OM vs. BOTG: Who’s betting?
The mortgage field service industry is full of stresses just as other industries are. Some stresses are positive in nature, and others make you seriously consider psychotherapy, nonetheless we all voice our daily struggles with conversations using different channels. We discuss our points of view, and describe our encounters, but when explaining our situations some discover there are two sides to every story. Depending on whom we are explaining this stuff to also determine the types of judgments cast.
Recently more than ever, I have noticed two acronyms emerge- BOTG and OM.
The acronyms represent two of the most commonly used business models in the MFS industry; Boots on the ground, and Order Mill. I have always been curious to see each side’s point of view, and operating systems. I feel some issues can be fixed within our current industry using the two contrasting models. So, I researched both. My search resulted with various posts and group forums in the property preservation industry providing support to the “BOTG” company. There were many places to draw conclusions to what a “BOTG” company is, and how they operate in the MFS industry. BOTG companies are all w-2, employee based operations. This means they do not use any subcontractors to complete routine work on properties in their custody. I found all the BOTG information easily, and also found some really helpful support groups for BOTG companies. I was shocked at the results of my search of the OM or “Order Mill”; very little to go on. That’s crazy! I hear “Order Mill” at least 50 times a day, but no group or forum discussion to support this particular business model? I poked around some places for information, LinkedIn, Twitter, and other sources. I notice there is plenty of insight of what “OM’s” are within the BOTG community, and if you are an Order Mill beware of prying questions, as well as needing to offer full transparency in the eyes of the BOTG. I encountered this first hand. Social media outlets are typically toxic to the OM reaching out, and many BOTG companies have claimed OM’s are not paying their bills. Many accusations have been made publicly regarding many so called OM’s. I have had in depth discussions with many leaders in the industry, and it is apparent the OM is a prevalent concern in the BOTG community. It’s stated there is a lack of control on the regulations OM’s follow to produce the same quality as a BOTG company. “What say ye?” Is there any OM out there with a response to that? How do they feel about the BOTG companies? Does the OM Companies feel the same way? I have heard this specific issue pointed at OM’s constantly.
Regardless of the two different styles of operating, I feel each have valid benefits over the other. To me, it’s tough to say which is actually better. To fully understand the differences, we must look closer.
What does the MFS industry need in its currently claimed state of distress?
I am sure each business model answers this question differently, but I put my money on both sides offering up similar resolutions to better adherence to reporting standards, and compliance with background checks. Each would offer similar solutions for increasing financial security by offering transparency with billing (where does the whole dollar go), and improving quality assurance measures on approved scope repairs. Both BOTGs and OMs would agree better field training is needed, and improving logistics solutions to complete work at a faster rate without losing quality is a must. Who is better to offer solutions with these specific industry needs; BOTG or an OM company? I challenge all readers to that question.
Given the challenge above, I offer my opinion to those pointing fingers without truly knowing. BOTG companies can offer meticulous control on time tables, effective project management, strict hiring and training processes offering better consistency with each Field tech, and efficient logistics controls. The result is better work- on time. They offer any client security knowing each asset is protected by one company, not several. The BOTG offers employment to tradesmen from all industries, and creates a better economic environment to the region it serves; they hire people, and create jobs. The OM is a company that offers volume and remote access to its clients. These two abilities are in my opinion supreme components to advancing in the current MFS industry. Volume is easily distributed through a network of subcontractors utilized by the order mill covering multiple states. Remote ability is proven when an OM does hire a subcontractor between states with no need of a physical office. An OM will hire employees but the focus is different, and they are equally important to the process as the maintenance techs hired by the BOTG. This different focal point is to analyze the work completed by each subcontractor giving him the ability to generate revenue and grow efficiently, as well as ensure all aspects of the assets’ regulations are met through default and foreclosure. Continuous training is facilitated through communication and accountability of due diligence. To me this has always been an innovative way to train. They are professional companies too; make them prove!
These two different company models are effective given the direction from their prospective owners. Each has separate struggles. But, each comes together when widespread issues come to light. Each separate type conforms to the same policies, and each brings an advantage to maintaining the high volume of distressed properties.
I am sure there are better ways to run each business, but I don’t think any company should be regulated and judged on how they distribute and complete the work, if the requirements are being met; Free Enterprise.
There are others that are willing to help with problems like this. https://www.linkedin.com/groups/Cubic-Yard-Property-Preservation-REO-6551906?trk=my_groups-b-grp-v . One place to find positive insight on common problems costing valuable dollars daily. If you do not use a form of social media to promote your business I assume you will never read this to begin with, so for the rest of us… Join a group and ask a competitor, or a client.