[HDF]

From an ISO's perspective- our average rep makes $57k before bonuses, $74k all in. Top 10% are doing $120-140k yearly all in.

Marketing costs are the killer. Where, in general terms, do your top 10% get their leads or business from? Thanks for sharing, I hope new entrants are getting the picture.

[Fly]

Eh, this can be easily misconstrued. Your top 2-3 reps could be making $200-250k/yr, bringing that average of everyone else making 40k up big time. And this is strictly on MCA products? I think this makes more sense if you offer equipment leasing and other financial products as well. Unless the MCA rep is constantly fed a huge database of warm leads, it is really difficult for them to break 200k. On the flip side though, a good equipment leasing broker can build a book of business and easily make 200k+ but that requires at least a couple years experience to have the skill and knowledge to do that.

[jotucker1983]

While I can't speak for every office, most of the broker offices that I know of use the Glengarry Glenn Ross Model.

- In a particular month, let's say a broker office has 25 total reps, all on 100% commission.

- That broker office spends a good amount on marketing and gives the leads to the top guys on the board based on last month's production volume. Those guys usually represent about 5 of the 25 reps.

- The other 20 reps are required to randomly cold-call out of the Yellow Pages, or call on dead Aged Leads, or call on over-saturated UCC data. They are told to do this so they can "prove" themselves worthy to obtain the "good leads" (the Glengarry leads).

- What happens is that the top 5 guys on the board remain up there and have some sort of career staying power.

- While the other 20 reps go and come like a revolving door. The average of those 20 reps usually stay about 60 days before they quit and move on, with the broker office recruiting another set of 20 guys to replace the 20 guys that just left. Any production those 20 reps made will be minimal, and the broker office will keep the renewals and give them to one of the top 5 guys to manage going forward.

[Chambo]

Income inequality that is inevitable and self fulfilling

[skideeppow]

Wow, I guess i am doing pretty well.

[aredmond]

Well, I have to disagree with you here, $100k a year still puts you in the top 5% of individual income earners in the entire country as long as you aren't living in a high cost of living area where your purchasing power is significantly reduced.

Making $100k a year is special in any industry, but I surely would not say that's the "average" compensation being made in this industry across the board. I believe it's still the 80/20, where 20% of the people make 80% of the production as well as the bulk of the revenue/incomes. The other 80% of people can barely keep the lights on and can barely keep food on the table.



But if that top closer is getting fed leads all day from a $150,000 monthly marketing campaign, but Dylan is going to have to cold call random listings out of the Yellow Pages, he can work "hard" all day long, he will not come anywhere close to the level of performance and production of the guy getting fed inbound leads.



I agree, which is why I was questioning the comment of "talent and hard work" are only needed to succeed, with no prior information on marketing budgets, strategic networks, etc.

If $100,000 were the "average" income in this space, you wouldn't have the turn-over that we have nor would you have the extreme low barriers to entry that we have. Companies would hire internally and pay salaries only with bonus.

The 20% making a living at this are doing so due to some form of exclusivity that provides significant competitive advantages in the market, such as having large marketing budgets, strategic networks, etc. The other 80% can barely pay their utility bills.

Even though we technically have a low barrier to entry, there is indeed a high barrier to success in this space because it's only the select few on the 20% side that have the competitive resources required to making a living in the first place. So sure, the door is open to run on in here....but the door to actually make MONEY is pretty much SHUT at this point unless you are in that 20%.

Joe as much as I enjoy reading your thoughtful insights you were nitpicking a little too much here. I was just giving the young man some very general advice. When I said 100k is average it is. I was referring to people making 100k as a closer at a funding facility is average. 80% of the closers make that and much more here. Similar with a lot of shops that have their own inside sales teams. I wasn't incorporating ISO's because he said he is going to work for a funder.