[WeAdvanceNow]

.,

[RickyR3712]

what is the highest commission payout in the industry?
i always paid salary to my reps since i do heavy marketing.But I was thinking of offering a commission split and getting some cold callers .

[WestCoastFunding]

That's a good question.

[WeAdvanceNow]

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[Chambo]

that's not the highest

[WestCoastFunding]

What is the industry average anyway? And how does the type of marketing affect commissions? For instance, if the brokerage is setup to be a mostly inbound marketing firm, and you just need someone to close the deals, I'm sure the commission would be less than if the broker is cold-calling UCCs, no?

Genuinelu curious.

[RickyR3712]

I do not know why anyone with real inbound marketing will pay commission.First off when you looking to hire on commission only you usually do not get quality as opposed to offering a $75,000 salary.Next most will not go for 10% commission when i tell them that,that will make you over a $100,000 because the iso shop down the block is offering 50% and telling them they will make a million. Also people in this industry seem quick to leave and open up their own shop when they are commission, a steady salary is a hard thing to leave.

[Chambo]

yeah, but folks are cheap, they don't want to pay an HR department, pay payroll taxes, and have to worry about unemployment.

however, if the reps are salaried you have much more control over them, and these non compete thingys actually have some weight.

[WestCoastFunding]

The biggest problem with HR depts is the way they tend to frown upon midget strippers in the office.

[RickyR3712]

yeah, but folks are cheap, they don't want to pay an HR department, pay payroll taxes, and have to worry about unemployment.

however, if the reps are salaried you have much more control over them, and these non compete thingys actually have some weight.

If my reps will be paid 50% i will be losing money and they will be making over a half a mil . I guess what it is that there is no real marketing so you can do 50%.

[WeAdvanceNow]

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[WeAdvanceNow]

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[Karen37a]

What is the industry average anyway? And how does the type of marketing affect commissions? For instance, if the brokerage is setup to be a mostly inbound marketing firm, and you just need someone to close the deals, I'm sure the commission would be less than if the broker is cold-calling UCCs, no?

Genuinelu curious.

Inbound sales departments get paid very low commission because the cost of acquisition of clients and overall payroll costs . Either they are paid hourly and 1point-2 or a draw vs commission ...draw and commission.


There are 2 different types of brokers...hunters vs inbound. Like mortgage brokers who work inside a bank and wait for the banks walk in traffic ( salary) and an outside loan originator who finds their own clients.( big commission)

Inbound leads = hourly/salary and low low commission if any commission at all ( depends on salary or hourly wage)

Outbound =

Salary and commission ...commission =1% 10%

Salary or commission commission =2-3points or 20%-30%


Draw vs Commission... commission = 2-3 pts or 20%/30 %

Draw and commission 300-500 and 1-2 10%/20%

Commission only starts from

50%-70% depending on how self sufficient you are ( buying leads etc ) and skill level **** and participation ****

Some brokers could have an Iso on their own but they are under the "super iso" umbrella

They may get 70%-75 ( leads) and over ride all the brokers below them they supervise...get the spread

You also split psf fees max 5%

Top brokers in a "Super Iso" could make 7 points on a 10 point deal plus 2.5 psf ...9.5 points ( these are brokers who could have their own iso and do not need to have their hand held thru everything...)


The standard in most shops is 50%

[Karen37a]

Brokers tend to drop crap on my desk then head off to the beach....they show back up when it funds...saying heey ole pal ole buddy how did that deal go...wheres my 7 points

I consider it a "referral"....then the fights over % begin

If you have to step in to take over the sale..." TO " the broker who tos gets 2 points or the other will drop back or split the sale.


** and a real TO...not a 4 min conversation

gl recruiting commission only brokers...most cant do it.


(West there was a reason I was saying " i had 300 commission only brokers in my old organization" and did this crap for over 25 years...i have seen all different types of business models and the mistakes associated with them. Brokers/Branch offices under me were independent and chose multiple paths...i saw the results positive and negative live.)


*** and Top brokers go Commission only because they have faith in themselves when they walk in the door. 250k @ 10% = 25k plus bonus ...50%=12,500 a month not including renewals, psf split

100k @ 10%= 10k plus bonus 50%= 5k not including renewals psf split

[Eagle Funding]

Karen, if you can point to a single shop on Long Island or NYC who will let a rep walk in the door sit down and earn 50% out of the gate feel free to let me know. You know how many reps I had walk in my door who have "worked" at other shops and they say hey I am getting 30% now give me 40% and I will work for you then once they in the door they dont even know how a merchant qualifies for a deal. Also the salary based closer jobs have to meet monthly quotas and from reps who I have spoken to that have these quotas would basically make them more money on a 50% split. I dont know much about the copy who posted this but if they are offering 50% right off the bat they will keep way more reps than most brokershops in the area. Not saying they will all be quality and I am sure they will fire alot and most will burn out but they will 100% stay there longer than most shops around here.

[Karen37a]

Eagle I am in Florida and most can not walk in the door to get those numbers unless they are very experienced in Financial Seervices

Those are people who could be isos or Funders

People are individuals and judged accordingly. I think I can walk in a door and get 50%-70%...

I agree with the fact that people cant close, do not know underwriting etc

( they all should be put on a 90 day "trial" because everyone talks a big game, not everyone delivers)

And its 50 % straight commission...no draw...sink or swim

Make a tiered commission schedule...if you hit 50k this 100k this 150k this 250k this ( monthly) and it resets every month or untill they hit a number like 500k-1million

Not all salaried jobs are bad or people are bad....some like the safety of knowing a paycheck is coming in. Back in the day it took me awhile to block that thought pattern and just swing for the fence.No matter how you pay people in financial services...most are not going to make it.This is why you "lead from the front"...close your owns sales as well , look back and see who is left standing

( the problem is why should anyone take a risk of getting paid 0 on commission only , if they are not going to make more money then they would on salary)


Ps. Some of my salaried friends on wall st have muliti millions in retirement , while I blew up thru a few market crashes being self employed...so to each their own.

[WestCoastFunding]

Inbound sales departments get paid very low commission because the cost of acquisition of clients and overall payroll costs . Either they are paid hourly and 1%-2% or a draw vs commission ...draw and commission.


There are 2 different types of brokers...hunters vs inbound. Like mortgage brokers who work inside a bank and wait for the banks walk in traffic ( salary) and an outside loan originator who finds their own clients.( big commission)

Inbound leads = hourly/salary and low low commission if any commission at all ( depends on salary or hourly wage)

Outbound =

Salary and commission ...commission =1% 10%

Salary or commission commission =2-3points or 20%-30%


Draw vs Commission... commission = 2-3 pts or 20%/30 %

Draw and commission 300-500 and 1-2 10%/20%

Commission only starts from

50%-70% depending on how self sufficient you are ( buying leads etc ) and skill level **** and participation ****

Some brokers could have an Iso on their own but they are under the "super iso" umbrella

They may get 70%-75 ( leads) and over ride all the brokers below them they supervise...get the spread

You also split psf fees max 5%

Top brokers in a "Super Iso" could make 7 points on a 10 point deal plus 2.5 psf ...9.5 points ( these are brokers who could have their own iso and do not need to have their hand held thru everything...)


The standard in most shops is 50%

For what it's worth I'm 100% inbound, and I pay my guys 25%.

[Karen37a]

For what it's worth I'm 100% inbound, and I pay my guys 25%.

That could be true because you factor in the renewals you are going to keep after they quit.

For every 10 people you recruit only 1 is going to stay...and when you get 100 you will find a good producer... 1000 of those and you will find a top producer,( all sales) the question is ....why are they going to stay in an iso and not create their own if they are that good? There has to be some value in staying.

Or its just a "telemarketing room" or "call center"

I am just tired of hearing the same thing over and over again just different faces, spouting the same bs.

[Karen37a]

I just hope I am not here in the year 2030 saying...in 2017 there was a hurricane harvey and then irma crippled some small funders , stopped payments on some merchants and slowed down the funding for many

[wallerbusiness]

I just hope I am not here in the year 2030 saying...in 2017 there was a hurricane harvey and then irma crippled some small funders , stopped payments on some merchants and slowed down the funding for many

I wouild never work for an ISO. I came in this biz with hard core cold calling expericnce and hard core door knocking experience. I produced within my first two weeks. The bottom line is that any good rep will start out solo or eventually leave an ISO to start his own thing.

[Karen37a]

I wouild never work for an ISO. I came in this biz with hard core cold calling expericnce and hard core door knocking experience. I produced within my first two weeks. The bottom line is that any good rep will start out solo or eventually leave an ISO to start his own thing.

Are you agreeing with what I said? That most brokers will create their own iso unless their is something of value to make them stay?

unfortunately as I have said in the past...some think they are the "cats meow" and will not be here in a few months for numerous reasons they have not thought of yet # 1 holding onto your book of business

( not you, although you are lucky you didn't bet me on cold calling, id be repossessing your car for payment of the bet lol)

Id take 70-75% in a heart beat and give up the rent payments, cost of leads, computers, crm,phone system, electricity and underwriting drama/broker drama( time and sweat equity)...to someone who could out close and get the deals pushed thru, then hang onto them thru renewals.

I was literally passing out in my office once and my brokers said "what will happen if you die"...they didn't care that i died, just that I wouldn't be placing their deals. To this day they still say" well you never answered, who will place the deals". I said so and so..they said he sucks ( they do not realize I am TOing the back end and saving the sales, or they do and wont acknowledge it because they think they may lose a point)

I do not need 30 % of a big mouth brokers commission...pass. ( with all the bad paper, drama and Liability associated to it)

[Karen37a]

And Waller..I am half joking with you on the cold calling.

if it was real life and we both got fired up to close 1 million each, in a month, just to win a plastic trophy...thats healthy competition ....not knocking each other to the ground , sneaking towards the fax machine to snag another brokers deal..like ive seen in the past

[Michael I]

That could be true because you factor in the renewals you are going to keep after they quit.

For every 10 people you recruit only 1 is going to stay...and when you get 100 you will find a good producer... 1000 of those and you will find a top producer,( all sales) the question is ....why are they going to stay in an iso and not create their own if they are that good? There has to be some value in staying.

Or its just a "telemarketing room" or "call center"

I am just tired of hearing the same thing over and over again just different faces, spouting the same bs.

they will stay because the leads are inbound. just because they are a great salesman does not mean they know marketing .

[Karen37a]

they will stay because the leads are inbound. just because they are a great salesman does not mean they know marketing .

Yes you are right ..( aahhhhh music goes off ) that is something of value...I am talking about the outbound ones, they have to realize the value of someone who knows how to place deals , the costs associated to staying in business and the benefits of going under someone elses umbrella.

Isos cant pay for everything for brokers and brokers walk away with top commission...they have to produce big numbers or

They do it themselves and fall on their face ( hence the reason I point out 40 million dollar people went under)

Some Isos brokers have extreme value, some do not. ( as you know because you know the back end better than 98% )

Deal placement/Marketing/closing ability /Leadership ability... most important things


Its not in some funders best interest to have brokers go thru isos....they know most will quit and they get the renewals ( which is why some try to jump me). They also do not care if some newbie non coach-able Iso spends 100k to fund 3 deals ( they didnt put the money out but reaped the benefits)

[Karen37a]

Even if they do not quit there comes a time where some will cut you off for lack of production or sneezing the wrong way.

( and I said this from the day I landed on this site because its common in Financial services , if its a book of business on investments etc etc same thing, team of brokers etc..pulling them from an organization like Jerry Mcguire "whos going with me")

When you recruit brokers( stockbrokers, loan, mca) ...you are not only taking the broker they are taking their book of business with them. This is why I know whats going to happen in court.
Again this is a standard practice in Finance /investments and they call for procedures and orderly movement of client.Cease and Desists flying around..malicious prosecution counter suits.
( dont bother looking me up...never happened to me.. )


Thats why when you find a loyal iso..or Funder....do not try to squeeze extra points...its ridiculous