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A frozen bank account scenario

When you have a company cashing in  high ticket  per sale, expect some hiccups.

This has happened  to one of  my mentors, Mark Hoverson who’s  merchant  account was  frozen because  of cashing in high ticket value per  sale. Below is a snap short of an email  he  sent to his  renaissance  affiliates, reassuring them that they will be  paid  their  high ticket commissions. Further  down the line, Mark Hoverson tells  his  story on  how  he  started with  his travel membership club which has gain favor to holiday makers globally( a humble  beginning indeed!

The image in this email is a screenshot between of a text between myself and my merchant broker last week.
In short, my account was “froze” and unable to
receive money. (Hint: when new customers are trying to purchase, and affiliates are trying to sell, and they are getting “error” messages…it’s not really good for business).

But more on that later…

Maybe 8 or so years ago, my wife and I qualified for welfare…but through a bizarre lending market, we were able to get into a $170K house with a total of $500 I borrowed from my parents and literally not
one penny in savings.

The following month, the housing market busted.

The house value dropped to about $147K over the next 30-60 days. And I quickly realized I would have to foreclose on the house because I could barely make
the payment and “everybody” else was letting their house go into foreclosure in that neighborhood too.

I was just starting my business(literally from the public library because I could not afford a computer or internet access at my new house).

I had already let one month’s payment slip (it was a choice between food or the mortgage…I chose food).

Anyway, I somewhat proudly told one of my new buyers that I was going to let that house go into foreclosure because
there was no value in it anyway, and I felt a little tricked by the loan process…plus everyone else was doing it so what difference did it make? (HINT: this was the state of mind I was in at the time…it’s not too surprising that it led me to zero in savings, and the inability to pay my bills).

Moving on…

Get  the  big  picture

Get the big picture

After I told my new buyer my reason for letting the house go, he made a casual throw-away comment and just said, “Yeah,
everybody is letting their houses go right now…but hey, if you are going to scale your business someday, you are going to
need merchant accounts, and if you have a foreclosure on your record, you might not be able to scale the business very high
without terrible fees and penalties…IF they even give you one.”

So in that exact moment, I decided (with as much optimism as ignorance) that I would someday require really large merchant
accounts to take in millions of dollars for my worldwide enterprise.

So I scurried the money together, and made a double payment to get current on that piece of crap over-priced mortgage, and decided
I would keep my credit clean so I could someday build an internet empire.

After that decision, I promptly prepared a feast of Ramen noodles (the most luxurious food we had in the house).

Okay so back to the screenshot, the “high ticket” merchant account is for my travel product.

Here’s a micro-lesson in merchant accounts:

#1- Nowadays, places like Stripe & Paypal & other providers will give pretty much anybody a merchant account that allows people
to use credit cards to buy stuff.

#2- Most “beginner” merchant accounts give you a limit of about $40K/monthly they allow you to process.

#3- Once your business pops over $40K/monthly, the merchant provider usually does a little “audit” on the business to make sure it’s legally compliant and there are minimal complaints about your
products, and then they raise the limit to maybe $100K per month.

#4- But my “high ticket” merchant account falls into a slightly different category, because each transaction is $5000. Plus, it’s considered
“high risk” because the travel industry PLUS our one-tier affiliate program place it in the “make money with travel” category…so it’s reviewed with extra caution because there is a lot of shysters in the “make money”
space, and even more shysters who sell high ticket “travel clubs” that are just a smoke screen for a money game.

#5- So I recently told my merchant broker that I was going to start turning on sales for our travel club again.

#6- And after maybe 10 days of softly releasing our new offer, we had processed over $100K. This is usually good news.

#7- But, our merchant company (as a precaution) froze our intake of new sales while they re-audited our sales and marketing funnels, re-evaluated the financials of the company (they like to see
about 3 years of month by month bank statements), and re-check my personal credit-status and history blah blah blah.

#8- They do all this because once an account goes over $100K monthly, it falls into the “small business” category instead of the “independent business” category” (which is more like $40-100K monthly).

#9- We were on pace to do around $500K for the month, which jumps it into “medium business” status…thus, my account was frozen for a few days while they re-looked at everything.

#10- After about 3 days of standstill, they got back to me that I’m free to
process one million monthly without any further hassle. Once one million is
reached, they do another round of re-evaluations, and then up it to $2M and
so on and so on…I’ve done this song and dance a few times so I wasn’t
really worried about it.

#11- Here’s my point of this marathon email (maybe there is something of practical value you can take from it?).

FIRST- I believed in a bigger future…even when I was virtually hopeless (I could have let my house go into foreclosure, which would have affected my credit…and made it much more difficult to process the millions of dollars we have processed over the years).

SECOND- re-read the FIRST point…that’s all there is to it.

#12- To wrap up, the reality we live in RIGHT NOW is the residual of  our past thoughts and actions and intentions. Our today is because of our thoughts yesterday.

To cite a couple examples:

#1- Almost every product I’ve created, I designed to be ever-green (meaning, I’d be able to sell it for years and years to new buyers and it wouldn’t go out of style).

#2- When I purchased the travel club company, it had a $500K price tag, it drained me entirely to acquire it. Yet, I believed I’d be able to sell that product for years and years and years because the vendor who provides the trips has been around since 1986. I met with them to ensure they had a legacy-plan after the original founders died, etc. I wanted to set myself up for a long-term win.

Conclusion: toy with allowing your thoughts to go bigger, longer, and vision the ideal life and business you desire. Ask yourself, “What would make it inevitable that I get to wake up every morning to fresh money from continuity programs, and throughout the day see higher-ticket purchases roll in from a product that doesn’t require my personal service or time to fulfill…and that those products would be aligned with my heart’s desires…and that I’d be able to use the profits from those
businesses to spin off more ideas that are dormant in my heart…and when I meet my buyers…they give me a hug and thank me for selling them those products?”

That’s a mouthful of an idea. But ask yourself the bigger, better, deeper questions and see how it might raise your mindset.

Cheers to the future,
Mark Hoverson

This was a really  marathon  email,  but  it has great  value  and full of  wisdom.
If  you  apply the  steps outlined in his email, you will have a firm foundation for your  future. To get  more info on the high ticket value business, register for  a free  webinar  hosted every  week on Wednesday.

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