[Kevin Henry-Seacoast]

The reasons these companies do not make the profit compared to volume is because of HUGE operational costs. The operational cost went UP not down.

This is the # 1 reason for me believing in the 1099 model vs the w/2

If I make 1 million I am lean and mean on costs

Costs

Computers
Desks
Office
Phones
data leads
prossor
accountant
payroll

add a few more on

= 1 million...taxes...lower rate florida

Add costs in for brokers... ( leads ) same infrastructure...add more commission in. 10 million..pay out commission

When 1099 makes that money its very very low margins

Which is probably why, stock brokerage firms, insurance companies, Loan companies use the model as well...successfully

Correction-cost of funds went down. They appear to be working on operational costs while they are changing the model.