A little additional effort now can mean a recurring revenue stream for your business that grows into the future.
One of the key reasons you became an ISO or VAR may have been to gain more control of your own time. However, the power to decide what to do with that time may still result in you working long hours to make ends meet. Given how important it is to work smarter and find ways to keep revenues flowing, developing a passive residual income stream for your portfolio makes sense.
The benefits of recurring revenue.
In the point of sale and payments industry, lengthy sales cycles and costly solutions can make business revenue challenging to forecast. That’s why many ISOs and VARs have transitioned their businesses to recurring revenue models that allow customers to pay a monthly fee for services and solutions. When done well, Integrated Partners using this model gain the ability to better cover expenses, lower churn rates, and even expand contracts with their regular, satisfied customers. However, it may still require effort to provide solutions and services your customers consume each month.
Building recurring revenue with passive residual income.
With passive residual income, you build a stream of revenue that requires very little work on your part. In fact, the income you receive is disproportionally higher than the time you invest to collect it. Simply put, it’s a revenue model that continues paying you long after you’ve done the work to make the sale and help your customer deploy the proper solution.
Residuals from payments processing.
Payment processing is an excellent opportunity to increase your passive residual income. When you sell payment processing services, every time a consumer uses a payment card, in person or online, you make a small percentage of the sale. That’s passive residual income. Note, the amount of income you receive can vary depending on your payments partner and the types of merchants you work with. It’s important to choose a payment technology company that is transparent about costs and will help you maximize your margins from your merchants’ payment processing.
Of course, residual income doesn’t have to be passive.
Some ISOs and VARs choose to simply sell merchant accounts to build a stream of passive residual income, while others decide it’s worth the effort to grow those accounts, engaging their customers with offers and announcements about new solutions available to them. This tactic worked well during the COVID-19 pandemic when merchants were looking for new ways to accept payments and needed a proven partner who could provide trusted guidance.
Your payments partner can keep you informed of new offerings and the best way to pitch them to your customers as part of your value-added services. It takes a little more effort than a one-and-done sale, but once you’ve sold deeper into an existing account, you get to collect even more passive residual income afterward.
The more you fill your portfolio with passive residual income today, the greater the benefits you’ll reap tomorrow!