Sub-ISO
Sub-ISOs are independent sales organizations operating under master ISO contracts — accessing funder relationships and commissions through the master rather than direct funder relationships, common structure for newer or smaller broker operations.
Why This Matters
Sub-ISO structure: master ISO maintains direct funder contracts; sub-ISOs operate under master's funder relationships, submitting deals through master ISO platform; master ISO collects commission from funder, deducts override (typically 10-30% of commission), pays remaining to sub-ISO. Benefits for sub-ISO: immediate funder access without building direct relationships, established submission infrastructure, mentorship and training. Drawbacks: reduced commissions due to override, dependence on master ISO continuity, limited direct funder relationship development. Many ISOs start as sub-ISOs and graduate to master ISO status.
Frequently Asked Questions
Frequently Asked Questions
Why do new ISOs operate as sub-ISOs?
Faster market entry. Building direct funder relationships requires time, volume commitments, and operational sophistication. Sub-ISO status enables immediate deal flow and commission generation while building production history.
What's the typical master ISO override?
10-30% of total commission. Lower overrides for high-producing sub-ISOs requiring less master support; higher overrides for newer sub-ISOs requiring training, infrastructure, and operational support.