[AlexSMF]

Whats up all. We have decided to close up shop and let go of our staff and pursue other ventures, however we have a staff that we are letting go of, in particularly one person who is one of the best telemarketers/phone sales reps that I have seen. The guy comes in, puts his head down and just works. Every week he is the #1 guy with submissions and closings. If anyone is interested and is looking to hire this person then please let me know and I can either give you his info or have him call you. He wants to stay in the industry so just trying to do the right thing. With us he was receiving a salary + Commission so I imagine he would be looking for the same.

[FUNd]

Where are you guys located? Why are you closing up shop?

[AlexSMF]

Located in Whitestone Queens. Closing up shop because owner isn't interested in staying in this space.

[FUNd]

Gotchu. Yeah, would be a long commute for him to California...

[jotucker1983]

The guy who was number one should branch out and open his own Broker/ISO Office then. I understand how the supposed "comfort" of a salary would be enticing, but let's face it, we are paid on performance. If the guy wasn't selling/closing anything, he wouldn't really get paid anything or he wouldn't be there for that long anyway.

If he repeated his same performance on an 100% commission structure, I'm sure he would have made a lot more money than the salary/commission structure, while also having control over his clients going forward.

[AlexSMF]

The guy who was number one should branch out and open his own Broker/ISO Office then. I understand how the supposed "comfort" of a salary would be enticing, but let's face it, we are paid on performance. If the guy wasn't selling/closing anything, he wouldn't really get paid anything or he wouldn't be there for that long anyway.

If he repeated his same performance on an 100% commission structure, I'm sure he would have made a lot more money than the salary/commission structure, while also having control over his clients going forward.

John, while you and I can agree with your comment, you also have to understand that not everybody is looking to take on the headache of running their own shop. Some people just want to go to an established place, come in, close deals, get paid, and go home without ever having to deal with payroll, rent, people calling out sick, signing up with different funders, putting together and paying for marketing, etc... Can someone make more money going that route? Of Course. Does it mean that every good closer should quit their respective position today and go open up their own ISO shop? In an industry already saturated with ISO's, probably not.

[FUNd]

John, while you and I can agree with your comment, you also have to understand that not everybody is looking to take on the headache of running their own shop. Some people just want to go to an established place, come in, close deals, get paid, and go home without ever having to deal with payroll, rent, people calling out sick, signing up with different funders, putting together and paying for marketing, etc... Can someone make more money going that route? Of Course. Does it mean that every good closer should quit their respective position today and go open up their own ISO shop? In an industry already saturated with ISO's, probably not.

Totally agree. Huge pain in the ass.

[isaacdstern]

If he is that good I would be interested in speaking with him

here is my info

Isaac D. Stern – Chief Executive Officer
Yellowstone Capital LLC
Ph: (800) 955-2411 X 1060
Fax (888) 315-8546
Cell: (917) 743-8369
Email: Isaac@Yellowstonecap.com
www.Yellowstonecap.com

[AlexSMF]

If he is that good I would be interested in speaking with him

here is my info

Isaac D. Stern – Chief Executive Officer
Yellowstone Capital LLC
Ph: (800) 955-2411 X 1060
Fax (888) 315-8546
Cell: (917) 743-8369
Email: Isaac@Yellowstonecap.com
www.Yellowstonecap.com

Hi Isaac, I already gave him Avi Dahan's number but let me know if you want me to have him call you instead?

[isaacdstern]

Avi is great, perfect!

[jotucker1983]

John, while you and I can agree with your comment, you also have to understand that not everybody is looking to take on the headache of running their own shop. Some people just want to go to an established place, come in, close deals, get paid, and go home without ever having to deal with payroll, rent, people calling out sick, signing up with different funders, putting together and paying for marketing, etc... Can someone make more money going that route? Of Course. Does it mean that every good closer should quit their respective position today and go open up their own ISO shop? In an industry already saturated with ISO's, probably not.

Alex,

I agree with you in terms of the lower amounts of stress, but in reality, what is really going to be that much of a difference in terms of stress levels? He shouldn't have significantly high actual business expenses, he should be running at very high profits in this business because most of his activity can be done using a telephone and internet connection out of his home office. Most of the data he will need is free or at a very low cost. Setting up a website and having an email hosting account is about $10 - $15 a month.

- He should be able to go out and buy data (just like the current company does) and sign up for a web-based predictive dialer paying about $50 a month so he can just log-in and run through his calls.

- He can simply setup his own Funder Network based on Paper Grades, submit his applications through their Portal, and close his own deals. Plus he will have his renewals going forward which means if he builds up his portfolio to a particular size, he might say he will take off time from seeking new apps for 3 - 6 months and just live off his renewal deals (as long as his Funder has no new deal minimums).

- Plus, setting up his own office allows him to diversify to not just be selling MCAs, but also sell Processing, Big Data, Check Services, maybe Insurance, etc., as he pretty much will be calling on the same merchants anyway so why not have the other products there for cross-selling?

Again, it comes back to the point of eventually building up your recurring/residual/renewal portfolio to a point to where you can live off of it, without having to go out and produce any new merchant acquisitions. You are in fact building a business asset when you do this.

You can't do that being on W-2 for someone else.

I have always believed that in Professional Sales, if you can actually produce and the product/service you are offering doesn't have a significant high barrier to entry (for example, you can't just go sign up to be a Pharma Rep, but you can just go sign up to be an MCA/Merchant Services Rep or Insurance Rep after getting licensed), it makes absolutely no sense for you to be doing this level of production for someone else.

Going out on your own, you will make more money, pay less in taxes, contribute more to your retirement accounts every year (through having a SEP IRA), and eventually get to a point where you can live off your recurring/renewal/residual portfolio without going out and soliciting new accounts.

[AlexSMF]

Alex,

I agree with you in terms of the lower amounts of stress, but in reality, what is really going to be that much of a difference in terms of stress levels? He shouldn't have significantly high actual business expenses, he should be running at very high profits in this business because most of his activity can be done using a telephone and internet connection out of his home office. Most of the data he will need is free or at a very low cost. Setting up a website and having an email hosting account is about $10 - $15 a month.

- He should be able to go out and buy data (just like the current company does) and sign up for a web-based predictive dialer paying about $50 a month so he can just log-in and run through his calls.

- He can simply setup his own Funder Network based on Paper Grades, submit his applications through their Portal, and close his own deals. Plus he will have his renewals going forward which means if he builds up his portfolio to a particular size, he might say he will take off time from seeking new apps for 3 - 6 months and just live off his renewal deals (as long as his Funder has no new deal minimums).

- Plus, setting up his own office allows him to diversify to not just be selling MCAs, but also sell Processing, Big Data, Check Services, maybe Insurance, etc., as he pretty much will be calling on the same merchants anyway so why not have the other products there for cross-selling?

Again, it comes back to the point of eventually building up your recurring/residual/renewal portfolio to a point to where you can live off of it, without having to go out and produce any new merchant acquisitions. You are in fact building a business asset when you do this.

You can't do that being on W-2 for someone else.

I have always believed that in Professional Sales, if you can actually produce and the product/service you are offering doesn't have a significant high barrier to entry (for example, you can't just go sign up to be a Pharma Rep, but you can just go sign up to be an MCA/Merchant Services Rep or Insurance Rep after getting licensed), it makes absolutely no sense for you to be doing this level of production for someone else.

Going out on your own, you will make more money, pay less in taxes, contribute more to your retirement accounts every year (through having a SEP IRA), and eventually get to a point where you can live off your recurring/renewal/residual portfolio without going out and soliciting new accounts.

Cant argue with you on many points and I cant speak on his behalf. Maybe some people just dont want the responsibility. I dont question other people's motives or situations. In regards to building a book of renewals...well lets just hope that if you are an ISO then the funders you are counting on for the renewals are even in this industry 3 years from now. There will come a point where a form of regulation will come (as it should) and you will see a lot of people exit this space (as they should) I promise you that fill in the blank funding offering 3 month 1.46 in 5th position wont be staying for too long.

[MCNetwork]

Alex,
Going out on your own, you will make more money, pay less in taxes, contribute more to your retirement accounts every year (through having a SEP IRA), and eventually get to a point where you can live off your recurring/renewal/residual portfolio without going out and soliciting new accounts.

Having run my own ISO for four years and having now made the transition to work for an established funding company, I can honestly say that the stress is lower for me now and my income has gone up. Running an ISO shop is full of headaches and income inconsistencies. Not everyone would choose that lifestyle over a position with a salary w/commission and benefits (401K, health insurance, paid vacation, etc.).

[jotucker1983]

Cant argue with you on many points and I cant speak on his behalf. Maybe some people just dont want the responsibility. I dont question other people's motives or situations. In regards to building a book of renewals...well lets just hope that if you are an ISO then the funders you are counting on for the renewals are even in this industry 3 years from now. There will come a point where a form of regulation will come (as it should) and you will see a lot of people exit this space (as they should) I promise you that fill in the blank funding offering 3 month 1.46 in 5th position wont be staying for too long.

Yes, I totally agree that a lot of these fly by night companies coming in with business plans to gain "market share" through doing stacks won't last that long. Companies are starting to fight back against it through the legal system and rewriting contracts anyway, so the companies that rely solely on stacking won't last that long.

Having run my own ISO for four years and having now made the transition to work for an established funding company, I can honestly say that the stress is lower for me now and my income has gone up. Running an ISO shop is full of headaches and income inconsistencies. Not everyone would choose that lifestyle over a position with a salary w/commission and benefits (401K, health insurance, paid vacation, etc.).

My question though, is are you selling the same product, to the same market, using just about the same type of data? For example, I could see if the company was providing a product, or market data, or something else that gave them a competitive advantage to where it was pretty much exclusive to working for them and thus, the only want to produce such levels of performance is being their direct employee.

But if it's the same setup to where you have to go out into the generic market and figure out how to produce your own leads, then aren't you doing the same exact thing on W-2 that you would be doing on 1099 anyway, but just in the case of W-2 you are making less money with less control?

For example, let's look at a situation of a Solo Broker and a Broker House with many Brokers under one Brokerage Name. Let's say both situations will be pretty much the same (1099 v.s. W-2) in terms of the products sold, markets being sold into, data access, etc., as well as actual business expenses/COGS. Let's say the Rep goes out and does $3 million a year in funding with the average commission on that from the Funders being 4% paid to the Broker Office, so that's $120,000 in revenue that was produced. Let's say it takes $5,000 in total in terms of business expenses/COGS per year to produce this.

- On 1099, the entire $120,000 goes to the Solo Rep as gross, minus the $5,000 in business expenses/COGS, leaves $115,000 in profit before taxes.

- On W-2, the $120,000 gross commissions is most likely divided up to where the Broker House keeps let's say 40% of this amount, which is $48,000. The remaining $72,000 is paid out to the Rep in the form of salary, bonus, some benefits, and a portion of their FICA taxes paid.

Again, assuming the resources are the same, the Rep comes out well ahead if he just operated on a 1099 rather than a W-2. Plus the Rep's Fed/State taxes on that 1099 income would be lower than on the W-2 income, due to being able to convert a lot of personal expenses into business expenses, being able to contribute more into a SEP IRA with a hefty tax deduction, being able to utilize an HSA for another hefty tax deduction, etc.

Plus, on W-2, the Rep is going to have a quota anyway, so if he doesn't produce what's required he won't remain on the pay-roll that long.

Do you guys agree with this, or where do you think I'm going wrong?

[Lumoreno]

I totally agree with why work for someone else. He should just set up a home office if he doesn't want all the responsibility of running a shop. The overhead is very low and rewards are very high. I have tried both and there is no way I ever working for someone else again. No one will pay you 100%. Let's put it to you this way. I been on my own about a year. I fund maybe 5-7 deals a month. I am set up with about 10 direct lenders. I cold call Uccs and merchants out of my book and I do this all in my underwear with NO STRESS on my own schedule in my home office. I average about $11,000 -$12000 month in income but have had months that exceed $20k in commissions . I work when the hell I want to. Totally freedom and my wife and kids couldn't be happier. Lol!!. Why someone would want to work for someone else for lets say 25- 45% payout and a salary I don't understand. Not when you can simply do it yourself just like I do and make a hell of a lot more. Not if your a top producer or have a lot of talent in this game Remember NO ONE will pay you 100% and total freedom. Just saying

[anydealfunded]

I run a satellite sales office for a direct lender in Westbury Long Island with all experienced guys. Would love the opportunity to bring somebody else on board. Please pass him my contact info henry@trustcapitalfunding.com

[Chambo]

Hi Isaac, I already gave him Avi Dahan's number but let me know if you want me to have him call you instead?

now why would go and do that?

[AlexSMF]

now why would go and do that?

??

[AlexSMF]

I totally agree with why work for someone else. He should just set up a home office if he doesn't want all the responsibility of running a shop. The overhead is very low and rewards are very high. I have tried both and there is no way I ever working for someone else again. No one will pay you 100%. Let's put it to you this way. I been on my own about a year. I fund maybe 5-7 deals a month. I am set up with about 10 direct lenders. I cold call Uccs and merchants out of my book and I do this all in my underwear with NO STRESS on my own schedule in my home office. I average about $11,000 -$12000 month in income but have had months that exceed $20k in commissions . I work when the hell I want to. Totally freedom and my wife and kids couldn't be happier. Lol!!. Why someone would want to work for someone else for lets say 25- 45% payout and a salary I don't understand. Not when you can simply do it yourself just like I do and make a hell of a lot more. Not if your a top producer or have a lot of talent in this game Remember NO ONE will pay you 100% and total freedom. Just saying

LOL. Maybe because not everyone wants to wake up in their underwear and walk 30 feet to their "office." Some people would sacrifice the 100% commission in exchange for being in a real company. Not everyone was born to be their own business owner. Some people are employers, some are employees, and some are free agents who don't have any issues with waking up whenever they want and cold calling UCC's in their underwear. For example, can I personally set up a home office, buy leads, work my old book of clients, etc... and take 100%, yeah sure, but I promise it wont be long before that routine would start ****ing with me. Moral of the story is; to each their own.

[wallerbusiness]

the best decision I made was to branch out on my own. I hated the politics of corporate America but in loved the grind. now I close by myself 20 deals a month with out using ucc leads I just cold call everyday and bust my ass. 100% sounds good to me and feels good when you earn it.

[jotucker1983]

LOL. Maybe because not everyone wants to wake up in their underwear and walk 30 feet to their "office." Some people would sacrifice the 100% commission in exchange for being in a real company. Not everyone was born to be their own business owner. Some people are employers, some are employees, and some are free agents who don't have any issues with waking up whenever they want and cold calling UCC's in their underwear. For example, can I personally set up a home office, buy leads, work my old book of clients, etc... and take 100%, yeah sure, but I promise it wont be long before that routine would start ****ing with me. Moral of the story is; to each their own.

Alex,

I can only say that if both positions are going to mirror the same responsibilities, stress levels, performance levels and tasks (1099 v.s. W-2) then the 1099 one will pay more money and provide more overall benefits. I do realize though that some people are unable to perform the same on a 1099 as they would on a W-2, as working from "home" or "away from an office setting" can cause people to put forth less effort.

The only way I would work a Professional Sales position on W-2 though, was if that company had some sort of competitive advantage in terms of data, or networks, or products/services that I couldn't duplicate on my own independently. Such as working in Pharma Sales for example.

[FUNd]

the best decision I made was to branch out on my own. I hated the politics of corporate America but in loved the grind. now I close by myself 20 deals a month with out using ucc leads I just cold call everyday and bust my ass. 100% sounds good to me and feels good when you earn it.

20 deals a month cold calling all by yourself? You are officially the best salesperson in this space I have ever heard of. Congrats.

[MCNetwork]

edit

[MCNetwork]

20 deals a month cold calling all by yourself? You are officially the best salesperson in this space I have ever heard of. Congrats.

Lol. I've seen 10-15 man sales groups that couldn't close 20 deals in a month working full time on a dialer! This man is a prodigy!

[mcg168]

Lol. I've seen 10-15 man sales groups that couldn't close 20 deals in a month working full time on a dialer! This man is a prodigy!

20 deals/month as a 1 man shop is a SERIOUS number. Not sure how you would have any time to cold call with all the work thats necessary after the deal is submitted.

if your closing 20 deals in a month, you must have what, 30+ applications?

Maybe hes including renewals as well, which would still be an impressive number.