Understanding Compensation and Choosing the Right Partner

Watch this interview with Rich Norton:

The Importance of Thinking Long-Term

When entering the payment processing industry, it's crucial to adopt a long-term perspective. Rich Norton emphasizes that success in this field isn't just about the immediate compensation package or the percentage of residuals you’re offered. Instead, it's about partnering with a company that provides comprehensive support, excellent customer service, and a wide range of products and services for merchants.

“Focus on the bigger picture,” Rich advises. “You want to be with a company that not only offers a competitive residual split but also takes care of your merchants. That means having great customer service, solid communication, and reliable products. These factors contribute significantly to your long-term success.”

Understanding Residual Splits

New agents often get caught up in the percentage of residuals they’re offered—whether it’s 80%, 50%, or 70%. However, as Rich points out, these numbers can be misleading if not viewed in the proper context.

Rich recalls conversations with new agents who are excited about an 80% residual split but have yet to make any sales. He reminds them that 80% of nothing is still nothing. “What really matters,” Rich says, “is learning the business, working with integrity, and choosing a company that supports your growth.”

The Unique Economic Model of the Industry

One of the most unique aspects of the payment processing industry is its economic model. Unlike many other industries where you might need to pay significant upfront costs or monthly fees for a franchise or business plan, payment processing offers a different approach.

“In our industry, you don't have to put down large sums of money to get started,” explains Rich. “Instead, you’re paying for support, training, and infrastructure through your residual split. It’s a return on investment—what are you getting in exchange for the percentage of residuals you’re giving up?”

For new agents, this means evaluating the full value proposition of a company, not just the residual split. For example, would you rather have a higher split with minimal support or a slightly lower split with access to robust training, marketing resources, and customer service that helps you close more deals?

Maximizing Your Earnings Potential

When considering different compensation offers, it’s important to think about your sales potential. Rich uses a simple analogy: “Would you rather make two sales a month with an 80% split or 10 sales a month with a 50% split? The answer is obvious—you want to maximize your overall earnings, not just focus on the percentage.”

This perspective encourages new agents to think about the larger context of their work. It’s not just about the immediate numbers; it’s about building a successful business with sustainable growth.

Choosing the Right Partner

Ultimately, choosing the right payment processing company is about finding a partner that aligns with your goals. Look for a company that provides the tools, training, and support you need to succeed. As Rich emphasizes, “It’s not just about the money—it’s about finding a team that will help you grow and succeed over the long term.”

Conclusion

Navigating the compensation landscape in the payment processing industry can be challenging, but it’s essential to keep a long-term perspective. Don’t get caught up in the percentage of residuals alone. Instead, focus on what you’re getting in return—support, training, and the ability to close more deals. By choosing the right partner and keeping your eye on the bigger picture, you can build a successful and sustainable career in this industry.

Stay tuned for more expert insights in our Payment Processing Basics series.