Types of Industry Brokers
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Lesson 1.03: Types of Industry Brokers
As we already mentioned, the flexibility of the factoring and alternative commercial finance industry provides an attractive home-business opportunity for just about anyone that wishes to enter. Many brokers operate on what best can be described as an “occasional basis. Others operate full time professionally often investing more than the standard 40 hours be week. And, of course, there is everything in between. View the video at left and then learn more in the lesson below.
Types of Industry Brokers
As you contemplate entering the industry and launching a career, one of your first decisions is to determine what type of broker you will be or more realistically, how are you going to operate your business. Fortunately, there is room for virtually every type of operator in the factoring industry. For example…
Factoring Brokers (Business Blogging) The Perfect Solution for Home-Based Part Timers ($)
This is by far the fastest growing broker type in the industry due to the fact bloggers can devote as much or as little time each week to the business and they can operate on extremely low budgets. In fact, most brokers utilizing a business blog as their primary lead generator can operate for just their blog’s hosting fees. For IACFB members, this means almost “zero” cost since hosting fees are included in the IACFB subscription. In addition to operating on a shoestring budget, business bloggers…
- have immediate credibility as an expert
- can utilize affiliate programs to automate their brokering business
- can sell ads on their blog for additional income
- do not need additional productivity tools such as CRMs
- literally operate from anywhere
- have no set operating hours
- operate on a nationwide basis
- do not need to be accessible by phone 8 hours per day
- have almost unlimited theme choices (over 10,000)
Brokering factoring transactions through the publishing of a business blog is the perfect home business for those…
- with limited funds
- still needing the income from a full time “regular” job
- with limited mobility for face-to-face-networking (such as seniors)
In today’s internet savvy world, being a “blogger” gives you instant credibility as an expert in your field and setting up and operating a WordPress blog simply could not be easier. Additionally, because this group operates exclusively in the internet, they are, by default, nationwide and can comfortably generate leads and new clients from virtually anywhere.
Part-Time Factoring Broker (Networkers $)
For those that live in mid-size to large cities, the opportunities for networking abound and many brokers simply utilize this modest cost method of marketing for lead-generation and productivity. In fact, some of the most successful brokers in the industry generate 100% of their business by establishing referral relationships with local bankers, accounting professionals, and others. Additionally, factoring broker “networkers” come from both sides of the fence when it comes to hours spent in developing business. Many have a full time day job and choose to focus on after-hours networking opportunities. Other are more full time and will also spend regular 9-5 business hours calling on bankers and other professionals.
As opposed to those operating a business blog and having almost no expense, those focusing primarily on networking will have to have an operating budget for such things as:
- Memberships: You will definitely need to join your local Chamber of Commerce as well as one or two fraternal organizations such as Rotary, Lions, Kiwanis, etc.
- Entertaining: You will need to budget for lunches with referring sources (bank lending officers) and also after hours meetups.
- Transportation: You will be out most of the day and will need not only dependable transportation but also a vehicle that is acceptable for transporting others.
- Clothing: Your personal appearance as a “successful” consultant is imperative. You need to look the part when you meet with others
- CRM: For brokers utilizing networking, a CRM (Customer Relationship Manager) is essential. We highly recommend Pipedrive CRM.
Social media will also play a big part in those choosing networking as a primary business development marketing method. LinkedIn is essential as it is purely for professionals and is the place to build relationships with bank lending officers, CPA’s and others.
Full Time Career-Oriented Freelance Consultants ($$$)
Full time freelance consultants are the “elite” of the independent community of brokers. Freelance consultants tend to…
- operate on a full time basis often working more than a standard 40 hour week
- utilize direct marketing as well as networking for business development
- will operate an expansive “full product” website
- will represent many products other than factoring
- have a significant operating budget
- will always utilize a CRM to manage the business
- will be very active in networking with local bankers (lunches and after hours)
- may make the transition to micro-factor over time
Freelance brokers most often have come up through the ranks. They will start out on a part-time basis utilizing a blog or networking for productivity until they have developed enough commission paying clients to leave their current 9-5 job to begin a new full time career in factoring. Another common source of freelance career brokers are those retired from the banking or accounting fields with a reasonable pension income they can depend on while they slowly build their new factoring consultant business.
Part Time Local Professionals ($)
Another rapidly growing broker class is the “Part Time Professionals” group. This group is made up of local professionals such as tax preparers, bookkeepers, notaries, Quickbooks ProAdvisors, etc. that can benefit significantly from adding small business finance services to their existing vocation. Since most already network locally and have joined organizations, they have zero cost in adding the additional service other than training. Most will simply add “business finance” as an additional service to their existing website.
Unlike part time business bloggers who will have a nationwide focus, most local professionals choosing to supplement their income with factoring and business finance tend to stay “local” and do not expand their marketing efforts outside of their immediate locale.
Factoring Broker: The Perfect Home Business
With so many options, it’s no wonder that many look at consulting as a factoring broker as the perfect home-based business. With operating budgets as low as $10 per month for a typical blogger, there is a brokering niche for anyone and everyone in this unique profession.