The Secret to Creating a Residual Income Empire Off of Credit Cards with David & Patricia Carlin: An EOFire Classic from 2022

0:02Who's ready to rock today, Fire Nation. JLD here and welcome to Entrepreneurs on fire brought to you by High Level, the all-in-one sales and marketing platform. On today's classic episode, we'll be breaking down the secret to creating a residual income empire off credit cards with David and Patricia Carlin. David and Patricia are the powerhouse couple behind residual payments. They have dominated the credit card processing industry for over two decades, creating millions in residual income. And today we talk about how it's not knowledge, it's accountability and having personal relationships far surpasses being a salesperson and trying to get a deal and oh, so much more.

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1:20Visit Franocity.com. That's F-R-A-N-O-C-I-T-Y dot com. Patricia, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with. Hi, everyone. So I think that one of after being in kind of a cutthroat industry for a very, very long time, I think that one of the things people may disagree with is that you don't have to walk all over everybody or be ruthless or cutthroat to get to the top. You can actually do business by being trustworthy, by being yourself without having all the fluff. That's how I felt my business. It's always been by, you know, on the payment side of the industry.

2:11It's always been by just being very honest and transparent. I didn't ever have to kind of, you know, step on anybody to get ahead. Honesty, transparency, Fire Nation, you know, those are two of the touchstones of entrepreneurs on fire. So I'm really glad you shared that. And as you heard in the introduction, Fire Nation, we're talking about the secret to creating a residual income empire off of credit cards. And it's not just Patricia who's with us today. It's also David, who I want to give a softball to start this episode off with. How realistic, David, is it to make residual income off of credit cards?

2:45Well, it's a pretty simple answer. We still do it today. So we've been very fortunate and together for over two decades, we've been making residual income off of credit and debit cards. And what I mean by that is anytime someone shops online or offline, if we set up that account, we get paid off of it. And while we're helping other people learn about how they can do this as well. We're still actively today building our payments companies, landing new accounts. We're out there just like everybody else is out there building their payments companies. So to say it's realistic is we just got off a call 20 minutes ago with a new merchant.

3:25So it's as real as that. Well, Patricia, I do want to shift to you because I want to know how the two of you got started. Let's talk through your origin story. And then Dave, I'd love to hear you kind of come in and add your piece of that. I'll make mine as condensed as possible just because it's forever now. So I actually started pretty close out of high school. It was 1998, 1999 that I started with one of the first companies to do the first transactions online. So it was Google really didn't exist. Nobody really existed out there. And I started in customer service with this company. It was called Internet Billing Company.

4:05And at that time, I mean, the reality is those companies, the only thing that was billing online was adult. The first, you know, the first online adult websites needed a way to pay online. So I started there. And then that company, we were processing almost a billion dollars within a few year of top line revenue. And they wanted to be publicly traded. So we couldn't do that being an adult based company. So they tasked myself and two other people with going out and basically emailing anybody who had a website. So my kind of feather in the cap was I cold emailed StarWars.com. And I said, hey, would you guys be interested in taking transactions?

4:46And they said, as a matter of fact, we are. They flew me out to Marin County. I set up Star Wars' entire subscription billing. And then from there, it just kind of steamrolled. I had Sony Music, the first massive multiplayer online games, the first dating websites. And then at that point, I said, all right, I'm not going to go to college. This is definitely my path where I want it to be. So I became a consultant and basically went around to different banks and saying, do you guys want to get in on the e-commerce game? Because most banks at the time really only did swipe transactions, retail stores.

5:21Um, so that's really where I, I kind of got started and, and found my way. And that's, I mean, it's an amazing industry. Most people, you know, after we built the training program, most people don't even realize that this thing even exists. And so people would see me all the time on my cell phone, including we'll get into Dave's, but that's kind of what, how he got into it too, is that everybody, it's a business that's there. It's not reinventing the wheel. Um, just most people don't know that there's always a middle person in between. I was in everyone else's shoes that we're currently teaching about it 10 years ago when I had a retail and online bike company.

5:59And I met Patricia and I just see her on her phone like, what the hell is she doing? What is she always doing? I don't understand it. And I'm like, I got these employees, all this overhead. I'm like, I'm busting my butt over here. And I was like everybody else where I was like, yeah, you got to teach me this. What is it that you're doing? I don't want to deal with this. And I just like everybody else, you know, we've been around this industry forever, right? Everyone's bought something online or bought something offline. Just no one really knew that there's a potential to make income off of it.

6:30And that's where essentially I was like, I'm getting rid of my stores and online. I'm getting into this business because what greater thing is figuring out a way, which anyone could do today, a way to be able to set up that business owner existing or new to either accept payments, you know, less expensively or to start to accept payments. And then every time that business owner takes a payment, you get paid at the same time. So I figured, you know, why try to make money just off my company? Why not make money off of hundreds or potentially thousands of other companies? Now, when you say, David, residual income off of credit cards, where does the money exactly come from?

7:09Like, let's really break this down. Like, I do understand what you mean about setting up an account and then people go use the credit cards and you might get a small slice of that pie and that can add up, of course, over time. But let's really break this process down for our listeners. A couple of different things. Number one, a business owner can do this as well. Or someone who just wants to go out and help business owners. And let's say you want to sell online. Right when you get your website set up, you have to go and get what's called a merchant account. So you can accept payments online. You have to go through somebody or some company to be able to accept payments online.

7:46That's where we come in, where we get you set up to accept payments online. Once we get you set up, it's kind of like the set it and forget it. Once you're set up, every time you take a card payment, I make a percentage on that transaction at the end of the month. So like Patricia, that's mine too, because I'm married to where our oldest account is about 15 years old, our oldest client. Every time they take a card payment, we get paid at the same time. So essentially, we're not owners in their companies, but we make money every time those companies make a sale. No differently than you go to a store and it's a simple terminal.

8:23You hand them your card, they swipe it, they chip it, they tap it. If you're the person that set up that business to accept payments, which is a very simple process, you then will get paid every time they take a card payment. Now, Fire Nation, I hope you're really understanding how this process can actually unfold and where if you get to the right numbers of scale, things really start to get interesting. So Patricia, before you move on, is there anything you want to add around these topics that David's been chatting about? Sure. I mean, I think just to add to what he said, in the most simplistic type of form is when you have an insurance broker, you could go directly to a company, right?

9:02So let's just call it insurance, right? You could go either direct, there's always an inside salesperson there that may set up the account for them, just like with merchant accounts. But 95 % of the time, businesses like insurance brokers and merchant processors, they grow their base by having agents. So basically, that's what we're creating is massive amounts of agents to go out there and get the merchant accounts. And then that person gets paid by the merchant processor. Very cool. That definitely does help there. And Fire Nation, we have a lot more coming up on this topic and more when we get back from thanking our sponsors.

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13:10visit Franocity.com, that's F-R-A-N-O-C-I-T-Y.com to download your free franchise funding guide today. Patricia, we're back. And if some of our listeners have never owned a business before, so they're listening to you, they're like, yes, I see what David was so drawn towards when you were doing your thing on the phone and how you guys have done so well in business. But hey, I've never owned a business before. What would you say to those listeners? So this actually surprised myself, right? So when I used to work for payments companies, obviously had employees, salespeople who knew how to do this, right?

13:50Or, well, they didn't know. They came in a lot of times and didn't have any skills outside of having jobs before. And what really surprised me after building the training platform was I knew that people were going to, everyday people, were going to be able to understand it because I've had friends that said, wait, what are you doing? I said, you have a business. You're, you know, we're not even a business. You work for a company, you work for a restaurant and it's maybe, let's say the bookkeeper that works for the restaurant. And I'm like, listen, why don't you just ask them if they want to switch their merchant account?

14:20That's literally how simple it is. So when we started the training program, I actually have a specific person in mind that she was a truck driver and she had been, she was probably in her, I mean, she was, she was definitely older. She had been driving trucks for the last 18, 20 years in the middle of, of the Midwest. And I was like, I don't, you know, how is somebody like that going to be able to get access to merchants? You know, and this is me just because I think that a lot of times, sometimes because I've been in it for so long and because I've worked in all facets of the industry, I think you need to kind of recalibrate and think like a regular person.

14:56Right. I know that sounds weird, but sometimes you have to do that. And I was like, how is she going to be able to do it? And then we were so surprised when all of a sudden she says, yeah, by the way, I'm talking to several of the roadside motels that I've been going to for the last 18 years. And I got a merchant statement. And right there, it was like a it was a light bulb moment because what happens is an everyday person who's never owned a business before in their entire life doesn't mean that they don't go to coffee shops for the last five years. It doesn't mean that they don't go to a motel that they know or the same person that has been changing their oil.

15:32And being able to have that conversation and have that very personal type of relationship, I think far surpasses being a salesperson going in there and trying to get a deal competing with other people. So I actually love the business for people who haven't owned businesses before. They're not jaded. So I love that example that you just gave of the truck driver and how you weren't necessarily connecting the dots and how that was going to become a success. And then it was like, oh, light bulb, of course it is. David, let me throw that same kind of idea and question to you. Do you have something that comes to mind when you're thinking about a customer of yours or a client of yours or somebody who has become a success in this field so that our listeners can be like, oh, you know what?

16:13like maybe this could make sense for me as well because I can see myself in that person. We never even intended on trading people. People kept asking us, like, what do you do? What do you do? Teach me. So, right. So, you know, we never, we generally want to just help people. And I always tell people when they join, you know, not everyone has to be Dave and Pat. Not everyone has to be a millionaire or make a hundred thousand dollars a year, 50 ,000. Right. Some people I'm like, let's get rid of a cell phone bill. Let's get rid of a car bill. I don't care if you want to go all in. I don't care if you want this as a side hustle.

16:46I don't care if you want to just switch this for your own business. I don't care if you really want to build a massive payments company. We have all different levels that we can train you on. When people are coming to us, we just ask them, what is it that you want? What is it that you want to achieve? We help them where if you've never owned a business before, okay, you know, how do you get incorporated? How do you set up your website? How do you get your business cards? How do you get your bank connections? What do you say to people? How do you set up your support? You know, and we're there helping you the whole entire time.

17:21And really, honestly, what it's really come down to, it's not really even the knowledge. It's really the accountability that we really hold people to. The accountability to make sure they're doing what they need to do, make sure they're hitting their goals, making sure they have that support. And that's where we all get kind of choked up online where people are like, I want to be a millionaire. I'm like, how about we just be happy about starting the company and then just let's just land one account. Because if you can see that you can land one, two or three accounts, then you're like, holy crap, I could land 10 accounts.

17:58And that's where this is something that for anybody, I always tell people, keep your job, your full time job while you're building this company, you know, and let's build up this residual income. This could be this is a long term play for you. And that's where when you join a community of people that are also building their payments companies alongside of you, It's great to hear from Patricia and myself, but it's really great to see other people in your shoes finding their own success so you can be like, oh, if that person can do it, then I can do it. Now, David, let's stay with you for this because I'm ultra curious.

18:33How does one go about building a business with a partner or a significant other? I mean, there must have been some nervousness, some doubts going in with Patricia. I mean, you know, you're just like, you know, hey, sometimes I have heard the fact that absence makes a heart grow fonder. And there may be zero absence in this relationship now that we're working together. What was that like? The first five years I pumped her full of sleeping pills.

19:02Surprised? No. You know, we're weird when, you know, I don't even know. We moved in together like a month of knowing each other. We got married within a year. and there wasn't really a thought, right? So we are 24 seven every single day. I've never even slept a night apart from my life. So, you know, we're a little different in terms of that. But, you know, when it comes with working together, it's really just setting the boundaries, right? For other people who are maybe listening, you know, let's say you do have a full-time job and, you know, you got a wife or a partner at home. You got to tell them, hey, this is my goal.

19:39This is my dream. Nothing's going to happen overnight. But if I come home from work at six and I go straight in my office for four hours, this is what I'm doing. This is what my goal is. Or, hey, you know, I may miss this party on the weekend or I might not be able to do this. I might sacrifice this, but it's for the greater good. So having that open communication, you know, whether you're screaming at each other openly or that you're screaming or whatever, you're hurting my feelings or whatever it may be. you know, whether I'm right or she's wrong, the one thing that I would say that we are amazing at is regardless of the fight, because they happen every single day with all different people, is no matter if you think you're right or wrong, just ending it saying, you know what, it was me or it was you.

20:23Let's just move past it. Let's, you know, let's continue building our companies because that's where letting something brew and then build into something so much bigger, you can't stay focused on, on, on, you know, on the plan ahead. So that's why I always tell everybody is being very open about your goals. Also divvying up some tasks because sometimes trying to do the same thing and seeing who has a better outcome. You don't really need that competition, you know, inside of the house. Patricia, what do you want to add to this? Hold on. Let me wake up.

20:58So I think exactly what Dave said is it's dead on. Like we, when we fight, when you own a business together and we actually, another thing that came out of the training platform is how many couples actually do want to do it together. Cause you know, there's always like this, I think there's a stigma of regurgitation, a stigma out there. Oh, I would kill my spouse or loved one if I had to work with them. But the reality is that a lot of people do want, and I think after, you know, everything that's happened in the past two years, people really do want to build a business together. And I think the fear that's kind of been kind of integrated into people of, oh, it's going to ruin your relationship.

21:35When you get in a fight, if number one, you have a goal of saying, we're going to do this together, we're going to build something, and this is what it's going to be. I think that you just have to really define who's going to be doing what, because what Dave was talking about, I had to kind of, you know, here's somebody I've been doing, I could do this in my sleep, right? I've been, I've been doing this since 18 years old. So when all of a sudden you have somebody else come in, no matter how much I love Dave, you know, he comes in and then all of a sudden he's like, we should do it this way. You have to really, really squash that ego and say, you know what, maybe this is, maybe I've been doing things kind of old school.

22:10Maybe this is the way I have to think about it. And I think we've really perfected that ability to kind of say, listen, this is your lane, this is my lane. And let's just, let's stay in that because when we do start to cross over, um, that's when we get in fights. And then, you know, one of the things finally that I'll just touch on is that when you're running a business, you don't have time to be mad at each other. So we've had, I can't even count the number of times where, you know, it's a, it's a, we're arguing, we're pissed off at each other, but then all of a sudden a call comes in and it has to be resolved right now.

22:42So we'll go, Hey, really quick. I know we're still mad at each other, but what do you think about XYZ? And it's like, and all of a sudden, it just completely diffuses it because your business still has to run. So Patricia, I want to stay with you on this because you're on a roll right now. What is the one thing that you really want to make sure Fire Nation walks away with from everything that we've talked about here today? I mean, we've talked about a lot. There's some cool opportunities. We're going to really give you a chance to share how Fire Nation can connect with you later, but what do you really want to make sure our listeners get from this conversation?

23:13We have a very unique positioning in the fact that we've worked with every type of merchant that exists. There's not a merchant on this earth that we have not worked with, right? So we have a very valuable insight to behind the scenes of what's going on with the processing, right? Because you could see something on social media, you could see a coach, you could see somebody else and think they're absolutely killing it, but we're the numbers people. We actually know how well somebody's actually doing, right? And we see a lot of back offices. We see a lot of content that's out there, a lot of material.

23:44And I think that what's important to know is sometimes you need to invest in something that already exists. This is we didn't reinvent a wheel here. This is a business that has been working forever. It's just now we're giving people the opportunity, everyday people, the opportunity to learn about something that they can do and that they didn't realize existed. but that is there. It's not asking, and I don't want to put an agent on it. It's not asking somebody who's never, ever traded on crypto to say, hey, by the way, join this platform. We're going to teach you how to become a crypto expert or, hey, go get an automated Amazon store.