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Editor's Note from the April 2009 issue of ISO&Agent magazine.
A friend's father likes to share a few bits of wisdom during Sunday dinner, most having to do with the fact that he always gives someone two options: "Am I right, or am I right?" Of course, he is always right. In his law-enforcement career, seeing the line between right and wrong was simple in most cases.
I wonder what he would consider as the right choice if he had to put together an ISO compensation plan.
How much revenue should be shared with the agent? How much should bonuses be, and when should they be paid out? Who owns the residual income over the long term? What is the long term?
The backbone behind this month's issue is the results of the fifth annual ISO&Agent compensation survey. Besides informative charts illustrating yearly trends, this issue includes several articles that look more deeply at the results. One notes that, while residual income continues to be an important element to ISO and agent compensation plans, the industry may be in the early stages of adapting to others based on the overall performance of a merchant account.
Other articles examine how acquirers can use compensation plans to attract and retain top performers.
Not surprisingly, many in the industry are reluctant to share details of their compensation-plan models for fear of giving competitors insights and opportunities to steal well-performing salespeople.
One article by Meghan Boyer, associate editor, suggests the lack of an industry standard for creating compensation packages means comparing prices and revenue can be challenging when choosing business partners.
Another provides a look at acquirer strategies for keeping valued performers, suggesting acquirers generally view fair revenue sharing, training and loyalty as important factors ISOs and agents use when choosing to stay with acquiring partners.
I'd be interested in hearing what you think about the findings from our compensation survey.
In a guest column this month, industry veteran Matt Clyne shares his insight into the value of bonuses as part of an agent's compensation plan.
This month's ISO&Agent also looks at the potential to convert paper checks used in business-to-business payments into electronic transactions.
Looking ahead, the May/June issue of ISO&Agent will focus on payments-industry compliance and security. What compliance issues are most important to you, and how do they affect your revenue? Is security a burden or a beast?
Suggestions and comments on these topics also are welcome.
