Some agents and ISOs believe that building a profitable book means closing numerous deals. That’s certainly nothing to scoff at. However, actual profit comes from retaining the merchants you sign on, optimizing value, and making informed decisions early.

Because you want to learn how to build a merchant services book the right way, you need more than a motivational pep talk. Instead, you need practical and real-world merchant account sales strategies designed for long-term merchant relationships, growing residuals, and a valuable book.

This post will teach you:

• The importance of choosing the right industries
• How to keep merchants loyal
• How to build a scalable system for attracting merchants
• And other best practices for merchant services reps

Follow These Five Steps to Build a Merchant Services Book

Step 1: Niche Down

Often, when first building a merchant services book, brand-new agents assume that every lead is a good one. That’s not true. This method may result in you acquiring merchants with high attrition rates, low sales, and other dangers you want nowhere near your merchant services portfolio.

Instead of getting in over your head with companies and industries you’re unfamiliar with, we recommend focusing on verticals you understand. You’ll likely scale faster and earn more if you focus on industries you know, whether it’s restaurants, ecommerce, retail, or something else.

Starting with one or a few verticals can also help with building stronger-than-average referral networks. It’s an innovative and more efficient way to grow a book of business from the ground up.

Building With Intention

Some new ISOs and agents treat their debuts as sprints rather than marathons. However, you must remember that profitable books aren’t judged only by the number of merchants within them. Building a merchant services book that’s valuable also means having one that’s stable, organized, and scaling upwards.

As you continue speaking with and onboarding merchants, asking yourself these questions regularly can help keep everything in check:

• Are you selecting merchants that align with your long-term objectives?
• Are you tracking current metrics, or are you just chasing signatures?
• Are you following up with merchants after onboarding?
• Are you learning from churned accounts?

Step 2: Focus on Retention From Day One

Welcoming new merchants is great when building a merchant services book. Keeping them is even better. That’s where the value lives. And it starts with how you onboard clients.

A common assumption is that many new merchants lose clients due to pricing-related problems. However, that’s not the case. In many cases, merchants leave because overeager ISOs and agents (whether intentionally or not) disappear after making a sale.

You may recall a time when you were searching for post-sale assistance and couldn’t get it. It’s frustrating. Fortunately, you can help ensure your merchants never feel neglected by following these merchant account sales strategies:

• Be Available: Reliable support stems from being readily available for your clients, especially during the initial few months.

• Schedule Regular Check-Ins: Not every merchant may take the call, but we can almost guarantee that each business will appreciate that you checked in. Even a quick quarterly call or video meeting can prevent churn.

• Keep Educating Them: Often, issues between agents/ISOs and merchants stem from a lack of information. Considering that, it’s always better for merchants to have too many educational details than not enough.

Step 3: Keep Accurate Records

Currently, selling your portfolio might be the farthest thing from your mind. However, even if it’s years or decades away, you’ll likely reach a time when you want to cash out—whether that’s for retirement, a new venture, or just to lock in what you’ve built. Unfortunately, having sloppy or incomplete records can tank your valuation, even with a solid portfolio.

So, what should you keep an eye on and organize?

• Residuals by merchant
• Monthly volumes and fees
• Processors used
• Contract terms

A clean and well-documented portfolio is easier to keep organized. It’s also something that nearly any potential buyer will value greatly, making it an excellent sales strategy for merchant accounts. Plus, you can spot potential portfolio-related issues quickly, such as churn.

Do you want to know how your records stack up? Whether you’re starting your first portfolio or you’re a seasoned agent or ISO, Velocity Funding proudly offers fast and free merchant services portfolio valuations.

Get Your Free Valuation

Step 4: Build Your Merchant Services Book with a Scalable System

Working hard is one of the most valuable skills a new agent or ISO can possess. However, you can still hustle while making things a bit easier on yourself. How? By building systems. Developing repeatable processes eliminates the guesswork and confusion associated with building a profitable merchant services book.

If you want to know how to grow a book of business over time, follow these tips:

• Utilize CRM software to facilitate follow-ups.
• Write an FAQ document or website page that answers commonly asked questions.
• Create templates for onboarding and outreach emails to streamline the process.

With your systems hard at work, you can have more time to focus on your arsenal of merchant account sales strategies.

Step 5: Know When to Walk Away

One of the best practices for merchant services representatives is that not all deals are worth pursuing. That may feel counterintuitive, especially when you’re new to the merchant services world. However, knowing when to walk away can help you grow faster.

Troublesome merchants can be disorganized, process insufficient volume, or even be combative. Bringing these characteristics into your portfolio and work life can lead to disaster. Poor-fit clients drain your time and energy without generating attractive monthly residuals.

Putting Together the Best Practices for Merchant Services Reps

You don’t necessarily need hundreds of new accounts pouring in to succeed in the merchant services industry. You need the right ones. Combine that with the right systems and persistence, and success in this field is possible.

To help you out, here’s a quick recap of the first five steps to focus on when building a merchant services book:

• Niche Down: Focus on what you know and understand. There will be plenty of time to expand into new verticals and industries in the future.

• Focus on Retention: Long-term relationships = long-term residual income

• Keep Accurate Records: Organized data leads to smarter decisions

• Build a Scalable System: Streamline and grow with repeatable tools

• Know When to Walk Away: Protect your energy and sanity, choose merchants carefully.

Find Out Your Portfolio’s Worth for Free

Whether you’re new to building a merchant services book or you’re a seasoned agent who’s building serious momentum, knowing your portfolio’s current worth is never a bad idea, especially when you can do it for free. Velocity Funding’s honest and free merchant services portfolio valuation is a no-pressure way to gain valuable insights and benchmark your progress.

Get Your FREE Merchant Services Valuation