IMGCAP(1)]
Targeting existing merchants is more profitable than seeking business from start-up merchants, according to some independent sales organizations. Elite Merchant Solutions focuses "almost solely" on converting existing merchants because the tactic is more profitable, says Justin Milneister, president of the North Hollywood, Calif.-based ISO. Existing merchants have a processing-volume history that ISOs can use to estimate their potential revenue from the merchant, he says. They also are less likely than start-up merchants are to go out of business, and existing merchants typically have "more capital to purchase extra services like gift cards or to upgrade equipment," says Milneister. Erik Verryden, president of National Processing Solutions Inc., a Phoenix-based ISO, agrees ISOs can make more revenue from existing merchants "because you know how much they will make you up front."
