EDITOR’S NOTE: Matt is on vacation until at or around January 1, 2026. Until then we have guest posts, today’s post is brought to you by Matt’s longest churning buddy and all around super-guy, Tyler. Special thanks for the post!
Brokers help us leverage our spending game. From gift cards, gold, rakes for SideShowBob, UR points, MR transfers, iPads, Amex offers, buyer’s groups and more, brokers serve as a conduit to buy/sell goods and services. There are dozens, probably hundreds, of brokers who are seasoned veterans with resources, connections, and forums that can help bridge us to more opportunities and a larger network. They are valuable to us in our spend game.
There are plenty of elements when considering which broker to work with. I present the Broker Point Factor Analysis (BPFA), a proven method (not really) that allows you to evaluate brokers that will guarantee (no actual guarantee) your path to financial success (probably not). It is a basic point factor analysis method that assigns points based on identified factors.
So how do we use the BPFA? It is a highly scientific model that you must have an IQ greater than your local average city temperature in July. I vacationed to northern Wisconsin to improve my chances when I studied this model. A few components of this model:
- BPFA factors are subjective, so consider factors that are important to you when building your BPFA.
- Points are given based on how each broker is rated in the Broker Point Factor (BPF).
- Total up your points and see which broker best aligns with your factors.
The certified MEAB Business Analyst has put together an example using two hypothetical brokers: Jim and Dwight. *I hope there aren’t brokers who go by this name, there is no correlation intended. File a complaint with the MEAB Fairness Officer if you feel violated. I think his name is Toby, I can’t remember. Below is the analysis:
BPF: Costs, fees and rates – clear, competitive, based on market conditions.
Broker Jim: Jim posts rates that are competitive, perhaps not always the highest. They post in a consistent format that makes it easy to digest and aren’t afraid to share any hidden costs or fees.
Broker Dwight: Dwight routinely under prices to competitors, sometimes a decent amount. Terms can seem vague and when questioned, it might be ambiguous.
Points: Jim – 1 Dwight – 0
MEAB Business Analyst rationale: We all want top dollar for our products, and brokers also want the highest margin. Some are smaller with more spread, others are larger with more overhead that need more volume.
BPF: Ease of use – easy UI/submission process, simplicity. Do they limit cap, speed of deal posting and action. Spreadsheets, websites, forms, links that are intuitive.
Broker Jim: Jim has a nicely dedicated format for his deals. His deals go through email/channels in an efficient format that is also mobile friendly. Jim is always one of the first to put out deals and prices. Jim rarely has flaws in his process, and when we see a deal from Jim, we intuitively know the format and what to do.
Broker Dwight: Dwight has a few different inconsistent methods he uses, which can leave users a bit lost. He sometimes uses Telegram, or WhatsApp, or slack, or email, all of which have different functionality and user preferences that can feel discombobulated. Sometimes dates are wrong, there are typos, and it feels a bit sloppy.
Points: Jim – 3 Dwight – 1
MEAB Business Analyst rationale: Larger brokers have more systems and people in place to navigate ease of use. Though, some have an overengineered process that may not align with what you find easy. Nothing should feel overengineered, and more steps can lead to errors.
BPF: Liquidity, reliability, execution speed: Fast, on-time, consistent payments. Can weather market fluctuations or issues with end users.
Broker Jim: Jim pays fast. Like, REALLY fast. Sometimes you panic because funds hit your account before you are expecting.
Broker Dwight: Dwight has reasonable payout periods. Though, he consistently needs to be reminded once he is past his date. In addition, he has had end user payment issues that delay payment processing. Payments come from various sources and time periods vary, so it is hard to track.
Points: Jim – 8 Dwight – -2
MEAB Business Analyst rationale: Payment delays aren’t usually a big deal as long as it is communicated. More concerning, payment delays may be a result of the broker not having enough money. This can be a potential sign for if something goes wrong, the broker may not have the funds for a period that makes you feel uneasy.
BPF: Customer Service: Type of support and assistance in all phases of transaction: before, during, and after transactions.
Broker Jim: Is active in his community. He responds to people’s questions publicly when asked, and also responds to private DMs. During initial contact, he is friendly and transparent with new members. He is timely, courteous, and has a knack for doing the right thing.
Broker Dwight: *crickets*
Points: Jim – 2 Dwight – 0
MEAB Business Analyst rationale: It is easy to be a good broker when things run smooth, though customer service should be top priority.
BPF: Conflict management: How they navigate problems, disputes and errors. Identifies, addresses, and resolves disagreements in a constructive way that minimizes negative outcomes and maximizes positive ones.
Broker Jim: is direct in his communication and timely. If there are errors, you are notified immediacy, know what is wrong, and what to do. He offers to support you (not hand hold) with words of guidance as he brokers see more conflicts than buyers do.
Broker Dwight: Immediately puts blame on his customers. Blames them for errors, makes assumptions, and is belittling to customers in a snarky way.
Points: Jim – 3 Dwight – 0
MEAB Business Analyst rationale: It isn’t about eliminating conflict, sh!t happens, yet it’s about managing it in a way that leads to growth and better outcomes in the future. “It isn’t what you say, it is how you say it.”
BPF: Terms: What are risks for each party, and do they hold all parties to terms within reason. Clear, defined, yet not overly engineered or heavily unfavorable for one party over another.
Broker Jim: Has terms that are reasonable and even has a clause that protects buyers from fraud. There is a limit on when to submit, how long risk is for products (cards, fuel points, bookings, etc.).
Broker Dwight: has very long risk periods for his buyers. Essentially makes them accountable no matter what. They almost seem intentionally vague. In addition, he randomly posts updated rules in his forums and channels while not updating his primary terms.
Points: Jim – 4 Dwight – 1
MEAB Business Analyst rationale: Of course we need rules, this isn’t Nam. focusing on the intent and spirit of the rules more important. In addition, one should always be able to find a brokers terms easily. When in doubt, always ask a brokers terms. Don’t be afraid to constructively suggest changes to terms that are equitable and reasonable.
BPF: Communication: Timely, clear, reasonable in all methods: 1:1 conversations, through chat, to their channels and audience.
Broker Jim: has an innate ability to nearly know all of his buyers. He isn’t overly goofy, has fun when appropriate yet still has a business oriented demeanor. When you message Jim, he responds promptly. When a question comes up on a deal he posted, he responds timely or his other buyers chime in to help.
Broker Dwight: doesn’t engage much. He posts deals and allows his channel to become overwhelmed with fodder. At times, he even contradicts himself with his own guidelines. His brevity at times leave much to be desired.
Points: Jim – 5 Dwight – 2
MEAB Business Analyst rationale: A predictable broker is a good broker. Predictability follows a regular, reliable pattern that makes future events or actions easier to foresee. They anticipate problems before they happen and are clear in their interactions.
Total Points Jim: 26 points, Dwight: 2
The point is obvious: work with brokers that have a value proposition that aligns with yours. I don’t think there are inherently ‘good’ or ‘bad’ brokers. There are brokers that have different modalities by which they operate. If something feels off with a broker, it probably is. Diversify your business among different brokers. Work towards a win-win with your brokers. Treat them with respect and they will return the favor. In conclusion, there are multiple factors that should be considered when utilizing a broker. So do as Kenny Rogers says: know when to hold em, know when to fold em, know when to walk away, and know when to run.
– Tyler
Pictured: Tyler’s broker decision tree.