SNM075: Taking Money and Getting Paid

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taking money and getting paid on today's episode. Today's episode is brought to you by converted the ultimate list building tagging and segmentation tool to find out how Convert kid can change your business and w profits. Go to serve the master dot com backslash Convert kit today Are you tired of dealing with your boss? Do you feel underpaid and underappreciated? If you want to make it online, fire your boss and start living your retirement dreams now then you've come to the right place. Welcome to serve no master podcast where you learn how to open new revenue streams and make money while you sleep. Presented live from a tropical island in the South Pacific by best selling author Jonathan Green. Now here's your host. Get that first meeting. You have that first chance to talk to someone about your product, and you're so excited just to get a chance to talk about your new business. Talk about what you're doing online and you don't really expect anything beyond that. You're just excited to talk about your new venture and you have this meeting or you go speak in a local little event and someone goes, Oh, amazing can I hire you right now? They have that moment where someone's ready to give you money and you're not ready to take it because you didn't prepare because you didn't think it would happen. You're suddenly in the situation where Nellie do you look like an amateur, but you're literally leaving money behind because you didn't prepare yourself and you didn't believe in yourself enough. And so today I want to take you through and really explain the process of taking money when you work for yourself when you're an independent contractor and we're gonna go through ah, couple of different ways to do it. Most of these airways, where you have a level of control over what you're charging in, the way your system works, we can't cover every single possible different of the 1,000,000 ways toe charge online. But I want to cover the main systems that I use and the most popular systems and the systems that people trust the most and why we use them in different ways. The first type of system that people use for doing business online. It's kind of a system that handles everything. This is where the person partners or something from you, but they don't really pay you. They pay the company that they trust in between. This is what happens. For example, if someone hired you on fiber, someone hires you on fiver. The person's Pape out. Money requests, right? It says, Oh, please send $5 to pay off to fiber. It doesn't say Please send $5 to Jonathan. This is where there's an intermediary that has a level of trust. So, for example, I've hired people on fiber before who didn't do the job. And it's been ah, whole spectrum anywhere from 5 to $80 and every once in a while you'll hire someone. They'll do it. They won't do a very good job, but I'll ask for more money. And so then you say, Oh, no, cancel projects of my money back and sometimes they don't want to. But you just message support and you get your money back because there's an intermediary that's actually controlling the money. Have the ability to ask this third party for a refund. That's really the sign that you're using one of these systems. Another system that's just like this is click make if you part just a product for me on Click Bank. If you purchase Kendall Sniper, which is my main clip, make product. If you purchase this product and you aren't happy, you have instead of 30 days you have 60 days to refund, and you may notice it's the only product I offer a 60 day refund period. That's because that's click Banks role in that mine. And if you want a refund, you don't have to talk to me with Click Bank. They are so pro consumer. They always air on the side of the customer, so you don't have to do anything. If you want a refund, you click a link in an email and they automatically send your money back. It's one of the challenges as it click bank vendors that you can't fight a dishonest refund. Er, so you actually have to stop there. People who buy every problem groupthink, refund them all and then put them on websites to try and sell them. In every market, there's someone who's dishonest. You can't stop that person of the refund point you have to block them from. Making the purchase is the only way to stop their access, but that's assistant that lanes heavily towards the customer. But that's because they do trillions of dollars in business and to avoid even the appearance of impropriety. They always lean towards the customer, and I totally get that, and I use them for certain things. And there's a lot of great things about that platform, another similar platform that is almost the same thing. That's kind of a newer platform. Its software projects, same thing. I don't use software projects very much, much more Click that guy. But it's the same type of system where someone sends you traffic. Any affiliate who sends a customer to you through a click bank think, handles all the money, takes all the money and then pays everyone involved. So you never handle on affiliates money. This is where most of the let's start because they don't know the people they're promoting, and this way they know they're getting paid. What Click bank provides more than anything else is a level of trust, and that level of trust is very expensive. They charge a hi fi. I don't know. The exact percentages go haven't looked lately, but they're Maur expensive than most other options. I know that software projects, for example, I was helping my friends into the launch on that platform charges a dollar per sale, plus 8% for using their platform. When you compare charging directly through American Express, which is the most expensive credit card to process that usually is at the top and 6% so few directly processor credit Card yourself through American Express. You pay 6% 2% less annual hit with that dollar, and the dollar really adds up. When you're doing, you have a product that costs 37 or $47 dollars pretty high percentage. It starts to add up. It's another to 3%. She might end up paying 10 or 11% per transaction, but you pay that additional fee for the level of trust it provides. So this is where most people who get into online marketing start first. A great thing about these platforms is that they don't charge you any feet to sign up. The second level of payment processor is very similar is again shopping carts that are quite simple. A simple shopping cart, which is the next step beyond this might be Warrior Plus or Jamie Zoo these don't have the full payment processing ability. Have to connect them to one of your other accounts. But what they dio and we'll circle back to this in a moment but again handle a lot of the transaction for you in hand. A lot of the affiliate process. So when you're shopping cart and your affiliate stuff is all hooked together, that's where you get something like Warrior plus er Jamie Zoo that often charge you per transaction. That's what they have in common with quick Lincoln software projects. Instead of a flat fee or a monthly fee, they charge you as part of the transaction, but circling back the actual machine that takes money actual code takes the credit card number and checks to see if it's real and pulls the money off the credit card. That's called a payment processor, and I like to use really simple ones. The really simple ones that worked really well are called stripe. They're called Square Braintree or PayPal. All of these are great because you can sign up and be active. With less than three days, Braintree takes the longest at 48 to 72 hours to approve, but striping square, you can often be taking money the same day you set up what's great about striping squares that they both will give you. Ah, little thing you can plug into your cell phone, this little electronic reader, and you could actually swipe a credit card. Now you might be thinking to yourself, That's dumb. I would ever want to do that. Credit card fees A big part of that percentage they charge you when you take money on a credit card is for their fraud prevention. The more likely credit card is to be fraud, the higher the percentage of credit card company takes. So if you take a purchase online, for example, and you only take credit card number, a person's name an expiration date, that's a very high feet. If you also take the three digits on the back and a person's home address and the phone numbers they could have, they have more verification points. Your fee will go down a little bit, and even lower than that is when you swipe a credit card, because then they know that you've seen the physical credit cards. See if you have a photograph of someone's credit card you have photographed in front back. You can charge stuff online all day long, so that's why that's a high easier to commit that fraud. But to do it with the actual credit card, you have stolen the physical piece of plastic that is the least common type of credit card fraud. That's the least common type of crime, which is where someone takes it and make the purchase in person. Because of that, you'll be charged a lower fee. So any time you have the opportunity, especially with single purchase and you're doing it in person, being able to swipe a credit card is really cool because it looks professional, and it will also cost you less money and striping square brain train. They're all pretty similar in what in their functionality, I mostly use square for sending out invoices. If I'm sending someone a bill and say, Hey, please send me $200. Please send me $1000 for something. I've already done it for a project about to start like a flat fee, that type of thing. Where's Rick custom? I tend to use square for that paper to do that for some of my clients who prefer to pay back via PayPal stripe in Braintree. I'm more and more used to interact with Mike Shopping Card. We'll get back to shopping carts in the end I mentioned a second ago. I'm sorry. This is getting really complicated. I do explain this on the serving a master at Com Backslash Book page, which is the full upto my book, and I have Maur explanation there. But just to give you a rough idea of how these different systems work is really, really important. What's great about all of these is that you can sign up to be active in the same day. The next level number three is more advanced processors or really, in my experience, they're just more expensive. Their payment processors and I've been with a few of these in the past. They'll charge you a bunch of money. They'll make it really hard for you to set up your system, though, often freeze your money or say you have to hold a rolling reserve. My first name processing account. They kept 10% of everything I made for the first year. They charged me exorbitant fees as well. I had to pay a monthly fee out of a percentage of every transaction. And even recently I actually caught one of these companies still dipping money out of my bank account, even though we haven't done business together in years and years. So my experience, if you want to go with more complicated payment processor and you're doing the large volumes of money, you may have to do that if you want to move 1/4 $1,000,000 a week in transactions and eventually you have to go to the more advanced processes. But my experience has always been that they're all dishonest across the board. They charge him or they make it harder and they all treat you like garbage. I've never had a good experience with one of these companies, and you can spend two a month, two months, three months trying to set up where they finally let you take money and make you jump through all these hoops just so they can overcharge you. And they tend to cost you 2 to 3 times more than a couple of square stripe or Braintree, and that's why I use those companies because they're the cheapest ones and they're really good. Now, I have heard from people recently that they've had problems. That's the first I've ever heard. This would strike because there's not 800 number you can call that had some problems of transaction. But they had really good experiences with Braintree and then at the same hand Braintree Zone by papal that people have had bad experiences there. That's why I use all of them so that one has a problem. I can rotate very quickly for me to rotate all my payment processing takes about two minutes, and their service is that will actually do it automatically for you. But I'm not at the level where I actually need that. Now, with all these surfaces. Once you're beyond using something like fiver click banker software projects once you're actually processing the money yourself. Once the person is paying you or your company instead of 1/3 party, you then need something that kind of controls the pricing and sets up everything. See, with these payment processors, you can send someone a specific bill like you're in a restaurant. You say, Here's how much you owe me. This is the exact number. It's custom and you create the number in the moment. But if you're selling something online where it's always the same price, what you need is a shopping cart, and that's where the person sees the price. They can add different items to it, and then they click. Check out and they'll enter their credit card number, and that will go into the shopping cart, who then passes it on to the payment processor. It's a little bit confusing. It's a little bit technical. There's actually layers beyond the payment processor, but the basic idea is if you visit my website and you make a purchase. When you buy one of my courses, you buy a blueprint for $7. The form you see is from pay kickstart. That's who designs the custom form. That's my shopping cart now behind pay kickstart. Different people might process the payment. You can make a PayPal payment that goes to Braintree or PayPal, or you can pay with a credit card and it might go through stripe or Braintree, depending upon which would have switched on at any given time. So the shopping cart is facing, and it allows me to use different back End's service. Is it also allows me to create a really custom, cool looking Paige. That's where you see if you buy something and then you see another offer right afterwards that comes from the shopping cart. So the shopping cart is really about customer facing the customer experience and controlling what the customers buying and then the payment processors. Really, the computer that checks the credit card and actually takes the money out and then sends the money into your bank account. So the money you get paid, it never goes. Two. The shopping cart. Now there's two types of shopping cards I mentioned earlier to platforms called Warrior Plus in Jamie's. Ooh, and this is where I started these types of shopping carts. These platforms charge a percentage. So you pay her transaction pay a little bit extra percentage to use these platforms, these air Good. If you're a small time and you're just starting out and they have ah, lot of trust and there's some cool things about them, I know the owners of both companies. They've been around for each five or six years, something in that range where your plus might be a full seven years, but they're in the range right, little under the decade. And what's good about these systems? If you're just starting out, you don't have to pay any fees. Recurring For a system like Pay Kickstart or Sam Carter Nana cast, you have to pay around $100 a month. I think it's 97 to $90.99 dollars a month for each of these platforms if you're a shopping cart, so I pay pay kickstart every month, $99. The only reason to go in that direction is if your transaction fees with something like James, it would be more than $100 a month, depending on these different platforms. Each charge a couple percentage points. But let's say you're doing $1000 sale. You're all you're selling this phone coaching. All you're selling is your high level coaching, and you're charging $1000 Well, a single transaction fees of a couple of percentage points might start creeping up towards $100. If the full transaction fee was 10% it would be $100. You sell two or three coaching things a month, and suddenly it makes more sense to change platforms like I've done now it's really about finding out what works best for you, what you like about them. The advantages of platforms like Worry Plus J B Zoo and even Click Bank and saw for projects is that they generate affiliates for you. They have an army of people that prone offers within their that trust those systems, and they have that built in network and eventually pay. Kickstart is gonna build one of those networks, but they don't have it right now. It's a newer platform. They're doing a lot of customization. And that's why I really like again. I like to work with companies where I know the people behind them. I have used them a lot in the past and pay kickstart. My friend Mark is the guy who built the software. We've worked together and worked and paid each other money and worked on projects and done stuff for more than seven years together. And so every time I run a new problem and I ran into a problem over this weekend, I can message Mark and he personally make sure it gets taken care of, so that level of access is very, very valuable to me that ability to customize you want to be able to take money right away. Even if you're just starting out and you're not sure which direction you're gonna go in you instead of your stripe, you can set up your Braintree, conserve your paper. You can have all your square accounts. You have all four set up so that when it's time to take money, you're actually able to do it. They all have phone taps. Are you going to talk to someone and put money right in your phone? You don't have to have a computer with you, and you seem very professional. You never know when the chance to accept money is gonna happen. There's so many ways to take money online, and I'm worried that this lesson, even itself, is getting too complicated. So I really recommend just starting very simple in a way that you understand. So a really great place to start would be to simply use if you're selling products. Service like Click Make is a really great place to start because they handle everything for you. You don't have to get confused, my bank accounts and all that stuff, and they just send you money every Wednesday if you really want to try something more advanced. The reason I used when the reason these pay kick start because of so many products every single blueprint I make is a separate product within my system. And so I need a system that could handle that and kind of track all those cross promotions. And I have a lot of stuff in the back end to inside my membership there in all that integration, and I need something that really connects with that, and everything is automated. So anytime so makes a purchase, they get immediate access to what they ordered. And whenever I have a problem in the software, that's when that's when Mark's phone rings the most. He has to fix stuff for me. I really recommend starting out either with something like Click Bank or something simple, like Warrior Plus or Jamie Zoo, and they'll walk you through, setting up your stripe, a counter setting up your PayPal account. If you get kind of confused, you can always email me podcast it servant master dot com, and I'll be glad to kind of walk you through stuff again and kind of show you the differences, but starting out really simple is the way you want to do it. It's easy to get overwhelmed. If you type in payment processors online and trying to search. You'll see so many answers that you feel overwhelmed. And I speak with experience because I work with platforms that I was very unhappy with, and I was to pay a lot of attention to the people around me what using what they don't like to use and for certain systems. When you start making a lot of money, you run into a wall. I don't recommend using PayPal as your primary payment processor. It's okay for doing some transactions for doing small transactions. But if you I have a really successful day with PayPal, let's say you are selling a product for $7 you just hit a bunch of affiliates. Notice what you're doing because you're on Jamie's your warrior plus platform and you end up selling to 3000 units. Okay, you suddenly have a PayPal account that's moving massive amounts of money, but all through small transactions, and they don't know you when this happens, And this happened a bunch of friends of mine hasn't happened recently, but that's because most of my friends now been in the business for a while. But a lot of my friends, they're PayPal Account's got frozen for six months now. I know people who eventually they were able to get it back within a couple of weeks or two months because they had some connections at PayPal. The reason paper out does this is because it looked like fraud. It looks like you're running Ah, bunch of stolen credit cards because you haven't done this type of transaction before. And so it could be very disconcerting to look in your PayPal account and see that you have $50,000 the next day to be locked out. And we said, We're keeping your money for six months and I personally have a problem with someone taking all my money One of my friends, he had to fire his entire company when this happened. Because PayPal froze their payroll, they froze payroll. This is a reason why you also don't want to leave a huge balance and paper. Some people set up to withdraw all their papal every single night. But this is why you don't want to leave a balance of 10 or 50 or $100,000 in your PayPal account, just in case it gets frozen. This is a little caveat. This doesn't happen very often. It's very unlikely that paper will actually steal and keep the money. But because they're not a bank, PayPal operates on this fine line. Where there? Not exactly a bank. They had a lot of transactions. They let you keep a balance, but they don't have to follow the banking rules. Banks can't lock your money away from you not allowed to do that. The papal can because they're not quite a bank. When this happens, it's basically the nightmare scenario, and this is why you don't want to suddenly run everything through me. This is why you need other payment processors. If you place an order through me, you'll notice that it says, Hey, do you want to use PayPal or do you want to pay with a credit card? When you make a payment through PayPal, it instantly goes into my PayPal account. I can immediately spend the money if I want to ask me to make a purchase using my own papal funds, or I can use a paper debit card and withdraw the money instantly. Those are my options. I can also withdraw the money in my bank account and then spend the money other ways in a few days. If you make a purchase to credit card and goes to Braintree or stripe, it takes 3 to 5 business days, and the money is one one day in stripe in the next day. It's just in my bank account, so there's no intermediary and again with these platforms. I've only heard of this happening once. What happened? All of my friends were striped. They were transacting so much money that try stripe decided to hold a certain amount of money for a while. They decide they need to hold a rolling reserve or things like that. It's very rare that happened when he was doing something on 1/4 $1,000,000. So it's a huge amount of money. What happens? But you can't hit these triggers. And that's why you absolutely I want to have multiple payment Process is set up in the ability to switch on the fly. I used my payment processors differently all the time I invoice was square. If I take a purchase in person, I swipe that credit card with square. Very simple stripe. I mostly used for taking credit cards just like I do brain treat. So they each do something a little bit different. Striping brains were very similar that basically backups for each other. Being able to take money in different ways is important because you never know when it's gonna happen when you need to be ready. And I like all these platforms because they don't charge you anything. I'm not gonna name the names of any of the companies that I don't like that charge you a monthly fee. The one thing you can't do with most of these systems is set up a recurring payment. Let's see, you want someone to pay you $97 a month recurring. You're selling a coaching programmer membership area, Something like that. People won't be able to do that through Square Square. Doesn't do recurring for pay, pal. You have to set up a really complicated link and you have to call the subscription unless you pay extra, have paper business, which you gotta pay like $30 a month for and get approved. It's kind of complicated when you have your shopping cart in front of it. The shopping cart handles that element where they re process the card once a month. So if you have a recurring payment through Jamie Zoo, for example, someone pays James do Every month they handle that recurring element of it, which is one of the most important things to people in business online. We wanted the ability to sell memberships because that's one less profitable types of products you can sell. That's the best business model out there. That's what people in software have all switched to a monthly payment rather than a single big payment. They charge small, monthly looking adobe looking what Microsoft is doing with word instead of paying once they want you to pay once a month, a much, much smaller number is over time, you end up paying way, way more without realizing it. People look at the old Adobe Price right? Used to be $1200. Now you can get everything for $30 a month. If your students seemed like a great deal until you've been using the software for more than two years, suddenly you've now paid way more overtime than you ever would have flat fee, and you're still paying to use it over and over again. As a vendor, this is a great business model. As the customer, you're paying more same thing with cell phones. It's way cheaper to pay a flat fee for your cell phone. I bought my cell phone. I pay a flat fee and I don't have a contract to get the same phone in America. You can get it for free if you send it for two years at $100 a month, that adds up to $2400. Okay, that's a 24 $100 price tag on a phone that I paid way, way less than that for, and even combining with what I pay for phone service. I'm still way, way less. Understanding both sides of that equation is very important. So setting up your shopping cart system, setting up the ability to take money when you're just getting started at least set up these few payment processors at least set up stripe swear and a PayPal account. This will allow you to accept money and as you need to get more sophisticated, you can hook them into different things. You can set up a J B Zoo account and connect them, and when you're taking transactions, you can do a little bit of a fee. You could pay a little percentage each transaction and then when you're ready to go to the next level us. Hey, my fees are more than $100 a month. I want to switch to other platform. You can switch to pay Kickstarter Sam card or there's a lot of other shopping carts out there. Those who just have anyone's that I'm very familiar with a kick starts the one that I use their plenty people that love their own shopping carts and love them for different reasons. So then you can kind of move up as you're ready to do it. I'm all about controlling costs, and this is a way for you to do some amazing things without having spent a bunch of money upfront without having to overwhelmed yourself up front and the ability to take money so, so important. I've been in those situations where someone wants to pay another person the person like, Oh, I don't know how to take money. You just have to have me cash. They don't know how to do it. They don't take a check. And of course, you know you Eventually, we'll talk about this other places. You do have to set up your business account. You have to get your business tax, I d. Number and do those things as well. Those are all part of the process of getting set up a business. But for today, what we're really focused on is the ability to take money. And believe me, there's nothing more exciting than the first time someone gives you money and it magically appears in your bank account. Thank you for listening to this week's episode of Serve No Master. Make sure you subscribe, so you never miss another episode. We'll be back tomorrow with more tips and tactics on how to escape that rat race Hit over to serve no master dot com forward slash podcasts. Now for your chance to win a free coffee of Jonathan's bestseller, Serve No, master. All you have to do is leave a five star review of this podcast. See you tomorrow. Thank you for listening to this episode of the serve no master podcast to find out. I can get a free copy of my new book. Head Over to serve no master dot com back slash podcasts right now.