A New Lead on New Leads

W ith so many merchant account doors getting closed in ISO faces lately, it's comforting to know there's one company out there that's working to open those same doors in unprecedented numbers. As a lead generator for the ISO community, TelStar has found a formidable niche in putting independent sales agents together with merchants who are searching for payment- processing solutions.

TelStar was founded in 1997 by two seasoned ISO professionals, Alan Silverstein and Dave Bynum. "Merchants were moving toward selling on Web sites, even the small guy, the local businessman starting to sell online," Silverstein says. "They needed a way to collect their money. They needed e- commerce payment solutions. We saw this happening."

TelStar's core competency as a marketing and sales company, combined with the principals' expertise in virtual selling, makes it unique in its ability to coordinate potential sales across the board. Like most ISOs, Alan and Dave liked fieldwork but, recognizing the untapped market in click and not just brick, got involved with network marketing and started buying leads from different Internet sources.

The quality of those initial leads was poor, often resulting in expended energy as opposed to sales. The lead data were inconclusive, lacking in merchant information critical to successful selling.

Learning how to develop their own leads through e-mails, search engines and the like, these two resellers took their business to the next level. They stopped processing the leads as accounts and started offering them to ISOs to transform them into viable accounts.

TelStar started contacting ISOs, the majority of whom were street soldiers and not necessarily proficient in understanding and evaluating the cost effectiveness of setting up new accounts via electronic communication, i.e., telephone, e-mail, Web sites, etc. Accustomed to working in a more hands-on, face-to-face environment, many ISOs were not comfortable in a virtual sales reality.

TelStar realized it also needed to educate and support ISOs while broadening their selling opportunities. Not only does TelStar provide leads; it also provides an effective marketing system to help maximize the leads. A manual even comes with TelStar's service and can be easily downloaded from its Web site.

What exactly is that service and how does it work? Say there's an ISO who has an interest in receiving merchant account leads. The ISO hooks up with TelStar, paying a variable per-lead fee - quantity buys dictate the actual cost. The setup is simple with no special password or software necessary.

Leads are delivered by Microsoft Excel format e-mails. Data includes merchant name, address, phone number, e-mail, best times to reach and, very important, specific comments on account needs. Five days from the date the payment clears, that ISO will start receiving exclusive leads.

Why five days? Because all TelStar leads are freshly developed from companies reading TelStar's ads and sending in a request - merchants looking to accept credit cards or go to the next level of Internet sales. TelStar places ads in all marketing avenues available, search engines included. All markets are targeted, both business-to-business and consumer- to-business.

"Without a lead, there is no business," says Silverstein. "We knew how the normal guy was doing leads - direct mail, etc. We want to multiply the numbers because the numbers game works. We sold 40 accounts in one month - impossible for any field ISOs. It's like hitting the lottery by working with us. We can get you at least three leads a week that can turn into $10,000 a month in residuals." Of course, that figure depends on the closing ability of the ISO. "If you're not a closer, you're in the wrong business," says Silverstein.

Another interesting point Silverstein makes is the fact that everyone has a beautiful personality on the phone. Physical looks and body language don't enter into TelStar's equation.

Consider the scenario that TelStar offers. Take any talented independent sales organization. If one agent took 100 leads and closed 20 sales, those 20 sales could generate $100 up front in net profit. Now those 20 sales start generating residuals - say, $20 each - translating into $400 in monthly residuals.

If that one agent kept on doing this for a year - 20 sales a month - it could very well generate $55,000 to $60,000 in one year for that one agent. And if an ISO has a talented sales team, the company could generate millions. Heady stuff. All it takes is commitment, the funds to purchase leads and, of course, a lead generator like TelStar.

What seems to set TelStar apart from other lead generators is its understanding of the ins and outs of selling payment-processing solutions.

"We really do know the industry," says Silverstein. "Like any other type of business, someone inside that has been in the trenches understands what the soldiers need ... and we've been in the trenches."

In the merchant lead industry, TelStar is poised to become a deciding factor for many ISOs. It's working with 11 ISOs, providing leads on a national level with plans on developing more localized leads in the near future. And those 11 ISOs are singing the praises of TelStar.

According to Silverstein, "One ISO told us they sold four out of their first eight leads. Another said our lead quality is outstanding, having closed seven deals out of 18. Another said they've never had a stronger lead in the merchant processing business."

Because of this success, TelStar is looking to expand its ISO base in a big way, welcoming as many as want to come aboard and guaranteeing satisfaction. "We can develop as many leads as needed, anywhere from 3,000 to 5,000 leads per week," says Silverstein.

In addition to viable leads, TelStar also recommends a number of e-commerce solution companies that can support those leads with effective e-commerce products and services. TelStar has spent the last 3 1/2 years researching companies that can support its ISOs - qualified providers of everything from equipment to shipping and deployment services to a place to put an Internet account and other Web-based services.

"We researched and found a number of companies that give the best and most efficient services at fair and competitive prices," says Silverstein. "It's all part of our commitment to helping ISOs grow."

Virtually headquartered in New Jersey and Arizona, TelStar is comprised of its two co-founders (whose combined business experience spans more than 50 years), a Webmaster, a marketing consultant and various affiliates. TelStar generates leads for ISOs not only because the need is great but also partly because of Silverstein's wish to share his profitable experience with others. It's a company dedicated to the ISO community.

"We're their family doctor," says Silverstein. "We will keep them healthy and alive - and not just one. We're helping many."

One final thought: Some ISOs might not be comfortable with such a radical change in securing accounts. While it might represent a major shift from the old way of thinking and doing business, consider looking at TelStar as not changing the meeting but rather just moving it.