Getting Creative with Cash Flow
Tuesday, 23 March 2010 10:50
Articles - Sales and Marketing
877.882.4368
In a recent article for The Reverse Review, Michael Banner proclaimed, “…frankly I was tired of hearing that ‘reverse mortgages were just for poor people’ or that ‘it was a product of last resort.’” I couldn’t agree with Mr. Banner more!
My business is commission advance and we’ve heard similar stereotypes that usually emanate from people who have never used our service before. Like reverse mortgage, commission advance has many positive benefits that perhaps people haven’t considered. For example:
Using eCommission to Help Fund Your Marketing Campaigns
We recently provided funding in the amount of $28,000 to a California based reverse mortgage company. Their pipeline was over $200,000 so you’d wonder, with so much pending, why would they need an advance? The answer is simple: 90% of their pipeline was dedicated to a certain wholesale lender whose normal 3-4 day turn had ballooned to 3-4 weeks.
They had just committed to a local television ad campaign and frankly, the delays were killing their cash flow. We purchased 5 pending origination fees and advanced funds within 24 hours. The total cost to advance was less than 5%. By spending a fraction of the ad campaign cost, our customer completed their TV spots, which led to 29 new originations.
Using eCommission to Improve Recruiting Efforts
eCommission recently completed funding for a national reverse mortgage company whose business model does not include providing loan officers with lead generation.
Because of this, they pay higher split percentages in favor of their loan officers.
By working with eCommission, we created a program whereby loan officers were given the choice of keeping their higher splits OR receiving immediate payment of their commissions (at a lower split). You’d be surprised at how many opted for the reduced split amount. In an economy where having consistent cash flow is critical, receiving immediate payment of all future commissions was considered to be a reasonable trade off. Our client pays the cost of the advances on behalf of their loan officers.
The result: He creates a program that keeps his loan officers happy and recoups the advance expense while earning additional revenue per loan on the basis of the favorable split percentage.
If you are interested in discovering how eCommission can benefit your Company, or if you think you can be a referral source of new business to eCommission, please contact Sean Whaling, President of eCommission Financial Services, Inc. toll free at 877-882-4368, ext. 866 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or online at
http://www.ecommission.com/mortgageadvance.html
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