Almost every affordability calculation in this business runs off a commission number, and almost every broker uses the headline rather than the banked one. That single substitution is why lead budgets get set too high.
| Layer | What it takes | What is left |
|---|---|---|
| Funder pays points on funded amount | The headline figure | 100% of the commission |
| ISO or shop split | Often a substantial share | What the office keeps |
| Rep commission | A share of the office’s portion | What the business banks |
| Acquisition cost | The lead spend | The actual margin |
What moves the points
- Paper grade. Better paper funds larger advances at longer terms, and points on a bigger advance are worth more even at the same rate.
- Volume with that funder. Consistent submissions earn better terms, which is one of the returns on good standing.
- Whether you are submitting direct or through an ISO, which is the largest single variable.
- The deal itself — funders price the commission alongside the offer, so an aggressive offer to the merchant can mean fewer points to you.
Deal size does more work than points
A point more on a $45,000 advance is $450. Moving the average advance to $62,000 at the same points is worth roughly $1,700. Negotiating points is worth doing and it is the smaller lever — the larger one is talking to merchants whose files fund bigger, which is a lead-selection decision.
Questions brokers ask
How much commission does an MCA broker make?
Commission is quoted in points on the funded amount, commonly in the high single digits to low teens depending on the funder, the paper and your volume. What you actually bank is that figure after any ISO and rep splits.
What are points in merchant cash advance?
A percentage of the funded amount paid to the broker. Ten points on a $62,000 advance is $6,200 gross, before any split with an ISO or a rep.
Which number should you use for lead budgeting?
The banked number after every split, not the headline the funder quotes. Budgeting off a figure you never receive is the most common way brokers conclude unaffordable leads are affordable.
What increases a broker’s points?
Consistent volume with a funder, submitting direct rather than through an ISO, and better paper — which funds larger advances at longer terms, so the same points are worth more.
Is it better to negotiate points or chase bigger deals?
Bigger deals, by several times. A point more on a $45,000 advance is $450; moving your average advance to $62,000 at the same points is worth about $1,700 per deal.
Reference
The full commission mathsIncluding how to derive a maximum per-lead price from your own numbers.
Alex Makowski
Founder, Infinite Bookings
Runs the lead generation operation behind Infinite Bookings — paid traffic, the funding application, and the delivery pipeline that puts records into brokers’ CRMs.
Reachable directly at alex@infinitebookings.com or 732-609-7182.