While many entrepreneurs who discover the factoring and alternative commercial financing industries immediately picture themselves as a successful full-time industry consultant who has built a book of business and is enjoying an exceptional six-figure residual income, the reality is that most new to this exceptional industry and it’s many opportunities will need to start out slowly as a Factoring Industry “Referrer” or Sponsored Agent. In fact, there is almost no other way to successfully enter the industry since you will need to gain the knowledge (and confidence) to really excel as a commercial finance consultant.
Two Simultaneous Tasks
If you enter the industry with a focus on an eventual full time career, you will really be faced with two simultaneous tasks. You will need to develop…
- The product knowledge (and we’re not just speaking of factoring) so you can earn the respect of others in your community and be looked upon as a true “business finance consultant”.
- The business development skills so you can effectively market yourself to others so you can not only attract new clients but also build lasting relationships with others in your community that can send business your way.
Rest assured, virtually no one will enter the business development side of the factoring industry fully equipped to succeed from day one and there is no collection of college-level courses that can completely prepare you for industry success. In fact, you will need to start slowly and those can can be considered self starters or a member of today’s mobile creatives will find they are equally, if not much better prepared to succeed as a freelance broker, than any MBA or college graduate in marketing.
Additional good news is that the knowledge necessary to begin brokering factoring and commercial finance transactions is very easy (and inexpensive) to obtain with the assistance of the internet and some good ol’ fashioned work and perseverance. Without question, almost anyone can participate in our industry on some level. Some will strive for a full time career and develop themselves to achieve it. And…they will also enjoy the six-figure income that accompanies such success. Others, will become involved in brokering on strictly an “occasional” basis, often times simply supplementing their current career as a bookkeeper, an accountant, insurance professional, etc. Either way, it is very easy to develop some industry knowledge and enjoy the rewards of the factoring and alternative commercial finance industries. And no matter what your future goals…the place to start is usually as an industry “referrer” or Sponsored Agent.
What Can a Referrer Earn? The Story of Martha’s $42,000 Referral
A factoring industry referrer is typically an individual that has developed a reasonable amount of basic industry knowledge, is comfortable with that level of knowledge, and refers prospective clients to factors and others on what is simply an occasional basis. Referrers do little if any direct marketing and usually limit their networking adventures to current social media and clubs and organizations they already belong to. In other words, referrers do little to market themselves other than what they already do on a day to day basis. The business they develop is usually just the result of being in the right place, at the right time, and armed with the right knowledge. Take the example of “Martha” (a true story). And you may want to take note. Martha’s story IS NOT UNIQUE! This is a VERY typical example of what can be earned in residual monthly commission income by simply being in the right place, at the right time and armed with some basic factoring knowledge.
Martha, was a greeter in a community bank, doing little but answer phones and saying “Hello” to those that walk into the bank and past her desk. One day, an acquaintance of hers, who owned a small maintenance company, came into the bank to apply for a loan. The maintenance company provided pressure washing services to local area gated communities and, because the home owners associations and management companies were very slow in paying their bills for services, the small maintenance company was constantly cash-strapped and needed additional capital for payroll and growth. Unfortunately, because they had virtually no loan collateral and a poor credit history, the maintenance company’s loan application was declined by Martha’s bank.
After the decline, the acquaintance stopped by Martha’s desk to tell her about the experience. Martha, who had learned a little about factoring due to a presentation made to the bank by a local factor some months earlier, wrote down the factor’s name on the back of her business card, handed it to her friend, and instructed him to give the factor a call. She then called the factor and alerted him to the possible referral.
To make a long story short, the prospect made an appointment with the factor who accepted the maintenance company as a client and Martha became “broker-of-record” on the referral. She would now receive a 10% of fees earned commission as invoices were factored each and every month. And…the staggering results of her simple referral by writing the factor’s name on the back of her business card were this:
The Incredible Results of Martha’s Referral
Once the maintenance company acquired the services of the factor, it grew rapidly. The owner no longer turned down business from slow paying management companies. Instead, he actively marketed to them and month after month, dramatically grew his business. Within 12 months, he was invoicing over $100,000 per month for services due to the power of his new factoring arrangement. The maintenance company remained with and utilized the services of the factor for just over 7 years. During that 7 year + period, Martha was paid just over $42,000 in monthly residual broker commissions. For Martha, this was the result of a SINGLE REFERRAL.
Martha: A Simple Factoring Industry Referrer
Martha is a perfect example of an IACFB industry “referrer” or Sponsored Agent. She did NO direct marketing or specific networking to prospect for clients. To generate this account, Martha was simply…
- in the right place
- at the right time
- armed with the right knowledge
Unless someone is a complete hermit, anyone, and we do mean anyone, can duplicate the results of Martha with just some minimal training and the acquisition of some reasonable knowledge of what factoring is and how it can be used to solve the cash flow problems of many small business owners. Without question, becoming a simple “referrer” in the factoring industry can answer the question posed by many: “What is the Perfect Home Business Opportunity?”
How to Become a “Martha” or Referrer for IACFB
So virtually all industry commercial finance consultants start out as simple referrers with some subsequently developing the marketing and business development skills necessary to take their business to the next level as Commercial Finance Consultants. Other are quite happy remaining as occasional referrers and enjoying the fruits of “No Labor”. It is a right time / right place business opportunity that is second to none.
Becoming an industry “Martha” is very easy, and fortunately also inexpensive, with the assistance of IACFB or the International Association of Commercial Finance Brokers. In fact, through IACFB, you can become and industry referrer “Sponsored Agent” for around $100 and here’s how…
- SELECT A SPONSOR: By far the best method of entering the industry is to be “sponsored”. As a sponsored agent, you will have the support of a factor’s BDO (Business Development Officer) that will assist you in closing deals and eliminate any paper work. You, as an agent, can spend 100% of the time you devote to the business simply networking and building relationships with others.
- SIGN UP: Once you have viewed the profiles of the factors located on this website and selected one for your business, email the factor’s BDO and request sponsorship. The BDO will respond will respond by sending you a Broker’s Agreement and Promotion Code
- PURCHASE YOUR PROGRAM: With your factor’s promotion code in hand, follow the link to DataMax Hosting and purchase your program. Your factor’s promotion code will provide the current program discount.