o you're an ISO or merchant level salesperson (MLS) ... now what? You've heard success stories about how much money can be made in this business, and now you feel it's your turn. Do you want to know how?

Beyond the initial answer of "work hard," (although trite, it is still true), I believe there is a way of growing, becoming successful and sharing in the wealth of this industry today. The day of the generalist is over; ISOs/MLSs can no longer be all things to all people.

So, what is the answer? Think small.

As a modern ISO/MLS you need to carve out your specialty. You have to identify your market and your methods and then make a plan. You have to pick a niche and become an expert in it by focusing on it and living it. The different niches I can identify for you are: ethnic and cultural, merchant type, product type, VARs, associations, regions and, lastly, friends and family.

Understanding the Sameness of Differences

Selling everyone the same equipment and the same solutions does not make much sense today. Even though the world seems very diverse and ethnically blended, there are also many pockets of ethnic and cultural unity spread throughout America.

If you are thinking of the Hispanic market, before I go any further, Electronic Exchange Systems (EXS) believes that this market is so vast and diverse that it has become very successful and mature; it has turned out to be such an integrated part of the American merchant base that it does not really qualify as an ethnic niche market. EXS treats this market as part of the greater merchant base.

What remains are many small pockets of closely packed communities such as Vietnamese, Korean, Russian and English expatriates; just about every country with a rich language and historical background is represented. So as a small ISO or MLS, you can isolate particular groups, understand their special needs, work with the associations or groups that represent them and help them with their groups' individuality by supplying guides, brochures and materials in their languages and catered to their uniqueness.

EXS also recommends that you employ or partner with someone from that community for sales and customer service. You will be better able to sell to ethnic or cultural populations if you have someone who can communicate in their native languages and help you understand the cultural nuances. This is a niche that requires homework and dedication but is really very large and lucrative.

Merchants That Flock Together

Another way to financial success is to pick a merchant type-and become an expert in it by specializing in that merchant type. Merchant types include: medical (and there are very many within this category), restaurant, lodging (small and large divided by products or integration), business to business (B2B), consumer to consumer (C2C), government (very difficult), service industries, direct marketing-and many others.

The secret is that you will succeed if you are dedicated and you do your homework; it's easy to get frustrated and abandon your efforts, but that would be a mistake. Once you decide to sell to merchants of a specific merchant type, learn everything you can about their particular needs; learn the terminology they use in their profession, understand who the buyers are and why they buy.

For instance, in the medical field, multiple merchants may need to use a single POS machine, and the decision maker is often the office manager. Restaurants have special needs at the point of sale such as including tips (to insure proper service) or bar tab programs. And restaurant merchants can usually be called on only at certain off-dining times; sometimes the decision makers are even off-premises owners.

Each merchant arena has its own needs (sell on needs), its own jargon and requires expertise to help with the sales. Working in these niches is very rewarding but requires analysis and patience.

Understand Your Tools Beat the Competition Every Time

This is one niche in which you can get help and training from the industry product suppliers. All product, value-added and software suppliers offer training manuals, or they are willing to train directly or on the Web. It is in their best interests to make you an expert in their product line.

Learn all you can from every source available; understand every feature-both advantages and benefits.

In order to sell products, ISOs/MLSs must not only be able to close on features, they must also be problem solvers. I think this is the most professional way of selling in our industry, but you must be willing to invest time and money to succeed (i.e. you will need to demo the product you are selling).

One of my favorite people exemplifying this philosophy is Mike Grossman with Lipman. Why? Because he understands the products his company sells and every benefit for every merchant type. He gets it, and so should you. Many companies, including EXS, train heavily on products, so be ready to spend time learning if you want to succeed in this niche.

VARs Are People, Too

The Value Added Reseller (VAR) niche is a continuation of the product type niche but it's even more specialized. Not only are you required to learn about the VAR product, but you should also align yourself with the VAR. Become the solution specialist for the VAR, get close to the VAR and become a credible sales engine for it.

Soon you will be getting leads from the VAR and supplying leads back to the VAR. This relationship will help you grow, especially in becoming an expert in VAR products. Now you are willing to represent that product on almost an exclusive basis. This niche requires not only time to understand the VAR product, but also loyalty. This takes time to cultivate, but creates lasting rewards.

Strength in Numbers

Start locally and on a small scale with local associations, such as the Chambers of Commerce. Join them, and become a member/supplier. Establishing your place in this niche will require time and a dedication and willingness to babysit the association. You have to share revenue or rewards with the association, and you have to work the association member list with care and courtesy. Each member prospect is a member first and can make or break the effort and trust.

Once you have established this path, you can contact other associations. (There are print publications and Web sources for every type of association). Take your experience into this niche and make it work for you. Remember, it is not so much the products, but the members who are the most important sales aspect.

Do not neglect the associations or let their members go unattended as you try to add other associations. This niche requires you to stay equally focused on each association and treat it like it was your only customer. The associations require and deserve attention, and their members have to be serviced constantly. Remember, you have two merchants with every sale: the association and the member.

Don't Forget Your Garden

I think of a sales organization as having a backyard-its own local sales area. In order for small ISOs or MLSs to succeed in this niche, they have to work and cultivate their sales garden. They must read the local papers and magazines and invest in membership to local chambers and organizations.

The ISO/MLS must join sales and lead groups and support local events. Make a presence in the local area; you are not a carpetbagger, but a hometown organization. You can provide service quickly and deliver supplies or products (keep an inventory) whenever needed, and by this I mean 24/7. This separates you from the large sales organizations and banks that need more time to respond.

Learn about your local merchants; learn their names and the names of their family members. Remember special occasions such as birthdays and holidays. Send thank you and special occasion cards. Stop in often, but not needlessly. Merchants are still busy and do not want to think you are wasting their time.

This is why you now have to learn all of the rules and regulations of our industry. Your specialty in this niche-besides customer relations and service-is constantly assisting your local merchants with returns, chargeback rules and better ways to use the products you sold them.

You become the expert in the back-end of our business to help the merchant coordinate questions and problems with the processors. You help merchants ask the correct questions using the language we use to prevent confusion and anger.

Learn to be the merchants' trainer, coordinator and arbitrator. This is the easiest niche through which to get referrals. Once you are known as a reliable and local source, your cold calling days are over. Also, keep working your territory; look for new businesses and shopping centers, and work heavily in the industrial areas that will provide B2B opportunities: this is your garden; work it, nurture it and don't neglect it, and it will take care of you and be bountiful.

Family and Friends Are Always There

Never underestimate how valuable friends and family can be. This is especially true for newer ISOs/MLSs. Nobody wants you to succeed more than the people who have known you the longest.

The biggest mistake we make as new ISOs/MLSs is not to explain our confusing business to our friends and family.

Certainly they are smart enough to understand the basic concepts of our business (so we'd better know these concepts and be able to explain them). Our friends and family will introduce us to acquaintances and businesses that we can sell to, and then their friends and family will do the same-and so on and so on.

As long as you are going to make a career in this business and plan to represent a reputable processor, this is a very important factor. You don't want a relative banging on your door with complaints.

They know where you live, and you must get used to servicing your accounts constantly. You will build up a good book of business and a great referral base.

This is the most neglected niche; it's the easiest one to overlook. Don't be embarrassed or self-conscious. The 'friends and family' merchants still need our products; they deserve great service and a personal touch.

We should be proud enough of our profession to use all the influence possible. Use the people who know you the best to help jumpstart your career in the merchant-processing field.

Conclusion: Think With a Narrow Focus

This is not an easy business to start up these days. Gone are the Wild West days of the early 90's (aren't we all thankful?). Now we have a mature industry that requires professionalism and dedication. But how does one get started?

My answer is, in order to start in this business and to grow big, you must think 'niche' or 'specialization'-you must think small. In other words, narrow your sales focus, understand and thoroughly learn your chosen niche, then work it, be patient and you will succeed.

This business has long-term, very good income potential for you and your family, but it is going to take an investment of time and money. This may not be a get-rich-quick industry, but it is a get-rich industry.

Why Me?

For the last 12 years I was responsible for the marketing efforts of EXS, from its inception as a small ISO, one sale at a time, to more than $1 billion of total processing volume projected in 2004.

And even now, as CEO (I have passed the marketing baton to a younger, very able manager, owner and CMO, Ken Osako), I know where you're coming from and where you want to go. I believe in this business and marketing it correctly. I believe in EXS, and I believe in each and every one of you.

Garry O'Neil is President/CEO for Electronic Exchange Systems (EXS), a national provider of merchant processing solutions. Founded in 1991, EXS offers ISO partner programs, innovative pricing, a complete product line, monthly phone/Web training, quarterly seminars and, most of all, credibility.
For more information, please visit EXS' Web site at www.exsprocessing.com or e-mail garry.oneil@exsprocessing.com .