ISO Amp的动态

Transcript

Hi, my name is James Sheppard. I'm doing a little miniseries here on how to make money in the payments industry and how the Commission works. So in the last video, if you didn't watch that yet, make sure and check that out. We talk about some of these core concepts of we have fees that we collect from a merchant, that's our revenue. Then we have this cost structure which is represented in the Schedule A and that is our, our cost for our expenses, right. And so we talked about the core cost of this. We have interchange fees we could lump in American Express out Blue into that as well we have. Card brand fees and assessments. Then we have these schedule A costs that go on top of that, you know three basis points, three cents and $10. Now again when I say these numbers, understand your numbers may be very different than that, right, You got to look into those numbers. But we have this core kind of cost structure, right that's that's there. Now in this video, I want to talk to you about the other big cost and then get into the other big variable which is the actual fees themselves when we're figuring out the margin of an account. So when we talk about the other. They cost while the other big cost is you don't make all of the money that's generated from an account. So even if you look at, well here's the total fees that we collected in in the video last week. It was like well we collected 2500 in fees and then we had you know 2100 in interchange cost. We had $200 in car brand fee costs. We had scheduled a cost ended up being there was like $140.00 of monthly margin left on the account. Well, you don't get all $140.00, right, so in in the case of. ISO or or an independent agent, you're getting a residual percentage of that amount. So you get a split or a percentage of that amount, which again you will find on your schedule A. Now this is where it gets tricky in the negotiation because you want to be very cautious here. You don't want to be, you know, taking advantage of, right. You certainly don't want to be in a situation where you're not getting a competitive percentage of the margin of the profit. But what I find a lot of agents, there's two kind of extremes. You have the agents that are not getting what they're worth. But then you also have agents that try to get so much that they end up going with the processing partner that doesn't really give them any value. If you're, especially if you're new to the industry, you're trying to kind of get your sea legs and figure things out, well, the odds are you probably want to be with the company that provides you with really good support and good technology and all these other resources. Well, don't expect that if you're trying to make almost all of that money, you want to make sure that the processor is getting a healthy percentage of the money to offset all the resources that they're providing you with, right. So you're going to see a range of percentages. And note that range of percentage is basically going to come down to what are you doing and what is the ICE or processor doing if you're doing everything, meaning you're going out and finding the deals. You're selling the deals, you're on boarding the deals, you're supporting the merchants, you know you're doing all this stuff well, the processor is going to give you a should be giving you a pretty high split because ultimately they're probably just handling underwriting and you know risk and compliance and some of those types of things. So there's, you know there's a cost to that and certainly they want to still make some money, you know, you'd expect of course, but if you're doing all the heavy lifting you should be getting the lion share of that money. On the flip side of that if you're like, well I'm working with a potentially an ISV independent software vendor. And they're doing all the onboarding and you know they're talking to them, they're doing the demo for me, they're doing the installation, they're supporting the customer and I'm bringing them a deal. Well, then you're kind of almost feel getting into more like a referral partner. So you would expect that you would get a much smaller percentage of the deal versus what that software company would expect to get. So it ultimately the, the residual percentage comes down to what are you doing, what are they doing, right, That's the question that you always have to ask yourself. Now we talked about that residual percentage that's kind of your, your other big cost is like. Well, we generated profit, but I only get you know, half of it or only get this much of it or whatever. So what about the fee structure? Well, this is where I'm going to encourage you to go back and watch the videos that I already did in the last little miniseries that I did for ISO AMP where we talked about different statement types and pricing structures. So ultimately there are all these different ways that you can generate revenue from a merchant account and those are all things like flat rate pricing, dual pricing, interchange plus pricing, tiered pricing, flat rate with surcharges, you know. We talked about all these different pricing structures. So definitely go back and watch those videos. If you missed that part and just kind of binge those videos and get them done and you're going to get a ton of information there. So once you have that information, then you now have kind of this full picture. Again, maybe it's a little blurry to you still, that's OK. But in the next video, I want to start getting into actual compensation and talk about the importance of negotiating compensation and how these different pieces play in. So tune in for that next week. Now one last thing I want to mention in this video is that this video is brought to you by. ISO app, I'm super proud of it. It's the leader in full service statement analysis. A company I own. I self funded the entire thing myself. It's a fantastic business. We do thousands of statements a month and one of the great things we have in there is something we call a program. Now, a program. Is the idea of a pricing template that also goes together with a schedule A. And because we have that, when you upload a statement, you get to choose which schedule A, you know which processor you want to put that deal with. And when you click on that deal, what happens is our system automatically calculates all of this margin and compensation stuff because it is pretty complicated and our system gives you a residual section or a margin section. You can look at that line by line and see how much revenue are you bringing in from each type of fee and what is the cost associated with that. Nine item showing you the resulting margin. If you have that residual split loaded in there, we'll even show you what your residual cut should be. Now it's not going to be exact because when you start working with that merchant, you know their volume is going to be different than you know what what was on that statement. Their card mix is going to be a little different. But it gives you a great way to look and say, OK, I should be making a couple $100 a month on this account. Well, that way when it comes back and you're only making $20.00 or $50, you can kind of say wait a second, what's going on? You could upload your own statement into our system. That's something a lot of our clients. So they'll upload their own statement into our system, and then it'll calculate and say, here's the margin we think you should have gotten from that exact statement. And then you compare that to your residual report, match it up and see what's different, right. Maybe there was a term that you didn't understand in the schedule or the OR the agent agreement. So we have all of that in there for you. Head over to get islam.com, GT ISO, amp.com. Click on the free demo and check it out. My name is James Sheppard. Thanks for watching.