ix years ago, after 30 years in the airline industry, Richard Borylo established an independent information technology (IT) consultancy. Five years later, he added merchant accounts to his service offerings, becoming a Senior Account Manager for POS Card Systems. This has increased his referral rate, not to mention provided him new long-term residual income opportunities.

In this interview, Borylo reveals how he created a niche in the small-business and nonprofit spheres, the perils of loaning merchants terminals and his expansive view of "others" when he applies the golden rule.

The Green Sheet: As a child, what did you want to be when you grew up?

Richard Borylo: My dad was a Navy pilot, and I wanted to do the same. But by the time I entered college, my interest in science took over. I majored in chemistry. I never worked as a chemist but did stay close to aviation.

GS: How has the industry changed since you started?

RB: This industry is constantly changing. The most significant changes have been in the area of security. Homeland security requirements and the proliferation of identity theft continue to cause concern.

GS: Describe a typical day in your life.

RB: Since I'm still doing IT consulting, my days are spent at client sites completing projects. At the same time, I'm always looking for potential merchant account prospects. Talking with all the business people I come in contact with has led to many referrals.

I spend part of every day updating client contact software. Organization of leads, contacts and client information is critical.

GS: Do you set goals for yourself? If so, what are your current career goals?

RB: One goal is to build a residual income for my retirement. To obtain this goal, I have a monthly objective to add a certain number of clients. To add clients, I have a weekly objective to find referrals.

Additionally, I plan to use the Internet to automate how I obtain clients. I also want to add other online products. The goal is to spend less time at client sites and more time fulfilling personal desires.

GS: What's been your greatest success as an agent?

RB: I have closed about 75% of the clients I have quoted. I believe this is because POS Card Systems is very competitive and because of the client trust I build through education and honesty.

GS: What's the funniest sales experience you've ever had?

RB: One of my first contacts told me he wasn't interested in changing service providers and that I was wasting my time. But he allowed me to prepare a quotation.

After reviewing the quotation, he made a rather lengthy and very negative speech about merchant accounts and the fact that my company was based in California. After the speech, he filled out the application and is still a client.

GS: How do you balance the demands of your work and personal lives?

RB: Consulting can be very busy, but it is usually very flexible. I use this flexibility to get away for family matters and events. Priority is always placed on the human things in life, which are mostly family related. If work suffers, I make up the hours later at night.

GS: What's the strangest thing a merchant has asked you/requested?

RB: One of the first merchants I signed had equipment but wanted to upgrade. So, I ordered a new machine. When I delivered it, the client asked if she could borrow it for a while since the business was short of cash. I agreed, which was foolish.

The business closed its doors a short time later. Luckily, I stopped by while their equipment was being removed. I slipped in and reclaimed the machine.

GS: What is unique about your sales style/method?

RB: My approach is low-key and no pressure, with a "How can I help you improve your business?" attitude. I build trust with the client by educating them about merchant accounts. Response has been very good. I try to come across as helping, whether I get the account or not.

GS: How do you generate leads?

RB: At first, all my leads were from personal contacts. I approached every business I entered for any reason, which was easy since I already had warm contact. Next, I pushed for referrals, which is something I will continue to do.

Recently, I have started contacting local business organizations and will be attending their functions, making contacts and gathering leads. I will also have a booth at local business expos. And my Web site should be operational this month.

GS: How do you explain interchange rates to prospects?

RB: Since some clients believe we make huge profits, I use the interchange rates to show how little is added to our costs. Now that Visa [and MasterCard] publish their rates online, this gives my figures credibility. Most clients I have dealt with don't ask these types of questions.

GS: Why is it important to have a full arsenal of products to offer merchants?

RB: First, the more products you have, the more likely you are to fulfill clients' needs. Second, you need to be flexible so you can overcome objections. Multiple products allow flexibility. Third, there is the ability to build multiple streams of income.

If you offer only card processing, you have one income stream. If you work with multiple products, you also have income from gift cards, loyalty cards, check processing and ACH [automated clearing house] transactions.

GS: How do you ensure account retention?

RB: You must be more than a product supplier. Hundreds of processors could supply the same products. You must build value in your relationship.

If I feel I'm not going to get an account, I rethink my approach. If there is value I missed, I add it to the deal. It may be something the client needs in the deal itself (cost, service, incentive), or it may be value I can personally add.

If I'm losing the sale to a competitor, I look for the hole in their deal. There is usually a hidden cost or less value that the client hasn't discovered, so I help them to see it.

GS: What types of merchants do you prefer to work with?

RB: I have been working with businesses on the small side of the spectrum, as well as nonprofits. This segment has been somewhat neglected in terms of customer service, competitive rates and current information.

They are less satisfied with current processors and more interested in savings. They are also the least educated and, therefore, more thankful for information and clarification about the merchant account industry.

GS: Do you think there will always be street sales?

RB: Yes, for the foreseeable future. This is certainly true for smaller businesses. They can't afford the technology that will allow for remote client prospecting and service.

Many of my current clients were conversions from other processors that they had not heard from in years. This type of situation makes them easy prey for an agent who is willing to make personal contact.

GS: What do you think about "selling" free terminals?

RB: I use the free-terminal approach when it makes sense. For example, if I have made a quote that is profitable to me, and the deal will depend on matching one with free equipment, I will offer the equipment free - if there is still good profit.

I never offer free equipment upfront. I also don't use equipment as a large profit center. Since I'm dealing with smaller businesses that are usually short of cash, I always offer the equipment near cost. My business plan is to be profitable via the residual income stream.

GS: What does it take to succeed in this business?

RB: Be truthful, helpful, and willing to educate and train. People make decisions. By taking care of the people side of this business, you will be successful on the sales side.

GS: What is your experience with agent training?

RB: I didn't have any formal training. The ISO I represent is headquartered 1,800 miles away, so all communications are by phone or e-mail. The staff there has been very helpful, and I have learned by asking many questions.

Reviewing the rate sheets is an excellent way to understand how interchange works. I have also learned much via experience and exposure. Because of this I've made mistakes, but none have caused serious problems. I also attended the Western States Acquirers' Association conference in the fall of 2006 and picked up considerable knowledge.

GS: How has The Green Sheet helped you?

RB: Shortly after signing on with my ISO, I was informed by their agent relationship manager that The Green Sheet would be a very good source of information.

I visited the Web site and signed up for a [free] subscription. I have been using the information as an ongoing source for educating myself on the industry and keeping up with hot topics and changes.

GS: How should an MLS go about choosing an ISO partner?

RB: Now that I have seen what some merchants have put up with from their ISOs, I know I was lucky to become involved with one that is totally aboveboard and does its best to provide straightforward service at a very competitive price. Find an ISO that follows this model.

GS: What hobbies do you enjoy?

RB: I have a collection of sports memorabilia. My most cherished items make up my Nolan Ryan collection. My other passion is animal rescue and rights. My entire family has been involved in animal rescue for many years.

GS: What's your greatest dream?

RB: My family and the other people we work with in rescue groups would like to open our own shelter. This shelter would allow us to house many animals while finding them homes.

It would also have veterinarian facilities, a training area and an education center. Our ultimate dream includes being available to work full time in animal rescue at the shelter.

GS: Do you have a motto that you live by?

RB: I really believe you should treat all living things - people or animals - the way you want to be treated. So, I guess my motto is do to others what you would have others do to you.