s an independent contractor selling merchant services, your chosen career has tradeoffs. You may be your own boss, set your own hours and potentially earn an income of which others can only dream. But when it comes to receiving paid time off, a raise or even a holiday bonus, you are usually on your own. What if you could have the best of both worlds?

American National Payments offers such perks to its merchant level salesperson (MLS) partners because people in commission-only sales like to receive the same benefits that salaried employees receive, said Michael Lineback, ANP's President and Chief Executive Officer, who was interviewed for this article.

"We offer a package designed for career salespeople, those who really want to understand the industry," he said. "Our sales force has grown by 500% this year, and we expect more sales agents to join due to our compensation plan and true health benefits."

Based in St. Louis, ANP provides payment processing services and equipment to small and medium-sized merchants. These include retail storefronts, restaurants, hotels, automobile sales and repair establishments, MO/TO companies, and supermarkets, among many others.

ANP's services include credit, debit, ATM, electronic benefits transfer, gift and loyalty card, check, and automated clearing house processing. The company is a registered ISO/MSP with Chase Paymentech Solutions LLC, which provides 24/7/365 customer support.

ANP was co-founded in 2005 by Lineback and Nick Thuston, ANP's Chief Operating Officer, "after two years of careful planning, research and contract negotiations," Lineback said.

"We wanted to make sure we built an organization that offered the products and services that customers need at a competitive price, while at the same time offering our sales force the top pay and benefits they deserve."

Tiered compensation

While researching compensation plans of other companies, ANP found that most ISOs offer their MLSs a 50/50 split compensation structure. "Meaning, for every dollar that comes through the door, half of that money goes to the sales rep on a monthly basis," Lineback said.

Compensation plans for sales offices, which tend to produce more than individual reps, were a bit more lucrative, he found.

An office that produces a certain number of accounts monthly will typically get 55% or 60%, "but you'd have to have a couple other people working with you, or you could not produce those kinds of numbers."

Behind ANP's planning was the question, How can MLSs give themselves a raise producing just by themselves? Lineback found the answer through tiered compensation.

"We wanted to offer a split that was attainable by just about every sales rep out there who is willing to go sell," he said. "Not just the ones who are either hitting the ball out of the park, or who happen to have a sales team. But everyone."

For zero to 100 accounts, the compensation from ANP is a 50/50 split, "like everybody else" offers, Lineback said. But when MLSs go over 100 accounts, they go into the next tier, which is 55%. "And those tiers keep increasing all the way to a 65% split. One person could realistically do that by themselves."

ANP makes it easy for MLSs to reach the 55% tier. The company counts each merchant location, not each merchant. For example, a 30-location merchant would count as 30 accounts.

"That's really unique, because a lot of companies would consider those 30 locations just one deal, not actual accounts on the books," he said. "We haven't seen that offered anywhere in our market."

Committed officers

Lineback's background is in banking in the merchant services industry. In 2002, he began a reseller relationship with an ISO, but later decided to set out on his own and register with the card Associations. That's when he co-founded ANP with Thuston, who has several years' experience in bankcard issuing management and bankcard merchant acquiring sales.

"Thuston's legal and contractual knowledge is instrumental in ANP's ability to negotiate preferred pricing with many of its partners," Lineback said.

Lineback's wife, Lisa, is ANP's Senior Vice President. She is responsible for corporate strategic planning and marketing. She develops and manages training programs for ANP staff and partners, and she organizes the charity events with which ANP is involved.

"We needed someone who could build and manage the systems of a growing company and who had a vested interest in the company," Lineback said.

He noted that with her experience in sales-team management and proficiency in fundraising and community relations, she gives ANP balance to ensure it is an instrumental partner in all the communities it serves.

ANP believes all businesses benefit when the community is healthy and vibrant. The company sponsors and supports many not-for-profit organizations, including Nurses for Newborns Foundation, American Parkinson Disease Association, St. Louis County Court Appointed Special Advocates, Alpha Phi Foundation, Voices for Children, BJC Plaza Chapter Auxiliary and Junior League of St. Louis.

"If you're familiar with St. Louis, it's a very philanthropic town," Lineback said. He and his wife serve on various advisory boards and participate in numerous fundraising events throughout the year.

Generous benefits

It's a struggle to build a business, especially if it is a sole source of income. ANP recognizes this challenge, and through a benefits program, aims to help its independent contractors reach their income goals.

"We know these are items that hard-working sales agents need and deserve," Lineback said. Benefits include a vacation-pay program, a holiday-bonus program and a residual-buyback program. MLSs who have worked with ANP for at least six months are eligible. After that, they have the option to join the staff as W-2 employees.

When MLSs earn a paid vacation, the company pays 100% of the profit their accounts generate for up to two weeks. "They pick the two weeks. They just need to let us know [when] they are going," Lineback said.

"Throughout the year you work hard. So during those two weeks, we are going to pay out 100% of the profitability on your account to thank you."

MLSs get their holiday bonus each year in November. They receive a 70% commission that month for the profits they generate during the month of October.

"We don't care what compensation plan you're on, we're going to bump you up to 70% for that month as a way to say happy holidays," Lineback said.

If salespeople ever want to tap into their residuals and use those funds to make a down payment on a house, take a vacation or even buy a car, ANP offers a residual- buyback program.

Lineback used the example of an MLS selling half of a $10,000-a-month residual back to ANP: That would be "$5,000 a month times 12," he said.

"We would buy that residual stream back for $60,000. It's not that someone would have to sell their entire residuals. It's not like they're quitting the business. It's just if they want the cash. They can sell a portion of their residuals or all of their residuals."

MLSs who choose to join the staff after their initial six months with ANP are also eligible for health insurance coverage through Anthem BlueCross BlueShield. The catch is that their compensation structure will change somewhat. "When someone comes on as a W-2, we pick up insurance and tax expenses that we did not have before. They are then put on a 40% compensation plan versus a 50% to 65% spread," Lineback said.

It's up to the individual, Lineback pointed out, adding that some people may be better off as independent contractors. A single male in his late 20s in good health will pay a lot less for health insurance than someone with a family of four or someone with a pre-existing health condition. "They might prefer to become a W-2," he said. The point is, the choice is there.

With a solid benefits package combined with a comprehensive merchant services program, ANP hopes to recruit serious salespeople for the long term.

"We're not looking for the person who's just going to 'go sell.' We're looking for someone who really wants to understand the industry and build a career in payment processing. And, at the same time, build an income that goes along with that career."