[wallerbusiness]

What should be the ideal goal for a broker who has their own brokerage besides making money. That's obvious. We get apps and banking and we close deals but whats the big goal? Issac if you are watching this post I would love your opnion on this deal. What do you think brokers should strive for? I know this is a loaded question but im curious.

[nrh1lp]

to build a large enough and profitable enough company to sell of and spend the rest of your days getting hammered in puerto rico

https://www.bloomberg.com/news/featu...und-40-million

[Hedley Lamarr]

What should be the ideal goal for a broker who has their own brokerage besides making money. That's obvious. We get apps and banking and we close deals but whats the big goal? Issac if you are watching this post I would love your opnion on this deal. What do you think brokers should strive for? I know this is a loaded question but im curious.

WallerBusiness:
-You don't make money off ISO Agreements, Term Sheets, Contact Lists, Etc.... You make money closing lending, factoring or advance facilities and will ONLY be successful if your client pays the lenders or advances back. You don't make money on defaults.
-Chose a reputation over chasing a dollar. You will make more money off customers in the long run if they trust you. I have made more money off referrals from customers than the original customer my entire career. Lenders/advancers will be more responsive to you if you are bringing good customers to the table.
-Never forget where the bodies are buried. When a customer calls with a need, you should have a Rolodex of places to go to help them.
-Stay in front of customers and contacts with thoughtful ideas. Play in industries you know well....


KH

[HDF]

Be humble
Tell the truth
Work weekends and evenings whenever possible
Seek knowledge
Anticipate change
Annuitize your book far beyond any MCA renewals you think you might receive through diversified product offerings
Harvest data

[wallerbusiness]

wallerbusiness:
-you don't make money off iso agreements, term sheets, contact lists, etc.... You make money closing lending, factoring or advance facilities and will only be successful if your client pays the lenders or advances back. You don't make money on defaults.
-chose a reputation over chasing a dollar. You will make more money off customers in the long run if they trust you. I have made more money off referrals from customers than the original customer my entire career. Lenders/advancers will be more responsive to you if you are bringing good customers to the table.
-never forget where the bodies are buried. When a customer calls with a need, you should have a rolodex of places to go to help them.
-stay in front of customers and contacts with thoughtful ideas. Play in industries you know well....


Kh

love it!

[wallerbusiness]

Agreed!

[MCNetwork]

The goal is to set yourself up financially so you won't get caught flat footed when the party ends.

[fromano590]

wow a positive thread on DF the industry really is changing

[Michael I]

What is the size an iso needs to become to be considered?

[Karen37a]

Turn in 10-12 Full submissions monthly.

Fund 50-70% of them

Keep renewal ratio above 70%

Defaults below 5%

Show up early, leave late, be trainable, have a no excuse mentality.

[MCAVeteran]

Closing deals, building a portfolio with strategic business relationships, and vetting good from bad business to maintain a sustainable renewal book, bringing in additional revenue sources, and eventually yes, an exit strategy to make a substantial profit.

[Karen37a]

edit *

save money live below your means

[WestCoastFunding]

If you don't end up with a pinky ring and a zoot suit you're a failure.

[Finance1]

One piece of the success puzzle is to realize that renewal revenue is the real franchise of the business. We have a decent marketing budget but where we make our money is with renewals. If your book isn't loyal, attrition will constantly take a bite out of your pipeline and you will be constantly spending more time, energy, and money filling holes rather than building a stable book.

What are some things you can do to maximize this?

One very important thing (that many shortsighted people never even think about) is to not look to maximize on deals by going for max comp and whacking people with off the top "PSF fees". Sure, you can make decent money one off style doing that but residual paychecks are less likely. Give clients a fair shake (one that competition won't easily try to peel off from you) and they stay with you. We've had excellent luck placing deals with companies that do add ons instead of refi's. Refi's punish good paying clients by making them pay twice for the same money over and over. Add ons lock people in because once they get a taste of cheaper renewal money they don't want to get crushed anymore.

Another thing is aligning yourself with "fringe funders". Easier said than done but if you can forge solid relationships with companies that aren't in the fray like the usual suspects you will not only have a higher closing ratio on first fundings (happens by default because you aren't fighting with all the other brokers with the same companies) but attrition is low going forward.

There are 2 ways to approach this business. Shortsighted but high returns where you maximize each and every deal through maximum commissions and fees of the top or farsighted where you are willing to give on the first deal in exchange for a longer term relationship that keeps paying over and over with far less work than originating new deals.

We're currently having a record year and it's not because the market is red hot. We all know it's challenging right now. But over the last 7 years we've learned how to keep attrition low so our renewal pipeline is 50% of our revenue. Not a bad place to be but it took some sacrifices of short term profits to achieve it. I have agents who work just as hard on a $5k deal paying $500 in commissions as they do with $50k or $100k deals. They know what it's a numbers game. More closings are always better than less. A $5k deal can pay another half dozen times down the line so instead of seeing a split of $500, my agents see it as a split of $3,000 or more because that's how it usually works.

[Israel Funding]

Our business strategy is very unique. We maximize target and goals in creative formats.

As i mentioned in previous threads, we are a super funding house. We offer all types of programs.

We have a sale side and funding side. Our funding side did about 250m last year in net profits. Our sale side did about 100m in net profits.

Our sale side which is our broker side is very agressive. We have top tier recent high school interns and grads from brooklyn work our phones. We sell a merchant, we send to multiple funding company. Once we get offers, we send it to our funding side. We then determine if we can match it or beat it. Basiclly we use other companies underwriting to determine our offers.

Its interesting method but hey, 250m 2016 why not.

[Funder Mark]

Our business strategy is very unique. We maximize target and goals in creative formats.

As i mentioned in previous threads, we are a super funding house. We offer all types of programs.

We have a sale side and funding side. Our funding side did about 250m last year in net profits. Our sale side did about 100m in net profits.

Our sale side which is our broker side is very agressive. We have top tier recent high school interns and grads from brooklyn work our phones. We sell a merchant, we send to multiple funding company. Once we get offers, we send it to our funding side. We then determine if we can match it or beat it. Basiclly we use other companies underwriting to determine our offers.

Its interesting method but hey, 250m 2016 why not.

Anyone who knows this guys name and company, please put it out. Even though I do think he is 100% lying about his funding numbers, the fact that he comes out and says this shows what bad business practices he has, and that they are wasting all of the direct funders time.

[Finance1]

^ so you're sending deals to cash companies, using their resources with little intention of getting the deal funded, and then funding them yourself without having to do your own due diligence. I definitely wouldn't advertise that business model and if I was one of your "free underwriters" I would cut you off immediately.

[HDF]

Our business strategy is very unique. We maximize target and goals in creative formats.

As i mentioned in previous threads, we are a super funding house. We offer all types of programs.

We have a sale side and funding side. Our funding side did about 250m last year in net profits. Our sale side did about 100m in net profits.

Our sale side which is our broker side is very agressive. We have top tier recent high school interns and grads from brooklyn work our phones. We sell a merchant, we send to multiple funding company. Once we get offers, we send it to our funding side. We then determine if we can match it or beat it. Basiclly we use other companies underwriting to determine our offers.

Its interesting method but hey, 250m 2016 why not.

Ethically challenged

[admin]

I'm pretty sure by now that Israel Funding is a troll account.

[admin]

We have a sale side and funding side. Our funding side did about 250m last year in net profits. Our sale side did about 100m in net profits.

The entire industry combined does not earn $350M in profits.

[MCNetwork]

I'm pretty sure by now that Israel Funding is a troll account.

Damn. I was going to ask him for an ISO agreement.

[AndyYSCISOdept]

You're ling me You funded 250MM and made 100MM profit and no one knows who you are and you just joined DF? Im not going to speculate but if would at least give us the name of the company it'd go a long way.

[AndyYSCISOdept]

Damn. I was going to ask him for an ISO agreement.

Can you send me a copy?

[MCNetwork]

Screen Shot 2017-07-26 at 12.12.47 PM.jpg

[J.Celifarco]

^^^^^^^^^^^^^^winner^^^^^^^^^^^^^^^^^