[TheUnderwritingProdigy]

How are you guys structuring pay for your ISO Managers?

[mca2150]

You can either do a set salary w/bonus based on funding, or a small percentage of every funded file they bring in.

There may be other solutions but I'm not familiar with them.

[Ifunddaily]

You can either do a set salary w/bonus based on funding, or a small percentage of every funded file they bring in.

There may be other solutions but I'm not familiar with them.

Salary and small % of funding amount

[TheUnderwritingProdigy]

Salary and small % of funding amount

What would a small % of funding amount be?

[Michael I]

What would a small % of funding amount be?

do the math based on funding volume, for example if you are funding 10 million a month and replacing the current iso rep , you will be crazy to pay 1%, however if best case you are expecting him to bring you in 100k a month , one percent wont cut it.
It also seems that so reps have some sort of split on fees over a certain amount

[Ifunddaily]

What would a small % of funding amount be?

Like last guy said, its all about how your set up. I've seen ppl pay as low as .05% and as high as 3%

[TheUnderwritingProdigy]

do the math based on funding volume, for example if you are funding 10 million a month and replacing the current iso rep , you will be crazy to pay 1%, however if best case you are expecting him to bring you in 100k a month , one percent wont cut it.
It also seems that so reps have some sort of split on fees over a certain amount

Makes sense. What about in the scenario that a funded deal ends up defaulting... Does that generally result in clawback or like a ledger situation where they owe the house the equivalent of a deal that pays off?

[fundingsmbs]

For a good quality experienced ISO rep, a salary and a % of funded new deals is the norm. Especially if they are bringing all the relationships in. If its an existing book they just take over, than different story. W-2 typically do not get clawbacks.

[pcfunder]

what's a fair salary range for someone with a lot of experience who can bring in a lot of relationships?

[fundingsmbs]

$75-120K base + override if they do all the recruiting of new ISO's. If they just take over existing book, negotiate the % on the funded deals override to a lesser amount. The value of an ISO manager is they bring ISO books w/them. Otherwise, they are just order takers. BAM!

[FCF Fund]

Makes sense. What about in the scenario that a funded deal ends up defaulting... Does that generally result in clawback or like a ledger situation where they owe the house the equivalent of a deal that pays off?

60-75k base + 1-2pt on funded. Some shops pay 60-65k and ISO rep eats off the fees which is why most lenders charge 5%+ on OG fees. You should also have expectations like X new iso shops a month onboarded per month and X deals funded per month etc etc.

Every funder is different you'd have to figure out your margins and see what fits and keeps you profitable. Also, based off those margins the funder should have set expectations like X new iso shops a month onboarded per month and X deals funded per month etc etc. Otherwise the position is not really validated if not generating X revenues.

[pcfunder]

$75-120K base + override if they do all the recruiting of new ISO's. If they just take over existing book, negotiate the % on the funded deals override to a lesser amount. The value of an ISO manager is they bring ISO books w/them. Otherwise, they are just order takers. BAM!

man I'm underpaid.... I have a massive book of ISO relations if someone wants to pay me that amount

[fundingsmbs]

You don't get what you deserve, you get what you negotiate. that is the adage in life. If you think your worth is more, and, are underpaid, talk to other companies. I agree, each funder knows what they can and can't pay based off their cost analysis. Adding ISO's is the easy part if you have a book, funding their deals is the challenge. Also, there are partner managers and ISO Directors. Really depends on level of the position to.

[RickyR3712]

How are you guys structuring pay for your ISO Managers?

If the product sells itself (like most A funders) than normal salary with bonus incentives . If you are looking for that b paper second position 20-100k 4-8 month 1.49 than you need a solid salesman with a heavy %