Mastering Vertical Niches in Payment Processing | w/Rich Norton

Watch this interview with Rich Norton:

The Power of a Vertical Focus in Payment Processing

A "vertical" refers to a specific industry or type of business that a payment processing representative decides to target. In payment processing, focusing on a particular vertical has distinct advantages:

1. Streamlined Solutions: By working within a single industry, you can become an expert in the needs and pain points of that market, allowing you to offer highly relevant solutions. For instance, once you understand the unique requirements of restaurant payment systems, you can deliver more tailored, effective solutions to similar businesses.

2. Building Trust and Referrals: Focusing on a niche allows you to develop a network of satisfied clients who are likely to refer you to others within their industry. Referrals are a powerful source of leads that grow organically as your reputation within a specific market strengthens.

3. Increasing Efficiency: When you consistently work with businesses of a similar type, you streamline your sales approach. You’ll understand their language, challenges, and common objections, allowing you to close deals more quickly and efficiently.

Diverse Approaches to Vertical Targeting

As Rich highlighted, there’s no one-size-fits-all strategy for success in payment processing. Representatives can achieve success using different methods to approach verticals. Here are three proven approaches used by some top representatives:

1. Big-Business Approach: Some representatives, like top producer Brian Ehrlich, focus on large-scale businesses with high monthly transaction volumes. Rather than doing traditional cold calls, they establish partnerships that generate a steady stream of leads. This approach requires extensive knowledge and preparation, as larger clients often demand customized solutions and expertise in complex systems.

2. Referrals and Partnerships: Another effective strategy is working primarily through referrals and local partnerships. By maintaining strong relationships with current clients, representatives can consistently receive high-quality leads through word-of-mouth and community involvement, such as through local Chambers of Commerce or BNI groups.

3. Direct Sales and Cold Calling: For those new to payment processing, a direct approach like cold calling can be invaluable. Rich himself comes from a "door-to-door" background, which he describes as a foundational experience. Cold calling smaller, owner-operated businesses such as auto repair shops, tire shops, and local diners can be an excellent way for beginners to develop skills, build confidence, and gain a foothold in the industry.

Finding Your Niche

As Rich and others have observed, many representatives begin by approaching a broad range of businesses, which provides valuable learning opportunities and insights. Over time, as they track their results and notice patterns, they may find that a particular industry or type of business consistently responds well to their pitch. This natural development of a niche—whether it's small restaurants, retail shops, or pizza chains—can be a game-changer. For instance, one representative found his stride with pizza shops and eventually specialized in serving that market, which yielded him a robust client base and steady referrals.

Getting Started: Advice for New Representatives

For newcomers to payment processing, it’s essential to start by casting a wide net. As Rich advises, resist the urge to exclude any business type right away. Initial experiences might lead to preconceptions, but staying open allows you to discover which niches are genuinely profitable and enjoyable to serve.

Some actionable steps to help you get started include:

• Cold Calling with Persistence: Begin by visiting a variety of local businesses. Cold calling allows you to understand different business models, build confidence, and refine your pitch.
• Tracking Performance: Keep detailed records of your interactions and the success rates across different business types. This will reveal which niches respond well to your services.
• Developing Referrals: As you build your portfolio, focus on establishing relationships that could lead to referrals. A single satisfied client can be your entry point into an entire industry.
• Leveraging Partnerships: Connect with local business groups, such as the Chamber of Commerce or networking organizations, to build partnerships and expand your reach organically.

The Benefits of Sticking with It

A vertical focus doesn’t have to be immediate; it often emerges organically. As you gain more clients, experience, and industry knowledge, you’ll have the data and confidence to specialize. After about a year or so, many representatives find that they naturally gravitate toward a particular industry—often because they’ve built a network, perfected their pitch, and consistently closed deals within that space.

Mastering a vertical not only solidifies your position as a payment processing expert but also provides benefits beyond sales. Representatives like Rich, who specialized in certain small business types, found unexpected opportunities to close high-value deals—such as multi-location contracts—just by focusing on small, owner-operated businesses.

Final Thoughts

Vertical targeting is a powerful strategy in the payment processing industry, enabling representatives to specialize, build trust, and achieve long-term success. Whether you’re a new representative looking to make your first sale or a seasoned professional seeking to deepen your expertise, remember that there are many paths to success. Ultimately, what matters most is consistency, persistence, and the willingness to adapt to the needs of the businesses you serve. Find your niche, invest in it, and watch your efforts pay off as you build a thriving career in payment processing.