Wednesday, 23 February 2022
What is the best cash discount program. North American Bancard has the best cash discount program for merchants, agents, reseller, ISOs, Sales Partner
Sunday, 03 April 2022
Selecting the best merchant services agent program when becoming a merchant services agent and selling merchant accounts and selling credit card proce
Friday, 29 April 2022
Become a successful merchant services agent selling merchant accounts and selling credit card processing services. Merchant Services Sales Reps
Friday, 29 April 2022
Selling Merchant Accounts, Selling Credit Card Processing, Selling Merchant Services with North American Bancard Agent ISO Reseller Sales Partner Prog
Wednesday, 13 April 2022
Learn how to sell merchant processing services to all business types. When selling credit card processing we will give you merchant sales training pro
Sunday, February 27 2022
Do you know if you really own your credit card processing residuals? The best way to find out is to ask your credit card processor if they want to buy you out—that is, purchase some of your future income steams. If you need fast cash, this is a great way to go. Let's look at some of the details:
For example, what if you closed twenty deals in October, and each of those yielded $50 in profit. If you have a 50% split, then your residuals would be $25 for each account per month. This makes for about $500 dollars a month total in residuals, which is $6,000 dollars per year. Not bad, right? Especially considering that your portfolio will only increase from there.
Just like any other asset, you can sell your merchant portfolio, though. If you need cash upfront, you can sell the right to this long-term passive income to your processor. How much would they pay? Well, typically, they will pay the same as about 15 months of your residuals, which in this case is $7,500. And then they would pay you another $4,500 throughout the year ($500 x 9), depending on the retention of your accounts. That's a pretty handsome amount for closing just 20 accounts.
There are some rules to consider when you're doing a buyout, though, so let's take a look at some individual guidelines:
1.) First, the residuals need to be from a merchant account that has been activated for awhile—at least a month, but more often around three months. Why? Consider this: your processor will decide what to pay you based on the average income generated over the past three months. You don't want one or two of those months to be a 0.
2.) Selling your residuals shouldn't affect your upfront payment for closing the deal.
3.) You're more likely to get that second payment if less accounts cancel, so sometimes it's better to sell more accounts to your processor to increase your chances. Another thing you can do is to get a buyout that is 100% upfront, though usually this isn't as lucrative in the long run.
Do you feel like you're a bit more familiar with buyouts now? The above guidelines are good things to keep in mind, but how do you know when a buyout would be helpful?
1.) To break your fall when you're first getting started. Running a business can be a difficult challenge and sometimes this requires putting money upfront. It might be fine to work off savings and initial capital for a few months, but eventually you're going to have to start earning income from your business to be able to avoid running out of money. If expansion is happening slower that you thought and you need some money to put into savings or to invest in your business when you're brand new to the industry, a buyout may just help you find the liquid cash that you need without having to go into debt.
2) When you need stability. You might be tempted to go with a buyout as a way to pay for the cost of growing—for example, getting a fancy advertising campaign going, or moving to a bigger office—but don't do it. Selling your residuals is not a long-term strategy, so it should not be used to meet long-term goals like growth. You may have more money upfront, but it will obviously lower the amount of your monthly residuals. It is not worth it; the point of this business it to build your monthly income over time. Only perform a buyout when you really need liquid cash upfront to put out a fire and return your business to the status quo—not to add more complexities and growth.
When shouldn't you sell your merchant residuals? Well, there are a few situations where it's not recommended:
If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.
Sunday, 03 April 2022
To become a credit card processing agent can be a daunting task, but with proper guidelines like the ones I will teach you in this post
Wednesday, 30 March 2022
Start your own credit card processing business. Starting a payment processing company in 4 steps. Learn how to start a merchant processing company tod
Sunday, 20 March 2022
merchant services sales rep, merchant sales representative, merchant services commission structure, merchant sales rep
Friday, 11 March 2022
selling merchant accounts, selling credit card processing, selling merchant services, selling merchant processing services, merchant services sales
Sunday, 27 February 2022
sell merchant services portfolio, merchant portfolios for sale, credit card processing portfolios for sale, merchant portfolio valuation
Monday, 14 March 2022
Home for merchant services resellers, credit card processing resellers, merchant accounts resellers for North American Bancard. Join our sales partner
Saturday, 12 February 2022
Become a merchant services agent, ISO, reseller for credit card processing and merchant accounts, best merchant services agent, ISO reseller programs.