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10-15-2015, 05:55 PM #1
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The Article is Bull**** in my opinion. Meir hired me and gave me a shot. Today i own a direct lender and an iso with 30 people - I'm living the dream. Its the same thing when people complain about DG over at YSC, guy gave me a shot along with Isaac and I made more money than i could've dreamed of at that time. Sp my hats off to all the success stories in this little business of ours. "this thing of ours'
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10-15-2015, 06:19 PM #2
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10-07-2015, 01:59 PM #3
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Man, I was 20 Making 4-6K a week when I was at 2nd Source. Everyone always tries to slander them but Yankee and Meir gave me a job with basically no experience at all. I'm sure they did dirty, but people made lots of money at that company. Too bad they were consumed by greed. I learned the game and got out just in time.
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10-07-2015, 02:21 PM #4
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Rich, idle minds are a devil's playground. These guys were bored and they obviously have some sort of agenda. We'll just have to stay tuned...
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10-07-2015, 02:56 PM #5
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Great Title to same article - Poor Hasidic Jews Turned Wealthy Cash Advance Guys Wonder If There’s More To Life Than “Golfing And F*cking Beautiful Ladies All Day” http://dealbreaker.com/2015/10/poor-...adies-all-day/
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10-07-2015, 04:17 PM #6jotucker1983Guest
I think the author of the article did all he could to spin this to make it out like these guys were the Wolf of Wallstreet, but the reality is that they were not selling penny stocks to people, they were selling merchant cash advances to merchants who knew exactly what they were signing up for.
I wasn't selling this product back in 2006, but I'm sure if I was back in 2006 I would have been making $20,000 a month as well lol. The market was wide open back then, today, we are saturated as hell and making $20,000 a month consistently will be difficult unless you have a team of people you are getting over-rides on.
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10-07-2015, 04:20 PM #7
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10-07-2015, 04:51 PM #8
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10-07-2015, 05:03 PM #9jotucker1983Guest
Lol, listen maybe it's time for me to move to wherever you guys are and consolidate my efforts into the larger firms. I have been hearing about this for sometime that I need to stop being so "independent" and link up to some of the guys in NYC for example, I've just been stubborn and doing my own thing.
But yeah, I've had great months but never consistent $20,000 months. But again, I'm just one guy with a limited marketing budget as well. I make enough to be middle class in a nutshell, at least for now.
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10-07-2015, 05:40 PM #10
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$20k/month is def much more attainable in todays market then it was in 2005/2006. Getting paid 10 points commission on a 1.30, 12 month deal is the norm today. Back then your only option was 7 months, 1.3526 (to be exact) and that would be 4/2.
Keep in mind - without any competition, theres no UCC's to call either, you really needed to cold call and network. Some people today would be so incredibly lost
Also - strange that the author of the article makes it seem as if Second Source were the founders of our industry and CAN is a new player on the block.
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10-07-2015, 05:59 PM #11jotucker1983Guest
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10-07-2015, 06:43 PM #12
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10-07-2015, 05:14 PM #13
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Hey a lot of people would rather make $10k a month and be master of your domain and own your own schedule than make $20k a month and deal with the drama and pressure of being another cog in the wheel. The grass is always greener on the other side until you find out it's artificial turf. You just have to do what's best for you.
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10-07-2015, 07:51 PM #14
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You must be selling 9% money because 2-5% commission is awful for cash advances.
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10-07-2015, 08:13 PM #15jotucker1983Guest
My pricing is usually the premium products, the typical 1.12 - 1.18 for 6 months, 1.20 - 1.25 for 12 months give or take.
I think the highest I have been paid on a deal was 6 points. I would say my collective average has been 3% with the range being 2% on the low end, 5% on the high end.
It's been my range since I started selling the products around November 2009.
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10-07-2015, 08:23 PM #16
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Pearl Capital founders Bloomberg piece by Zeke
^^ that is extremely low. You do know you can charge more easily and not even be close to industry average right?
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10-07-2015, 08:26 PM #17jotucker1983Guest
Yes, I agree. The clients I have renew a lot so my focus was on giving them good pricing that was competitive, to create that long term relationship. I have guys that have been renewing straight back to back since 2010.
But I'm going to take what you guys say under consideration because we all can be more profitable right?
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10-07-2015, 08:50 PM #18
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Pearl Capital founders Bloomberg piece by Zeke
jotucker1983 - are you independent? Seems like you have been around a while. I also pride myself on getting my merchants the best possible rate out there but I find when I do that there is room for good margin still if I did my job correctly and really analyzed his particular merchant and got him the best possible rate. My #1 goal is renewals and doing right by the merchant but I think you can do that and still not leave so much in the table.
I would love to know how your renewal rate this year compared to your previous years in the business. I bet the rate at which merchants renew is lower than ever before like most of he industry despite your minimal fees and doing "right" by the merchant.
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10-07-2015, 10:33 PM #19jotucker1983Guest
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10-07-2015, 09:42 PM #20
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Selling a 1.12 isn't exactly salesmanship. Anyone can sell a low rate, even if you suck at sales. The guys who can sell a five month 1.40 with closing costs and have the merchant still come back for more? Now THAT'S salesmanship!
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10-07-2015, 10:25 PM #21jotucker1983Guest
MCN,
That's a good point and I won't lie because, I have done deals like that before (5-6 month 1.40 - 1.45).
I just don't like to do deals like that unless it's a "special condition" merchant like one that's D paper, a case-by-case higher risk side 2nd position, etc.
I wouldn't sell that to a merchant in an A or B paper category because I don't think that's a good deal. I usually always try to put the client first, the lender second, and myself (in terms of my payment) third. This usually gives me the 2% - 5% range in compensation per deal that I talked about, not in the 10% range.
But I'm currently in a form of restructuring on my side anyway and more "profit" is always a good thing as long as it works out for all parties.
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10-08-2015, 07:35 AM #22
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Joe buddy
There are A lenders paying 18-20 points. now of course sometimes you have to down sell but 13 % should be the average now .as for rewneal you can drop then and have a happier client that they see that keeping the relationship good will keep on getting them better pricing.
Good luck
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10-08-2015, 06:26 AM #23
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The funniest part of the article far and away is that the price in the article is nowhere near accurate. They actually got around $17Million total, not bad but makes no sense to me why they sold considering Pearl was doing so much business back then. Either way it sounds like these 2 fellas are living the life while the rest of us continue to work 70 hours a week
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10-08-2015, 07:34 AM #24
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Pearl Capital founders Bloomberg piece by Zeke
Word
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10-08-2015, 09:26 AM #25
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I agree. Your average commission should be in the 8-10% range and you'll still be selling fairly competitive factors. It's tough to keep food on the table getting 3-5% unless you have a pretty large pipeline or your average deal size is above six figures. If not, then it's all about volume and you'll be working yourself like a dog if you're a one man show.
Last edited by MCNetwork; 10-08-2015 at 09:29 AM.
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