Understanding Residual Income

Learn how residual income is calculated and how pricing affects your earnings.

Your residual income is calculated as the difference between your sell rate (what you charge the merchant) and your buy rate (what you pay): Sell Rate - Buy Rate = Your Profit.

For example:

Buy Rate: $25/month, Sell Rate: $35/month = $10/month residual.

Buy Rate: $0.10/transaction, Sell Rate: $0.15/transaction = $0.05/transaction residual.

Setting competitive pricing while maintaining profitable margins is essential to building a sustainable partnership business.