Tongo: The first Smart Card built for the commission economy

There’s an entire industry built around it, and it’s pretty gross. Someone gets a little over their skis for whatever reason, and predatory and especially payday lending takes advantage of people. It’s earned its bad reputation by getting people buried in debt with fees often as much as 50% of the loan, and they stack late fees on top of that. It’s lucrative enough that the industry is creeping into other industries, one of them being entrepreneurs whose business is built on commission. Our new partner, Tongo, created a card to change all that.

The scenario is pretty simple to describe. A Real Estate agent’s commission is almost always locked up until a property closes, which can be sixty days. In those sixty days, it can be difficult to invest in the next sale, whether it’s paying for a staging, buying leads or broader marketing materials. The agent can get stuck.
Tongo provides agents up to $10,000 of their closing costs at just 3% for 30 days. No hidden fees. No late fees. No mounting debt. The agent just pays Tongo back at closing.

Paper Crane Factory helped with naming, tone, and brand positioning, and we’re about to execute the go to market strategy. Bringing to life the idea that Tongo is an investment strategy, not a bridge loan, is starting to shake up the industry and rattle predatory loan operations for what they are- bankruptcy generating machines.

Our first campaign, “In comparison, everything else is ridiculous,” features diners going to a restaurant where they can get started on a 19-piece buffalo wing order now, or get the full 20 piece in two months. Or, get started on a pizza with 48 pieces of pepperoni, or get the full 50 pepperoni in 60 days.
We’re also helping Tongo support their members with info to help their business. Regular blog posts, tax advice and investment thoughts from proven strategies and professionals.

In the old days, if an agent wanted to access commission early, it often meant going to the brokerage and setting up an advance with the boss or opening an emergency, high interest credit card. Now, Tongo is being offered as an incentive to agents to join Tongo-backed brokerages. The Tongo Smart Card works just like a debit card, and from the app agents can move money from a commission once or as frequently as needed. Some agents are now using Tongo exclusively as their business card for tax deductible expenses. The argument being they can beat the 3% fees with smart investments to grow their business. We’d bet on that, too.

We’re proud and excited by Tongo’s progress.