[Finance1]

I would guess the average comp breaks down as follows:

A paper - 3-6% total commission
B/C paper - 6-10% total commission
C-/D paper - 9-12% total commission

Blended all-in is probably closer to 8% unless you deal exclusively in lower tier paper. If you try to charge A paper guys 12% and you can get away with it, you can kiss that renewal goodbye.

Pretty spot on IMHO

[anonymous]

^ agreed

[WestCoastFunding]

We rarely if ever charge a PSF. It's mostly just an ethical thing and there is no right or wrong way to do it though. No judgement here. Are we leaving money on the table? Probably. Do we have higher retention by never charging fees off the top? Maybe.

Not charging a PSF is a good selling tool when in competition.

PSFs are a great way to cause a merchant to avoid renewing.

[FUNd]

Awesome to see you around FUNd, you are still missed.

I think that what this boils down to is that most people on the phones do not know how to sell to new businesses that are not already in the game (a large pool of SMBs frankly). They are trained to "close" - which means nothing really except shoehorning a merchant into some deal.

Some ISOs and some funders are in such a panic now that their brokers will be discouraged from generating deals or even staying in the industry that they will do or say anything to prop themselves up. Look how some of the loudmouths are changing their tune recently, and how the non-MCA crowd has taken the floor.

Not much relationship building, strategic partnering, multi-channel marketing going on. Not sure any of this is healthy overall, but we'll see.

Good to see everyone that's still plugging away HDF. Couple of things, Karen37a is an old-school hustler. We've had a couple of phone conversations. Further, and I think I've said this before, but most people don't want or don't know how to make effective cold calls and are simply not willing to put in the dials. This is why there are endless companies with the same job posting:

"Make 100K+ in your 1st year! Seeking motivated individuals to learn the fast-paced and very lucrative business finance industry! Our top rep made $17 billion last month, and we have the paystubs to prove it!"

What they don't tell you is that you have to schlep it for a couple of years and do nothing all day but drink coffee and dial the phone. You also better have amazing focus and energy, even on Friday afternoon on your 1800th dial of the week, because you never know when that 'yes' is going to pop. The business model in reality is for you to make contacts, burn out, and then quit 4-6 months in so a senior rep who's been there for 10 years can cherry pick your CRM when you are gone. Yes, this happens, and yes, it's on purpose.

[MCNetwork]

The business model in reality is for you to make contacts, burn out, and then quit 4-6 months in so a senior rep who's been there for 10 years can cherry pick your CRM when you are gone. Yes, this happens, and yes, it's on purpose.

The unfortunate fact is that this is the same model used by stock brokerage firms and any other industry that relies on high volume cold callers.

[Matrix1]

This is probably the most truthful thing I've read in here for a while now

[HDF]

Yes Matrix. And the other dirty little secret is that more than a few the direct funders could give a crap about most brokers. They rely on submissions and originations - but LOVE an untethered portfolio even better. Treat the little guy like crap, look the other way on back-dooring. The revolving door of failed/burned out brokers only helps them. (they thought). Now that it is nearing crisis mode, let's watch what happens.

[MCNetwork]

And "untethered" can be interpreted to mean that the broker is not responding to phone calls or hasn't submitted or closed any deals in "a while." Welcome to the industry!

[HDF]

^Yes. Gravy.

[happysales]

My month is shaping up better than I thought it would with several deals funded this week. A good March and an outstanding April for mid month.

[Karen37a]

I have 4-6 direct Funders who do give a (slight ) crap about me most do not run around saying who their best Lenders are because then their would be less money for our personal deals; too much competition as is. I think if you are fair to most (some )of the direct lenders you can establish a working relationship. Its when you are dealing with an under capitalized pretend ( or real ) Direct Lender that you get in trouble. And why should the Direct Lenders be loyal to stackers with defaults?. Each person and Iso is judged individually.

And welcome back Fund.... Ive aged 3 years in 6 months.

What Fund says is true....In the First mca company that I worked with( A paper ), when they fired someone , brokers would run to attack the desk to grab any lead, pens, plastic desk holders/files. It was like the reco scene in the movie Boiler room. I told the manager " can you tell me in advance so I can get to the desk and escape so i do not get trampled, or just get them the night before you fire someone and pass some of them to me or dont."

My opinion was/is the leads are worthless anyway because the guy that got fired couldn't pre qual correctly. . I can dial a UCC/yellow pages from scratch and get a better idea of the real picture ,( with out someone telling me they gave me a qualified lead then wanting money or a % of the sale). smh

Happy...business picking up as well for me.

[Matrix1]

This is how I look at it and probably the only reason why I'm sticking around. As long as you come in everyday and constantly plug away. You'll be fine. And what I mean by that is, as long as you always have something going. Applications going out, submissions coming in, getting approvals, not getting approvals, selling the deal, not selling the deal, deals coming back eventually, putting the tiles in every day. I understand that for some people the dialer isn't for them and I admit when I first got involved the dialer wasn't for me either. I put my cold calling time in with Stocks and then eventually I became the "loader" so getting back on the phone and cold calling was absolutely not easy for me in fact I hated it in the beginning because yes I was spoiled. But everything changed for me once I realized that as long as you put the time in and you always have something going you will be extremely successful in this business. Deals will be made and deals will be lost but deals will fund and it'll all be worth it. One thing I don't like about this business that was different with Stocks is that after you submit a file it's basically out of your hands compared to being a broker and you basically walk the guy to the bank. That's one thing I will probably never get over but like I said as long as you have something going every day you will absolutely be fine and the fact of the matter is I love sales so much that yes I probably will drop dead one day while I'm on the phone just like my mentor did.
RIP Ricky.. I saw a comment about burning out and of course I personally have my days when it gets a little rough but I also know that it's going to turn around and I'm going to get that merchant on the phone eventually get that deal funded. Even with all the backdooring and deals lost. Having said all of this, the bottom line is you have to come in and work work work close close close. Nobody can take away my positive attitude but myself, and that is never going to happen therefore no matter what I will always be successful and it just so happens that I love doing it in this particular business now and I hope it lasts for many many more years to come because I am very happy with what I'm doing and I'm very happy with who I'm doing it with and where I am so therefore I will continue to succeed and I'm sure most of you will as well

[CHAMP3]

This is the the truth. Our average client does over $500m in annual gross sales and has a 650 fico and above. Value based selling is lost much of the time in the"burned out" sales mentality.