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Education
Pros of the direct sales model
This model can be profitable for ISOs since merchant level An internal sales team is similar to a
salespeople (MLSs) are replaced with employees who sports team because one bad player or
receive an hourly wage and a small commission for each one bad coach can drastically affect the
closed account. Consequently, this model enables ISOs to
retain most, if not all, of the residuals, since independent performance of the entire team.
MLSs who would normally receive most of the residuals
are no longer in the picture.
My least favorite drawback with this model is that you are
Equally important, this enables ISOs to have full control now also competing with your independent MLSs who are
of sales agent training, which can improve efficiency. on the streets going door to door. However, while a few
Additionally, ISOs are able to target certain markets, for years ago this was frowned upon, it has become a widely
example, they may choose to run a marketing campaign for accepted industry practice.
a particular business type or volume of sales. This model
also enables ISOs to train their sales teams to sell additional I believe the pros of running a direct sales channel outweigh
products and services to current merchant accounts. These the cons, so if you have the capital, I strongly advise you
include gift or loyalty cards, electronic checks, business to incorporate a direct sales channel into your model. As
loans, the latest POS systems, and much more. All of these I have stated previously, pick a couple of different models
make this model very desirable, and great for the bottom that work best for you. This model, much like all others, is
line. not going to be a good fit for everyone. It is ultimately up
Cons of the direct sales model to you to determine if this is right for your business. Best
of luck.
With any model, you will have some drawbacks; the direct Aaron Nasseh is the founder and Chief Executive Officer at Finical Inc.,
sales channel is no different. To start, this model requires formerly known as Prudential Payment Systems Inc. His extensive sales
more upfront capital to cover payroll for sales employees, and management experience includes having previously served as the
marketing, training, office space, insurance, and many
more expenses associated with running and managing a General Manager of CardPayment Solutions and Vice President of Sales
fully staffed office. at iPayment Inc. He may be reached at anasseh@payments-inc.com or
at 818-330-4055.
52
Pros of the direct sales model
This model can be profitable for ISOs since merchant level An internal sales team is similar to a
salespeople (MLSs) are replaced with employees who sports team because one bad player or
receive an hourly wage and a small commission for each one bad coach can drastically affect the
closed account. Consequently, this model enables ISOs to
retain most, if not all, of the residuals, since independent performance of the entire team.
MLSs who would normally receive most of the residuals
are no longer in the picture.
My least favorite drawback with this model is that you are
Equally important, this enables ISOs to have full control now also competing with your independent MLSs who are
of sales agent training, which can improve efficiency. on the streets going door to door. However, while a few
Additionally, ISOs are able to target certain markets, for years ago this was frowned upon, it has become a widely
example, they may choose to run a marketing campaign for accepted industry practice.
a particular business type or volume of sales. This model
also enables ISOs to train their sales teams to sell additional I believe the pros of running a direct sales channel outweigh
products and services to current merchant accounts. These the cons, so if you have the capital, I strongly advise you
include gift or loyalty cards, electronic checks, business to incorporate a direct sales channel into your model. As
loans, the latest POS systems, and much more. All of these I have stated previously, pick a couple of different models
make this model very desirable, and great for the bottom that work best for you. This model, much like all others, is
line. not going to be a good fit for everyone. It is ultimately up
Cons of the direct sales model to you to determine if this is right for your business. Best
of luck.
With any model, you will have some drawbacks; the direct Aaron Nasseh is the founder and Chief Executive Officer at Finical Inc.,
sales channel is no different. To start, this model requires formerly known as Prudential Payment Systems Inc. His extensive sales
more upfront capital to cover payroll for sales employees, and management experience includes having previously served as the
marketing, training, office space, insurance, and many
more expenses associated with running and managing a General Manager of CardPayment Solutions and Vice President of Sales
fully staffed office. at iPayment Inc. He may be reached at anasseh@payments-inc.com or
at 818-330-4055.
52
