For New Brokers: Understanding the PAL Programs at IACFB

August 22, 2024 Robert McMahon Boot Camp, Learning Lab Comments Off on For New Brokers: Understanding the PAL Programs at IACFB
Factoring Broker closing a deal,

Over the years, IACFB has recognized two major types of consultants that come to us for support and training.  These are…

  1. Part-time referrers interested in exploring their opportunities.  They have discovered this exciting industry and its lucrative commission structure and want to get more involved as referrers, agents, bloggers, etc.
  2. Career-oriented entrepreneurs who totally understand the opportunities available to them and will work to achieve success as freelance factoring brokers and commercial finance consultants.

Since most entering the industry through IACFB are the former referrer types, IACFB has provided many program options tailored to you.

The Sponsored Agents Program (PALs)

The “Sponsored Agents Program,” much like it sounds, is a low-cost startup program that requires a “Sponsor.”  Your sponsor absorbs some portion of your training/support costs in turn for working exclusively with them when you submit SQL (Sales Qualified Leads).  As an agent, you have three (3) choices of sponsors…

  1. You have a factor that is an IACFB Lending Member.
  2. You have a professional IACFB commercial finance consultant developing his or her “agency,”
  3. You have IACFB itself as your sponsor

Choosing Your PAL Sponsor as a ReferrerFactoring broker training at IACFB

As a new industry referrer, I believe that all three choices have slightly different benefits.

  1. FACTOR as your sponsor:  How factors sponsor new agents are very different depending on the factor.  All factors that are IACFB Lending Members can provide basic training in factoring.  This is their ability to offer Registered Guest status at the Academy.  Other than that, support from an individual factor is usually based on productivity bonuses.  For new agents/brokers, the commission payouts are the HIGHEST when you are sponsored by a factor.
  2. COMMERCIAL FINANCE CONSULTANT (CFC) as your sponsor:  Professional commercial finance consultants often structure their business as an “agency” (Factoring 303).  This is obviously a powerful tool for these individuals, and agents act strictly as “lead generators” for CFCs.  Most referrers for CFCs will work with the CFC indefinitely.  Most will “subsidize” your entry into Factoring 101 training at the Academy.  Most will also create bonus programs when SQL leads to convert into clients.  Your commissions with a CFC are “shared” based on commissions earned and with each CFC program different.  Based on your productivity, you may or may not be provided with a standalone website.
  3. IACFB as your sponsor:  IACFB has various elements for this program depending on how you enter this program.  You can..
    1. Enter as “Referrer” under the IACFB Partners Program with IACFB actually being the operating partner.  This only requires IACFB membership.  You are provided dedicated pages without cost (no hosting or domain fees) featured in the Partners Program website.  Referrers under this program are limited to ten (10) in any location.
    2. Enter as an actual standalone Sponsored Agent with domain and website.  These are unlimited.  Domains and hosting fees are provided by IACFB based upon your productivity
    3. Commissions are earned on a sharing basis with 50% earned for standard referrers and 65% earned for those with standalone websites

Are These Programs Apprenticeships / Internships?

Virtually all those electing to enter IACFB Academy under any of the above programs can look at them as internships or apprenticeships, and that is simply because all of these programs only require you to generate leads.  No matter which you select, you will always T.O. (turnover) a lead to your sponsor, who will determine if the deal has merit and then actually close the deal for you.  Referrers and Agents ONLY focus on networking. Most are done through LinkedIn as a Social Media and Chambers of Commerce using their after-hours face-to-face get-togethers for local business owners.

How to Get Started and Find Your Sponsor

You can always join IACFB and begin training, but if you are seeking a sponsor to provide free or discounted training, the easiest method is…

  1. Place an ad on LinkedIn:  Simply place an ad on IACFB’s Broker Group stating “Agent Seeking Sponsor“. All agents need to join LinkedIn, and since joining is entirely FREE, there is no reason to waste time.
  2. View Factor Listings on the Lenders Directories:  Factors that are actively building broker networks will advertise under the “Details for Brokers” information area.
  3. View “Factors Showcases” on the IACFB Magazine.  The majority of factors with showcases also have Registered Guest privileges for their new brokers.