Orange County Register

The 20-something employees on the Costa Mesa-based iBank sales crew barely remember the last recession, let alone know how to work in one.

When sales plunged, they learned the hard way that the days of easy sales are gone. They also learned quickly to adjust, reviving sales so that competitors are calling to find out how.

IBank is an Internet company that uses proprietary software to match small businesses that need loans, insurance or legal services with the companies that provide such products and services. In 2007, iBank processes $9 billion in loan applications each month.

Then as the recession deepened last fall, business fell off the cliff, says Tom  Markel III, son the iBank

Tom Markel III

founder and head of a five-member sales team that solicits business from borrowers, lenders, sellers, consultants, insurers and attorneys.

“We lost 50% of our portfolio,” Markel says. “We’re 20-somethings. Two of us are still in college. We had never been through anything like this so we had no experience in what to do about it.”

So the team got together to develop a turn-around strategy. They started calling every single customer they ever had to ask “How are you? What do you need? What’s your pain? How can we make it go away?”

They would spend entire days on the phone.

“People started sharing stories with us,” Markel said. “Even if we can’t help, they have someone to vent to. We’re learning when you offer service without a personal touch it’s not really helpful.”

Two team members called 250 current customers just to thank them for their business.

“One guy bought six more leads just because I said ‘thank you.’ He’s not hearing that much these days,” Markel said.

It’s working, he adds. Business increased 5% in December, 7% in January and 10% in February.

iBank’s major competitors are calling Markel to learn his secrets.

Surviving this recession is no secret,  but the days of quick and easy sales are gone. The days of rewards for slow, hard work are not. That’s an important lesson for those who haven’t worked in tough times before, he says.

Other entrepreneur stories….

• Organic + value pricing = local cream perfumes
• O.C. manufacturer sold, moved to Washington
• O.C. firm makes two top-businesses lists
• O.C. game company sold for $8.1 million
• Local angel investors make more but smaller deals
• O.C. firm morphs antique copper pots into lamps

Other economy stories….

• Stimulus act gives modest help to small-business
• Fewer new businesses a drag on economic revival?
• Poll: Are your finances getting better or worse?
• O.C. company says Chase, WaMu stiffed it for $225,000
• Stress survival requires strength training
• Sales of O.C. businesses fall 45.2% in February
• Calendar of job, mortgage, budget events (March 2 and on)
• Layoffs can hit hard … and sometimes softly (work chatter)

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