5 Worst Reasons to Sell for a Processor
5 Worst Reasons to Sell for a Processor
May 03Having talked with and provided training to hundreds of agents in the merchant services industry I have heard a lot of reasons why agents sell for their current credit card processing company rather than switching over to North American Bancard. Some of these reasons do make sense and there have been many times when I have advised an agent to stay with their current processor however, many times the reasons are not great and sometimes they make no sense at all. Below are the top 5 Worst Reasons to stay with your current provider.
5. “They are a local company and I need the local support.” As I discuss in the video above, if you are working for a local provider and you do not have an ownership interest in the business, you are actually working for your competitor unless you plan to remain small. Eventually you will want to be the owner the top brand name processing company in your market and if you work for a local provider you will not achieve this goal. I have people that have worked for me in my local market and their goal it to have a secure job. If this is your goal, you should continue selling for a local provider but, if your goal is to build a business, you should become the local provider.
4. “My friend or family member got me into the business.” This can be a tough one! Can you ask this person the tough questions like, “Am I an independent agent or a sub-agent?” “Do I own the residual and would I continue to get paid even if I had an accident or moved to another business?” Along with many other questions. Keep personal and business separate!
3. “They provide me with appointment scheduled leads.” Let’s face it, most of these “leads” are a waste of time. Why would you spend all of the gas money to go to 3 leads per day that are 30 minutes apart and don’t really want you to show up anyway when you could literally walk around your local community and visit 15 to 20 businesses per day?
2. “They pay me so much up front money but, no residual.” North American Bancard has the best up front compensation in the industry among processors that provide a true residual split. Our agents make an average of $275 per sale up front. Many agents tell me, “I get $750 or $1,000+ on every sale that I get!” The only way to get this is by selling leases or by selling future residual and either one of these is going to damage your long term business and income.
1. “They give me a larger residual split than North American Bancard.” Don’t be fooled by inflated cost structures and higher residual splits. Most agents are choosing 80% of $20.00 per month in profit over 50% of $100 per month in profit. It isn’t about what percentage of the pie you get but, rather how big of a pie you are working with. NAB has a much lower cost structure and that has a huge impact not only on your residual but, your ability to remain competitive.
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Thanks for reading!
James Shepherd
james@multi-merchant.com
