Broker Paying Good Commissions

[arlood]

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Hi All,

I am running a credit brokerage dealing with secured loans, commercial finance, development finance and debt management. We receive all our business from mortgage advisors and financial advisors. We have access to all the lenders in the market and some privately funded companies that accept deals that the major lenders are turning away.

We are offering:-

Secured loans
55% of all commission received. (lender commission and fee)

Debt Management
50% of initial set up fee. (this can be one or two months payments dependant on case)

Commercial / Development Finance
Each case is discussed on its own merits. (we have many lenders including private funders)

We are not interested in paying for leads upfront as we have been stung before with a few companies who promised the earth and delivered nothing but very very poor quality leads.

We have been in the industry now for ten years and have built up a good relationship with many introducers.

If you would like any further information on products and what we have to offer, please pm me and i will send you further details.

Thanks,

Carl.

[RPearson]

Carl,

If your wanting to entice good affiliates you need to pay good prices.

Re your DM Offer:
Any affiliate can go to the majority of DM companies (e.g. Baines & Ernst etc etc) and get 100% of the setup fee + a decent % of the ongoing management fee.

Don't generate Loan or Commercial leads so can't comment? Sure other affiliates/members can though?

Cheers
Rob

[arlood]

Hi Rob,

I have heard 'not so good reports' about the mention company. I have also heard of companies charging very high set up costs to the customer in order to pay brokers higher commissions. Some brokers/introducers like this as they make good money even though the customer is paying over the odds to set up the plan and paying over the odds per month to keep the plan going.

What do they charge by way of a set up fee?

How do they make money if they give 100% of the fee away?

Do they charge the customer large monthly management fees in order to make money on the application. I doubt they are in business for fun?

Carl.

[RPearson]

Setup fee to the client is 100% of the first payment with a token payment made to each of the client's creditors.

On-going monthly management fee is 17.625%.

No they aren't in business for fun, they have been established for over 10 years.

Out of interest, How long has your business been established?

Cheers
Rob

Also forgot to mention, they are members of DEMSA - Is your company? (Just trying to get some background info on you)

[arlood]

I ve been established for ten years also, arranging secured loans and commercial finance. We have been doing debt management now for three years and it has been progressing nicely.

I know baines and Ernst have been around a while but the reports i have heard are not all positive.

My offer is as stands and seems to be a good offer for my introducers who like you say can go to larger companies offering 'maybe' better commissions but they know that the customers they give me will be dealt with professionally and correctly and not charge over the odds. They are obviously happy with the service given or they would not keep referring business to me.

If you type in Baines and Ersnt complaints on Google you will see for yourself that they are not as GREAT as you are making out.

[RPearson]

What's your typical conversion rates on PPC/internet generated leads?

Thanks,
Rob

[arlood]

we never spend money on leads or PPC. All of our business is introduced via IFA's or Mortgage brokers.

Thanks,

Carl.

[RPearson]

Let's assume you have a 50% pack-out rate and a 40% pack-back and pay rate.

100 Leads in
50 packs out
40 packs back
40 paying clients gained.

Average DI £150 / Giving me £75 per completed case. Giving me a total of £3,000. Plus majority of clients will pay in 1-2 months time depending on date of enquiry.

Now - Lets assume min debt amount is £4k, client has 2 creditors and £100 DI...

If I had sold all 100 leads to AMS I would of made £3,900. There merchants dont reject over 20% of leads sent to them, giving me £3880.

So I would be £880 better off...not to mention if one of your sales guys comes into work hungover - That will effect how much commission I receive also...

As a company, Why aren't you prepared to pay good fixed fees per lead as apposed to back-end only?

Whats your company name?
Whats your web address?
Where are you based?

:tup
Rob

[arlood]

simply because we have been stung by several companies who offered 'good' leads which turned out to be rubbish. We do not need to spend money on leads as the leads we do get are free and of 'excellent' quality due to the fact that they have come from a reputable source being the customers financial advisor or mortgage broker.

This in turn means that the leads we do get have a very high conversion rate for a loan or debt management.

We do not have large numbers of staff and are a small credit brokerage run by myself and colleague so

a. We do not have the manpower to cope with going through many leads in order to find the good ones

b. We have no need to as we are doing well the way we are currently working. Why change what is working for you?

I dont really come on here to justify why i am offering what im offering and get into long winded conversations about us not paying enough commission. Many people use us and like what we do. If people like what we have to offer then they will use us.

You obviously dont like what we are offering and thats up to you......

We are based in South Wales, One office (myself and colleague) in Cardiff and my office in Newport.

[RPearson]

I'm just struggling to understand why you wouldn't go to a network where they will source trusted affiliates on your behalf.

You say you have never dealt with Internet/PPC generated leads but yet you are on a forum what was created to discuss Internet generated leads? I was simply explaining that the majority of good affiliates prefer fixed upfront fees.

I dont understand why you still seem reluctant to provide information on your company (e.g. The company name).

Rob