Salary of merchant account seller - Selling a merchant account can be a very profitable company. Selling a merchant account is not an easy task by any means. It takes hours of work, solid knowledge of the payment processing industry, dedication and the ability to receive 'NO' over and over again and save it.
Merchant account sales are often done successfully as part-time jobs, as it takes a long time to build a substantial residual flow to ignore. In fact, more than 50% of all people who start selling merchant accounts never work, and maybe 10% are profitable enough to survive. Once a person has found the ability to sell a merchant account, he can get a very good life from him.
Statistically, the average merchant account will give the sales agent about $ 30 per month for residual income. If a sales agent can sign 10 accounts per month, they will earn $ 3,600 per month at the end of the first year, or $ 36,000 per year. At the end of the second year, $ 72,000 per year, and by the end of the third year, $ 108,000 per year.
$ 108,000 per year is a very decent salary. As long as the agent continues to sign the account, your income will continue to grow. But, 10 accounts per month is not an easy task, especially for someone new to the commercial services industry. In addition, friction arises over time and the average number of accounts that a person sets may decrease.
The sales agent signs a contract with ISO (independent service operator) registered with Visa and MasterCard. The agency registers a business for trading accounts, and ISO provides merchant accounts, technical support and customer assistance to the company, depending on what the agent can do. ISO divides processing fees with sales agents above their costs. The more commercial credit card processing, the more ISO, and its agents.
High-Pressure Sales: While the merchant services industry has been largely cleared in the last five years, many ISOs are still using high-pressure sales, and other 'gray areas' tactics to get more business. This ISO is extinct and does not do good business. Watch the movie 'boiler room'. If ISO acts similarly to the company in the film, stay away. Find an ISO with a good reputation who will work to meet your needs.
Not signing a contract: If a sales agent does not sign a legal contract with an ISO, they risk cutting their income without another way. Always be sure to sign and agree to a contract with the ISO before sending one account to them.
Free Terminal: Free terminal program often sounds like an instant fix to sell merchant accounts, but it does not. The free terminal program is okay for signing an existing business, but it often comes with lots of strings and can spend a lot of money if something goes wrong.
Prepaid Cash Program: an Advance program can be the best way to get some instant return on the merchant account. But, like a free terminal program, make sure you understand the conditions of getting a down payment. Usually, you exchange money down for future residue.
Price Wars: One of the biggest mistakes an agent or ISO can make is entering a price war with another company. The problem is that by entering into a bidding war, the quality of service is devalued. Agents should set competitive prices and should remain stable at that price. While it may be necessary to lower prices for larger businesses once in a while, constantly entering the game the lowest price gets nothing but the customers going when the lower prices come. Agents must provide personal services to their customers thereby making the value far beyond any price.
Going after the big fish: Of course, most new sales agents think that the bigger the business, the more they can generate. While the idea is on track, execution will never be played like that. In fact, the bigger the business, the lower the margin above the cost, making the profit more difficult. Large businesses shop hard, and most often have the lowest margin to profit from it. While a business that processes $ 20,000 per month, can make an agency $ 30 per month, a business that processes $ 5,000,000 per month can only make agents $ 2 - $ 3 per month. This combined with a large amount of work and trust required to sign a large company makes it unprofitable and generally wastes time for most of the independent agents.
If you're interested in learning more about becoming an independent sales representative, we invite you to view our merchant account sales program. We offer programs with diverse or upfront and residual options, as well as wholesale prices for additional equipment and services.
Merchant account sales are often done successfully as part-time jobs, as it takes a long time to build a substantial residual flow to ignore. In fact, more than 50% of all people who start selling merchant accounts never work, and maybe 10% are profitable enough to survive. Once a person has found the ability to sell a merchant account, he can get a very good life from him.
How much can be done:
Statistically, the average merchant account will give the sales agent about $ 30 per month for residual income. If a sales agent can sign 10 accounts per month, they will earn $ 3,600 per month at the end of the first year, or $ 36,000 per year. At the end of the second year, $ 72,000 per year, and by the end of the third year, $ 108,000 per year.
$ 108,000 per year is a very decent salary. As long as the agent continues to sign the account, your income will continue to grow. But, 10 accounts per month is not an easy task, especially for someone new to the commercial services industry. In addition, friction arises over time and the average number of accounts that a person sets may decrease.
A simple explanation of how commercial agent sales agents work:
The sales agent signs a contract with ISO (independent service operator) registered with Visa and MasterCard. The agency registers a business for trading accounts, and ISO provides merchant accounts, technical support and customer assistance to the company, depending on what the agent can do. ISO divides processing fees with sales agents above their costs. The more commercial credit card processing, the more ISO, and its agents.
Common sales merchant account traps:
High-Pressure Sales: While the merchant services industry has been largely cleared in the last five years, many ISOs are still using high-pressure sales, and other 'gray areas' tactics to get more business. This ISO is extinct and does not do good business. Watch the movie 'boiler room'. If ISO acts similarly to the company in the film, stay away. Find an ISO with a good reputation who will work to meet your needs.
Not signing a contract: If a sales agent does not sign a legal contract with an ISO, they risk cutting their income without another way. Always be sure to sign and agree to a contract with the ISO before sending one account to them.
Free Terminal: Free terminal program often sounds like an instant fix to sell merchant accounts, but it does not. The free terminal program is okay for signing an existing business, but it often comes with lots of strings and can spend a lot of money if something goes wrong.
Prepaid Cash Program: an Advance program can be the best way to get some instant return on the merchant account. But, like a free terminal program, make sure you understand the conditions of getting a down payment. Usually, you exchange money down for future residue.
Price Wars: One of the biggest mistakes an agent or ISO can make is entering a price war with another company. The problem is that by entering into a bidding war, the quality of service is devalued. Agents should set competitive prices and should remain stable at that price. While it may be necessary to lower prices for larger businesses once in a while, constantly entering the game the lowest price gets nothing but the customers going when the lower prices come. Agents must provide personal services to their customers thereby making the value far beyond any price.
Going after the big fish: Of course, most new sales agents think that the bigger the business, the more they can generate. While the idea is on track, execution will never be played like that. In fact, the bigger the business, the lower the margin above the cost, making the profit more difficult. Large businesses shop hard, and most often have the lowest margin to profit from it. While a business that processes $ 20,000 per month, can make an agency $ 30 per month, a business that processes $ 5,000,000 per month can only make agents $ 2 - $ 3 per month. This combined with a large amount of work and trust required to sign a large company makes it unprofitable and generally wastes time for most of the independent agents.
If you're interested in learning more about becoming an independent sales representative, we invite you to view our merchant account sales program. We offer programs with diverse or upfront and residual options, as well as wholesale prices for additional equipment and services.
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