Why Sell Your Merchant Residual Portfolio?

Why Sell Your Merchant Residual Portfolio?

There are many reasons why an ISO or agent might decide to sell all or part of their merchant residual portfolio. Some very good reasons, and some not-so-good reasons

Selling a merchant residual portfolio so that you can impress folks – say by purchasing a new, flashy car – is probably not the best use of that asset. You may well experience a rush of pride or joy for a few weeks, or even a few months. But chances are that initial rush will disappear, just like the monthly residual income you relinquished.

Your merchant residual portfolio is a valuable asset, one you’ve worked hard to build. But it shouldn’t be your only investment. The best way to build wealth is by diversifying assets. If you have a merchant residual portfolio generating $20,000 a month, but no other investments, you’re in a vulnerable position. Consider selling half the monthly residual stream – which could fetch you upwards of $200,000 – and investing that money, carefully and thoughtfully. Then get back to work building up your residual stream again.

The best reasons for selling all or part of a merchant residual portfolio are those that provide an opportunity to build an even larger portfolio. For example, I used a portion of the proceeds from my first buyout to hire an assistant. Freed of pesky administrative tasks, I was able to spend an additional 2 hours a day prospecting, which allowed me to build my residuals back up to pre-sale levels quickly.

Are you interested in learning more about how to get the best deal for your merchant residual portfolio? Guide to Selling Merchant Residual Portfolios draws on my years of experience building and selling merchant residual portfolios.

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