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07-30-2021, 09:44 PM #1
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- Jul 2021
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- United States
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- 145
Syndication idea . . .
As we form our Broker Network using a MLM model and we focus on recruiting people looking to create an additional stream of income - I had a thought today.
Pay the Broker 50% of the commissions created on their personal funded deals. They can also receive a bonus of up to 50% of their personal commissions + up to 50% of their personally enrolled's commissions. We can take this money and roll it into a Syndicating Co-op that qualified Brokers can participate within
As a Network we take the total of all Bonuses and put the money towards funding up to 50% of our own Network deals . . . The participating Brokers can now create residual income via the Network's earnings from the Syndication.
Thoughts?
[ By the way - we don't charge anyone to join or participate in the Broker Network ]Last edited by cruisinman; 07-30-2021 at 09:49 PM.
" The world has always gone forward when people have dared to have crazy ideas . . . "
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07-30-2021, 10:24 PM #2
- Join Date
- Oct 2014
- Location
- Naples, FL
- Posts
- 474
Oh my G*d, the end of all things to come... the MLM of MCA?? LMAO. I can't...
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07-30-2021, 11:08 PM #3
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- Jul 2021
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- United States
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- 145
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07-31-2021, 09:59 AM #4
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- Dec 2016
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- 379
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07-31-2021, 02:48 PM #5
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- Jul 2021
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- 145
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07-31-2021, 09:07 PM #6
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- Jul 2021
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- United States
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- 145
Ran some quick #'s . . .
1.30 average factor can provide some nice residual bonuses should the defaults be <15% with an average commission @ 10%. 8% Management Fee [ shared between the Funding Entity and our Network ]
If the #'s are tight, our Brokers could realize nice $$ . . .
Seems the key is to roll back in the profits for 12 months - then start paying out the earnings each month, while keeping the principal at work on going . . .
We have a lot to learn over the next month.
I now see why TMR was on Shark Tank." The world has always gone forward when people have dared to have crazy ideas . . . "
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08-01-2021, 12:35 AM #7
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- Dec 2015
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- 610
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08-01-2021, 09:42 AM #8
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- Jun 2015
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- 3,322
Bro seriously learn the business before you start an mlm. With all due respect your other posts clearly show that your a clueless newbie
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08-01-2021, 01:38 PM #9
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- Jul 2021
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- United States
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- 145
" The world has always gone forward when people have dared to have crazy ideas . . . "
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08-01-2021, 02:59 PM #10
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- Dec 2016
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- 379
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08-01-2021, 04:02 PM #11
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- Jul 2021
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- United States
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- 145
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08-02-2021, 01:19 AM #12
- Join Date
- Oct 2013
- Location
- Designer
- Posts
- 591
There is something to be said about having a good idea, a unique plan, and just jumping in and working hard and fast.., it's incredibly rare but it does happen...
...however, the biggest issue is that when you don't know what you don't know, what do you do when those snags happen?
If your job is to simply find business and pass off to another entity to work it, in theory that's very simple... IF you have the answers to, and have solved a number of basic problems:
-Where will you source this new business?
-Can you source new business consistently
-Does your cost to source allow you to make money
-Is the business source unique and can it become quickly saturated
-Is the source of business that type your client is looking for?
-Can you grow your sources of business?
Who covers the cost of this growth (The network or each individual in the network)
Who manages distribution of these business prospects?
I'd also ask, how well do you know the funding side, and how much work have you done with them?
Who is responsible for follow up, doc chasing, paper gathering
...This is 80% of the work.
Who closes? Who closes the big and/or difficult merchants?
...This is 90% of your profits.
Who handles renewals?
...This is your recurring profits.
-Who stays on top of merchants to make sure you get paid from renewals?
-Are follow ups system based or manual?
-What is the type of industries they like, the grade of paper,
and do they have an outlet for non MCA deals?
-What do you do with merchants that don't fit their bucket?
-Are their offers competitive?
* What is the aptitude of the people handling all these different tasks? *
As the machine starts to run, now you have to start looking for inefficiencies, cracks, and leaks.
-Are you losing deals due to lack of follow up, lack of closing ability?
-Is their key staff dependable and present, or is personal drama hampering their work, and therefore your
profits? (This comes down to their company culture).
-Are merchants being missed?
-Are your deals going in one door and out the other 30 minutes later?
If I were you, I'd like answers to these questions as soon as possible, as you're growing.
www.UccRadar.com - Post one question about funding, see hundreds of merchant responses...
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08-02-2021, 08:50 AM #13
- Join Date
- Aug 2020
- Posts
- 144
I know that I know nothing
-Socrates
You don't know what you don't know
-Franklin
Both of these quotes apply directly to you cruisinman
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08-02-2021, 09:50 AM #14
- Join Date
- Jun 2015
- Posts
- 3,322
just an example . you have been asking for funders suggestion but no where did you ask that allows to you to syndicate ,yet you are building the model on that.
i wish you the best of luck and hope you do not lose to many deals to bad companies that steal in till you learn who you can trust
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08-02-2021, 01:34 PM #15
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- Jul 2021
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- United States
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- 145
We aren't building a model on syndication - it was a thought.
But - I do like the idea. Would be a great way to create residual income for the Brokers.
We are looking for honest Partners. We have found two. Will look for a few more.
Who are 4 or 5 funders that you trust Michael?" The world has always gone forward when people have dared to have crazy ideas . . . "
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08-02-2021, 01:52 PM #16
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- Jun 2021
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- miami
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- 436
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08-02-2021, 02:06 PM #17
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- Jul 2021
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- United States
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I admit we currently know very little about the Advance game. But - we are learning.
1 - MCA won't be our lead product / service for the majority of Brokers. Brokers will be marketing a plethora of products / services to local businesses. Some Brokers will join our Network that already have a book of business. We'll plant the MCA seeds and see what grows.
2 - This is where having a Network of Brokers comes in to play.
3 - We have no cost to source except for the commissions / bonuses paid.
4 - Plenty of meat on the bone for everyone.
5 - See #1
6 - Recruiting is my specialty. I owned a very large and successful MLM from 1997 to 2001.
Brokers pay their own expenses to do business. We will pay commissions / bonuses quickly to put money in their pockets.
Just starting. Learning everyday. Relying on our Partners for hand holding out the gate.
The Broker assumes this responsibility with guidance from their Upline and our Partners. We are only seeking Partners who have this process automated.
The Broker assumes this responsibility with guidance from their Upline and our Partners.
The Broker assumes this responsibility with guidance from their Upline and our Partners. We will also have an in-house person(s) that handle Renewals, Retention, etc.
We are working on a simple CRM to handle this. If we are able to gain traction and produce more revenue - we can build the CRM greater indepth.
These questions are why we will have multiple Partners - Preferred, Niche, High Risk, etc. We plan to have all these in place prior to launch.
We will have a few in-house peeps that will coordinate with the respective Partners. Everything will be virtual
^ ^ ^ This is Business 101 . . . We will rely upon our Partners to assist.
1 - This will happen in the beginning. Hopefully, our Training will help minimize this . . .
2 thru 4 - Haven't been involved yet to determine this.
I appreciate you taking the time to post all these questions. Great questions . . . Thanks!" The world has always gone forward when people have dared to have crazy ideas . . . "
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08-02-2021, 02:08 PM #18
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- Jul 2021
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- United States
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- 145
" The world has always gone forward when people have dared to have crazy ideas . . . "
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08-02-2021, 02:33 PM #19
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- miami
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- 436
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08-02-2021, 02:39 PM #20
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08-02-2021, 02:51 PM #21
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- Jul 2014
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- 92
The 3 things every broker needs is the ability to generate leads, the ability to close deals, and the relationships with funders to actually place the advances. It *seems* like currently you provide no value in any of these areas. CRMs, syndication opportunities, processing assistance, etc. are all nice but most revenue generating shops can figure those things out on their own without having to share their commission with you. If you're serious about doing this, I think you need to bring on a partner with a proven track record... figuring out syndication splits is putting the cart way before the horse.
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08-02-2021, 03:18 PM #22
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- Jul 2021
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- United States
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- 145
We have the ability to generate MCA leads since our Brokers will be offering other products / services to local businesses . . .
Closing Deals is paramount to any sales process. We will be recruiting those that can sell. We just have to learn how to sell MCA's - that shouldn't be rocket science.
Syndication seems to be a great way to get an above average return. I imagine we will do it - just not out the gate.
If all the "Shops" could do this on their own - dozens of them wouldn't be soliciting ISOs on a daily basis." The world has always gone forward when people have dared to have crazy ideas . . . "
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08-02-2021, 03:29 PM #23
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- Jul 2014
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- 92
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08-02-2021, 04:19 PM #24
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- Jun 2021
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- miami
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- 436
unless you have experience in this space this might as well be rocket science trying to convince someone they need to pay back a 1.499 on 30 days or some other crap offer is not easy it takes skill and understanding of how this industry and the merchants work. this is not an industry you can waltz into the average wash out rate is well over 95% ive been in this idustry for a few years and seen many people like you open up and close down within the span of a few months
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08-02-2021, 04:26 PM #25
- Join Date
- Feb 2017
- Posts
- 3,426
I'll go with what Bcooper said here, it's a crazy industry, and there's a good reason why I offer so many other products, and why you should as well, which are some of things I've been referring you to. But brokering is an art, I can imagine that as an MLM it gets a bit messy. That being said, I do have a consumer finance fintech company that I have a relationship with, I know I can refer other brokers, I have a conversation with them tomorrow to remind myself how to introduce them to you. I'll hit you up with an email tomorrow.
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