[jotucker1983]

Madison,

Okay, so I'm confused on the draw? So if your activity brings in funding of $300,000 and they charge 6 points on it for $18,000 then they will pay you $6,000 out of this amount? But they aren't paying you the $6,000 upfront, they are paying it to you over time in the form of a weekly $320 payment?

Technically, you are working on all commission right now anyway, why not just go open your own shop? I don't know what they are providing you that makes you want to only get paid 1/3 of what was made on the deal plus a $50 fee for producing the application package. Producing consistent, quality leads and applications is 95% of the battle here. The rest is having an efficiently structured Funder Network and then doing other things efficient in terms of managing your expenses, savings, etc.

Plus they have a quota assigned for you as well, so yeah, might as well just go open your own shop and bust your tail off for yourself just like you are doing for someone else. The only difference with your own shop, you can't be fired. Once you build your renewal portfolio up to a particular size and your Funder(s) don't require a certain level of new deal volume, you can sit back and just manage your renewal portfolio. Plus you can add in other services like bankcard processing, maybe insurance, etc., to increase the total amount of revenue you make and the amount of your recurring revenue portfolio.

[rick_clsfunding]

A draw is nothing more than an advance against future commissions earned. In the example above, his $320 weekly draw would be deducted from his $6,000 commission.

[MCNetwork]

So they don't give you leads? You have to make them? I don't see how you can possibly make money in this comp plan to survive.

[J.Celifarco]

the house only makes 3%? Dude, someone is lying their ass off to you

Chambo that is the biggest problem here.. The whole situation seems to start with lies about how much is made on the deal

[rick_clsfunding]

Yeah, but in his 3% example, he was referring to the Funding Circle. In his post above (http://dailyfunder.com/showthread.ph...ll=1#post28897) he mentions more realistic commission levels of 8%.

[ADiamond]

No salary as an opener
$50 a statement
1% of final deal commission

Is this fair?

so the $50 per statement applies like this?

if one package has 4 months of statements then you get $50x4 = $200 for that package, plus 33% of the total commission? plus $320/week

if that is the case then YES that is a great deal for an opener. Unless of course you mean $50 per submission received. I would ask what you can get if you close PSF's (app fees)??

You're young, you're fresh - of course there are better deals out there, but you need to look at the bigger picture. Is there room for opportunity? growth? advancing your position? raises, bonuses, ability to syndicate?

Where you're at now if you fund $60k per week in deals at an average of 8% commission, you're getting $1584 for the week, plus your $320 that's $1904 per week or $99,000 per year - not bad for a starting salary in an industry where eventually you will have no problem closing $60k in deals per week at least!!! that's $250k per month whereas I know some reps doing triple that. Plus you really should inquire about the app fees because they probably snuck that past you. Or the closer on the files is splitting that with the house. If a deal funds, you should get part of the PSF if you ask me.

look at the bigger picture then ask yourself if it's worth it. If you want a better opportunity then talk to a few guys on here, there are better deals out there.\

I make the lead, get paid 50 on a full sub (banks/app+plus any extra needed stips) then someone else sends it out, gets approvals and takes the wheel. I make 1/3 of what the house gets, so if 8 points i get 1/3 of that. By draw i mean im getting my future receivables from any commission i make on a funded deal. They don't want to give me a salary because then i become expendable to them if i don't make the quota

i'm sorry i just realized in your first post you say you make 1% of the total then later you say 1/3 which is 33%. so which is it?

[MCNetwork]

I think he means $50 per full submission (app, bank & cc statements).

[madisonwolf]

Excuse me i just realized i'm making 10% off the top of what the house gets. Plus zero salary.

[madisonwolf]

The crazy thing is i never heard of an app fee. I work at a start up, and the crazy thing is i have a good relationship with my boss. Stockholm syndrome maybe? I gotta say i really appreciate all the replies.

[madisonwolf]

Always in it to learn and advance so its nice to receive some other perspectives. Thanks guys!

[ridextreme]

I have a couple months but i'm a top statement getter.

if you're a top statement getter, pm me if your in new york and I'll make you a closer. Statement getting is the hardest part of the transaction. Closing is the easy part. You will be getting the file in, and then closing it.

[KTK]

Not sure a recommendation to start his own shop is the best piece of advice in this thread. But that said it is nice to see the industry vet's come together and help this gentleman out!

Congrats kid, you structured your question properly. In turn you got some knowledge passed down to you today! Many before you have come at it entirely wrong and got ripped to shreds in return.

My humble opinion, $50 a sub, 33% of the houses cut (with experienced reps closing on your behalf), and a draw to back you up on a slow week isn't to bad for a newcomer. Just don't sign any contracts and when you are comfortable closing deals yourself - lose the draw and request a bump up in commission.

[aredmond]

This is old school equipment leasing/business capital hustling. It goes back a long way. Many companies still operate with the business model of turn and burn. They can be spotted by the way they advertise for employment openings:

"Make six figures 1st year! We are seeking money hungry new grads with the burning desire to be rich, rich, rich!. Come work at our state-of-the-art office with free coffee and a pool table! We will teach you the business! Minimum wage to start but the commissions are unlimited!"

I have a bull**** decoder that I use, and when you plug in this job ad it translates like this:

"Come pound the phones and read a script 250x a day just like your counterparts in Indian call centers do! You'll find the interested people, and basically do the dirty work for our core group of sales guys who have been here for years. They will take the application from you, close the deal, make thousands for themselves, then throw you some scraps and a hearty pat on the back. Granted we know you will either burn out 3-9 months into the job or we will just find a reason to fire you once you figure out how it really works. Either way, it's a dead end for you, and riches for us. After you're gone, we will sweep your CRM for the gold you left in there and find your replacement who's fresh and hungry a day later. Best of luck to you!"

Hope this helps, and is exactly why I work for myself.

I laughed so hard when reading this tears began flowing. Funniest most accurate post I have seen on DF in awhile.

[champfund]

madison r u hot

[TRUMPcard]

On a deal with Funding circle for $500,000 SBA
I was told the house would make $15,000 and i would make about 5 grand. Mind i'm on a draw for $320 a week. I'm an opener. What is a fair rate for my services? Thank you all. (I'm very new to the business)

Please keep in mind that the commission structure with funding circle, dealstruck, and other lenders that offer longer "term" loans are completely and significantly different than that of a traditional cash advance lender/factor.

This probably explains it and pardon me if this was addressed earlier in the thread.

[Sean Cash]

Unfortunately yes. I'm very young, i think thats why i might be getting f***.

Get ready to embrace your inevitable transformation...

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