Pearl Capital founders Bloomberg piece by Zeke

**MCNetwork** · 10-07-2015, 02:21 PM

Rich, idle minds are a devil's playground. These guys were bored and they obviously have some sort of agenda. We'll just have to stay tuned...

**MechantLoans** · 10-07-2015, 02:56 PM

Great Title to same article - Poor Hasidic Jews Turned Wealthy Cash Advance Guys Wonder If There’s More To Life Than “Golfing And F*cking Beautiful Ladies All Day” http://dealbreaker.com/2015/10/poor-...adies-all-day/

jotucker1983 · 10-07-2015, 04:17 PM

I think the author of the article did all he could to spin this to make it out like these guys were the Wolf of Wallstreet, but the reality is that they were not selling penny stocks to people, they were selling merchant cash advances to merchants who knew exactly what they were signing up for.

I wasn't selling this product back in 2006, but I'm sure if I was back in 2006 I would have been making $20,000 a month as well lol. The market was wide open back then, today, we are saturated as hell and making $20,000 a month consistently will be difficult unless you have a team of people you are getting over-rides on.

**Chambo** · 10-07-2015, 04:20 PM

Originally Posted by jotucker1983

I think the author of the article did all he could to spin this to make it out like these guys were the Wolf of Wallstreet, but the reality is that they were not selling penny stocks to people, they were selling merchant cash advances to merchants who knew exactly what they were signing up for.

I wasn't selling this product back in 2006, but I'm sure if I was back in 2006 I would have been making $20,000 a month as well lol. The market was wide open back then, today, we are saturated as hell and making $20,000 a month consistently will be difficult unless you have a team of people you are getting over-rides on.

as someone who worked alongside those two, I would have to disagree. It is much, much easier to make $20,000 a month now than it was back then. More merchants, more funds, more products, stacking, etc, etc, etc.....

**SupremeClientele** · 10-07-2015, 04:22 PM

Originally Posted by J.Celifarco

yeah with a big red bow.. Shines a giant light on the whole industry and for what? So they can show everyone how good there life is now? Its a ****ty move on their part because now anyone who reads the article will think that is how everyone in the industry behaved and it is not. They are out and made their money so they dont care no more

What they don't tell you in the article is how many people Meir actually put on. He allowed lots of people to eat and gave people chances to live well regardless of your backround or experience. I get why people are mad, but if you were there at the time, you had respect for him. He could be ruthless and no doubt, the practices that some of the brokers/managers developed were questionable, but that wasn't the entirety of what went on at 2nd Source. I think they're trying to portray some kind of bootleg Wolf of Wall Street story. It's partly true, but the ruthlessness and shadiness wasn't all there was too it. Some people got rich and some people were left with nothing. It's all how you played the cards you were dealt. This isn't limited to the cash advance industry, this is business period.

Whatever they have cooking up is their business. At the end of the day, it's not going to stop me from going after mines and it shouldn't stop anyone from going after theirs either. Merchants still need this product and I'll be damned if I left an article shake me and what I'm doing out here everyday.

**MCNetwork** · 10-07-2015, 04:51 PM

Originally Posted by Chambo

as someone who worked alongside those two, I would have to disagree. It is much, much easier to make $20,000 a month now than it was back then. More merchants, more funds, more products, stacking, etc, etc, etc.....

So true. For a lot of today's salespeople in the top firms, $20K a month is a pay cut...

jotucker1983 · 10-07-2015, 05:03 PM

Originally Posted by Chambo

as someone who worked alongside those two, I would have to disagree. It is much, much easier to make $20,000 a month now than it was back then. More merchants, more funds, more products, stacking, etc, etc, etc.....

Originally Posted by MCNetwork

So true. For a lot of today's salespeople in the top firms, $20K a month is a pay cut...

Lol, listen maybe it's time for me to move to wherever you guys are and consolidate my efforts into the larger firms. I have been hearing about this for sometime that I need to stop being so "independent" and link up to some of the guys in NYC for example, I've just been stubborn and doing my own thing.

But yeah, I've had great months but never consistent $20,000 months. But again, I'm just one guy with a limited marketing budget as well. I make enough to be middle class in a nutshell, at least for now.

**MCNetwork** · 10-07-2015, 05:14 PM

Hey a lot of people would rather make $10k a month and be master of your domain and own your own schedule than make $20k a month and deal with the drama and pressure of being another cog in the wheel. The grass is always greener on the other side until you find out it's artificial turf. You just have to do what's best for you.

**mcg168** · 10-07-2015, 05:40 PM

Originally Posted by Chambo

as someone who worked alongside those two, I would have to disagree. It is much, much easier to make $20,000 a month now than it was back then. More merchants, more funds, more products, stacking, etc, etc, etc.....

$20k/month is def much more attainable in todays market then it was in 2005/2006. Getting paid 10 points commission on a 1.30, 12 month deal is the norm today. Back then your only option was 7 months, 1.3526 (to be exact) and that would be 4/2.

Keep in mind - without any competition, theres no UCC's to call either, you really needed to cold call and network. Some people today would be so incredibly lost

Also - strange that the author of the article makes it seem as if Second Source were the founders of our industry and CAN is a new player on the block.

jotucker1983 · 10-07-2015, 05:59 PM

Originally Posted by mcg168

$20k/month is def much more attainable in todays market then it was in 2005/2006. Getting paid 10 points commission on a 1.30, 12 month deal is the norm today..

Maybe this is my problem because, I don't get 10 points on any deal. My points are always 2% - 5% depending on the deal.

If I were getting 10 points on average on my deals then oh hell yeah, I would be at or over $20,000 a month.

**mcg168** · 10-07-2015, 06:43 PM

Originally Posted by jotucker1983

Maybe this is my problem because, I don't get 10 points on any deal. My points are always 2% - 5% depending on the deal.

If I were getting 10 points on average on my deals then oh hell yeah, I would be at or over $20,000 a month.

what is your typical pricing if your only making 2-5%??

**MCNetwork** · 10-07-2015, 07:51 PM

You must be selling 9% money because 2-5% commission is awful for cash advances.

jotucker1983 · 10-07-2015, 08:13 PM

My pricing is usually the premium products, the typical 1.12 - 1.18 for 6 months, 1.20 - 1.25 for 12 months give or take.

I think the highest I have been paid on a deal was 6 points. I would say my collective average has been 3% with the range being 2% on the low end, 5% on the high end.

It's been my range since I started selling the products around November 2009.

**funda21** · 10-07-2015, 08:23 PM

^^ that is extremely low. You do know you can charge more easily and not even be close to industry average right?

jotucker1983 · 10-07-2015, 08:26 PM

Originally Posted by funda21

^^ that is extremely low. You do know you can charge more easily and not even be close to industry average right?

Yes, I agree. The clients I have renew a lot so my focus was on giving them good pricing that was competitive, to create that long term relationship. I have guys that have been renewing straight back to back since 2010.

But I'm going to take what you guys say under consideration because we all can be more profitable right

?

**funda21** · 10-07-2015, 08:50 PM

jotucker1983 - are you independent? Seems like you have been around a while. I also pride myself on getting my merchants the best possible rate out there but I find when I do that there is room for good margin still if I did my job correctly and really analyzed his particular merchant and got him the best possible rate. My #1 goal is renewals and doing right by the merchant but I think you can do that and still not leave so much in the table.

I would love to know how your renewal rate this year compared to your previous years in the business. I bet the rate at which merchants renew is lower than ever before like most of he industry despite your minimal fees and doing "right" by the merchant.

**MCNetwork** · 10-07-2015, 09:42 PM

Selling a 1.12 isn't exactly salesmanship. Anyone can sell a low rate, even if you suck at sales. The guys who can sell a five month 1.40 with closing costs and have the merchant still come back for more? Now THAT'S salesmanship!

jotucker1983 · 10-07-2015, 10:25 PM

MCN,

That's a good point and I won't lie because, I have done deals like that before (5-6 month 1.40 - 1.45).

I just don't like to do deals like that unless it's a "special condition" merchant like one that's D paper, a case-by-case higher risk side 2nd position, etc.

I wouldn't sell that to a merchant in an A or B paper category because I don't think that's a good deal. I usually always try to put the client first, the lender second, and myself (in terms of my payment) third. This usually gives me the 2% - 5% range in compensation per deal that I talked about, not in the 10% range.

But I'm currently in a form of restructuring on my side anyway and more "profit" is always a good thing as long as it works out for all parties.

jotucker1983 · 10-07-2015, 10:33 PM

Originally Posted by funda21

jotucker1983 - are you independent? Seems like you have been around a while. I also pride myself on getting my merchants the best possible rate out there but I find when I do that there is room for good margin still if I did my job correctly and really analyzed his particular merchant and got him the best possible rate. My #1 goal is renewals and doing right by the merchant but I think you can do that and still not leave so much in the table.

I would love to know how your renewal rate this year compared to your previous years in the business. I bet the rate at which merchants renew is lower than ever before like most of he industry despite your minimal fees and doing "right" by the merchant.

This year hasn't been as great as others, but I'm currently doing some restructuring to setup going forward. Shoot me an email and let's have a conversation about your program

.

**bizloanbroker** · 10-08-2015, 06:26 AM

The funniest part of the article far and away is that the price in the article is nowhere near accurate. They actually got around $17Million total, not bad but makes no sense to me why they sold considering Pearl was doing so much business back then. Either way it sounds like these 2 fellas are living the life while the rest of us continue to work 70 hours a week

**anonymous** · 10-08-2015, 07:34 AM

Word

**Michael I** · 10-08-2015, 07:35 AM

Originally Posted by jotucker1983

MCN,

That's a good point and I won't lie because, I have done deals like that before (5-6 month 1.40 - 1.45).

I just don't like to do deals like that unless it's a "special condition" merchant like one that's D paper, a case-by-case higher risk side 2nd position, etc.

I wouldn't sell that to a merchant in an A or B paper category because I don't think that's a good deal. I usually always try to put the client first, the lender second, and myself (in terms of my payment) third. This usually gives me the 2% - 5% range in compensation per deal that I talked about, not in the 10% range.

But I'm currently in a form of restructuring on my side anyway and more "profit" is always a good thing as long as it works out for all parties.

Joe buddy
There are A lenders paying 18-20 points. now of course sometimes you have to down sell but 13 % should be the average now .as for rewneal you can drop then and have a happier client that they see that keeping the relationship good will keep on getting them better pricing.
Good luck

**MCNetwork** · 10-08-2015, 09:26 AM

I agree. Your average commission should be in the 8-10% range and you'll still be selling fairly competitive factors. It's tough to keep food on the table getting 3-5% unless you have a pretty large pipeline or your average deal size is above six figures. If not, then it's all about volume and you'll be working yourself like a dog if you're a one man show.

**Zach** · 10-08-2015, 09:51 AM

It's all about those 20 points with National Funding

**Michael I** · 10-08-2015, 10:09 AM

Originally Posted by Zach

It's all about those 20 points with National Funding

if you hit the bonuses bfs is 18 points , everest is 17 points and a lot more like them that dont advertise on the site . thats why it cracks me up with these new lenders funding suckers to send them deals paying only 5-8 percent .

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