Thursday, January 21 2021
How You Can Make 6-Figures Selling Merchant Services
Selling merchant services is popularly known to be very lucrative, but one of the most asked questions by many potential agents is how much money can you make selling merchant services? They want to know whether they will be able to make a sustainable income from selling merchant services.
There is no straight answer to this popular question because the amount of money you make is dependent on the effort and handwork you put in. Those who have succeeded in selling credit card processing have shown exceptional dedication and hard work.
If you are wondering about how to become a merchant service provider and become successful in it, then hard work and dedication must be part of you.
Showing you the potential income that you can make selling merchant services is the simplest way to answer this burning question; how much money can you make selling credit card processing services?
According to research, selling credit card processing services has the potential to earn hardworking and determined agents over $100k per year.
How You Can Earn $100k Per Year Selling Merchant Accounts
It is important to realize that merchant services agents get about $500 upfront for every new customer they sign up.
This amount is paid instantly after an agent manages to make a deal.
In addition to this, agents also receive a monthly bonus that on average is about $1250 per month. This money is known as residual income. According to experts, $1250 is low, bearing in mind that the credit card processing business doesn't count cash transactions.
Understanding Residual Income
If you are looking into how to start a credit card processing company, then you need to understand about residual income.
When the merchant clients you have signed up for the services use their credit card to receive payments, the processing company will receive a certain percentage of the amount received.
As long as the merchants are continuing to be happy with the credit card processing services, the processing company will continue receiving a certain percentage of the money transfers.
The agent who signed up for a merchant client is supposed usually will receive 50% of this income. This means that every time the merchant client is using their credit card, then the agent will be making money. This is what is known as residual income.
Now that you understand what residual income is, let us take a good example of how to start a credit card processing company and make over $100k in a year.
Assuming that the agent is capable of signing 15 new clients every month. On average, the agent will receive $50 per month as residual income from 15 clients, and this will be $750 a month. Of course these amounts skyrocket if the agent is selling the cash discount program. This program wipes out all fees for the merchant client and produces 5X residual income.
If they are hardworking enough, they will manage to raise their monthly income to about $9000, which will translate to about $108,000 per year. This now answers the question; how much money you are able to make selling merchant services.
Tips To Help You Make $100k as a Merchant Services Provider
There are things that you need to put in place in addition to being hardworking in order to succeed. These tips will help you understand how to become a merchant processor and to easily make $100k per year. In order to make 6 figures in merchant services sales, you need to:
1. Set Your Goal Just: like in any other industry, business goals are very important. These help you to be disciplined and stay focused on what you do. If you wish to make $9000 per month, then set that as your goal and put it the effort to attain that. If you wish to recruit 15 merchants every month, then set it as your goal and work towards attaining that.
2. Join the Right ISO Program: The merchant services agent program you join will determine your success. Look for an agent that provides both the tools and support needed to successfully run your business. North American Bancard is one of the top-rated merchant services agent programs that you can join.
3. Understand Your Product: Ensuring that you understand your merchant products and services is important in helping you stay competitive. The merchant services agent program you choose should be in the capacity to provide firsthand information about the credit card processing business. This will help you to stay up to date in selling merchant accounts and in-turn, attract many leads.
4. Manage Your Time: As an independent sales agent, it can be very difficult for you to stay committed to what you do. Remember that you are 100% responsible for your daily tasks. For you to succeed in merchant services, it is critical to stick to your schedule. Divide your time to tackle things such as following up with your leads and finding new leads. If you find it difficult to manage time by yourself, you can use apps and tools to schedule your daily tasks. This will improve your productivity and bring you a step close to making more money.
5. Invest In Referrals: Referrals are very important in helping you grow your merchant services business. This is very effective when starting out as a merchant services provider. Set a strategy to use and follow up with clients so as to get most referrals from every merchant client you get.
If you offer exceptional services, then your referral list will keep on growing. You will be getting new leads every now and then.
With the above tips, it is easy for you to earn handsome amounts as a merchant services agent.
The ball is on your court; you now know the amount you can make from your credit card processing business. Remember that there is no limit to the amount of money you can make. Put in the effort, and you could possibly make a million dollars in your credit card processing business.
Wednesday, January 20 2021
Are you planning to become a merchant service provider? When it comes to merchant services, there are thousands of merchant services agent programs for you to choose from. It is very exciting to become a merchant services provider. However, without the necessary information and details, it is very easy for you to fail. The merchant services business is both complex and lucrative. There are several merchant services ISO agent programs available. Choosing the one to suit your specific needs can be very tricky, but luckily we are going to give you expert advice and tips on choosing the best one. Some factors to consider in order to become a merchant service provider include the tools offered by the company you chose, technology use, and customer supports. This article paints a clear picture of what a great merchant services agent program should look like.
9 Characteristics of a Good Merchant Service ISO Program
The following are some of the key characteristics that define a reliable merchant service ISO program. A company with the following traits increases your chances of being successful in your credit card processing business.
Exceptional Customer Service
This is one of the most critical characteristics of a good merchant services ISO agent program. However, it is one of the most overlooked things when an agent wants to become a merchant services ISO and when seeking out an ISO partner. In the merchant services business, the worst-case scenario would be to receive complaints from your clients, and you are unable to get in touch with your merchant services agent program. This can really ruin your business. It is a great practice to look for merchant services ISO agent program that provides 24/7 customer support. In addition, the customer care representatives should be able to attend to any questions, both general and technical, within the shortest time possible.
Same-Day Funds Deposits
This is another important feature to look out for when choosing a merchant services agent program. Clients do not have to wait for long to get their funds deposited into their bank account when a transaction is made. The same day funding is a great incentive that will leave your clients happy and also help you when promoting your business.
Ability to Handle High-Risk Merchant Accounts
Though you might not be dealing with clients who have high-risk transactions such as travel agencies, CBD companies, bail bonds, credit collections, medical marijuana, etc. it is important for the merchant services ISO program you choose to handle high-risk merchant account. You might get clients who operate high-risk operations, and therefore the benefit of this is to ensure that the business of your clients is running smoothly without any payment glitches.
Great Discount Opportunities
The fees associated with credit card processing are quite high. These high fees have been causing businesses to scramble. The cash discount programs enable merchants to implement a service fee to customers who pay via credit card and issue discounts to those who pay via cash. The merchant does not have to pay a fee for each transaction they run, and therefore this saves them money. You should, therefore, ensure you find a merchant service agent program that offers discount opportunities.
Assistance on Marketing
When it comes to credit card processing business, marketing can be the hard part. However, with a great team behind you to offer marketing assistance, it becomes easy. For you to turn cold leads to warm leads, you will need an effective marketing team. They will assist in providing marketing information as well as design about merchant services.
Flexible Compensation Plan
Getting paid is one of the most important steps as a merchant services provider. It is critical to get compensated for the work and effort you put into your merchant services business. Look out for a credit card processing agent program that will help you realize your goals and meet your needs. Note: Pay attention to the agreement document to make sure you understand all the details.
Residual Income Tracking
A good credit card processing agent program will help you get residual analytics; this is very important for your business. The use of technology and the latest software to track residual income is a must for a good merchant services ISO agent program that you are going to choose. You should be able to see, at a glance, these details: number of clients, average profit, average ticket, top 10 merchants, and more.
For the success of your credit card processing business, it is critical to look for an ISO partner who readily avails the necessary infrastructure to you. The payment technology is very dynamic, and each year, there are new changes and improvements. There are several other payment methods that have come up. A good credit card processing agent program should give you access to these assortments of payment processing products. All these will give your clients payment processing options to choose from, which helps them to run their business smoothly. A good merchant services agent program should be in the capacity to support most of the following infrastructures:
Multi Relationship with Various Banking Options
A great credit card processing ISO agent program should facilitate a solid relationship with several banks. This creates options to resort to incase one bank declines an account. With this feature, you will have peace of mind and be able to easily close deals and get paid. Shaw Merchant Group Can Help You To become a merchant service provider and to succeed in it can be tricky, especially if you do not have the necessary information, but with the above expert tips, you will be a step closer to being successful. At Shaw Merchant Group, we pride ourselves as being the best merchant services agent program providers. We are ready to help you become a merchant services ISO and succeed in your credit card processing business.
Sunday, January 10 2021
Merchant services sales is one of the hottest and most lucrative sales industries on the market right now, and for that reason it is incredibly attractive. It is true that you can earn great money being a merchant services agent, but it often requires a strict training program and dedication to the craft. If you want to be successful in merchant sales, then there are some key pillars that you will need to be familiar with that will help you to succeed and thrive in merchant services sales. By following this crucial training structure, you can set yourself up for success in the merchant services industry.
Pursue a quality partnership
The first concept that you will need to be familiar with in your merchant services sales training regimen is that you should pursue a quality partnership and arrangement with a merchant services provider. As a merchant services salesperson, you will work under the umbrella of a merchant services provider that will be the backbone of your business. The partner that you choose will administer these services to the merchants that you sell to, so it’s very important that you find a merchant services provider that is reputable and can provide you with all the benefits that you need for success in the merchant services industry.
There are a few things that you should look for in a quality partnership with a merchant services provider such as prompt payment, good payment structure, frequent bonuses, large share of profits, quality support staff, solutions for every industry, and tools to help you succeed. A quality partner that can provide you with all of these things is one that can help catapult you to success in merchant services and enjoyment of a life that earns passive income. It’s critically important that you make the right decision when it comes to the merchant services provider that you choose.
Optimize your pricing structure
While sales is mostly about making connections with businesses and selling your products, there are a lot of other things that you can do to help yourself have success. One of the more subtle things that you can do is to optimize your pricing structure to provide you with more margin and more opportunities to increase your revenue. There are several ways that you can do this by offering upsells, sticking to strict limitations when offering discounts, and others.
While a change in your pricing structure might not make a large effect right away, when the effects are compounded over hundreds of transactions, you can notice a very large difference that will greatly impact the trajectory of your merchant services sales career.
The more options, the better
When you are going through the preliminary stages of training to be a merchant services agent, one of the most important things that you should be on the lookout for is a merchant services provider that doesn’t limit you by their payment processing capability or options. You should seek to work with a merchant services partner that provides you with a wide range of payment processing options such as debit, credit, cash, ACH, and others. When your partner offers these additional methods, you can offer them to your merchants. Merchants like to be presented with multiple options and flexibility, so if you can offer them flexibility in their payment processing solution, then they are more likely to work with you for their merchant services needs.
Providing good customer service
One of the most important lessons that you will learn in merchant services sales training is that customer service should be your main priority at all times. The customer is the most important party in the entire transaction and without happy customers as your merchants, you will find a very hard time succeeding in merchant services sales.
Providing good customer service is something that you will have to master if you want to get to the point where you are converting more customers and increasing your portfolio of merchants. To do this, you should be sure to always be attentive to customers’ needs, answer questions in a timely manner, and be able to get in touch with them whenever they need something from you.
However, you are not the only important person in the process when it comes to customer service. You should be partnering with a merchant services provider that also values the power of good customer service if you want to have success in merchant services sales. This means evaluating how well your merchant services provider is able to meet the needs of customers and what their reputation is for providing service to the merchants that they oversee.
If you can provide a good customer service experience to your merchants, then they are much more likely to continue coming back to you time and again for their processing needs.
Free terminals included
If you want to have success in merchant services sales, then you’ll quickly learn one of the secrets of the industry is to include a free terminal for your merchant. Not only do merchants love to have free bonuses included in their processing packages, but you’ll also be providing your merchant with a POS that is specifically designed to increase performance and efficiency while using your offering of processing solutions. With a terminal that is specifically designed to help your solution work in the best way possible, you can be sure that they are getting the best possible user experience that they could want.
This also helps your relationship with the merchant. Providing them with incentives is one thing, but they can take additional confidence in knowing that they are partnered with an agent that cares enough about their merchants to ensure that they have the proper equipment to get the job done the right way. If you want to increase your conversion rate and improve the quality of your relationships with your merchants, then offering a free POS system is a great way to do so and is now considered industry-standard.
Friday, January 08 2021
If you've done any research at all, you've probably already realized that getting into the credit card processing field can be extremely profitable. Just about every serious business needs a merchant account, so the number of prospects that you could work with are countless and the market is ever-expanding as the economy recovers.
You might also realize, though, that becoming an ISO or a credit card processing company yourself can be expensive, but luckily this is not your only option when you're looking to break into this field. One of the best ways to get into the credit card processing industry is to start your career out as a sales agent. The upfront costs are minimal, and you can learn the business inside and out with a lot of room for growth. It's one of those coveted sales positions where you not only get commission at the time of the sale, but you usually receive residuals for the life of the account.
The key to success as a sales agent is choosing the right partner company to work with—this is an ISO whose products and services you will be offering to merchants. Since finding the right sales agent program is so imperative to your future, take your time to consider who will be the best fit for you.
In order to help you get started on your quest, here are five of the best agent programs out there that you can look into:
(Recommeded) North American Bancard
Looking for a company that has a lot of experience and support? This can be especially important when you're first starting out. You don't want to just be left in the dust whenever you have questions or if something goes wrong. They're very committed to offering the best service possible to not only their end-users, but more importantly to their sales agents. They'll provide you with the latest technology, varied offers to give to your clients, and top-notch service. They also offer extremely fast payments, and in fact will pay you every day instead of making you wait for weeks.
Total Merchant Services
Want to go with a leader in the industry? Total Merchant Services is a great ISO with a lot of options for the ambitious sales agent. For one, they have a proven track record of service and have been around since 1996. They offer some of the easiest-to-navigate merchant applications around, a great support team, and in-depth training so that you can sell more effectively and grow in your payment processing career. They were among the firsts in the business to offer lifetime residuals from every deal that their sales agents close. If you want a reliable company that will let you build the passive income side of your business, you should seriously consider Total.
Naturally, you are probably going to want to research more than just a few companies, but these are truly some of the best and brightest in the industry, and it's not a bad list to start with. Before anything else, it's important to perform a self-assessment and decide what your needs and wants are when it comes to an ISO partner. Really, this means asking yourself: What kind of ISO is going to best serve my clients? If you still have no idea, that's perfectly fine. You don't have to limit yourself to a single ISO, and in fact it's probably a good idea when you are starting out to try several different processors.
Maybe you're looking for a very reliable company that has a history of great service and close relationships with their merchants and sales agents. In that case, you won't go wrong with PayProTec. They offer great customer support, as well as extensive online resources that you can use to build your business. When you sign up as a sales agent, you get a free website, a back-end portal where you can check your stats online, and the ability to look up trouble tickets and see any problems that your merchants are having. Like HarborTouch and a few others mentioned here, they also have a free terminal program.
Interestingly enough, they're not just paying lip service when they say that they care about their sales agents—they offer health care benefits and will reimburse half of your costs! This definitely helps to relieve one of the bigger headaches of being self-employed.
HarborTouch is one of the largest providers of POS systems and payment processing services in the US. They handle over one hundred thousand merchant accounts across the nation, and billions of dollars worth of transactions. Part of the reason they are so ubiquitous in the payment processing field is no doubt due to their superior partnership program with sales agents. They have smart, forward-thinking, and extremely competitive offers that make selling accounts a snap compared to more “traditional” programs. For example, they helped pioneer the introduction of free POS terminal offers. In other words, you can provide the hardware to your client for no upfront costs to them, and still receive a handsome commission and great residuals afterwards.
“Free” is not a hard sell at all, so even if you choose another company, it's probably a good idea for you to make sure that your merchant services partner has a free terminal program. It's not always going to be a good fit for every merchant, but rest assured that more and more of your clients will be expecting free equipment.
Part of working in any field is having a niche, but oftentimes you can find yourself partnered with a company that won't approve of the merchants that you want to work with. Nothing is more disappointing than having great personal connections and prospects, but needing to turn them down because they run a “high risk” business, such as a liquor store, an e-commerce business, or any sort of retail store that would be subject to a lot of charge-backs.
With eMB's program, however, you won't have to worry about any of that. They will deal with just about any sort of merchant, including high-risk applicants. In fact, they approve about 95% of the merchants who seek accounts with them. This is good news for your clients and for you—especially since high risk accounts can be particularly lucrative.
Like the name implies, eMerchant Broker is a good choice if your merchant is an e-commerce business. They offer multiple gateways to make sure your client's shopping cart software will work perfectly with them. Give them a try, especially if your merchants tend to get rejected by other ISO's.
Download PDF: Top 5 Credit Card Processing Agent Programs
Sunday, January 03 2021
If you’ve been considering becoming a merchant services agent for a credit card processing company, you probably already realize that it can be a very lucrative career path. Even better, it’s the kind of work that allows you to make your own decisions and get out of the stuffy office to meet people face to face. As a sales agent, you’re basically your own boss and you act as the middle man between the credit card company and the client.
Does this sound like something you could get into? If so, then you’re at the start of an exciting and profitable path. However, as with any other kind of work, there’s always a learning curve, especially if you want to be the kind of agent that clients seek out again and again. In other words, there are certain traits that successful merchant services sales agents have that help them rise above the rest (and make more money).
Have a Plan
The first thing that you can do for yourself in any endeavor is to have a plan. When you’re a sales agent, you’re basically running a business like any other, though this can require a period of adjustment for those who are transitioning from the lifestyle of an employee.
The fact that you have your own business is both a blessing and a responsibility. Yes, you have more freedom, but having a plan and carrying out every aspect of it becomes much more essential when you have no one else to turn to. Your credit card processor will certainly help you, but the direction that you want to take things is up to you.
What do you need to plan, specifically? Well, the most important thing you will need to decide ahead of time is how you will approach your market. Where will your revenue come from? Will you target people online? Will you do cold calling? Will you perform outreach to businesses in person?
Whatever the plan, choose one or just a few approaches to focus on. Don’t spread yourself too thin. Plan your focus and work your plan until you start getting some results (or not) and then pivot to another focus accordingly.
The point of the plan is to give you some sort of direction, so that you’re never lost in that no-man’s land of wondering what you should do next.
Leverage Your Social Network
Since finding a credit card processor can be an important step for a business owner, they often rely on referrals when they choose an agent to work with. Knowing this, make sure that you’re on everyone’s radar.
etwork and get to know people. Find people to spread the word about the services that you’re offering. You might even offer people pay for the referrals that they send you. It may sound a little weird at first, but it’s not that different from what you’re doing yourself relative to the credit card processing company. Either way, you probably won’t have trouble getting referrals from past clients for free if you’ve made them happy.
Just make yourself known in the community. Offer to help even when there’s no clear benefit for your upfront, and soon enough you will find merchants getting into contact with you. Trust is an extremely important element that cannot be underestimated, and you cultivate that through your connections and through offering people genuine value.
Pick the Right Partner
The decision of which merchant services ISO program to choose to work with is something that you should consider carefully. Not all credit card processors are created equal. Some might not offer very good customer service, or they might not have a good variety of plans and options, or they may simply not be willing to take on the type of clients that you want to serve.
You have to take many different factors into account. First and foremost, take a look at what the company has to offer your end users. Do they have free terminal plans? Are their fees exorbitant or fair? Play with the interface of the POS systems that they offer if you can. Are they easy to use? Do they use modern software and hardware that is lightweight and secure, or are they stuck in the last century? Try to find an ISO that offers equipment that is more or less future-proof, at least for the next few years. Look for a company that values change and is willing to adapt to the industry.
Get to know some merchants and merchant services agents who use the processor and get some feedback. Is the customer service good? Are they responsive and attentive? If you choose a partner that will be prone to abandon you, this can be a huge pain in the neck if something goes wrong, needless to say. Your merchants will be looking to you to keep their transaction systems running smoothly, and you need a partner who will be on your side.
Another thing to be clear on right away is whether or not they are willing to serve your future clients. The fact of the matter is that a lot of merchant services ISO’s will not work with businesses that they deem “high risk,” or businesses that tend to be subject to a lot of charge backs and fraud. Stolen credit cards and other issues are a sad reality of the economy, and in some industries these problems are more common, such as in ecommerce. A merchant services ISO may also refuse to work with a business that deals in “vice,” such as alcohol, tobacco, adult entertainment, and other similar kinds of markets. If you plan on working with clients in such industries, you need a partner who will support you.
If everything else checks out, you will have to go over your contract and fee schedule. Just as you don’t want the fees to be too high overall to avoid gouging your clients, you also want a fair cut of the fees for yourself. Make sure that your merchant services agent program will give you generous options for residuals and bonuses. At the same time, also keep your eyes peeled for any deals that seem way too good to be true. If you can fathom how the ISO is making money because it’s offering sales agents ridiculously good incentives, something is fishy. This is why it’s important to do your research thoroughly before signing up with a partner.
There are a few important things to watch out for in your contract, or else you may endanger your income. Make sure that there are no exclusivity clauses. If your merchant services ISO wants to force you into a exclusive relationship with them, find another one to work with. There is no reason that you should be able to work with more than one partner, and the freedom of being able to switch if one of them becomes irrelevant will make a huge difference for your business.
Something else to watch out for in the fine print are any quota requirements. If your partner requires you to open X amount of new accounts per month, or else you lose your residuals (even if your past clients are still with the company), then run far away. Find a partner company that allows you to rightfully own your residuals. This means that you keep them for the life of the account, regardless of any new accounts you open, and you should also be able to sell your residuals if you would rather have a lump sum.
Finally, find a company that will help train you on all of the equipment and software that they offer, and that will help you read all of the forms that you’ll be working with. You need to really know what you’re doing to be a success in this business—but we’ll talk more at length about that below:
Actually Know What You’re Doing
When it comes to any field—from credit card processing to underwater basket weaving—the number one thing that will make you successful is to serve your customers well. In fact, in a lot of ways, this is the only thing that really matters to your bottom line. Your clients have a problem, and you have to solve it well enough that they’re happy with what you gave them.
The only way that you can do that, though, is by knowing what you’re doing. Make sure to take advantage of all of the training materials that your credit card processor offers. Read the literature and even go to industry conferences and workshops if you can. You will learn huge amounts of information by listening to people who have already been playing the game for a long while.
When it comes to your income, it’s also important to know what you’re doing. Don’t just assume that your credit card processor is paying you what they owe. Learn to read your merchant statement and go through all of the details every month. If you’re confused, your ISO should help you. You can also recruit the help of more experienced sales agents.
Be Completely Honest
Trust is important in business. It’s what will keep people coming back. It is what will make people hesitate switching to your competitor. The only way to earn and keep people’s trust long term is to cultivate a reputation for honesty. This cannot be bought and you cannot use advertising tactics to get this. You can only earn it by being completely transparent and honest.
Don’t hide the bigger picture from your clients. Tell them exactly what is going on, exactly how much they are going to pay, and exactly what they can expect with the packages that you’re selling them. Teach them everything that they are willing to learn and show them as much as you can about the equipment and software that you’re giving them.
When a client feels that they can trust you, and they see that you went above and beyond what was expected, you have a loyal customer for life. Considering the potential value of long-term residuals in this business, the difference between being honest and trying to turn someone into a sucker for short term gains could be hundreds of thousands of dollars.
Being a merchant services agent can be a great way to earn a piece of the very large credit card processing pie. The industry will only be growing larger in the next few years, and more opportunity will present itself to those who are highly motivated. Having said that, this is a very competitive field, and you will greatly improve your odds of success by following the guidelines above.
The credit card processing industry is like any other business, and your focus should be first and foremost with the customer. Pick the right merchant services agent program, use your social network, and make sure that you’re honest and that you know what you’re doing. After that, the rest should follow.
Saturday, January 02 2021
If I had to make a rough estimate, it seems to me that about 90% of merchant services agents aren't actually very familiar with their residual splits and how they work. This isn't a great position to be in and you don't want to be in the dark, so take a look at these tips to get a good grasp on the subject:
1) First of all, do you actually own your residuals for the life of you account? If not, then years of work on your part could just disappear literally overnight. You could have been working tirelessly to build up a huge portfolio, but it would all be down the toilet simply because you stopped selling for awhile. Many ISOs have these stipulations, where you're required to bring in new accounts every certain amount of time, or your residuals are lost. Does that sound fair to you?
So many agents fall for this racket. Don't do this, no matter how much bigger your part of the split will be. Over the long-term, it's just not worth it. You're trying to build long-term passive income here, not turn your work in sales into an ordinary job—that's a waste of a great opportunity. Make sure you ask about this before you choose a merchant services ISO program. Tell them to give you an exact play-by-play of what will happen if you decide to leave the business. If the answer is “You will lose your residuals,” then walk away. Also, if you can't sell your residuals, then reconsider as well, since this is an indication that you don't really own them.
2) Forget about the percentage of your split. This doesn't really mean anything. To illustrate this better, let's say you're playing monopoly and your friend wants one of your properties. He offers you 30% of his net worth for it. However, another player butts in and raises the stakes. He tells you that he'll give you 50% of his net worth. Finally, a third player screams over your other two arguing friends and declares that he'll give you 10% of all of his cash if you will sell him the property. How do you decide which deal to take?
Well, obviously, you don't have enough information to make a good decision, do you? Before you know which deal is the best, you need to know the net worth of each of the players! After all, if Player 1 and Player 2 only have 100 monopoly dollars to give you, then you know that what they're offering is a raw deal if Player 3's net worth is 5000 dollars. Even with only 10% of that, it's far more than what the other two players were offering.
The same goes with credit card processors. Ignore their bragging about how they will give you 70% or 80% or whatever inflated number. It doesn't actually mean anything unless you know how they calculate the profit in the first place. Always get some context for these numbers, or else they are just going to be completely useless to you.
3) Always keep an eye on costs and the fees that the processor is going to charge you, as this will have much more influence on your profit than the actual split. You can find out what these fees are by looking at the Schedule A that your credit card processing agent program will provide for you. You will also need to ask yourself a few things when considering cost. For example, do they add basis points before they calculate the profit? What are they going to charge you for the transaction fee?
Some processors give you a true interchange pass through, while others will mark up the fees a few basis points above interchange before they start to calculate the profit. With the former kind of processor, things are a bit more obvious. For example, if your transaction fees are $0.03 and you in turn set up your merchant's transaction fee as $0.09, the profit per transaction is $0.06. If you had a 50/50 split, then you would get half of that in the end. It's a case of simple arithmetic. However, if you're having to deal with a huge mark up of dozens of basis points first, a lot of that profit is lost, and even if you had a 90% split, it wouldn't be worth it.
By the way, stay away from “buy rate” programs, as they don't offer you good deals. If you have any doubts about this, then be sure to get into contact with me and I will tell you all about it. You might be tempted to go with one of these programs, but I assure you that after I break it down for you, you will change your mind. Always go with a revenue sharing plan, as it's much more lucrative in the long run, especially if you choose a good processor to work with. I've even heard of processors trying to set up these kinds of deals with merchant services ISOs themselves, which is very silly in my view. You're trying to run a business here and build your empire, so don't settle for a buy rate.
4) The pricing is not as important as the cost structure when you want to get accounts of a significant size. Aim for a low cost structure for your clients. If your processor is charging more per transaction than $0.04, then you probably won't be able to pass on a reasonable deal to your merchants, so think twice about going with a processor that is this pricey, even if you're making 80% of the split. Make sure to have more than one partner so that you have access to the lowest rates and the best deals, and this way you can give your merchants a variety of options. This is especially true for your larger merchants.
5) Finally, keep in mind that you shouldn't get too caught up in either the cost structure or how much of a percentage of the residuals that you get. Ultimately, making the sales is what will determine your success in the long run. You need merchants to make money, and you need to close a lot of deals. Any merchant services ISO program or processor that you're partnering with should know this and help you get the kind of training that will lead you down the right path. If you can't even close deals, then there's no point in worrying about your compensation—you won't be getting it anyway! Whether you make 50% or 90% of $0, it is still $0, and that's certainly not a handsome residual to be getting every month. So choose your associates wisely, as they can help you to succeed—or drag you down.
We're happy to help you on your endeavor, so we offer all kinds of resources, from informative material, to help with your marketing, to training. If you're curious or have any questions about how to move forward in this career, then don't hesitate to send us an email.
Final Tip: Contact North American Bancard Agent Program to set up your agent offices and become a successful merchant services agent.
Download PDF: Your Residual Split: Understanding How It Works
Friday, January 01 2021
If you have been in sales for long, then you know what it is like to try to sell software and other solutions over the phone. It’s a tough industry and job that requires hard work, patience, and a winning formula. Calling someone is easy--convincing them to stay on the line is hard. If you are in merchant services sales and want to increase your phone sales and your overall revenue, then this short guide is a must have. In this short tutorial, we will cover some of the key tips to having success in merchant services and conducting merchant services sales over the phone with maximum optimization and earnings potential.
When you think of selling merchant services over the phone, your mind might automatically turn to just setting appointments, touching base, and otherwise communicating with the potential customer over the phone. However, that’s not all that selling merchant services over the phone entails. Actually selling merchant services over the phone consists of every step of the process including consultation, implementation, and even signing the contracts. This all occurs from a remote location.
While this makes the business model somewhat convenient, it also makes having success in phone sales extremely difficult. In traditional sales, you have the opportunity to interface with your clients directly and speak with them. With phone sales, however, you will have to do all of this over the phone and digitally. The barrier is greater, and that is why so many fail when they don’t have a plan to address these issues.
However, it doesn’t mean that selling merchant services over the phone is impossible. Actually, hundreds of reps all over the country have success selling these services over the phone on a daily basis. Those with a good plan, sales skills, and some experience interacting with clients over the phone most definitely have a path to success.
Since you want to have success and selling merchant services over the phone takes a specific skill set, there are some merchant services agents that should avoid having to sell merchant services over the phone if possible. For beginners, it’s a good idea to get an in-person meeting when possible. Here are some of the characteristics that might make it difficult to succeed when selling merchant services over the phone.
If you are an individual that has little or no experience with selling merchant services over the phone, then some practice beforehand would be helpful. Selling merchant services can be difficult, and selling anything over the phone can be difficult. Together, they make for an increasingly difficult combination. Having success in merchant services over phone sales is entirely possible, but it is an ideal situation for those that at least have a bit of experience with selling over the phone.
Selling without a good supply of leads is difficult for any industry, let alone merchant services. If you are going to sell over the phone, then you need to make sure that you have enough information to go off of. With a steady supply of leads that contain the information you need to make the sale, you will increase the chances of your success drastically. You should always make sure that you have a steady pipeline of leads before you begin your foray into merchant services phone sales.
Now that that is out of the way, we can give you some actionable tips for having success with merchant services sales over the phone and giving yourself a leg up on the competition. Here are some of the most actionable tips and actions that you can take to have more success in phone merchant services sales.
If you’re going to call a merchant looking to talk about how you can provide them a service, it’s best that you have a good reason for the call. If a merchant believes that you are only calling to sell them something that they don’t need, then they aren’t going to hang around on the call for very long and they will be immediately defense. However, if you can let them know that you have a solution for their problems or you are taking notice of an issue that they are having, you are much more likely to have success in converting them to a customer. Always make sure that you have a reason to be calling your merchant, otherwise they may believe that you are not worth their time.
If you do manage to get on the phone with a merchant, one of the most important things that you can do is to get to your value proposition early. Merchants especially have very little patience for people calling them to sell products and services, since they get it so much. So, it’s helpful if you are able to show them right away that you have actual value and benefits to offer instead of just trying to make a sale. If you can make your point and show why you are valuable very early on in the process, the merchant is much more likely to be receptive to your pitch for a longer period of time.
It’s very important to keep your merchant on the phone for as long as possible. The longer that you are able to keep your merchant on the phone, the greater the chance that you have at converting your merchant into a customer. That’s not to say that you should keep them on the phone without regard to their needs. You should ask questions and start conversations that lead the merchant to simultaneously stay on the phone longer and learn more about the services that you have to offer. When you are conducting phone sales with a merchant, be sure to do your best to have a lengthy conversation with them so that they can become more familiar with you and start thinking of you as a business partner instead of a salesman.
When you are interacting with a merchant on the phone, it’s best to keep the asks small. By that, we mean that you shouldn’t go for the big sale right away. When conducting phone sales, it is best to take it in baby steps instead of trying to sell them on your most comprehensive solution that you have to offer. For instance, you should explain the benefits of an affordable and smaller-scale service first to allow them to see the benefit before going into the other options that you have to offer.
When you do make a sale, your next task is to get them through the paperwork and make sure that they remain a merchant under your account. To do that, you should provide superior service and walk them through the paperwork process as a team instead of leaving them to fend for themselves. This cooperation and the help that you are able to provide them will lead to a long and productive relationship between merchant and agent.