Answered: What is a Hiring Mill?

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Merchant Account Hiring Mill Explained:

What exactly is a “hiring mill”? This term refers to companies that predominantly employ individuals on a temporary, freelance, or part-time basis, without any foreseeable prospect of these positions converting to full-time status. Businesses that adopt hiring mill practices typically prepare for a high turnover rate among their workforce, opting not to invest in comprehensive training or substantial support for their newly hired staff. Such practices are particularly prevalent in the sales departments of the credit card processing industry.

A significant number of merchant account providers are known to employ vast numbers of independent sales agents scattered across various regions. These agents are compensated primarily through commissions, with additional residual payments paid based upon their client's processing volumes. Although this approach helps in broadening the company's market reach, it frequently results in negative outcomes for the merchants. In the absence of thorough training and strict oversight, it's common for these agents to persuade merchants into agreeing to costlier contract terms, thereby increasing their own commission earnings.

Consequently, companies that rely upon a hiring mill strategy are often criticized and poorly reviewed by business owners. We have found that companies with dedicated, full-time, in-house sales teams are more likely to offer superior service and more favorable contract terms. This traditional employment model fosters a more stable and committed workforce, which in turn can focus on cultivating long-term relationships with clients rather than pursuing short-term financial gains.


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