Polls of factors and alternative commercial finance lenders continue to evidence that roughly 50% of all new clients for their services are generated through some form of networking and all successful brokers are aware of the need to build relationships with lending officers, accounting professionals, and others. Few brokers, however, actually develop what is likely their most powerful networking opportunity. That is, few develop their business under a true “agency concept” and create a Factoring Broker Agency.
Though not a marketing campaign in the traditional sense, devoting time and effort towards the creation of your own “agency”, made up of independent “referrers” who will send leads and business your way, is one of the most productive business development programs career-oriented factoring brokers can undertake. Meeting traditional sources of referral (lending officers and accounting professionals) in your local community through networking takes much time and effort. Building quality relationships with them takes even longer. New brokers will need to attend many networking events over many months just to begin that process. Wouldn’t it be great if you could just “advertise” for network members? Well…actually you can. And… it’s relatively easy to do so when you decide to create, construct and develop your own network of nationwide sub-broker agents.
Creating an “agency” is similar to creating a “down line” in multi-level marketing and can mean enormous commission dollars for those that take the agency concept seriously and invest the time to develop it…professionally. As opposed to most marketing campaigns that require significant dollar output, building an agency can be completely “cost neutral” or even be a positive revenue generator when utilizing “agency building programs” such as the “Sponsored Agent Programs” supported by the IACFB (International Association of Commercial Finance Brokers).
The Agency Concept: Formalizing Your Referral Network
For the most part, you’ll find candidates for your agents program to be individuals seeking to develop some kind of part-time, income from a professional home business. And the great news is there are literally millions of such people, in today’s America, looking for an opportunity just like you can provide. The problem most such candidates have is that they currently work a regular 9-5 job so they are limited to a great extent in their home business choices. Becoming a referral agent for you, however, can fit perfectly into their schedule, as much of their work will be performed after hours networking locally or on social media and strictly on an occasional basis. To formalize your agency, you will simply need to provide each agent with…
- some basic training in factoring and business development
- a basic factoring broker website or special landing page within your own site
- the ability to “piggy-back” on your periodic orders for marketing aids (brochures, flyers, mail stuffers, etc)
- a project / goal to work towards each and every month
- access to you for periodic conference calls with prospective clients
Basic training in factoring and business development for your agents is easily provided with IACFB’s training guide…Factoring 101: A Brokers Guide to Factoring which is available from Amazon.com or through IACFB’s DMS WebHost. This 5-star rated training guide is extremely comprehensive and provides virtually all the necessary training required to make your new agents productive.
Agent Website, Domain, and Landing Page
If you have the ability to design and create a small website and “clone” it for each agent, you will be well ahead of the game. A ready alternative is to utilize the pre-packaged Sponsored Agent Landing Pages available through IACFB for it’s network of Factoring 101 Freelance Brokers who subscribe to Business-in-a-Box marketing Support . An additional benefit of the IACFB program that your agency development efforts will actually become an immediate “profit center” for you business due to IACFB’s lucrative Trophy Awards System.
Piggy-Back on Orders for Marketing Aids
When ordering marketing materials in bulk, make certain you notify all of your agents so they can “piggy-back” on your order. Typically, most agents tend to spend 100% of their time using social media and networking for leads. There are exceptions to this rule, however, where your agents may want to utilize direct marketing through mail, cold calling, etc.
Monthly or Quarterly Project or Goal
For many home business seekers, one of the primary reasons an agent relationship with you is more attractive than a standalone freelance factoring consultancy is that they just do not have the time to develop and implement their own marketing campaigns. Their 9-5 day job simply prohibits it. They do, however, have time to “bird dog” for you and assist you in your marketing campaigns.
So as a “sponsoring”, you should always have a planned event your agents can work with you on. An example of such an event is an informative teleconference on factoring for business owners. Schedule your event out 30-40 days in advance. Use your agents to help you “fill the seats” and provide small, immediate awards to those that supply the most attendees.
Access to You for Conference Calls
When your agents develop a quality lead, they will often want to “bring in an expert” to impress that lead with their abilities. That “expert”, of course, is YOU. Make certain you are available during normal business hours to take such important calls immediately.
Commission Sharing Arrangements
Most career factoring brokers that utilize the agency concept will share commissions on a 50% – 50% basis with their agents. They will also provide periodic contests and incentives to keep their agent engaged. Promotions do not need to be large, usually with a value less than $100. They should, however, be based on productivity, such as rewarding the agent that is responsible for the most attendees at your next guest speaker teleconference or the agent that generates the most leads within a specific period of time.
Where to Find Quality Agent Candidates
There are thousands of productive locations where you can place ads for agents both online and off. Well known platforms such as Craig’s List can readily by used and ads placed in such online opportunities can be formatted to primarily advertise for clients, but then supplemented with an “Agents Wanted” addition below your classified’s main ad body. Spreading the word on social media can quickly go viral as you tell everyone you meet or that follows you to “tell a friend” about your unique home-business opportunity. There are very, very few home-business opportunities that can compare with commercial finance consulting (factoring broker) especially considering the ability to work this business from any place and at any convenient time.
Using IACFB’s Pre-Packaged Sponsored Agents Program
One of the most convenient methods of building an agency is to simply utilize IACFB’s Sponsored Agents Program, which for around $40-$50, provides your agents with…
- TRAINING: access to special agent training areas located in the IACFB’s expansive training Campus
- LANDING PAGE: a professionally designed lead-generating “LANDING PAGE” inserted within the Factoring 101 Freelance Broker’s website
- LOW COST: The Sponsored Agents Program at IACFB has a setup cost of just a one-time setup fee of $39.95 per agent which includes the insertion of the agent’s landing page, installation of lead capture form, and setup of training access through IACFB’s Factoring Broker Forums. An additional fee of just $10 per year covers the agent’s domain related business email.
The IACFB program completely supports your agency build and eliminates the need to spend countless hours on setup and functionality. Additionally, the IACFB Sponsored Agents program provides “trophy” prize/award opportunities as you build your agent networks.
Want to Comment on This Article?
If you have questions or comments regarding this article, post them in the Commercial Finance Consultants Magazine “Comments Section” on the Factoring Broker Forums. If you are not yet an IACFB registrant, you can join the community by simply registering at the IACFB’s public website at www.iacfb.org.