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Here's the hidden thing

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that most people don't know about the split.

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It sounds more difficult. Mm-Hmm.

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I gotta work with the credit card processor

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and they're supposed to send me my percentage.

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I don't know how to do any of that stuff.

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That's where people get lost. I don't want to know.

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I don't want to do the technical stuff,

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and I just wanna debit the bank account.

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Okay. Well, you're doing yourself a real disservice.

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Let me tell you about why the split was so good

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beyond just worrying about the cash flow.

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Credit card processing is its own very,

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very lucrative industry.

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Mm-Hmm. A trillion dollar industry. Yeah. Okay.

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And a lot of people sell credit card processing to stores.

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How do they make money? You wanna know how they make money.

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How do they make money? They take a percentage

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of every credit card transaction that a merchant does buy,

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sign up a restaurant to accept credit cards.

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I get them the machine. Right?

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I get them the POS system or whatever to sign up through me.

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I just work for a company.

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It doesn't have to be me as the

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company, but I work for a company.

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I sign 'em up to take credit cards

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and debit cards through me going forward.

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Every time they process the transaction,

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I'm gonna take an a fraction of each sale that they do,

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no matter what not because they're repaying something.

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That's essentially my commission.

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That's what I get paid in perpetuity.

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If the restaurant is around for a hundred years

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and they never switch their credit card processing

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away, guess what?

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I just automatically get paid a percentage

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of your sales for a hundred years.

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I don't have to do any work. So guess what?

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That's a pretty good business to be in. Yeah.

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If I sign up a hundred restaurants, I could just retire.

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I don't have to work anymore.

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Everyone stays where they are and they don't switch anything

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and they're happy with the service.

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I could just get a monthly payment

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from all those micro percentages every month

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and just live my life.

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People do that. That's what people did.

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You can do that with thousands of businesses

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and create a whole portfolio

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and become a millionaire almost passively.

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People then can sell those portfolios for multiples.

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Say, Hey, I'm predicted

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to own X amount over the next few years

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based upon my portfolio.

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I'll sell it to you today for X.

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This is a gigantic industry. Yeah.

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In fact, this was the most lucrative part about the

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small business finance industry.

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MCA industry. In the beginning,

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the commission on the funding was a distraction.

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Mm-Hmm. The real secret was making money on

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this is called a residual.

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The residual on their merchant account.

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You sign a merchant up

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for your credit card processing service.

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It's actually not that hard to do.

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It's easier to to do than it used to be. Yeah.

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And you make a percentage on every sale they do

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without having to really do anything at all.

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The fact that you're getting a commission

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for funding them was just a distraction.

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A nice upfront lump. Lump sum payment.

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Let's not, let's not diminish

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the value of those commissions.

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Yeah, yeah, yeah. Those commissions have driven

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this entire business.

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But guess what? Imagine

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if you could just say, you know what?

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I don't want to do this anymore.

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Trying every month, start over.

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Trying to get to more funding. Right? Mm-Hmm.

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You don't have to do any of that stuff. Yeah.

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You could sign up a thousand merchants

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and then say, I have, not only did I get a thousand

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commissions out the funding,

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but now I have this million dollar portfolio.

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I make a million dollars passively just

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'cause I signed up a thousand businesses

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to accept credit cards through me.

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I might be exaggerating with a million.

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But the point is, it could be a large number enough

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to sustain yourself, and you might not have to work anymore.

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Of course, customers do drop off.

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They go to competitors, they stop using

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your credit card processing service.

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They go outta business. There's all these other type

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of things that come into play.

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People say, Hey, I wanna lower my rates, yada, yada, yada.

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But the real secret

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of the business was the merchant account.

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Back when I was in the business,

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I didn't wanna do a CH as a sales rep.

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That was the worst thing you could do

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because the real money was in getting that residual,

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signing a merchant up for credit card processing,

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and if they stop getting funding from you, it didn't matter.

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I made a percentage of all

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of her sales forever and ever and ever.

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For years. They didn't have to talk to 'em ever again.

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It didn't matter. That's what the business was based on.

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If you think, well, okay, yeah, that was long ago.

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You know, no one does that anymore. It's all changed.

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Strong, wrong. The largest funders in the industry right now

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all do splits.

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I mentioned it at D Bank Connect Miami.

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Who are the largest funders in the industry?

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The ones that do splits. Look it up.