potential vendors, check with your core processor to make sure you have the credit card module in place. And more importantly, if you do not, what's the cost for adding that? We use the term module loosely, but we're simply referring to the software package on your
core solution that allow us for booking a credit card. So you need to take that into consideration as well. Also, as a small credit union, it may be more effective to outsource as much of this as possible, while understanding your loan officers will hand all the decisioning on the applications. The more you focus on the technical aspect of the program, the less human
resource, the internal support staff is available to focus on managing the risk associated with the card portfolio. Back to you, James. James Gukeisen: Thanks, Joe. Keep in mind that outsourcing is referring to the technical aspect of passing the transaction from the issuer
to the acquirer and all the necessarily monthly jobs such as running card reissues. You want to keep your limited staff resources available for things like reviewing your fee schedule and making sure your special card offers are competitive.
Obviously, it keeps your interest rates specials attractive to your members and ensure you're optimizing your income opportunities. Because you will need to decide after consideration for things like loss allowance and overhead, if you can support a
rewards program, we will go over three pretty straightforward rewards options in two different categories, issuer funded and market funded rewards. For the issuer funded reward solution, your credit union can either accrue for the points as they're earned by the members
or you can buy the points. Now, buying points means paying a set amount per point to your vendor as they are earned. Alternatively, your third option is a merchant funded rewards program where your credit union pays a said amount often for card account. And the member
gets rewarded via gift cards and/or discounts from the merchants. Generally speaking, the issuer accrual method may be the most inexpensive but is subject to seasonal searches and redemption costs. The buying the points option is the most expensive
typically because your vendor will not allow for a loss. Now, you do have some leverage in the ability in setting your redemption levels, but that is also somewhat limited by market conditions. So for instance, you cannot have a travel ticket set at 40,000 points when
everyone else in your market has theirs set at 20,000. The merchant funded solutions will generally cost, i. e., some branding opportunities, but can provide a lower fixed cost option for the credit union. Now, there are plenty of rewards
vendors in the market with many of them being tied to or perhaps even owned directly by the networks and processors. Any of your state leagues or associations may also have a deal in place to directly or indirectly sell the same reward solutions. And
to answer the most common question now, yes, the debit and credit programs can be tied into the same rewards platforms. And house holding of points is pretty much virtually standard across all the different platforms.
Now with your program in place, with or without rewards, marketing and more specifically, cross-selling, become a key component of the successful program. No member approved for any other type of loan should walk out of your branch without information on
your credit card program. And remember that ATM from earlier, your wait screen on the ATM should be telling the world about your credit card program. You know, one last note on that, keeping updated, disclosure everywhere it should be. Keep close,
your league resource or your legal counsel used for the disclosure language and a minimum set quarterly reminders for your whole team to check on potential changes at the state and national level that may impact the disclosure language. And before I move on, I think we're going to, again, pass it
back to Dominic for that next poll question. Dominic Carullo: Yeah, James, that's pretty interesting. You know, here's a question, folks. This is poll question number four of our five poll questions. Does your credit union offer credit card service? The first circle for yes, second circle for no, but we are interested.
The third circle is no because we believe we're too small. And then finally, the last circle is for N/A if you're not a credit union. And while we're waiting, do we want to pose a question for them? Kathryn Baxter: In fact, we do. We've gotten some very pointed questions, so I think they're going to be interesting.
But I want to highlight this particular question. I know we're not really talking about fraud, but of course, with electronic services, there's always that concern. And so, one credit union asked - and so I'll throw it at both of you, James and Joe - what is the best way to protect the credit union's ATM from skimming devices? Have any
ideas? James Gukeisen: I have a lot of ideas. So the first thing I would recommend is very low tech, right? One, get and keep a log and take pictures of your ATM and the surroundings
of your ATM. Keep the pictures in the log and assign someone at your branch or branches to check your ATM. I would suggest every day. It takes two minutes. Keep the pictures for reference, look for anything that's different physically at your ATM. And go up
and touch the ATM. Keep some of that sanitary gel around, that's fine, but touch your keypad, touch your dip reader or your mechanical reader, pull on it a little bit, see if it's loose. Look above the keypad at the lighting and camera area and see if
that looks out of place or if that looks new. It should be clean but it's not clean all the time. Check for discrepancies in the dust patterns. I grew up in the credit union industry, maintaining a fleet of about 200 ATMs day to day use at merchant and branch
locations, so I tend to be credit union paranoid about that sort of thing. Besides just that regular log, touching the ATM, having pictures for reference, make sure you have a keypad cover and make sure that if you have a camera - should have a camera,
you're required to have a camera, you actually have a recording device with a good digital recording solution behind it. And keep those recordings for a decent period of time. I won't give you a specific recommendation because I don't know what the requirements are in your area. But, yeah,
there's a lot of very simple low cost things you can do to protect an ATM from fraud. Dominic Carullo: All right, James, thank you. Thank you very much. And it sounds like the simple answer is just inspect it and try to inspect it once a day, whether it's with your camera or a personal inspection. Now, here's the answer to our question. It looks
like about 65% of our folks said they already do - of the credit unions out there do already offer credit card services. But more interesting, we have at least 12% of our audience out there that are very interested in starting up a credit card program. And with that, I'm going to turn this back to Joe.
Joe Woods: All right, thanks, Dom. Now we're going to get into mobile, everybody. Once you've got your EFT program established in whatever manner best serves your credit union and your members, you may want to develop a mobile app to better stay in contact with the membership. Depending on what you would like to achieve with your app, there are plenty of options. We will
examine two choices for integration - either core or web-based. An important note - normally, implementation costs for what we call an mRDC, or mobile remote deposit capture solution, are always going to be separate and significant from the cost of the basic mobile app itself.
There will be plenty of vendors to compete for your business, so you can expect your core solution, your network, your processors and a host of independent third party companies out there with mobile apps to offer something for you and your membership. James? James Gukeisen: Thank you, Joe.
So the first option is a direct connection to your core that is independent of your home banking site. Because the core integration requires a project to be open with your core, you can expect to set up fees from both the mobile app provider and your core.
It is imperative as you go through this process to set the credit union's priorities for your app, certainly ahead of any sales presentation. Treat it almost like an internal to-do list. The discovery process will explore many of the bells and the whistles
of the mobile app products and they could easily distract from the primary purposes of the app that you want included. The priorities for the mobile app vary greatly from one credit union to the another, but can include ATM and branch locators,
contact information, peer-to-peer mobile payments, account openings and secure transactions for things like bill pay, mobile check deposit and funds transfer. Now, the monthly fees will vary but in some cases, there could
be less variance as the vendors offer a wide array of billing scenarios, from active users, users or simply a fixed cost based on the number of members the credit union has. Now, the web-based option is
very similar to the core integrated solution but there are some distinctions. First, the web option bypasses the need for core integration and that can provide some significant initial savings in both time and capital. However, the credit union has
to have a home banking site the mobile application can access so your members can conduct secure financial transactions. Think of the web-based option as a mobile branch where you'll only have to log in to conduct those financial transactions.
Now, the other limitation surrounds loan applications and perhaps things like bill pay. If you need a direct connection to a core module, go with core integration. But if you are satisfied with something like a queue that feeds into your staff for those loan applications,
either option will do. One other scenario not covered here is developing - your own app could be published. And that's simply based on the fact that the audience may not have the IT/IS department resources available for coding and then maintaining
the app. Now, an mRDC solution will work effectively with either option but will always require a separate installation project along with one-time and monthly fees. Now, one last
note on mobile. I have over 40 credit union apps on my smartphone, like literally. Just to better understand what credit unions are offering to us members, it is okay to download apps just to look at the layout and see what you like and see what features are attractive or not.
You do not need a credit union account to download the app. You only need an account to actually conduct the secure financial transactions. Now, with that, I think we're going to move it over to Dominic for another poll question. Dominic Carullo: Terrific job, James and Joe. I'm sure our audience
has quite a few questions for you guys. And, audience, if you haven't sent in your questions, then get them in. Kathryn's over there waiting for them. Now, here's our final poll question. And this goes very well with what we've been discussing today. What follow-up webinar would be most useful for you? Now, we've
talked about quite a bit today. Would you like, in our next one, to talk about a deeper understanding of debit card processors and networks, perhaps all things ATM, how to integrate a mobile application and mobile remote deposit capture?
And perhaps, none of them, maybe something else, click on your circles and we'll go over the answers in a moment. And do we want to pose a question now or you want to wait a little at the moment? Kathryn Baxter: Not just yet. Let's encourage the audience to send in some more questions since we're nearing the end
or at the end of our webinar. We want to get as many questions as possible. We have some, would like some more. Dominic Carullo: Okay. Well, hey, let's take a look at the answer to our poll. It looks like the majority of you would like a deeper understanding of the debit card processes and also how to integrate a mobile application with a mobile
remote deposit capture. So we have some leads for our future webinars and we will take a good look at that. Okay, folks, as promised, you can now get your certificate of completion. Now, as we mentioned earlier,
to qualify, you must have been online for at least 45 minutes, answered our five poll questions and correctly answer 12 of our 15 questions on our quiz. Now, as we mentioned before, for your convenience and to allow you to listen to the full webinar, we'll leave the console open for one full
hour after the webinar to allow you sufficient time to answer the quiz. And by the way, if you answered the quiz and you don't get 12 of the 15 correct, you can retake the quiz as often as you like to get the correct answers and to pass the quiz. We, at the NCUA,
encourage you to explore the benefits of becoming a CDFI qualified credit union. Now, if you want to know more about the CDFI and the benefits that they offer, we provide on this slide a link to one of our webinars that we've recently conducted and also a link
to a video that will tell you a great deal about the CDFI. Now, the CDFI stands for the Community Development Financial Institutions Fund. The goal of the CDFI is to increase economic opportunity and promote community development investments for underserved populations
and in distress communities within the United States. Now, to keep this all in perspective, earlier this year, our OSCUl FOCUS e-Newsletter reported that 26 federally-insured credit unions received - now get this - $34.8 million
from the U.S. Treasuries Department Community Development Financial Institutions Fund in 2016. Now, 19 of those credit unions received more than $19 million as first-time awardees. So there's big bucks out there and if you want to improve the services to your underserved markets
out there, here's your opportunity. So take a look at the webinar and the video to learn more about the CDFI fund. Now, coming soon and we are actively working on this project, we are developing a learning management system, also called
the LMS. Now, this will serve as a central repository for all our training materials. And we will provide awards and certificates of completion for the courses that we offer. Now, this is coming soon. Now, here's the link to many of the materials that will –
for a lot of the coursework that will be offered with this LMS project. If you want to take a look at our training materials that we offer here at the Office of Small Credit Unions, you can click on this link. And here is our contact page. Now, aside from asking questions
of our speakers today, if you have any questions about this webinar or any of the products or services offered by OSCUl, contact us by email or give us a call and we will be happy to answer your questions. And with that, I'm going to turn this over to Kathryn.
Kathryn Baxter: All right, Dom. So I am getting ready to push out the survey to everyone. You should see it popping up on your screen any second. And please respond to the survey. We really appreciate your answers. And it's going to help us
to better design some more programs for you. So I am going to start the Q&A and we have a few questions and I'm still encouraging everyone to submit some more. So here is a question. I'm not going to ask Joe or James. Either of you can
chime in. So here's what a credit union wanted to know. They said, is instant issue recommended for debit cards? How would you answer that? Joe Woods: Well, from a marketing perspective - Kathryn Baxter: And that's Joe. Joe Woods: Yes, and this is Joe. From a marketing perspective, instant
issue can be a tremendous benefit. When you think of the purpose of the debit card, it's to get the members using that card, using that transactional account from the credit union right away. And with an instant issue card, they can walk out of the branch with it and start performing transactions. The opposite of that is through
the standard production of a card, waiting 7 to 10 business days for that card to arrive and then hoping your member will activate and start using that card. So from a use and from a marketability, instant issue is a real advantage. Kathryn Baxter: Thank you. James Gukeisen: Absolutely. And a quick note on that, just like
any other service, there are several competitors in the marketplace that are looking to capture credit union business for instant issuance for debit and even credit card. Do a lot of research. You'll be good there.
The instant issuance solutions can be very inexpensive and very effective. There are some that are much more robust and require things like software annual renewals. It just depends on what you're looking forward to achieve. Kathryn Baxter: All righty. So here's another good question.
So the credit union says that - I'm going to try to frame this a little bit better here. They said they've had members ask if they can receive funds electronically from another financial institution. So they said, we are an ACH receiver, Automated Clearing House, right. Is there
another way to get funds electronically other than bill pay? James Gukeisen: Yes, were they talking business or peer-to-peer? Kathryn Baxter: Good question. They didn't specify. James Gukeisen: Okay. So, yes, as far as bill pay, I think some of the brands offer automated services to pay your bills.
Most merchants, you can set up directly to pay your bills with your branded cards. As far as peer-to-peer solutions, there is this culmination, this migration in the industry right now where mobile payments and peer-to-peer payments being tied to your debit card, that's
all kind of coming together and expanding. So again, you have a lot of entrants in the credit union industry that are offering peer-to-peer solutions where you can simply text somebody $50 or $100 and that's very common and it's actually a pretty significant growing section of the
payments industry. Kathryn Baxter: Okay. Don't turn away yet, James. James Gukeisen: No, Ma'am. Kathryn Baxter: You've got another question. James Gukeisen: Okay. Kathryn Baxter: On your last slide, I think the last bullet point mentioned mRDC. So we've had a couple of questions. What in the world is that? James Gukeisen: Okay, mRDC is mobile remote deposit capture.
In general, you can deposit a negotiable instrument, you can deposit a check technically from a laptop or a computer that you have at your home or through snapping a picture on your smartphone. Again, and this almost goes without saying, there are several organizations
that offer an mRDC service to credit unions. And basically, what they do is they set up a process where a member can snap a photo. That third party vendor then bundles up those photos of the checks which, as we know from Check 21, are negotiable instruments.
And they pass it along to the different financial institutions that their checks are written off of or which the checks are written. They'll post a series of deposits or a deposit for each business day to your corporate account. The funds are dispersed on the - depending on your
risk tolerance, the funds can be set up to be dispersed immediately to the member or at the end of the day. Kathryn Baxter: Okay. You know this pretty well, okay. So here's another question for either James or Joe. So here's what a credit union wanted to know. They said, is it
necessary or advisable to operate both an ATM and a debit card program? Joe Woods: I wouldn't say yes, but it also depends, because I really feel strongly that credit unions need to have a debit card program. From an
ATM management perspective, because of the [search R3] programs that are out there and because of the ATM management and outsourcing programs, there are easier ways for a credit union, especially a smaller credit union, to give their members access to those ATMs. However, the debit card program really needs to come first.
James Gukeisen: Yes, absolutely. Kathryn Baxter: Did you want to add anything? James Gukeisen: No, no, just start with your debit card program so your members can access their funds, they can make the purchases and they can make the deposits. And then expand your ATMs, start building the strategic relationships with your sponsors or your segs and look to generate
a well of non-member income. Kathryn Baxter: Okay. Speaking of income, here's another question. The credit union said, the issuer received income on both PIN and signature for point of sale transactions. Is there a difference in the income between the two? James Gukeisen: Yes. And now,
here's where I want to be real specific. The difference between the income and PIN point of sale and signature point of sale is going to vary significantly from credit union to credit union for two reasons. The first reason is going to be the deal that you ink with the brand because there is no standard template.
They're going to negotiate hard, you're going to negotiate hard to non-member accounts, maybe more or less advantageous. The second reason is the most important reason, that's your member patterns. So if you live in a depressed economic area, you're going to get a lot of
big-box store purchases. Those tend to be very low in interchange income opportunities but there's a lot of them. If you live or serve a more affluent area, you're going to get some higher interchange transactions but you'll likely get less of them.
It does balance out in the end. And with that, there are always the standard fees that you have to pay to your processor, your network and your brand either on a daily, a monthly and/or a quarterly basis. Did I miss anything? Joe Woods: I think you got it. James Gukeisen: Okay.
Kathryn Baxter: Okay. That's involved. Speaking of interchange revenue, how can you increase the interchange revenue for the credit union? James Gukeisen: Well, the first thing I would do that does not cost any money but does cost hours is look at your
reports. And when I say look at your reports, I mean if you have a processor, every processor either provides to you or makes available to you a series of reports on a monthly basis. They should be able to provide you a list of the report titles. And you'll want to look for the summary reports. The summary reports typically
give you like top 10 or top 50 locations where your members are conducting transactions. So now that you know how many transactions you have and where your members are shopping, it becomes an initiative thing. How much effort do you want to invest on encouraging those members
to conduct more transactions at those locations or to shift their spending patterns to different locations that are more advantageous for credit union income? Joe Woods: And I would add to that even from more of a basic level, looking at your card program. Your debit card processor will come with some fixed
fees, some fixed monthly quarterly annual costs that you're going to pay regardless of how many cards and transactions you have inside your program. So you need to build your card portfolio up and you need to get those cards active. You want your members. We always call it, you know, PFI. You want to be their preferred financial institution, and one of the reasons why is
if you're not you're missing out on that interchange. The average, if you're a PFI, you're getting somewhere between 17 and 21 transactions per debit card per month on the POS side, and that is your income. If not, you might be getting one or two but you're still paying a lot of those fixed costs for those cards. James Gukeisen: And
there's a whole other webinar and just I'll wrap it up. There's a whole other webinar when you're talking about shifting member activity because everybody is a creature of habit. And then using a more complex solution like a rewards program where you're incentivizing your credit union members to conduct
certain types of shop. You know, back to school shop. Make sure that, you know, you use your rewards program to ensure that you're the PFI by double-pointing your back-to-school shopping or double-pointing or triple-pointing your gas purchases during your summer vacation times. I mean, there's very complex
formulas and research you can do or some simple research you can do in that perspective. Kathryn Baxter: Okay, so, James, now, you had, on an earlier slide, I don't know if you'll remember which one it was, you mentioned a topper. James Gukeisen: Yes. Kathryn Baxter: Do you remember which slide it was? I wanted to go there. James Gukeisen: I don't remember what
slide. Kathryn Baxter: Okay. Joe Woods: But we can explain it. Kathryn Baxter: Yes. James Gukeisen: Yeah. Kathryn Baxter: Would you please? Joe Woods: That's an easy one. James Gukeisen: Yes. Kathryn Baxter: Okay. James Gukeisen: Yeah, the topper or the top of the ATM is the - when you walk up and you look at an ATM from a credit union perspective there is basically three pieces. There's the topper which list the institution's name
and maybe the financial institution. That's the topper. Typically those cost like a few hundred bucks to set up and you want to put your credit union name up there and maybe a credit union name with a SEG or something like that. And then that middle section is the member screen where in their keypad and then that button
section is typically default area which has like your cassettes to spin some cash. And then, if it is a full service unit, the equipment for accepting the deposit - so top, middle, bottom. Kathryn Baxter: Thank you. That's very interesting. I wondered what it was myself. Here is a very
interesting question, and I'm going to kind of frame this in the context too of what we talked about earlier when a person, one of the credit unions mentioned about protecting against skimmers. So here is what a credit union said. They said that a local merchant wants them to install an ATM in their store.
They wanted to know how many credit unions are doing this, small credit unions are doing this. But here is the other question that they really want to know. Is the cost - is it a cost or could we expect the small return if we did that. And then I want to add a caveat, what would be the risks
associated, some of them, with having a free-standing ATM in a merchant store? James Gukeisen: Sure. Joe Woods: Well, James, I'll take this, just because I know you could talk for half hour and I don't. James Gukeisen: And I probably would. Joe Woods: So James is the guy for that one. But even from a basic standpoint, yes, there are credit unions that are partnering with some retailers, some merchants to put
in ATM, physically plant an ATM in that store location. There are some additional costs. You';re usually going to have to lease the space from the retailers, so you're going to have to pay a monthly fee plus the retailer typically wants to share in the surcharge and/or the interchange, so they're going to want a piece of the pie. James Gukeisen: Okay. Joe Woods: So it's going to
cut in to your potential margin or your potential revenue for the ATM. Now, at the same time, because you have an ATM now inside a retailer, you're going to attract more people and potentially get more volume for that. So there is that given and take of what is good, what is not. From a security standpoint, you are now running what we call an off-premise ATM.
It's not connected to your branch. It's not in your drive-through. It is not something that you see or work with every day. So there are some additional risks that go along with that that you need to weight. We've seen some credit unions that do well by that - Kathryn Baxter: Okay. Joe Woods: - and others that's - the majority of credit unions typically shy away. Now the, I guess, there is a
third option to consider and that's having those ATMs that you want to plant inside a retailer, having those outsourced. That way the ATM looks and feels, it's wrapped, it's got your topper. It's got your colors on it. And it looks like it's you but it's managed solely by somebody else. James Gukeisen: Yeah. And we have seen a couple of instances
of smaller credit unions partnered to deploy an ATM at a third-party location. Joe Woods: Right. James Gukeisen: There's really no limit. You don't have to have just one credit union's name on the topper. Think of it as squares. So you've got four big square up there, partner with a couple
of other small credit unions to get that ATM out there and mitigate the cost and its marketing, good marketing. Kathryn Baxter: So now, I'm going to ask another question here, James. He wanted to jump on this earlier. But, Joe, please chime in again.
So someone in our audience asked the question, what have you found to be some of the compliance pitfalls of mobile banking and remote deposit capture, anything that pops out of your head? James Gukeisen: From a compliance perspective? Kathryn Baxter: Mm-hmm, that credit unions have
concerns about. James Gukeisen: Yeah, the knee-jerk reaction to hold the funds for ten days, because it's a mobile deposit as opposed to what has now become a traditional ATM deposit. There is a certain level of - I think in the
industry and it's just opinion, there's still a certain level of discomfort in trusting members to deposit the image rather than the physical item. And you tend to want to hold the funds so that they don't run out and deposit the physical item
at a third-party location so that you get double credit. It's been my experience that it's a possibility but it's a rare occurrence. That's just not something that happens. Typically, that's controlled by a credit union decision the deposit privilege in
general on an account at the account opening. So that tends to mitigate it. Your (prodsters) aren't going to want to wait six months if they just open a savings account or just a check in and savings for that privilege. They're going to go to the target down the street that doesn't have that type of protocol. But in
general once it's an established member, you don't need to hold the funds any longer than you would an ATM deposit. As far as specific compliance issues, I don't know. I would need to know the state and you're talking about making a deposit to give you any type of qualified
answer. Kathryn Baxter: Okay, no worries. Joe Woods: Yeah. Kathryn Baxter: I'm sure there are some. James Gukeisen: Well, yeah, because there are some states that are much more stringent and then others, some, you just follow federal rules and you're good, some states have additional rules and I am not read up on that. Kathryn Baxter: Okay. James Gukeisen: So I couldn't
give a qualified advice yet. Kathryn Baxter: Well, here is a good one. Dom, you look like you have something to say? Okay. All right. Here is a good question too. So the credit union wants to know about, is it possible to join more networks, ATM network, to benefit the members and to get more surcharge fee from ATM?
Is it cost effective for a credit union to have multiple vendor networks? Two-part question. Joe Woods: From an ATM perspective, yes. Kathryn Baxter: Okay. Joe Woods: From both an issuing and acquiring side. Now, and you split the two up, and it's appropriate to split the two up. From an issuing side, you can partner with multiple ATM networks
to add surcharge-free options for your membership. From an acquiring perspective, you can add multiple networks to enable your ATM to acquire more transactions and potentially even more interchange-friendly, interchange-heavy transactions, so you can gather more interchange
at your ATM and help cover the cost of that terminal, absolutely. James Gukeisen: Yeah. So you never want a transaction to walk away to an ATM down the street. Kathryn Baxter: Speaking of ATMs, how is this? Someone from the credit union wants to know, does (CU24) offer ATM machines?
James Gukeisen: Am I allowed to talk about that? Kathryn Baxter: It's a question. James Gukeisen: Yes, the answer is yes. Kathryn Baxter: Okay. James Gukeisen: We offer managed services. Joe Woods: Yeah. Kathryn Baxter: Okay, very good. James Gukeisen: I want to respect the spirit, not just the rule. Kathryn Baxter: You did. You did. James Gukeisen: Okay. Kathryn Baxter: You did good. Okay, let me get another question here.
Also, I don't think you guys had your contact information but we've had a credit union request your contact information. I don't think it's on the - here are pictures. Joe Woods: I think it's on the bio. Kathryn Baxter: Is it? Okay. So if you download the bios, you'll get their contact information.
Joe Woods: And if for some reason you can't download the bios, James and I are both on Linked-In. James Gukeisen: Yeah. Kathryn Baxter: Okay. Great. James Gukeisen: And I know we have some West Coast, again, within the spirit, I'm pretty much available 24/7 because I grew up in a credit union operations environment, so whatever.
Dominic Carullo: Yeah, there is our information. It's right on our bios. Kathryn Baxter: Okay, great. Joe Woods: Yeah. Kathryn Baxter: Very good. There it is. Dominic Carullo: And they pushed a little widget at the bottom of the screen. Kathryn Baxter: Okay. There is the bio widget, which one is it? So it's the blue one. Is it the blue one? Yeah, yes.
So the blue widget at the bottom of your console has their bio information in it. So I think we have one more question for our speakers. So a credit union wants to know what the –
for prepaid debit cards, what are the disadvantages in terms of compliance issues? Is it worth it? James Gukeisen: It depends on the partner you select. It can be worth it. When I say it depends on the partner, you select from a compliance issue,
if you have a good partner, from the delivery aspect of the card, you're basically a retail location. So a lot of the compliance or the vast majority of the compliance or all the compliance should be owned by your partner so that they're not just reaping all the interchange
reward and saying you're stuck with a loss. Typically, it's a good funds model. So all of the compliance materials, all the marketing materials, they should have a pretty standard deck for you or the materials available that have been reviewed and approved by the, ultimately, the issuing institution,
legal and compliance experts, so that you can go into it with a pretty good trust factor. Again, just do a lot of good shopping and, you know, typically you have good instincts when they come in they start talking about their program. Again, it all goes back to a partner or these
people who are trying to just sell you something so they meet their quota. Are they trying to get to the next deal? So in general, yes, but, you know, I've looked at a lot of iffy partners out there, so. Kathryn Baxter: Okay, so this one isn't actually the last question. James Gukeisen: Okay. Kathryn Baxter: We have some more questions that came in.
So here's another one. So the credit union wants to know, can they offer debit card on share savings? James Gukeisen: Well, I did. I did. When I say I, I mean, when I worked at my credit union, I did. We did a little research and, yeah, we could do it. And so
we had all kinds of different flavors of debit cards. We had a consumer debit business data HAS. We had them accessing one or two share draft accounts and then share accounts. So typically, yeah, but again, I'm not qualified. I don't know if there are any particular rules at the state level. So I can just say,
yeah, I did. I did enthusiastically to get debit cards and people certainly can. Joe Woods: Right. In most cases, with a share savings, you typically, you can almost go back to what we used to call the ATM card. James Gukeisen: Yeah. Joe Woods: It won't carry the Visa or the MasterCard brand but you can offer an ATM card and it will allow pinned-POS transactions. So they can go out the merchants.
They'll just have to use the pin option. They won't be able to use the signature option. James Gukeisen: Yeah. Joe Woods: So it is possible. James Gukeisen: Yeah, and I think permission goes back to like, what is a Reg-D? Kathryn Baxter: Yeah. James Gukeisen: Yeah, Reg-D, so, but, yeah, I don't think the fee rules apply anymore, so shared draft accounts are basically transaction accounts. At least that's where we like it. Kathryn Baxter: So here's another
question on ATMs. This credit union wants to know, is it beneficial to drive your own ATM as an intercept process? James Gukeisen: Well, how big are you? And the reason I say that is I've known a lot of people in the industry that move over from processors
and they take credit union jobs. So they have their condition to drive their own terminals and they have the level of expertise and they can keep up with not just compliance but the industry requirements as far as supporting the messages. And when I say message, I mean,
the transaction that moves back and forth between issuers and acquirers. There is a very basic layout, but that layout has to support a lot of things and those things change every six months, every 12 months as the different
functionality is added to that ATM transaction type. So if you have the expertise in house and you're comfortable with driving your terminals, yeah, it's fine. If you don't have that expertise and that time resource to make sure you're supporting the transaction type,
man, I would just, I'd pay the pennies and have my processor do it. Just in general from a management perspective. Kathryn Baxter: So we have a few more questions here. Let's see if we can get to them all. So here's a good one. Credit union wants to know which issuance is more secure for debit ATM
cards, traditional or instant issue? Joe Woods: Well, there are risks associated with both. So from an instant issue perspective, the credit union now has to keep on file or keep in house under lock and key that stack of cards
so that the card itself is not compromised. So there is that consideration. From a mailer perspective, your traditional mailing out of the debit cards or ATM cards, you do have the threat of theft and loss through the mail. That's one of the reasons why more times than not we the card going out
separate and the pin, the four-digit pin, follows in another letter a day or two behind usually. So there are risks with both and you have to manage both accordingly. James Gukeisen: Yeah, the Visa or MasterCard or Discover requirements for the unembossed, unencoded
card stock that you have to keep at your branches so that you can insert the stock into the instant issuance machine which are pretty much laser printed now. If you have an embossed encoded raised instant issuance machine, I would switch over to a laser printed now. It's much simpler. It's much less as far
as cost and it doesn't break as much. Yeah, I would go with instant issuance if I could because a lot of your platforms now support pin select as long as you're maintaining your pin offset at the core processor level and not on your actual card.
Kathryn Baxter: Alrighty. Very good information. Here is another one on ATM cards. So the credit union, it already issues ATM cards and debit cards. So they want to know what are some things that they need to consider if they're thinking about consolidating this and offering debit cards only and no longer offering ATM cards?
James Gukeisen: I think in general, you should always try to shrink your proprietary card. And ATM card and proprietary card are one and the same. You know, people say ATM card is a bit of a misnomer because most of your ATM cards are not ATM-only cards anymore. They're both ATM and point-of-sale cards.
They just can't sign for the transaction. And in general, you should set up a reissue cycle that tries to shrink your proprietary inactive cards. And if you have some activity, reissue debit cards for those members since the accounts that they're tied to be probably transaction accounts. And you can go ahead and get that
branded card in their hand and they have not just the pin and signature but now you have a wider online purchase opportunity for that member. Kathryn Baxter: Okay. Now here's another. This is a - can you tell us the difference between an ATM
card and a debit card? James Gukeisen: I think we just did. Joe Woods: I think we just did but that's all right. Yeah, the ATM card typically will not carry the Visa or MasterCard brand and it is only a pin network based card. So you can use at an ATM or you can use it at a retailer or merchant if you select pin;
if you try to select signature, it won't work because then it will be trying to route it over Visa and MasterCard and they won't recognize the card. Kathryn Baxter: Alrighty. Okay. Now, here is an interesting, I think this may be our last question. So the credit union wants to know, they've heard
that debit card interchange will be decreasing in the future or possibly going away. Have you heard anything? Joe Woods: Oh, yeah. James Gukeisen: Yeah, I hear that every other year. No, I'm not being whimsical. So, and Joe, I think, I may step on your toes, I apologize. Joe Woods: That's all right. James Gukeisen: There's two competing forces. There's
the issuers and the acquirers. The credit unions, banks, other financial institutions and then the retail locations, they both have large groups of lobbyist that are working at the Hill non-stop trying to increase interchange on one side
or decrease and significantly control interchange on the other side. Who's going to win? I honestly, I just don't know. I just know that there is two highly-motivated well-compensated groups on either side advocating for both positions. So I just don't know. Joe Woods: Right. We have seen over the
years these signature, Visa and MasterCard interchange has come down at the same time the debit or the pin-network interchange has gone up. There still is a little bit of a gap between the two of them, but now, with the markets really at its maturity, interchange will begin to
compress. It will begin to shrink over time. I think that's unfortunate. However, fortunately, the United States is behind on this. But the rest of the world has a much smaller interchange spread. So we've been fortunate for a while and I think we'll continue to
ride that wave for the near future, but we do have to recognize that in other areas of the world interchange is not what it is here. James Gukeisen: Yeah, yeah. Kathryn Baxter: Wow. Well, everyone, I think we are fresh out of time. I told you we'd have a great
webinar for your today. We'd like to thank our speakers, James I'm going to mispronounce your name again. James Gukeisen: Gukeisen. Kathryn Baxter: Gukeisen. James Gukeisen: There you go. Kathryn Baxter: James Gukeisen from CU24 and I'm trying to push their pictures out once again. There is James somewhere here.
And here is Joe. There's James and here is Joe. Joe said he looks like Robert Downey Jr. Joe Woods: Oh. Kathryn Baxter: If he gets a mustache and a goatee he might. So thank you so much for joining us gentlemen. Joe Woods: A pleasure. Kathryn Baxter: And we'd like to thank Dom Carullo who is our wonderful host, Franz Ayento
is our behind-the-scenes guy. And we'd like to thank the ON24 cast for helping us out. This is Kathryn Baxter, I am signing off of the afternoon. We hope to be checking in with you in May because we will have a webinar, hopefully, on grants. So take care. Have a wonderful afternoon everyone and a great week.
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Business News Report | Virtual Office & Business Services in London - Duration: 2:51.
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10day free Training Day 2 How To Price & Package Your Services with Congruency - Duration: 34:08.
Hi beginner coaches good morning thank you for joining me on day 2of the 10
day training series where we teach you how to reach your first ten came up so
if you haven't joined us already this is day two and so yesterday what we covered
was how to actually go about defining your niche and we won't go through it in
detail again today because we went through it yesterday so make sure you
pop on over to that old video in our facebook wife now today what we're gonna
be talking to you about is pricing and packaging your services with concurrency
because I have a lot of the challenges that coaches and my comments are be
coming to me with is Carol I've got all this knowledge I've got all this stuff
that I want to share but how do I know how much to charge how much how do I
actually like put something together should I have a smaller package and then
have a bigger package from there or how much do I charge X people are telling me
I should charge $100 an hour some people will say maybe 150 some people charging
a thousand dollars like where do I actually sit on that spectrum so if that
is something that you're experiencing awesome because they're gonna cover all
of that this morning now also guys I want you guys to keep in mind that
throughout this video there will be an opportunity for you guys to opt in and
subscribe to our full step turning a stranger into a raving fan checklist so
is a checklist that so it's a combination of a video a training video
and a checklist which I created just yesterday a couple days ago and it
literally walks you through step by step through the four steps that I go through
to attracting clients all the way to nurture your relationship and then
turning in them into committed paying clients so if you want to get your hands
on that make sure you stay to the end of this video and I'll share with you how
you can get your hands on that so guys I'm just gonna quickly pop on to my
facebook page purchased because the comments that I'm gonna be reading from
you guys is gonna be on my Facebook page COO I can't actually see what's on my
camera right now so if you're joining me live guys come in and say
low so that I know that you're the hi Tim good morning Tim thanks for joining
me all right eating so let's get into it
how do we actually even put a package together now a concept that I've learned
from a mentor of mine Darcy Smith so I do attribute this
concept to him and is the type of method and it talks about cognitive dissonance
so when it comes to problem-solving guys know that our role as coaches is first
and foremost to solve a problem for the market and even more than that as
businesspeople that's what we do every single day where we get it paid because
we solve problems so if you think about it I'm just gonna stand on the sudden
hopefully you can see what I want you to imagine is that where your client is
right now is Island a actually a and where they want to be is Island C now if
we think about guys how does something actually become a problem think about it
if let's take a lady who's 10 killers over here and she wants to lose 10 kilos
so which is that right now is she's 10 kilos overweight right what makes it a
problem now it's a problem for her because she's
not where she currently wants to be R so it's either she's not where she wants to
be oh she's not where she expected to already be too because think about she
was already her ideal way she's exactly where she wants to be which means that
either the agency are the same alternatively if say she's already
working with a weight loss coach and they've got a plan and a regime to get
her from where she is now to her dream body then she's actually where she
expects maybe because she's moving along towards
Islands see so she doesn't have a problem but if when she that right now
convinced away she wants to be aware she expects to be a different then insert
problem this is where we come in because people only need us when there's a
problem right so because this problem is also known as cognitive dissonance
our brains are problem-solving machine so the moment that we've got where
somewhere we are the moment we we aren't where we need to be or where we to be
our brain will do everything within its power to what a close that loop and what
that that designer to what a close the loop often manifests itself in the form
of pain so know these guys a common objection I get from that clients
present to me is they like how my market they just don't have money and trust me
guys time and money and we'll go through this in a separate video because we've
got a whole video coming up in a couple of days that's purely on handling
objections now money and time are not valid objections because know these when
the pain is great enough we will always find the time and find the money for the
things that are most important to us take this for example say you've got a
tooth ache right and you literally a stand up night and day night and day and
you can't go to sleep because all you can think about is the pain will get rid
of the pain or just eliminate anything I'm not thinking about the pain but all
you can think about is the pain now if it dentist said to you look I can take
that out for it I can get rid of that pain for you it's gonna cost you five
thousand dollars are you gonna find the money to get rid of that pain
yes of course because you can't go warning your wife and do anything else
until that pain goes away just like I mean this is a bit of an extreme example
guys but let's say you know someone took your I'm making this is extreme but just
to highlight the point someone takes a family member hostage right
they're like I need you to find me $100,000 otherwise I'm gonna kill them
are you gonna find the money of course you'll do everything within your power
to find the money how come because right now your family member is not safe and
you want them to be safe because it's it's a part of our human behavior so one
of the loves to want to pull on to want to protect our you know our family and
friends and what you want is for them to be home safe but currently them in
hostage insert problem now if the pains big
enough we will always find the money and the time for it
so organize what I'm hoping that you'll take away from this video so far is
don't get sucked in do not accept your markets limiting beliefs
there's simply stories that they tell you because think about your buyers
don't know how to make great decisions if they did know how to make great
decisions they probably won't the experiment be experiencing the problem
of the currently experiencing right which is why they need you as the expert
to help language where they're now where they want to be so that you can actually
help them bring language to what their problem really is because it's only with
the awareness with language of what's really going on for them that they can
change you can't change what you don't know but once you do know then you've
got choice as I made it as to whether or not you want to make a different
decision does this make sense guys so check in with me I've five people
joining me this morning hey Tim yes I went for a run this
morning I'm looking forward to a catch-up tomorrow morning um so guys
share with me what are you taking away from this so far thanks got basically em
for joining me so guys what we've got so far is we've got where your client is
and the problems that they where they actually want to be an island see now
when it comes to building a package guys if what you're
selling is an emotional outcome and for many coaches in the beginning what
you're selling is an emotional outcome it's like you want them to have greater
confidence greater empowerment greater self believe for that for you to step in
your true self I could keep going and until you can bring some tangibility
around it which is why I find the business health relationships are great
niches to go into because you've got something that's measurable at the end
of it but if you don't have a measurable tangible outcome that's all good because
what we're going to teach you right now is going to bring tangibility to your
products and services which means that when you teach it to your clients if you
teach it to your market where you market it you're gonna feel a lot more
certainty and so they all right so Isla de Island see that's where they want to
be this is where they're right now knowing that for them to get from A to C
they need to go through some sipping stones to get there now what I often
recommend to my clients is we who you're coaching or who who you market to is
probably you two years ago so since you two years ago to you now you've grown
and learnt so much stuff and applied so much needle learning to your wife that
you can actually teach all of this stuff but for us to ever teach anything we
must have frameworks we must turn our knowledge into frameworks and models so
that it becomes easy for people to understand and easy for people to apply
because if you just talk at people they're like this is this is the
response you'll get they'll be like uh-huh uh-huh uh-huh
and they'll write all this stuff down and then they'll go away and they'll
feel overwhelmed because it's not simple training women says that all the time
complexity is the enemy of execution so the simpler you can make it the better
so in our 10k elite squad Maxima there are five clear steps that we take our
clients err and it means and we apply a model to it so
means that whenever they feel stuff they just come back to the model and now i
where am i on this model okay i'm at this stage for how what do i need to do
to move from Sage 3 to stage 4 and that's exactly the same here so I've
drawn I'm gonna draw an extra box so why generally recommend is when it comes to
models is you want either four stages five stages or seven stages those
numbers generally look well and the way to go and approach it is you literally
brained up a good friend of mine once suggested to me she was like I'm Cal go
just take a pad of post-it notes go on wall and tell apparent marker and just
write it every single learning model book principle philosophy everything
that you've learnt that helped you to get to where you are now from the moment
you decided you wanted to change and stick it up all on the wall and by doing
this you have everything on a wall and then what you can do is you can start to
put them into categories because everything fits you you will notice over
time that there is always a sequence and a methodology to what we do we're human
beings don't try and reinvent the wheel even if you look at back it has those
hierarchy of Maslow's hierarchy of needs Tony Robbins six core needs there are
similar theme that fall within each one so same with what you do where you are
two years ago for this where you where now you took a series of steps to get
there so what you want to do is you want to bring a framework to what you do
and you want to apply a model to it now we're not going to go into this in
detail today but when I say a model I'm talking about like for example this is a
model Tony Robbins has one where he's got a B C and D but it the purpose of it
is to make it visually appealing and very memorable and also this becomes
your IP because you can actually trademark this because this is your zone
of genius is something that you've created and
they have taken ideas from loads of people all good but by you bringing to
new ideas together you make it something new and you make it yours and that's
what you do by putting a model to it so by the end of this you'll have not
only have the end in mind of where you know your client needs to go because
you've defined your niche even more than that you know exactly how
you can help them get from A to Island see through these stepping stones so
through your sales course and someone actually asks your even if you're at a
networking event they're like okay great so you help women lose 10 kilos in five
weeks tell me more how do you do that well you insert stepping stones and for
them because think about these guys as human beings we've got an emotional side
and a logical side to our brain even if you sell the emotional outcome like look
I help women feel empowered I help them feel sick like tabi like they're tapping
into their full potential yes emotional outcome tick but if the if
the person you're speaking to doesn't see how logically makes sense on a
consciously on a conscious or unconscious level they're gonna feel
uncertain and they're not gonna feel taken care of so but by you mapping this
app and if they can see logically how your stepping stones help them get from
A to C it logically makes sense so the right side and the left side of the
print of both ticked so they feel taken care of alright so guys I trust that
this makes sense I've got five people have joined me this morning good morning
everybody come in and say hello and share with me
so far what what based on what we've taught and talked about this morning so
far what are you guys taking away from it in relation to pricing and packaging
your services because I want to check in and see how this is relevant for you I
wish on my computer I could see who is joining me come in and say hello T hi
Christine how are you I'm really looking for tight interview
with you one-on-one next week I'm so pumped for it so team yeah share with me
how is this what we've talked about in terms of cognitive dissonance and
putting your package together how is this relevant for you is it new is it
something that you already knew about is it adding a new layer of distinction
share with me who me - it's gonna be a jam-packed cheese day next morning
Christine great point Cal I tell my clients all the time that the goal of
your marketing is to move clients from if they're going to work with you to in
their mind having them trying to work out how they're going to work with you
yes so in their mind so Tim what I'm taking away from this is if they're
gonna work with you to in their mind having them try to work out how they're
gonna actually work okay Tim correct me if I'm wrong what I'm taking away from
what you've shared and thank you for sharing is it essentially you want to
seed in their mind your program so by the end of your conversation with it
because you've ceded all these savings zones but you asked them so look how can
I help you for them to reflect back exactly what you've told them already
but in their own words so it's like your words become their thoughts which then
become their words and essentially then they become they stop buying into your
program and obviously you positioned yourself in a way where your best person
to solve that problem for them so - is that what you mean thank you for sharing
LeeAnn your drive you said not able to post burning hints beautiful thank you
so much Julia good morning now guys something that I didn't mention
that is super important is that between Allen agency I would you know imagine
that this problem here this is actually a tall way it's a tall way that takes
them from they are now to where they want to be
now in the middle of that time I guys is this toll booth now I guess who's the
toll booth you you are the Tollbooth operator in that talk now I want you to
imagine that the last time you drove on I told you and you went up to a
tollbooth operator and there was an actual human being in there what did you
do now the last time I went up to a tollbooth operator
I wondered am i window I gave them my money and they drove off now my question
to you guys is is have you ever seen a tollbooth operator get out of their toll
booth and chase a car down no never don't worry I haven't either how come
what because they just don't do that because you just know as the as the
driver that you how it's supposed to be is you mind only we know you given your
money and you move forward but what do you see a lot of salespeople doing now I
see a lot of salespeople getting out of their toll booth and chasing their cars
down demanding their money and for me that is what has made sales really a key
for me for a really really long time until I understood this concept because
guys if you understand your client problems so well that you position
yourself as the Tollbooth operator then what happens is over time the more than
you educate the market and for example me creating this training series guys
like trusting your cause may being so open and transparent about me creating
this training series is a way for me to position myself as a tollbooth operator
because there are questions that the market is coming to me with and through
this video I'm now educating your banner so if this is something that you're
experiencing you'll be like wow cow I actually do want our perfectly priced
packages and services how do I do that well then what are what you'll probably
do is you'll come on to my table then you'll be like hey cow can we chat and
that's what we want to do for you is to position you in a way where you
understand your clients problems so well they're they know that you're the best
person to solve that problem so they to you rather than you needing to chase
them down and what a great way to do business
sir guys is this new to you because I find when I realize this point I was
like oh my gosh this like just shifted my complete dynamics around
problem-solving so now that we've got you as the Tollbooth operator and we
stepped out the stepping stones of how you're actually gonna help them get from
island aids Island see let's talk about pricing your packages so let's assume
you've got a package it's got five steps in it so I'm literally just gonna this
could be a model guns it could be a fire stepladder it could be something as
simple as that now in the back of your mind as an
expert as well what you want to know is how long generally is it going to take
for you to solve that problem for your clients and from my experience you
probably want to either go for six weeks eight weeks three months six months or
12 months so six weeks eight weeks it just sounds nicer because it you're
like look we go for 91 days or we feel like yeah we go for you know four to
five weeks there's uncertainty so the more certainty you can bring to your
programs the more certainty your your market will experience when they're
talking to you so three months six months so I know that our mastermind
goes for six months and there are five key pillars that we need to take them
through throughout that six month period and I don't even know all my dates so I
know that there are two training dates at the start in djenne and then fit
there are two days and every other month there is a half-day mastermind so you
need to know these specifics because if they ask you you need to know six months
or 12 months and pricing so obviously you want to give the program a name so
that you can refer to it and so for me it's the 10k elite squad so you want to
base the name the title off the outcome that you're helping
to achieve because you want to make it inspiring yeah you could make it
well let's be honest people will do more to avoid fear than to move towards
pleasure I just personally prefer to call it something that's based on
islands see because in that way whenever I refer to it in my videos or whatever
it is I am actually building cognitive dissonance cuz think about it guys
your clients are already at Milan Sea and if you're constantly talking about
your clients our Islands eight and if you're constantly talking about Islands
sea in the form of your program and you're building up the vision and what
it looks like in the outcomes that you can help them to achieve you naturally
through your marketing will build problem and cognitive dissonance and
pain for your client and the more pain there is the more likely it is that
they're going to buy okay so you've got the title
you've got the model you've got the length of the program and you also want
to break this up into more detail around how it would actually play out over six
eight weeks three months six months twelve months and then when it comes to
pricing guys this is the model that I teach and it everyone's going to be
different this is what I feel like works and expect for me in the past is to
think about how much do you want the program to be in the future so when
you're when you're at a stage where you've had all these all these try pilot
participants in the program they've gone through it they've got the results at
that point how much do you think the program is worth and you set that that
figure in your mind so for example it could be that you know we've got let's
go an eight week program and we want at the end of it to be $3,000 now
likelihood guys is that if you haven't actually taken anyone through that
experience and seeing the results to know that the program actually works on
some level you're gonna feel uncertain or incan
girl charging $3,000 because you're like well how do I know that and if you've
never charged $3,000 before there's gonna you're gonna have cognitive
dissonance right um so what I suggest is you need to charge what you feel
comfortable with there is it doesn't matter what anyone else says to you guys
someone could say to you look I remember when I first started they were like Cal
you need to charge a minimum of a hundred and fifty dollars
for your coaching sessions to do justice to the coaching industry
you can't under charge yourself and I was like shit 150 bucks
I've never even like asked for that much ever both being paid 150 bucks for an
hour in my life before like if I worked out my annual my hourly rate based on my
annual salary when I worked in my corporate job it was like maybe 40 bucks
an hour so I was like 150 mom and if I if I can if you're cool with me share I
remember my first pro bono my first sales conversation where I was trying to
convert a pro bono into a paying client I literally just talked at the client
for 45 minutes straight and I took this through my whole program and then at the
end of it she just looked at me blankly and then I was like oh crap and I was
like literally I said that these two I was like you know what don't worry about
it you don't have to pay me anything I just I just want your feedback because
for me I had no reference point for having charged that much in my life
before now guys my first paying client gosh she is such a great negotiator
she was a uni student and I put it till I was like look it's $150 per session
and I would recommend us we do six sessions and she came back to me and she
was like Cal that's a bit much for me how about we do 40 bucks it was like 40
bucks oh my god oh my goodness 40 bucks okay and I was like all right 60 bucks
because guys and I was stoked with 60 bucks because she was my first
paying client I was like woo someone actually wants to invest in me and I'll
be safe from the 6m plus she was an awesome client so I was like I just want
to work with you so from the $60.00 I grew it up to you know hundred dollars
one hundred fifty then five hundred and a thousand dollars a month and it just
grew from there and no these guys in what I would actually recommend is
rather than you in charging an hourly rate is because then you're always
trading no time for money and you can't leverage your time is to actually go for
put up dollar figure to the outcome that you're helping them to achieve because
remember coming back to you guys this is why we explained it in the beginning
when the pain is big enough people will pay so a common misconception is that
that I see a common mistake that I see a lot of coaches making is they charge an
hourly rate for their services and because they don't realize that at the
end of the day people pay for results people pay money for an alkyl just like
the tooth ache for me to get rid of the pain I will pay three five thousand
dollars whatever it is this tooth here okay my brother chased me around the
house when I was a new five and it cracked so we've got a crown over this I
think my mum's invested over ten thousand dollars in this tooth alone one
day I woke up and it was completely shattered and wobbly trust me that day I
don't want to do anything else I don't I go to the dentist and get that
fix no matter how much it cost it so know that when the when the app when
you've clearly defined the outcome clearly enough for your client they will
pay a clear outcome and they'll actually feel way more taken care of knowing that
if they invest X amount into your program that they're gonna get extra
terminal X outcome so can I just encourage you guys even more to focus on
what Islands he really looks like for you and your client if you don't know
yet guys great watch the video from yesterday on defining your niche go away
and do some market research figure out what that outcome is because that's what
people are actually paying you for they're paying you to solve a problem
not just to spend time and listen to their problems
trust me from experience awesome so guys so far
shows me what are you guys taking away what is some key learnings rather than
me just sitting at passive we see other than Leanne who's driving at the moment
to get engaged because we want to make sure that this learning is learning for
you if it's not making sense trust me guys I've got so many stories
up my sleeve I can keep going but I want to make sure that these points are
actually landing because these videos at the end of the day not for me they're
for you guys so show us me guys what are you taking away from this so I'm gonna
wait for your messages to come up and let's recap so we've got the app in mind
we've created a program around it would put a model and actual model so that you
can attach a pizza you need to know how long the program goes for and at the end
of say the eight weeks once you've gotten actually gotten the results of
your clients how much would you feel confident charging for the program so
that's three thousand dollars next step is because on some level you're going to
feel in me if you feel can grow up with three thousand dollars oh my gosh Rock
fourth be good with it awesome but if you don't what I would suggest is you
discount this and you draw a pilot round so this is what I teach my clients you
don't pilot round where you offer something that it's at a ridiculously
like no-brainer like oh my gosh yes if I if I put ten ideal clients in front of
you right now and if you pitch it to them their response needs to be like
holy crap each serious that's the response that we want to evoke because
we just want cuz it the idea around it so say for example from three thousand
will you do it for and I'm making this up for nine seven it's like holy crap
that's a sixth of the prize yeah I know because the psychology and the thinking
around these guys is you want to make it a complete no-brainer for the people to
want to opt in and for the right people you want to invite them into the program
and you want to invest the next eight weeks or however long your program is
for me it's six months but you want to invest that time into building glorious
raving fans because guys the bear form of marketing is word-of-mouth when
people actually have a result in a tell talk about YouTube their friends and
their family and their community and their network oh my goodness you are
gonna get such high quality clients coming your way so I guess for me from
my personal experience the belief that I needed to let go up and I needed to drop
in water for me to be okay with this was that I needed to be perfect as of day
one and it really encouraged me to be really humble and just a passionate
curious problem solver that goes out into the market ask questions interviews
the market gets feedback its closely engaging with my clients and my
community and being like what do you need what's the problem that you're
facing how can we better stop so that I could ensure that they actually got to
the app and when they got to the outcome also then admit that I've actually built
a really resilient for a bus program that genuinely delivered results and it
shifted the focus away from oh I deserve to be paid three thousand dollars to
actually what do my clients need right now because I hear so much people say
you know it you charge however much you think you're worth now if you don't
think you're worth a thousand dollars you just need to build up more
self-worth well if I'm completely honest guys I think the self-worth comes from
the self-worth comes from confidence confidence comes from competency and you
only develop competency the more experience you've had
working with paying clients and getting results for them so I have been
completely okay with the fact that for our 10k lean squad next year the
investments gonna be way high like 10k cuz to even get to your first 10k as a
beginner coach is so challenging there's so much work that needs to be done and
there's so much support that we provide but next year we're piling it for the
first time in Chad for a ridiculously discounted man and I'm so cool with that
because I'm like I'm building raving fans I want to make sure that the
program works I know whatever for me but I want to make sure that I
test it with other people and also that they get the results because I know that
once they do and if they have an awesome experience it will all just come back
it's a win-win situation so the more of a win-win it can be eyes the more you're
gonna win in your business long term but if you just go out there now look I just
want to charge 3k just colors which I did initially was my old niches around
finder passionate about so incongruent and the sales results reflected that so
you need to sit with an amount that just feels so intrinsically certain and
comfortable with you to begin with alrighty teen so that is what I wanted
to share with you guys this morning around pricing and packaging your
services so that you feel congruent with it every single time what are you guys
learning from it because I've got six of you five of you watching online at the
moment and you guys aren't engaging so it tells me that you're either driving
like LAN or you're just passively listening which means that you're not
consolidating your learning so do share with me what your key learning is now
there is an opportunity guys for you guys now to what Jay and I have created
so Jays maybe a what we've gone away and created is a four step checklist for you
in terms of teaching you how to turn a stranger into a raving fan now it's got
a training video plus the actual physical step-by-step guide that I apply
in my business to help me turn leads into really ideal committed pain clients
and if you want to know how to do that as well all you need to do is type in
the comments below yes please Jay or myself will reach out to you and send
you the link so that you can get your hands on to that training yeah it's gold
it's stuff that I've been applying this whole year it works it's super simple
I literally set you out step 1 do this and then you got a ticket
step 2 do this so because I know that if it's complicated people just won't do it
so it's super super simple super clear so if you want to get your hands on that
guy's make sure you type yes please and myself we'll reach out to you now some
more in tomorrow's training video at 8 a.m. it's gonna be about how to stand
out as an expert so it's all around branding all about how to be noticeable
and how to become seen in your marketplace once you've identified what
niche is that you're actually helping so I look forward for you guys to join me
tomorrow morning at 8 a.m. I'll speak to you guys then via demon obviously you've
got any questions post in the comments below otherwise I look forward to
speaking with you guys then bye team
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