Final exam for Entrepreneurial Selling class project. Jeb and Kelly's first class together. My Home Buyer Club was to be an offshoot of Kelly's $250M financial services business.

1. Course 34111: Entrepreneurial Selling,
Fall 2008
Craig Wortmann
My Home Buyer Club
Sales Plan
Jeb Ory and Kelly Schwedland
10 November 2008
I pledge my honor that I have not violated the GSB Honor Code during this assignment write-up.

2. 2008-09 Sales Plan
My Home Buyer Club utilizes buyer
enhancement and credit
optimization services to increase
the pool of potential homebuyers,
helping Builders sell more homes.
In an ever-changing economy, many potential homebuyers are reluctant to make
the leap to homeownership, partially due to formidable credit score requirements
and housing market insecurity.
We understand that a Home Builder’s financial success is dependent upon finding
qualified, responsible homebuyers. So, we equip homebuyers with the tools needed
to ensure their responsibility and security for “Successful Home Ownership” 2

3. Sales Process
Overview
• Three major parties are represented in My Home Buyer Club’s target environment:
- The Seller (Home Builder or Builder),
- The Lending Institution (Lender), and
- The Homebuyer (Buyer) Builder Buyer
MyHomeBuyerClub
• All parties need to agree on a final price and terms for the home
• MHBC can help bridge the gaps that often arise between the parties,
Lender 1a
making the closing process faster, more efficient, and more successful (figure 1a)
• MHBC’s principle client is a Home Builder who wants more business *
– Builders use MHBC’s programs to increase the pool of qualified buyers, expanding their potential customers.
• MHBC secondary client is the Lending Institution
– Lenders appreciate MHBC services because they can be rapidly deployed to the other pools of buyers that Lenders
interact with, which can often be much larger than the original Builder market (See figure 1b)
• Lenders in-turn refer other Lenders within the organization (Chasm-crossing) Lender
Specific Buyer Lender Lender
• MHBC sells programs to Builders and Lenders*
• Builders and Lenders use MHBC products to increase
the available pool of qualified buyers, their customers Builder Lender Lender Lender
• Lenders use products to help residential
resale borrowers into homes Buyer
• Lenders refer other Lenders Buyer
1b
*While MHBC’s products are designed to be used by new home buyers, Buyer
MHBC pursues an agency sales model, selling services to Builders and Lenders 3

4. Description of Service
My Home Buyer Club (MHBC) sells services designed to improve the
credit-worthiness and mitigate the default risk of prospective home-owners.
While MHBC’s products are designed to be used by new home buyers, MHBC pursues an agency sales model, selling services to
Builders and Lenders. Builders and Lenders use the products to create larger pools of buyers to whom they can sell more
homes.
MHBC administers the following services, on behalf of the builder or lender:
“Buying a home”
• Home ownership education
– Empowering buyers with knowledge
– Pre-mortgage counseling
• ScoreCorrectTM Credit Report Optimization Service
– Credit report review and optimization
– Most comprehensive method of reviewing all aspects of credit report (better than simply contesting late payments)
“Owning a home”
• Delinquency counseling
– Ongoing communication and education programs with new buyers
– Post-purchase counseling (if necessary)
• Mortgage payment protection program
– Involuntary unemployment insurance (IUI) to protect up to 6 months of mortgage payments if the buyer loses his job
– Coverage up to $1,600 per month
– Program underwritten by a top insurance company
• Rainy Day program
– During the first year of ownership, the Rainy Day fund provides payment protection in the event that unexpected
financial difficulties cannot be afforded
4

5. Overview of Resources
Personnel resources
• Sales Manager (Andrew)
– $12,000 salary per month + profit-based bonus
– $1,200 T & E per month
• Director of HBC Sales (Rick)
– $12,000 salary per month
– $25/ closed sell commissions
– $6,000 T & E per month
• National Account Manager (KP)
– $4,000 monthly salary
– $50/ closed sell commission
– $1,200 T & E per month
• Outside sales representatives (TBC)
– $200/ closed sell commission, fully commissioned
• Total monthly salaries = $28,000/ month
• Total monthly T & E = $8,400/ month
5

6. Overview of Resources
(cont’d)
Marketing materials
• To sell to builders
– Sales flyer: explains basic program benefits for all involved parties (Appendix A)
– 1-pager: Infographic that illustrates how the MHBC process works (Sales Tools - Presentation Map)
– Program contracts: legally binding documents to formalize agency agreement between builder and MHBC
– PowerPoint presentation: used to train builder’s marketing representatives on how the MHBC program works
– Website: shows the builder how easy it is to sign-up a buyer (complete forms & print contracts automatically)
• Marketing materials for Builders and Lenders to explain programs to buyers
– Yard Signs: designed to promote the builder’s subdivision and homes with the use MHBC products
– Banners (4’ x 8’): more promotional signage
– Script & sales tools for Builder/ Lender to use with Buyer
– Buyer flyers: marketing material for Builder/ Lender to leave with buyers (Appendix A)
– Website: builders use the Website to sign-up new buyers to MHBC program (Appendix B)
– Contracts: MHBC provides a contract to execute Builder – buyer agreement
Material development $10,000
Material production quantities $10,000
Software development for pipeline monitoring = $2,500
Total marketing budget, year 1 = $22,500
Bonds required
• Many states require businesses to have certain licenses to conduct business.
The typical way to satisfy these licenses is to purchase bonds that cost, on average, 10% of the license
• Estimated at $2,500 per state
• Estimated 5 states for year 1
• $12,500 for first year
6

7. Resource Allocation
National Account
Title Director of sales Sales Manager Manager Outside sales reps
Quantity 1 1 1 3
Monthly Base Salary $ 12,000 $ 12,000 $ 4,000
Commission/ close 25 50 200
Monthly sales target 5 5 5 5
Extended monthly commission 135 - 270 1,080
T&E, monthly 6,000 1,200 1,200
Tech budget, monthly 125 125 125
Monthly subtotal 18,260 13,325 5,595 1,080
Monthly sales expenses $ 38,260
Marketing Materials Development cost Monthly expenditure
Sales flyer design 1,500 50
1-pager design 1,000 50
Program contracts 1,500 50
Powerpoint presentation 500 25
Website 20,000 200
Yard signs/ banners 1,500 200
Script 500 75
Buyer flyers 1,000 150
Software refinement 2,500
Subtotal 30,000 800
Monthly expense $ 2,567
Legal Cost Est. States/ 1st year Extended legal costs
Licensures by state 2,500 5 12,500
Monthly expense $ 1,042
Total monthly expenses $ 41,868 7

8. First Year Forecast
Total market Base 100 Better 100 Middle 100 (Best
Potential home builders in target market 200 100 100 100
Builder conversions/yr (est.) 200 12 12 100
Builder conversions/ month (est.) 17 1 1 8
Close rate based on Alpha test 12%
Sell Price of MHBC products $1,500
Annual closes, target market (2007) Aggregate 382,882 N/A 93,669 93,669
Average Annual closes per target sized builder 1,944 513 946 946
Average MHBC closes/ builder/ month 19 5 9 9
Linear forecast ($1,500 per close) $ 69,984,000 $ 769,500 $ 1,419,000 $ 17,028,000
Actual projected income/ month Base 100 Better 100 Middle 100 (Best)
Month 1 $ 7,695 $ 14,190 $ 118,250
Month 2 $ 15,390 $ 28,380 $ 236,500
Month 3 $ 23,085 $ 42,570 $ 354,750
Month 4 $ 30,780 $ 56,760 $ 473,000
Month 5 $ 38,475 $ 70,950 $ 591,250
Month 6 $ 46,170 $ 85,140 $ 709,500
Month 7 $ 53,865 $ 99,330 $ 827,750
Month 8 $ 61,560 $ 113,520 $ 946,000
Month 9 $ 69,255 $ 127,710 $ 1,064,250
Month 10 $ 76,950 $ 141,900 $ 1,182,500
Month 11 $ 84,645 $ 156,090 $ 1,300,750
Month 12 $ 92,340 $ 170,280 $ 1,419,000
First 12 month Revenues $ 600,210 $ 1,106,820 $ 9,223,500
8

9. Selling tools
Trailer:
• My Home Buyer Club utilizes buyer enhancement and credit optimization
services to increase the pool of potential homebuyers
• Our goal is to give Builders and Lends the tools necessary to equip each Relax,
homebuyer with the tools needed to ensure their responsibility and security We Have
towards successful home ownership
You Covered
Sales Presentation Map: Involuntary
Unemployment
Marketing
Materials Insurance
Rainy Day
Fund
Pre-
Access
Purchase
Counseling
Credit
Post- Owning a
Buying Optimization
Purchase
Home
Monthly Counseling
a Home Follow-up
9

10. Selling Tools
(cont’d)
Hurdles
• Not having long track record in credit repair space
– Solution: Go to key former clients from Genesis and Rainy Day Fund (affiliated businesses for MHBC’s partners) and
get them to use products. Get recommendations and references to highlight product benefits
• Conveying core features and benefits of products to stakeholders
– Builder gets a sale
– Buyer purchases with confidence
– Lender gets a better borrower (lower risk of default)
• Producing ROI data for stakeholders
– Need to close a few deals to do this
– Can prepare projections based on past experience with boosting credit scores and extrapolate how buyers with
higher scores have lower default risk
Objections
• Price/ cost of services versus less costly competitors’ services
– Need to highlight comprehensive program
– Sell how MHBC addresses customer’s chief pain points
• Who else is using this product, and can we have a reference?
– See hurdle above
• What markets are you licensed in?
– Currently, only Indiana
– Need to conduct research on state-by-state requirements for licenses prior to calling on new accounts outside of IN 10

11. Selling Tools
(cont’d) -Pipeline
Phone Phone
Builder Builder Contact Title Number Email Mortgage Company St Mortgage Contact Title Number Email Salesperson
Ryland Homes Ryland Mortgage AZ Chris Butzer Head Underwriter Bonnie Mifsud
Fieldstone Home Countrywide Lending UT Ginger Holmes Branch Manager Bonnie Mifsud
Hamlet Homes Sterling Mortgage UT Justin Brown Branch Manager Bonnie Mifsud
Garbett Homes Garbett Mortgage UT Jared Snow Branch Manager Bonnie Mifsud
DR Horton Greg Arcara Area Sales Manager AL Neil Jensen
Hansen and Horn Builders Ward Horn & Steve Horn
Owners IN Irene O'Gorman
Arbor Homes Steve Hatchel VP of Sales & Marketing IN Irene O'Gorman
Arbor Homes Curtis Rector Owner/President IN Irene O'Gorman
MI Homes Jarrod Klein VP of Sales & Marketing IN Irene O'Gorman
Hubble Homes Tina Lytle Sales Manager ID David King
Arbor Homes Steve Hatchel VP of Sales & Marketing IN Fred McLane
Maple Street Homes / Fischer Homes
John Haas General Manager IN Fred McLane
Holiday Homes/Freedom Homes Housing Financial Grp IN Deb Thompson In-House Lending Manager Fred McLane
Mattamy Homes Craig Daugherty Owner NC Jim Martin
Mattamy Homes Tammy Stroupe Closing Coordinator NC Jim Martin
CP Morgan Todd Richardson VP of People Services and Legal Affairs IN Kelly Schwedland
NWI Vision Homes Keith Heckler Owner IN Kelly Schwedland
Fieldstone Homes Ana Duncan Marketing Director TX Richard De La Garza
Legend Homes Carlos Villezcas Area Sales Manager TX Richard De La Garza
Legend Homes First Choice Lending TX Luke Tilly In-House Lending Manager Richard De La Garza
Brighton Homes Prime Lending TX Liesa Crawford In-House Lending Manager Richard De La Garza
Meritage Homes Patrick Iglisky Sales Manager TX Richard De La Garza
McMillan Homes Ana Almanza Sales Manager TX Richard De La Garza
Ryland Homes Ryland Mortgage TX Jay Mcmanus Branch Manager Richard De La Garza
Armadillo Homes Memorial Park Mortgage TX Steve James Branch Manager Richard De La Garza
Armadillo Homes Ruiz Home Mortgage TX Karla Macias In-House Lending Manager Richard De La Garza
Obra Homes Emerald Captial TX Lourdes Ramirez In-House Lending Manager Richard De La Garza
Spanish Homes TX John Ugarde VP of Marketing Richard De La Garza
Various Builder in NC/SC/GA/FL Wells Fargo HM NC/SC/GA Morrison
Bob Area Builder Manager Kellie Pisarski
Dominion Homes Centennial Mgtg (WFHM) OH Mike Biagi Area Manager / VP Kellie Pisarski
DR Horton DHI Mortgage CO Dewey Haley 4 State Area Manager Shawn King
Top 5 first call list
11
(See Appendix C for full list of target builders)

12. First Touch Plan & Risks
First-Touch Plan
• Arrange meetings with top 3 prospects (friends & family connections) from sales pipeline
– Chris Butler, Ryland Homes/ Mortgage, Head Underwriter
– Tina Lyle, Hubble Homes, Sales Manager
– Steve Harchel, Arbor Homes, VP Sales and Marketing
• Sales Manager & Director of Sales will personally visit top prospects
• Pitch MHBC program and products to top prospects
– Carefully record what works, what doesn’t
– Fine-tune marketing materials based on early feedback
• Establish pilot programs with interested top prospects
• Goal is to have 2 subscribed Builders by end of month 2.
Risks
• Not identifying the right Builder
– There are more than 200 home building organizations in the United States, the top 200 of which range from $56B to $21M in annual
revenues
– If MHBC does not identify high-value targets within the general Builder population, much time could be wasted
• Not identifying the correct contact within the right Builder
– Many Builders have regional offices as well as corporate offices—creates challenges in marketing MHBC to corporate office or satellite offices
• Not being able to convince the Lender to participate in the program
– Lenders could already be using similar programs
• Not being able to convince the Home Buyer to participate in the program
– While MHBC’s products are designed to be used by new home buyers, MHBC pursues an agency sales model, selling services to Builders and
Lenders. Builders and Lenders are responsible for explaining the program to Buyers
12

13. Benefits/Needs
Benefits to lead a Builder or Lender to buy MHBC programs
• Builders like MHBC programs because…
– They help them sell more homes
– They help them make more money
• Selling homes at appraised list prices
– The programs improve the quality of prospective home buyers
– They save money by giving you free attention-getting marketing materials
– They can better forecast future home construction by having a timeline for new qualified Buyers
• Lenders like MHBC products because they…
– Create more borrowers
– Reduce the borrower default risk
• Buyers like MHBC because we…
– Increase their ability to qualify for a loan
Typical needs this solution addresses
• Marketing materials help attract more potential buyers to Builder subdivisions
• MHBC products help boost credit scores of prospective buyers, increasing the pool of available buyers
• Pre-purchase counseling focuses on budgeting, limiting deal “fallout,” which can occur when a Builder discovers that the
Buyer can’t follow through on a loan
• Builders can sell more empty houses because they have a larger pool qualified of Buyers
• Lenders can now write more home loans because they are dealing with more qualified Borrowers (Buyers)
13

14. Appendix A
Sales Sheets
14

15. Appendix B
Website creative
15

16. Appendix C
Most Probable 100 Target Builders
2007 Income
2007 2006 Total Average Potential At
Rank Rank Company (Click for more info) Closings Home Price 12% 76 87 Westport Homes 721 192,788 129,780
25 27 C.P. Morgan Communities 2,677 151,662 481,860 77 88 Ball Homes 695 191,367 125,100
26 36 Jim Walter Homes (p) 2,594 184,271 466,920
27 29 The Drees Co. 2,536 373,423 456,480 78 N/A Mattamy U.S. Group 663 274,510 119,340
28 23 The Villages of Lake-Sumter 2,403 265,918 432,540 79 96 Grand Homes 644 358,696 115,920
29 31 Highland Homes 2,362 334,462 425,160 80 89 Castle & Cooke 636 616,352 114,480
30 20 Mercedes Homes 2,357 307,170 424,260 80 72 Fulton Homes 636 355,346 114,480
31 33 William Lyon Homes 2,182 506,416 392,760 82 N/A Wilshire Homes 634 318,612 114,120
32 43 McBride & Son Enterprises 2,102 299,715 378,360 83 108 Magellan Development Group 632 822,785 113,760
33 N/A The Related Group 2,082 603,746 374,760 84 63 ICI Homes 622 491,961 111,960
34 39 McCar Homes 1,805 271,468 324,900 85 113 Shugart Enterprises 621 159,420 111,780
35 65 MCZ Development Corp. 1,735 0 312,300 86 112 S&A Homes 612 336,601 110,160
36 35 Epcon Communities 1,734 179,931 312,120 86 98 Gemcraft Homes 612 328,431 110,160
37 37 Ashton Woods Homes 1,687 294,606 303,660 88 74 Bill Clark Homes 605 242,975 108,900
38 52 Centrum Properties 1,677 320,811 301,860 89 121 Rausch Coleman Homes 600 145,000 108,000
39 40 WCI Communities (p) 1,657 567,290 298,260 90 103 Darling Homes 599 404,007 107,820
40 34 Choice Homes 1,567 150,606 282,060 91 75 The Rottlund Co. 594 267,677 106,920
41 49 First Texas Homes 1,462 245,554 263,160 91 100 Ole South Properties 594 159,933 106,920
42 44 Fieldstone Residential 1,366 296,486 245,880 93 92 Lakewood Homes 593 251,265 106,740
43 48 Bowen Family Homes 1,307 251,721 235,260 94 N/A Desert View Homes 585 123,077 105,300
44 46 Royce Homes 1,280 176,563 230,400 95 110 West Hills Development 559 347,048 100,620
45 N/A Engle Homes (Division of 1,258 330,684 226,440 96 76 Park Square Homes 543 342,541 97,740
46 57 G.L. Homes 1,234 553,485 222,120 97 N/A Great Southern Homes 530 162,264 95,400
47 N/A Gehan Homes 1,216 174,342 218,880 98 93 Brown Family Communities 522 298,851 93,960
48 45 American West Development 1,209 309,347 217,620 99 119 The Knight Group 514 0 92,520
49 62 Eastwood Homes 1,176 187,075 211,680 100 95 Hubble Homes 513 196,881 92,340
50 28 Holiday Builders 1,152 204,861 207,360 101 N/A Castlerock Communities 509 161,100 91,620
51 66 Ivory Homes 1,128 415,780 203,040 102 128 Centerline Homes 503 419,483 90,540
52 38 WL Homes (p) 1,119 877,569 201,420 102 124 Dan Ryan Builders 503 302,187 90,540
53 56 John Wieland Homes and 1,106 552,441 199,080 104 144 T.H. Properties 501 341,317 90,180
54 51 The Corky McMillin Cos. 1,101 447,775 198,180 105 116 Hills Communities 490 340,816 88,200
55 85 Trend Homes 1,093 282,708 196,740 106 132 David Cutler Group 480 647,917 86,400
56 54 Scenic Homes 1,084 221,402 195,120 107 105 Pageantry Homes 478 288,703 86,040
57 53 Capital Pacific Holdings 1,045 377,033 188,100 108 109 Kalian Co./Reeves Williams 467 173,448 84,060
58 69 History Maker Homes 1,012 137,352 182,160 109 126 HPH Homes 464 228,448 83,520
59 79 Main Street Homes 1,008 132,937 181,440
61 61 Fischer Homes 935 211,765 168,300 110 64 The Enterprise Cos. 460 471,739 82,800
62 73 Warmington Homes 928 603,448 167,040 111 N/A Montalbano Builders 459 248,366 82,620
63 77 Novare Group 911 329,308 163,980 112 101 Arthur Rutenberg Homes 446 865,471 80,280
64 N/A HearthStone Homes 899 173,526 161,820 113 130 R&B Construction 443 0 79,740
65 82 Comstock Homebuilding Cos. 886 300,226 159,480 114 151 LGI Homes 434 135,945 78,120
66 78 Polygon Northwest Co. 849 0 152,820 115 N/A Essex Homes Southeast 429 237,762 77,220
67 67 CBH Homes 833 0 149,940 116 N/A Lifestyle Communities 428 147,196 77,040
68 41 Avatar Holdings (p) 780 373,077 140,400 117 91 Elliott Homes 425 569,412 76,500
69 86 William Ryan Homes 779 274,711 140,220 118 N/A Village Homes of Colorado 412 446,602 74,160
70 106 The Mungo Cos. 775 193,548 139,500 119 123 Meridian Homes USA 410 207,317 73,800
71 118 Trammell Crow Residential 765 1,692,810 137,700 120 143 Landmark Valley Homes 407 113,022 73,260
72 97 Pacific West Cos. 764 223,822 137,520 121 107 Highland Holdings 405 254,321 72,900
73
74
60 Dominion Homes (p)
80 Armadillo Homes
754
741
196,286
165,992
135,720
133,380
122
124
122 Pringle Development
N/A The Beechwood Organization
401
393
259,352
496,183
72,180
70,740
16
75 94 The Olson Co. 739 519,621 133,020 125 N/A Home Creations 392 173,469 70,560