Without question, the opportunity for the average person to earn residual fees and commissions simply by referring a cash-strapped small business owner to a factor for financing is astounding. For most, to do so takes virtually no training, other than to have the most basic knowledge of the factoring product. In fact, the most important aspect of this type of “middleman” transaction or, as it should be phrased, opportunity, is to simply know that it exists. And the basic knowledge required to participate and earn referral fees is easy to come by…if you know where to look. So if that’s the case, and it is, why aren’t there more professional factoring brokers operating in the U.S.? Well, to answer that question, you have to understand what it takes to be a successful independent freelancer in the industry and that will bring us to a discussion of what is the difference between a true Freelance Factoring Broker / Consultant and what is a simple “Referrer”. To understand what characteristics are common to successful freelancers in the factoring industry, you also need to know what makes any independent freelance consultant successful. Because they are one in the same.
Characteristics of a Freelance Factoring Broker / Consultant
Freelancing is generally exploding and not just in the U.S. Recent research shows that a rapidly growing number of workers are abandoning the W-2 workforce and have exited to the world of freelancing. And while once thought of as something people did while they were between jobs, that is no longer the case. In fact roughly one half of all freelancers enjoy their lifestyle so much that they say “there is no amount of money” that would get them to stop freelancing and return to a 9-5 job.
Successful independent (also called “freelance”) consultants enjoy almost everything people strive for from their careers:
- Good pay and financial security
- Complete freedom and personal independence
- Socially impressive career and job title
- Personal fulfillment and satisfaction
And to put some icing on the cake, the money is actually very good if you’re in the right niche (and factoring is certainly the right niche). Unlike most careers, you don’t have to hit the top 1% to become financially successful as a freelancer. A Nation1099 poll reported a few years back that nearly 20% of all freelance consultants earn more than $100,000 per year.
So the business of freelancing in general is good. And the business of being a freelance factoring consultant can be great. But what type of individual makes a good freelance consultant, or a freelance factoring consultant in the first place? What are the traits you need to enjoy this enviable lifestyle? Here are three (3).
- HARD WORK: While freelancing gives you maximum flexibility when choosing where, when, and how to work, it does not give you the flexibility to be lazy. In fact, to be successful as an entrepreneur means you are likely going to need to work well over 40 hour weeks. List building, cold calling, giving presentations, networking, relationship building, organizing, developing marketing materials, etc. all takes time…and lots of it. The journey is worth it. But be prepared.
- COMMUNICATION SKILLS: As a freelance factoring consultant, you are going to need to sell yourself and you capabilities. You are going to need excellent communication skills and that means not just over the phone, but you’ll also need to master a plethora of other communication tools, such as Skype, online meeting / webinar platforms, more.
- PERSISTENCE: If you’re the kind of person who gets easily discouraged when challenged, then freelancing as a factoring consultant will simply be too difficult for you. To win clients and earn our industry’s legendary commission income, you have to be persistent in marketing and tenacious in organization
Freelance Factoring Consultants are, without question, entrepreneurs on a mission of success. But very few enter the business with the necessary skills required for that success and to earn that six-figure income that comes with it. Those skills must be developed and the one that is the most difficult is persistence. Too may entrepreneurs that enter this exceptional profession lack the will to stick with it and reach their potential.
Characteristics of a Factoring Referrer (Sponsored Agents)
But while reaching the $100,000 plateau as a true independent freelance factoring broker may be simply too difficult for some, just the opposite is true of “Referrers” and that is because Referrers, or what we at IACFB call Sponsored Agents, do almost nothing that can be considered special. They are opportunists. They are simply individuals that give themselves the “opportunity” to be in….
- the right place
- at the right time
- and armed with the right knowledge
Referrers are those individuals who invest the time to become exceptionally knowledgeable in factoring…and only factoring. And then, they do nothing out of the ordinary. They…
- are still very active on social media
- go to their normal organizational meetings (Rotary, Kiwanis, Lions, etc.)
- go to sporting events and support get togethers
- are active in their community
- spend time with friends and family
- go to clubs, restaurants, etc.
Referrers DO NOT cold call. They DO NOT spend money on direct marketing campaigns, they DO NOT build lists for prospecting. Referrers (agents) require only four marketing tools…
- business cards
- a landing page or website
- an offer (free booklet or report on factoring)
- a blog
Referrers are why we say that anyone, and we do mean anyone, can earn factoring commissions and benefit from spending a few hours learning about factoring. And this is especially true due to the exceptionally low cost of training and support provided by the International Association of Commercial Finance Brokers (IACFB). Want to find out more? Click the image of “Amanda” and view her Case Study.