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Insights and Expertise

StreetSmarts SM

Embrace tech, ditch the old pitch

By Allen Kopelman
Nationwide Payment Systems Inc. A word of advice for ISOs: stop recruiting MLSs
who want everything for free. They will stick
ey, merchant level salespeople (MLSs) who around for a while but only until the next big
are still selling like it's 1999, you know who sign-on bonus comes along. The only ISOs that
you are. While you're selling processing and win at this game are those with tons of cash that
H terminals, ISOs are recruiting ISVs to sell soft- are willing to play a long game.
ware. Granted, they aren't paying the kind of splits you've
known for many years. They're trying to recoup some A word of advice for MLSs: Try on a few dif-
of the millions they've invested in subscription service ferent hats and figure out what business model
products and high-end POS, which they're selling directly is right for you. Decide what you're going to sell,
through salaried salespeople. whether it's terminals or POS or software or
software as a subscription service. Don't expect
An ISO that bets the farm on a new POS model isn't in any instant results. Residual splits will keep going
position to pay out 70, 80, 90 percent residuals to an MLS. down until you prove yourself.
We all know that gravy train had to end. When I started in
this business in 2001, the going rate for commissions was For me, Option B was an easy decision. I chose to partner
50 percent. Over time, as ISOs competed to attract new with a company that owns the software and installs,
agents, commissions went up to 70, 80, 90 percent with maintains and supports it.
free terminals and sign-on bonuses.
My partnership with my POS technology provider enables
Even before software began to eat the world and our me to focus on getting new accounts. I'm happy to trade
business, I saw ISO friends get heavily in debt just a few my slightly lower residuals for peace of mind and not
months after launching this type of program, which leads having to do service calls at one o'clock in the morning,
many in the business to question if there's a future for the which I remember all too well. I was glad to give up that
MLS. part of the business so I could focus on selling.
Show me the money MLSs that fully support SaaS and POS systems can

I believe in the power, relevance and resilience of MLSs, make a good living as skilled technicians. They typically
especially those who are knowledgeable about technology manage training and onboarding, which can be costly
and how to sell it. They need to choose the right business and complicated. It takes skill, time and money to install
model by deciding between Option A where they do sales, these POS systems. These MLSs need to be knowledgeable
installation and support, or Option B, which is exclusively about the products so that they can train merchants and
sales. their staff, which can take a few days, a week or longer.
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