From Consulting to Factoring: Why Marketing Spend Matters — Especially for Brokers

Robert McMahon Consultant Business Development Comments Off on From Consulting to Factoring: Why Marketing Spend Matters — Especially for Brokers
Factoring broker budgeting for marketing

In a recent 2025 survey of independent consultants, one striking statistic stood out: about 40% of consultants report investing $5,000 or less per year on marketing. Consulting Success® The same survey found that consultants who invest more — both in time and money — generally report substantially higher revenues than those who don’t. Consulting Success®+1

That trend is no accident. In service-based industries, marketing isn’t optional — it’s the lifeline that turns prospects into clients, and potential into stability. But what does this mean for professionals in the factoring brokerage space?

Here’s a breakdown of what the data shows, why it matters — and a strategy lens for brokers who want to scale.

What the Data Says — For Consultants (General Benchmarks)

  • 40% invest ≤ $5,000 annually in marketing. Consulting Success®

  • Many rely heavily on referrals: over half of consultants report that ~60% of their business comes from existing clients or networks. Consulting Success®+1

  • Those earning in the mid–to-high range ($300k–$3M+) tend to invest more in marketing consistently, maintain active outreach pipelines, and rely less on sporadic referrals. Consulting Success®

  • Lack of consistent marketing correlates with fewer leads, lower proposal win rates, and less predictable revenue. Consulting Success®+1

Meanwhile, broader small-business marketing guidelines suggest an effective marketing budget often falls between 3% and 12% of gross revenue, depending on goals and growth stages. Consultus Digital+1

Why That Matters for Factoring Brokers — Not Generic Consultants

1. Factoring Brokerage Is High-Touch, High-Value, Relationship-Driven Work

Unlike many consultants who may deliver one-time projects or short consulting engagements, factoring brokers sign on clients for ongoing, recurring commissions. Each client can represent years of income — but only if you can find and attract those clients.

This difference magnifies the value of marketing investment. A single high-quality lead converted into a funded factoring client might pay dividends for months or even years.

2. The Barrier to Entry Is Low, but Competition Is Growing

Because you don’t need specialized product inventory, big overhead, or substantial capital to start as a broker, many jump in — which means increased competition. To stand out, you need a consistent presence: web, SEO, content marketing, outreach, and follow-up.

3. Referrals Alone Don’t Scale — Especially As You Grow

Relying solely on referrals is risky. With typical consultant data showing that many get fewer than 8 calls a month — even with marketing spend — you need multiple lead-generation channels. Consulting Success®+1

For a factoring broker, stable growth often depends on a steady pipeline: new leads, outreach, repeatable marketing systems — not just word-of-mouth.

4. Factoring Clients Often Come from Cash-Flow-Stressed Businesses

Many businesses that use factoring — staffing companies, small manufacturers, contractors, service providers — are sensitive to cash flow, growth cycles, and economic cycles. That means timing, trust, and awareness matter. Marketing helps educate and build credibility over time.

What Factoring Brokers Should Use as Their Marketing Budget “Baseline”

Given what we know:

  • If you’re just starting out or operating part-time: treat marketing as a small investment — but aim for $3,000–$5,000/yr (matching many consultants) and use it smartly (e.g. content, SEO, LinkedIn outreach, referral building).

  • If you’re serious about growth: treat marketing like a business investment — maybe 5%–10% of your first-year gross revenue target. This mirrors small-business marketing benchmarks. American National Bank+1

  • Once scaled: if you’re handling multiple clients and seeking recurring income, reinvest a portion of revenue — perhaps 7%–12% — to keep your pipeline full, stay visible, and dominate your niche. Improvado+1

Smart Spending Beats Big Spending

Marketing isn’t about splashing money around — it’s about strategic, consistent investment that builds credibility, reach, and relationships over time. Experts call this measuring Return on Marketing Investment (ROMI) — making sure every dollar spent returns more in revenue than it costs. Wikipedia+1

For brokers, that means:

  • Prioritizing high-value outreach channels: LinkedIn, content marketing, networking, referrals.

  • Tracking every lead, conversion, and funded client to know which tactics perform.

  • Avoiding “spray and pray” — skip ineffective broad ads, focus on targeted messaging to businesses likely to benefit from factoring.

  • Scaling spend intelligently: grow marketing investment only as revenue from existing clients proves stable.

IACFB’s View: For Factoring Brokers — Marketing Is Not Optional; It Is Essential

The consultant-industry stats offer a cautionary tale — many consultants under-invest, and many remain stuck chasing referrals. In the factoring business, that approach is even riskier.

Factoring brokerage isn’t about one-time deliverables — it’s about building recurring income streams based on trust, relationships, and recurring cash flow needs from clients. Without marketing, pipelines dry up. Without leads, commissions vanish.

If I were starting a factoring brokerage today, I’d treat marketing as strategic capital — one of the best investments I can make. I’d build a modest but consistent marketing budget, test what works (content, education, networking), track results, and reinvest.

Because with the right approach, one well-positioned lead can become a long-term client — and that’s the power of factoring.