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11-10-2015, 05:44 PM #1
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11-10-2015, 06:07 PM #2
Interesting comparison. Why would 3 renewals at 4 points be more valuable than 1 renewal at 12? I understand for a syndication portfolio it is more valuable to have diversified risk, but why would it make any difference for a broker, seeing how it is the exact same revenue with less work?
Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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11-10-2015, 06:11 PM #3
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11-10-2015, 06:16 PM #4
How do you mean?
Our renewal rate is through the roof because we can just drop points and secure it (since we sold it high, it's easy to come down and win the business again). Not only do we make more on the front, but also on the back. I think my model might be more effective than what you're referring to.Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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11-10-2015, 08:22 PM #5
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11-10-2015, 06:52 PM #6
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11-10-2015, 07:45 PM #7
- Join Date
- Sep 2012
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- New York, NY
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- 1,780
Exactly. That's why 3 deals at 4 points each is worth more than a single deal at 12 points. Although the upfront revenue is the same, your risk is diversified and you have more income opportunities with 3 merchants versus 1 when it's renewal time. If you lose 1 of the 3 in the future, you can still earn 8 points on the other 2 when they renew. If you lose the 12 point guy down the road, you're screwed.
Last edited by MCNetwork; 11-10-2015 at 07:49 PM.
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11-11-2015, 08:43 AM #8
- Join Date
- Oct 2013
- Location
- New York, NY
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- 1,203
I have always thought that the best way to stay in the game is to keep merchants around, they wont stay around if they get bashed over the head. Give me 5 10K deals over a 50K deal every day of the week. If just 1 of those renews 3-4 times that's a solid win for me, my ISOs, my syndication portfolio and my underwriters.
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