As a business loan broker or if you want to become a business loan broker, today I am going to talk about the pros and cons of being a business loan broker. So I am Erik Johnson and I have been a business loan broker for over two years. Today, I am going to talk about my journey as being a business loan broker and the pros and cons.
Pros and Cons of Being a Business Loan Broker
So the first pro about being a business loan broker is obviously if you do it the way I do, you can work for yourself.
I set my own hours. I literally work two to four hours a day, and I do make a full time income with this.
But you are your own boss. So you have to get into a performance based mindset when you start out with this business, you are only rewarded from results, from getting businesses funded.
If you don’t get a business funded, then you’re not making any money.
So that is number one is that there is huge upside with being a business loan broker.
Best Free Business Loan Broker Opportunity
Another pro is it’s absolutely free to join as a business loan broker through us. There are programs out there that can cost 1000s of dollars, but you don’t have to join those.
My opportunity is absolutely free and I will leave a link under this article if you want to check it out. But it is absolutely free.
And you probably only need about four to six hours of training to know exactly what you need to do in this business to get going and off and running.
The other thing is doing this online, you get your own replicated websites. They are already done for you.
They’re designed and created for you as an independent agent and you get your own agent ID number that’s put into the URL as each page that you promote. People can sign up through your website and you can get credit.
First Only Network Marketing Business Loan Broker Opportunity
The other thing is you can build a team, a network of agents like yourself, and you can earn very hefty overrides on all of the commissions that they earned as well.
And this goes all the way down to infinity as many levels as you can build because this is a network marketing loan broker opportunity. Now it’s absolutely free.
So it’s not like some other network marketing company where you have to buy a product every month.
There’s no monthly autoships and there’s no paid training that you have to buy to learn this or to learn that it’s absolutely all free.
And there’s tons of training included in this program.
Life-Changing Income as a Business Loan Broker
So the next pro is that you know there is life changing potential here. The commissions do go all the way up to $180,000.
So if you’re at the top rank of our compensation plan, and you have built a team of agents, then you can earn a significant income.
You can earn not only up to 100% overrides on your team and their commission’s but you can also get up to 9% on business fundings.
We have a $2 million business cash advance so 9% of 2 million is $180,000. So that is the max you can earn. Not bad for a completely free loan broker business program that needs no college degree.
95% Business Loan Agents Won’t Do Anything
So let’s talk about the cons really fast. So the first thing again, this is performance based. So it all depends on what you do. 95% of agents do not do anything.
They can’t talk to enough business owners to get funding. So they drop out. The dropout rate is insane. So if you’re building a team, just know that.
It’s like the one percenters that are gonna stick around and you know, do anything with it. On the flip side of that, the good news is you only need one to four leaders on your team to make significant income.
In fact, last year, I only had maybe two or three people working in the business on my team, and I had a great Christmas. Let me just tell you that.
But, just know that if you’re building the team side of this, that 95% are not going to do anything and it can be frustrating because the people that join are so excited to get started and they’re enthusiastic, and they go through all the training.
Then next week, they’re gone. You know, it’s crickets and you’re like, hello, what happened? You were so excited. So you just have to know it’s a numbers game.
It’s a numbers game as far as recruiting and it’s a numbers game as far as talking to business owners. You might have to talk to 50 to 100 businesses a week.
Some people are doing that per day with cold calling. It’s a numbers game, you have to go through the numbers, and you have to get tons of applicants.
Automated Application and Underwriting
Now, the pro side of that is that we have an automated application that automatically redirects your client to the proper business cash advance program.
You don’t have to know, I mean, you should know the program details. But you know, when it comes to people applying to your application, know that they will be redirected to the right program.
You don’t have to switch them around or point them in the right direction. It’s all done for you.
Another pro is that we have a complete underwriting team that does all the right underwriting for you.
So if you’re an agent or broker already, and you’re faxing paperwork between your clients and the lenders and trying to get the right deal and do all of that. Know that this company does all of that for you.
You get an email, every time there’s an update with your client and the lenders as well. So you don’t have to call or fax or email anyone.
They’re going to email you every time there’s a status update with your clients. So it’s completely hands off. You can do this completely from home online.
But Another con is that you’re going to get a lot of rejection. There’s going to be a lot of business owners that say no thank you. They’re going to say no thank you because the interest rates are too high, or that they just don’t qualify.
Because these are business cash advances. They’re based on their business revenue, and if they’re not making steady revenue above our minimum requirements, then they’re not going to get the money.
Because these are no collateral, bad credit, sometimes no credit, business cash advances. It is all based on what they’re doing with their business every single month.
So you’re gonna get a lot of people that get declined from that. They might tell you one thing but then truthfully, their revenue is not what they say this and they get declined.
Then they get mad at you and say, I am doing 5000 a month with my business when actually they connect their bank account to the platform, and it only shows that they’re doing 4700 a month.
They’re not going to get qualified. So you have to realize that it is a numbers game and you’re gonna get a lot of emails that say sorry, they didn’t get funded.
You’ll get applications that don’t go anywhere – they just apply and then they disappear. On the flip side, what I do is I treat everything like a lead.
I mean, it’s not a real deal until I get an email that says it’s funded. All right. Other than that, all these emails are pointless to me. I’m not going to reach out. I’m not going to hound my clients or my possible clients, I’m going to move on.
It’s a numbers game. I get 20 applications a day minimum. And I’m not going to sit there and go, Man, I hope they get the funding. No, I will move on to the next one. It’s a numbers game.
You gotta just keep going and keep going. Of course you can increase your conversion rate by establishing friendships with your clients, with your business owners.
How to Build Your Business Loan Broker Business Successfully
The people that do the best and in this industry are the ones who know the most business owners, who need help and who need funding.
So if you’re starting out and you’re brand new and you don’t know any business owners, you don’t have any social media presence;
You don’t have a YouTube and you don’t have any money to run advertising. . .
You can still make money but you’re hitting the phones or doing something that’s free to talk to a lot of business owners because you’re not going to make it online, if you don’t have any networks.
You can go to the Chamber of Commerce, you can go into businesses, and use drop cards that we have in the agent Resource Center. You can do it for free, but you’re hitting the ground every single day and it’s going to be hard work.
How I Promote My Business Loan Business 100% Online
I do this all online. And I create content. I create videos. I have a blog for business loans, business advances, and it’s still going to be hard.
There’s weeks or months that go by without any funding and then when I do get funding the commissions are the best I have ever seen. So it is worth it.
But there’s going to be peaks and valleys and if you are not used to working for yourself online or offline, then it’s going to be a hard road.
But again, the income can be potentially life changing. You get one, you know a $20,000 commission that could set you up for the next three to six months.
So it’s worth the hustle. It’s worth staying in. And again, you do not need a college degree. You can do this right away. You can get off and running with just four to six hours of video training.
And you have all the websites already made for you. The application is automated, the underwriting is done for you. So I think the pros outweigh the cons by far so click the link under here if you are looking for a new opportunity, and thanks for reading.