Results 1 to 25 of 34
-
05-17-2018, 06:42 PM #1
- Join Date
- Aug 2017
- Posts
- 405
Kabbage Doesnt Like working brokers
Kabbage CEO Rob Frohwein has a knack for speaking his mind at lending conferences and LendIt two weeks ago was no different. Below are some of the most notable quotes from his April 10th presentation.
On building a brand
Unfortunately, in the online lending space, most companies basically think that boiler rooms = brand. Boiler rooms don’t equal brand. They have these huge call shops and that’s what they’re focused on. That doesn’t create brand. It just doesn’t. You have to spend money in order to build a brand over time. You have to have a brand obviously from a user experience and a customer service experience that people love. That’s how you build a brand.
We’ve invested over $125 million into building our brand specifically. We don’t use brokers and brokers are those 3rd parties that go out and find loans for you, but they don’t represent your company in the process.
Too good use brokers huh lol
-
05-18-2018, 08:34 AM #2Karen37aGuest
That's why brokers and isos should stay clear of them and not recommend people to them and do business with the Funders that respect you and help you make a living...ethically.
Just erase the name from memory ...i dont utter ther words "kabbage" to anyone...unless i am putting a position behind them
-
05-18-2018, 08:47 AM #3Karen37aGuestUnfortunately, in the online lending space, most companies basically think that boiler rooms = brand. Boiler rooms don’t equal brand. They have these huge call shops and that’s what they’re focused on
This seriously is one of the most ill-informed dumb comments to date.
Does he actually think that people are creating call centres/ using them...or opening offices( which he refers to as boiler rooms) or dialling leads on the phone to create a" brand"
smh
This is like undercover boss when the owner of the national billion dollar sandwich franchise cant make a sandwhichLast edited by Karen37a; 05-18-2018 at 08:55 AM.
-
05-18-2018, 09:04 AM #4Karen37aGuest
Great brand idea lol
___
Hey this is so and so ...from xyz capital how are you today ... take me off your list click
hmmm???..let me use inflexion in my voice
HI! This so and so from XYZ CAPITAL ....click
deep serious voice...Hello, this is so and so from xyz CAPITAL!... I am on the national DNC list this is my cell and I am going to sue you.click
Howdy pal ... I am from XYZ capital please don't hang up... if you call me again I am calling the police
hmm this isnt a good brand idea..sales sucks, salespeople suck, anyone who calls on the phone is a telemarketer and a lowlife. I have a degree I am better than this.
-
05-18-2018, 09:53 AM #5
- Join Date
- Oct 2016
- Posts
- 4,318
I cant argue with what he said. A 3rd party cold-caller isn't going to have Kabbage's best interest at heart. Kabbage has built a brand, so much so that they're often the first place small businesses look for a loan before they head to MCAs. I'd imagine nearly all of their leads are inbound.
-
05-18-2018, 10:02 AM #6Karen37aGuest
West
3rd party cold callers bring a qualified lead or merchant INTO a company, once the merchant is with that company the product and customer service speaks for itself.
The 3rd partycold caller is in no way shape of form allowed to "represent" the funder, theyare to find a qualifed potential merchant and if its an Iso, we are technically turning over "ownership" of that merchant to the funder...the funder owns them with non compete agreements and tortious interference agreements.
People understand the difference between outside "isos" and inside sales forces
Same with Seo...if you get a lead you are not "tarnishing" anyones brand by following up and then choosing which funder you are sending the deal to
its absurb
-
05-18-2018, 10:12 AM #7
- Join Date
- Oct 2016
- Posts
- 4,318
Kabbage is marketing the way the feel is best for them. And their brand is terrific.
-
05-18-2018, 10:13 AM #8Karen37aGuest
I agree...and as stated us "boiler room low lives" should stay clear of them and mix with our own kind
And I can promise you a trained outside broker who is commission only took that route for a reason...they are great in sales
that being said they are better than the customer service agents in some of these companies...and thats why they get the deals away
-
05-18-2018, 10:39 AM #9
one of the panel's at brokerfair was talking about this. All the 3 CEO"S were ripping Kabbage for these statements. I have to say I agree with Kabbage that building a brand is important but to label all brokers as boiler rooms is just ignorant. Are their shops like that out there, yes. Is working with a place like that right for kabbage, probably not. All that said bottom line dumb comments that served no purpose
Last edited by J.Celifarco; 05-18-2018 at 10:42 AM.
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
05-18-2018, 10:41 AM #10Karen37aGuest
West I am waiting for the day that you realize that we are the FREE telemarketing balls to the wall 1099 sales force for some of the Funders on these boards.
We buy our own leads, pay for the rent, computers etc etc, train the sales force, creating marketing plans and motivation seminars and pass the deals on to funders
High renewal ratios and low default...
-
05-18-2018, 10:44 AM #11
what does that have to do with kabbage not wanting to work with brokers.. Yes the comments were stupid but how they drive their business is up to them. We dont have to agree with them but it is their choice. I just dont get what be a 1099 sales office or a w2 sales office or anything else has to do with it
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
05-18-2018, 10:48 AM #12Karen37aGuest
John
not if the brokers are w/2 or 1099 to you....you are 1099 to the funders
( the isos are 1099 commssion only to the funders)
you can have w2 or 1099...its up to you..or be a single member
I have 1099 and have a primerica style organization...my choice...super iso...maybe ill turn into a funder , i doubt it..i will syndicate with a few
-
05-18-2018, 10:51 AM #13Karen37aGuest
And the argument that I have been making is that some isos, shouldn't be an iso...they are newbie brokers who created an llc
So the LLC system is a 1099 system for newbies to take on marketing expense, lead expense etc with no mentor and they will never make it
-
05-18-2018, 10:55 AM #14
yes we are 1099 commission to the funders I know that but again what does that have to do with kabagge choosing not to work with brokers? Also what does if you syndicate or not have anything to do with that. I am jsut trying to understand your point and I dont see it. They believe brand building is a better way to grow their business then working with brokers, and the CEO made a dumb comment. What does who you syndicate or dont syndicate have anything to do with their business model for growth?
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
-
05-18-2018, 10:58 AM #15Karen37aGuest
-
05-18-2018, 12:07 PM #16
- Join Date
- Aug 2017
- Posts
- 405
Funny thing is. I calculated one of their payments for a client and the factor ended up being around a 1.65 with crazy fees front loaded on the first two payments.
-
05-18-2018, 12:11 PM #17Karen37aGuest
Same for me so I NAIL them off the first phone call( not all deals I calculated them differently because of the way they chare the "interest" and fees., and if paid back early oooo weeee..in my boiler room way
And technically when you spread that out adjusted compared to a bank apr ...they are are not so fancy foo foo pinky out" I am not a boiler room, i do not make phone calls" ickLast edited by Karen37a; 05-18-2018 at 12:17 PM.
-
05-18-2018, 12:26 PM #18
- Join Date
- Aug 2017
- Posts
- 405
Does Kabbage get money from Webbank I believe? I think WBL gets money from them too...
-
05-18-2018, 12:29 PM #19Karen37aGuest
-
05-20-2018, 08:17 AM #20Karen37aGuest
https://www.youtube.com/watch?v=VIqQydmOzNI
Look at the kab guys comments on Alternative lending and his disdain for anyone outside of his group.
If this guy wants to actually debate a so-called boiler room broker like me( I cant imagine if he debated some of the big players..i am just an iso) ...he would have a rude awaking. he isnt as smart as he thinks he is , and most of us are not what some are trying to make us out to be.Last edited by Karen37a; 05-20-2018 at 09:03 AM.
-
07-27-2018, 07:32 PM #21
We all created his company, if we weren't all working and smashing the phones and making big bucks his ass wouldn't even be in this industry. So Kabbage CEO Rob Frohwein I want an apology!!
-
07-28-2018, 08:04 AM #22Karen37aGuest
https://debanked.com/2018/04/boiler-...bage-ceo-says/
him saying boiler rooms are not brands
Anyone from wall st ( the money part) ...full well understand what 1099 Independent Isos are ...Insurance/ Annuites understand they have the same model...outside loan originators vs inside mortgage brokers or bankers, real estate, stockbrokers / investment professionals...some are independent and create their own name...some use the name of the independent "clearing house or firm"( similar to white labeling)...some work for the company as an employee
Same like "net branching" Loans
When he says things like that anyone who created company structures must be laughing at him...he said those things at conferences to people who understand the business model...its actually embarrassing .
The only people who don't understand it are the people who never made sales before or had a sales force (sales also include raising capital $$$...he is selling his idea) or they failed miserablly at the other so they dismiss the idea and bash it
I wouldn't feel comfortable giving people money who don't know what the hell is going on around them.
I try to stay silent but this buffoonery has to stop...especially when he tosses in the" boiler room phone sales isos" ( who know more than him about the structure)
dont come on here debating me like that other guy with the 2% and 100 uccsLast edited by Karen37a; 07-28-2018 at 09:13 AM.
-
07-28-2018, 08:56 AM #23Karen37aGuest
https://lbaware.com/2018/04/net-bran...tgage-lenders/
Loan companies net branch to control expenses
The other models are usually DOOMED...too much payroll/expenses no profits
1099 Isos are the way to go IMO
( the problem is in recruiting the 1099 people is they do not get paid unless they make a sale, so they will only follow a leader they respect or one with real talent so most cant do it)
Then its like a mortgage that's upside down...if you try to put a leader or trainer in the supervisory position ( with the skill set or character /integrity level 2) in charge of a person with ( skill set level 8)...all hell breaks loose
And if the owner of the company has a level 5..they cant hold the sales force together and they implode...then they bash the 1099 model
Then the 8's go looking for the 9/10s to follow
add ( I just saw a lightbulb on the regulation and the phone sales vs online and people who are for and against on these boards...also the "loans" vs mcas.... smh, now I know why tisk tisk)Last edited by Karen37a; 07-28-2018 at 09:17 AM.
-
07-28-2018, 04:49 PM #24
- Join Date
- Dec 2015
- Posts
- 610
Kabbage has a number of advantages, brand and speed of funds, being some, and they’re driving the idea that their strategy works better than everyone else’s, because they have big numbers to support this.
This allows them to attract bigger investors, bigger jv partners, bigger affiliates, etc. Kabbage’s lead source model is different in some cases as well; one of them generates about 20,000 opt ins a month, from various web and display properties.
Kabbage covers all the costs to generate these leads, but only the costs are paid upfront, no profit to the lead generator. The leads aren’t just for funding but for processing as well, and any other service they offer. When each lead closes, the lead distributor then makes a percentage from each closed deal and that’s how they profit.Last edited by DonMcGrath; 07-29-2018 at 08:49 AM.
-
07-29-2018, 09:49 AM #25Karen37aGuest
Yes
But he needs to stop throwing brokers under the bus. He is not the only one who has the ear to hedge funds/investors...not even close.
They are being stacked which is an additional risk to investors...which is why some people have been pushing for regulation...fools following along, so they can then say
"here's $100 Referal fee"
Its Certain Brokers on ones side... some on.the other( usually the ones who can't sell over the phone)
Then they paint this bull**** picture of brokers being low lives and dirty, uneducated, wrong side of the tracks etc ( i have to be yelling at them ... I "had" 150-160 iq and I am from the north shore of long island).....stock fraud story goes floating along
Then shills/pikers on here saying omg negative news...I have to counter long arse word salad.... I don't work here.
Id die before I would do business with certain companies ..
..cut it the hell out already( not you don)Last edited by Karen37a; 07-29-2018 at 09:53 AM.
Similar Threads
-
Looking for a lender who doesnt do coj and no bank login
By Triumph Capital in forum Deal BinReplies: 7Last Post: 08-29-2017, 07:46 AM -
No UCC filed after a funding? merchant doesnt want a ucc filed when he funds!
By Triumph Capital in forum Deal BinReplies: 10Last Post: 08-11-2017, 10:11 AM -
Work with / Pay Commission to Overseas Brokers or Canadian Brokers with US Clients ?
By Will Sanio in forum Merchant Cash AdvanceReplies: 1Last Post: 07-16-2017, 08:42 AM -
Merchant has $60K Kabbage Balance. Who can fund 24 mths without paying off Kabbage
By Quickfunder in forum Deal BinReplies: 6Last Post: 07-16-2016, 03:07 PM -
It's hypocritical for ISO's and Brokers not to deal with other ISO's and Brokers
By bdshaw in forum Business LoansReplies: 6Last Post: 02-13-2015, 11:58 AM