In the last few episodes I’ve been discussing building an ISO. Generating growth in your business may not always be exciting. Perhaps only a few of my readers are still with me on this rather boring subject. There’s not always fun and games, but SUCCESS can be the result of the daily grind! Personally, […]
In the last few episodes I’ve been discussing building an ISO. Generating growth in your business may not always be exciting. Perhaps only a few of my readers are still with me on this rather boring subject. There’s not always fun and games, but SUCCESS can be the result of the daily grind! Personally, I enjoy any kind of information on business. I’ve read 700-page books, 1500 pages of “Strategic Investing with Options,” and I have a book on business law. Such books are great and interesting to me, even though I may take a year to read through one. I consider that a good year of my life! If you share my enthusiasm for seemingly boring business information, you are probably in a good place to actually build a business. Some of you are wondering, “James, when are you going to get to the exiting part?” You should probably stay in sales. And there is nothing wrong with that!
My dad and my father-in-law are both amazing men – my heroes. They are amazing fathers. They would probably find these episodes rather boring. My father-in-law works for me editing and publishing my content. Why would he find this boring? Because he isn’t going to start a business! He’s been an employee his whole life and raised an amazing family. That’s totally fine.
Whether you are a business owner or sales person, ask yourself if you’re following the path you’re meant to follow in life. I hate the culture which puts an entrepreneur or politician or any occupation on a pedestal. If you are meant to be a business owner, then join me for more of this “not so exciting” topic of building your own ISO.
You need negotiation skills with your processor for more profit, more capitol, or more up-front money as your business grows. Here are vital tools for negotiating. To effectively negotiate with a processor, realize all processors want the same thing – more deals. That’s why you MUST NOT skip the first sales model I mentioned in a previous episode on this topic. Be personally responsible for consistently doing twenty deals a month. Every deal I’ve ever negotiated with any processor was based on number of submissions. I offered to give X submissions if they would give me this residual split, or up-front bonus, or whatever.
Once you gain the trust of your processor, you can negotiate a RAMP UP PERIOD. Remember that term. It could make thousands of dollars for you. You say to the processor, “I’ve been doing fifteen/twenty deals a month consistently for four or five months. Now I’m going to build a team; here are my projections. We’re going from fifteen to twenty to twenty-five to thirty to thirty-five to forty. But I want to negotiate a deal with you now as if I was doing forty deals a month. Then you are going to give me six months to hit that goal.” That kind of deal is called a RAMP UP PERIOD.
The condition of your agreement is submitting a certain number of deals per month. Then you agree upon the terms of negotiation – capital, up-front money, or whatever you need.
Make sure you take some money for yourself when you’re negotiating. Very often I find myself talking people out of a long, long term residual deal. Although I love residual – it’s great – make sure you also have something short-term for making good money. Your family and friends will not be pumped about your business when you don’t make any money.
Processors want the residual, the long-term profit growth. If they get that long-term profit, they’ll be more excited to give you what you need. Over the long run they need know they’re actually getting maybe 40% of the profit. You are only asking for a 60% split, but you do want $400 up front (or whatever you’re asking.)
If you have any questions, shoot me an email: firstname.lastname@example.org. I’m sure those getting to this point and really moving forward will be few. I’d love to talk to you. Maybe our training and technology solutions would benefit you as you build your business.
Read the previous article here: http://bit.ly/2D6NAyV Recruiting 1099 Sales Reps – The Key to Attracting Independent Contractor Sales Reps
Read the next article here: http://bit.ly/2D9unfK How Much Can I Make Selling Cash Discounting