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05-13-2020, 07:50 PM #1
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Average monthly earnings for brokers
Hey all,
I just started in the MCA industry. I am wondering how much one can expect to earn as a broker, working in a broker shop. The amount earned obviously depends on the percent of commission the broker gets, so if you can share that as well please that would be appreciated. Many MCA Broker ads say yearly earnings can be up to 200k or more, I'd like to know if that is accurate or not. Thanks!
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05-13-2020, 07:53 PM #2
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05-13-2020, 08:04 PM #3
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I know. I am asking in general though.
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05-13-2020, 08:49 PM #4
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05-13-2020, 09:32 PM #5
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05-13-2020, 10:48 PM #6
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05-13-2020, 11:16 PM #7
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you mean quality of leads?
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05-14-2020, 05:55 AM #8
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I am not in the advance space... I have a feeling if you concentrate solely on advances right now it will be a tough haul, but a great time to learn and build relationships. You would be better served learning other products to offer customers so you have a more well rounded arsenal of tools at hand. Right now I know that brokers doing factoring, non-bank ABL, real estate, and SBA are doing quite well. Also.....building a book of recurring revenue commissions is key to weathering storms like this. The folks that have placed some products I mentioned are doing quite well as the commissions keep flowing. All the new business closed as a result of the crisis just adds to a longer term book.
I joined our firm almost 7 years ago. before I joined I was an investment banker financing companies up and down the balance sheet. I am still collecting fees from deals I did before joining the firm as I structured the majority of my agreements with back-end commissions or warrants. The upfront fees are cool, but back-end fees or residuals will always bring the big income.
KHKevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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05-14-2020, 10:41 AM #9
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Charles Frazier
President
Sapphire Capital Group
p: 917-781-2232
m: 917-783-5634
w: www.Sapphirecapgroup.com
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05-14-2020, 04:32 PM #10
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I've been in the industry for a decade and your income potential as a broker will be determined on whether or not you are 100% commission and what your split on deals is and secondly whether or not your current shop pays you a decent split on renewals. I've been in the ISO world my entire alternative financing career and have worked at multiple shops. If you are on 100% commission you should see splits ranging from 25-40% on new GM (new deals) and if you have a decent shop that cares for their employee's you might see 20-35% on renewals. We had reps that hit $75k-200k a month in gross margin back when times were good before Covid-19. Our top performers were making $250k-500k a year and no this is not BS. ISO's typically pump way more points in their loans because they have to get paid, funders and lenders for the most part put less points in their loans because they can and they just want the loan in-house. You're coming in at a horrible time as an ISO and it's going to be a waiting game until these lenders release some of their restrictions. Any ISO shop that says they are killing it with the PPP loans are lying to you and most ISO's are focused on renewing their current renewal book to stay afloat. I'm sure I will get kick back from some of the so-called funders on here that they are funding non-stop and nothing has changed, but that is all smoke. It's different times for this industry and it's going to be interesting to see what happens this year. Good luck on your journey.
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05-14-2020, 05:20 PM #11
Both Kevin and $$FundIt$$ are correct.
The question of whether or not this is a good time for you to get in this business, is only one that you can answer. I have been in the business for 8 years, the first 3 of which I worked at various shops.
I would say the average for a decent rep, those who find a good shop (hard to do) that pays decent commission (25-40%) that has good marketing (which is rare) and pays renewals, will earn:
Low end: $30k
Middle ground: $50k
High: $70k'
Rock star/manager: $100k and above
The problem is finding the right shop. In my first 3 years I worked at about 6 places. One had a great environment but the leads sucked, another had great leads but the owner was a psychopath, several tried to steal my own commissions from me, and one literally just decided not to pay me a $12k commission. I eventually went out on my own.
One thing is certain- shops that sell only mcas were already a dying breed. And now that a plague is upon us, it is (and will continue to be) even worse.Sean Hawley
CEO
BLF
Bright Light Freight
shawley@brightlightfreight.com.com
631-210-6327
SBA, Term Loans, LOC, MCA & Equipment Finance (Transportation & Trucking)
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05-14-2020, 05:26 PM #12
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05-14-2020, 05:41 PM #13
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05-14-2020, 05:48 PM #14
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MCA was killing it because investors had confidence, and, securitizations became popular. the models of UW didn't have built in a recession, especially something like this. It is true online lending and large aggregators were disrupting broker space, but, Covid has highlighted some major issues pre covid. ODC is one example. A fire sale? It is going to be a slow and painful rebound
in great times, yes, it was a money maker, today, not the best time to be starting a shop
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05-14-2020, 08:54 PM #15
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I worked at a shop in NYC for a year and learned the business. Was giving up 50% of my commission to ride the LIRR 2 hours in and 2 hours back - forward my statements and apps to the owner, who then hit forward on the email to all his direct lenders. Then I had to sell the deal and get all the stips in. I have my own shop now and made what I made in a year working for someone else in 2 months. Besides learning the business, there is absolutely NO REASON anyone should be giving any of their commission up to a firm. Get on the phone, contact some lenders, create relationships, and start funding deals. This is the easiest business on the planet. Make the dials, get the statements and apps in, and you can make $1 million a year. No doubt.
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05-14-2020, 11:30 PM #16
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Much respect to you, thanks for your advice. I hear good leads are heard to find though?
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05-15-2020, 06:22 AM #17
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Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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05-15-2020, 09:02 AM #18
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ok so i had someone that worked with me a couple of years ago .She had a solid 5 years experience and knew how to close deals.She felt that they were stealing from her and went on interviews all over including a bunch of people on this site. By every interview she will call out the numbers they said reps are making and ask to see the 1099 from the file cabinet behind you and block out the name. 95% switched it to what you could be making and not what actual reps are making currently.
Now to answer your question, there are companies that will offer high splits because they give you absolutely zero a crm and some ucc leads.Now they are others that spend ten of thousands of dollars to get better leads and build technology , infrastructure etc .that people can be on a 20% split making 200-300k .If you are not making 100k your first year you either suck or are by the wrong place.
the only ones that i know with 100% certainty that are making 500k place is those with big teams under them.
to argue on the previous poster i know personally 20 people and i am sure they are hundreds that thought they can do it on their own and failed miserably.
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05-15-2020, 12:49 PM #19
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they failed because of crap leads or?
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05-15-2020, 12:52 PM #20
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Become proficient in MCAs, but also with other types of financing. You refinance a $2M piece of commercial real estate, and you’ve just made yourself $20-50K. Do a $3M SBA and you’ve just made yourself $30-60K.
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05-15-2020, 01:10 PM #21
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Combination. I know that I personally wasted ten of thousands of dollars on technology and lead sources. Alot run out of money. Next dont underestimate the power of a second voice ,i have been doing this for 10 plus years and as good of a salesman that I am ,there are times that a different style of sales pitch will work wher i failed.
Also offers are bigger and better if the owners are syndicating.
Bonuses are huge also ,true story I sold a 250k with rapid at zero commission just because that deal will make me hit a million funded with a 3% bonus. The poor iso that tried selling it at 2% called me thinking he was being backdoor.
next is my theory that all funders are scumbags and steal deals if they get one sub every 6 months. They look at is it worth me to keep this iso . Now larger iso even if they do not do a lot of business their is potential, however one guy in his moms basement is another story .
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05-15-2020, 01:58 PM #22
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- Jun 2019
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Do NOT listen to all the people saying MCA focused shops are dead. Its just not true. Most people saying that do other types of alternative financing and they want convince you MCA is dead so you send them deals, which isnt a bad thing. Listen it's always beneficial to have a broad range of products, but if only close MCA you can still make a lot of money.
Theres no one answer to how much you can make, as many have already said it depends on a combination of how good you are on the phone+how good your leads are+who you work for. If your half decent you can probably expect to make around 50K first year and be clearing 6 figurses by year 3 the latest. WHat you put into it is what you'll get out of it. Any shmuck can get lucky and close a 350K deal, but to close consistently and build yourself a real book of business it takes hard work and dedication. You can potentially be making a few 100K a year if you get really good.
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05-15-2020, 02:19 PM #23
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What Broker ad? Wonder who it is... I think the most important point is how another Broker will collect agents from anywhere and sell the dream of 200k + when you don't even know squat about the industry inside. For this industry and many others - the job that you will do will have you collect data and warm people up... kind of like a fluffer. You can only be a fluffer for so long and have what it takes to be in the shot or quit and be embarrassed that you got played to fluff.
You make as much money as you grind for. This industry can be high earnings but you need to earn it and it goes far beyond that Company bait and switching new "Brokers" to join their team, learn for 2 months, and pop-off another Broker to add to the stray cats roaming the neighborhood as it is.
Moral. Don't be a fluffer and don't become a stray cat.Amanda Kingsley
DailyFunder: WhoisKingsley
This is me. https://www.facebook.com/whoiskingsley
I am Here too. https://www.facebook.com/groups/TheClosersGroup
Always Live and Lead with Integrity.
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05-16-2020, 09:44 PM #24
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- Apr 2014
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Forget doing it now
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05-18-2020, 07:35 AM #25
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Last edited by FHFunding; 05-18-2020 at 07:47 AM.
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