It's no secret that many wireline agents have not embraced wireless due to many factors, not the least of which are compensation and logistics. The complaint is that the return on effort has been low compared to wireline sales. But with mobility becoming a central strategy for practically every business customer, can you afford to sit on the sidelines? Channel Partners asked a few experienced wireless agents to clear the air about the common objections wireline agents have about getting into wireless sales. If you haven’t considered selling wireless in a while, you may be surprised by their answers.
Objection No. 1: Wireless does not offer recurring commissions. While it is generally the case that wireless sales are compensated upfront, there are residual commissions available from some mobile operators and mobile virtual network operators (MVNOs)/wireless resellers (see related article on CLECs reselling wireless). Sometimes, when residuals are offered, they are in combination with an upfront payment and can be small.
Wireless expert Natasha Royer Coons, managing director for TeraNova Consulting Group Inc., La Mesa, Calif., explained that some mobile operators offer a small residual, e.g., less than 2 percent, to its master agents, who may choose to pass it on to their subagents or not. “My advice to the agent is to understand from your master which carriers offer a residual — albeit a tiny one — and ask if you could take a piece of that pie because it can add up over time," she said.
Geoff Yearack, president of master agency Voda Communications, Las Vegas, agreed that it’s a good idea to shop around to find a provider or master agent that fits your needs, but he cautioned that it may be difficult to find one that will offer the service and support you need with both upfront and residual.
Instead of dwelling on the lack of or low residuals, experts encourage agents to consider the upsides of an upfront payment: Coons said it adds an injection of cash that agents can use to invest in their growth. Upfront payments also mitigate risk: “If the customer cancels after six months, you keep the commission," Yearack said. Similarly, Coons added that if the carrier cancels their partner program, you already would have received all or a majority of your due compensation.
Objection No. 2: Wireless commissions do not compare to wireline commissions. In addition to no or low residuals, wireline agents assume that they will earn less selling wireless. Experts say that’s not entirely true.
“For the number of people you are supporting in a wireless solution you get paid a lot more," claimed Chris Ragland, principal for master agency Order Experts LLC, Austin, Texas. Here is an example: An agent can sell a T1 to support an office of 20 people and receive $3,000 in commission, or he can sell 20 BlackBerry devices and receive $200+ in commission per device, or $4,000 in commission. “Wireless can pay better [than wireline] if you know how to sell a solution," Ragland said.
