TNCI and the Agent Alliance, sponsors of the Agent Equity Plan, said the program has more than 1,000 participants – direct agents and subagents — and added $2.5 million a month to TNCI’s revenue since rolling out in summer 2008.
The status report comes after a day-and-a-half meeting in Dallas this week between TNCI CEO Brian Twomey, Agent Alliance CEO Bill Power and the Agent Equity Plan Strategic Operating Council, which consists of agents that are both members and non-members of the Agent Alliance.
Council members attending the meeting included representatives from GST, PMG, Telegration, MicroCorp, TotalNet, OnTrack Communications and SinglePoint Communications. Other council members include Intelisys, ARG, Method One Communications and PlanetOne.
Twomey told PHONE+ the revenue achievements to date are in line with the initial plan for the program, but are especially noteworthy considering the impact of the economic downturn, which was not anticipated when the program was conceived and launched.
That level of interest and growth has allowed TNCI to take a different approach to managing the program. “This isn’t just TNCI in this trying to bring some partners to a transaction and get their cooperation,” Twomey said. “As we are approaching 2010, we are taking a completely different tack.”
That approach is for the stakeholders – TNCI and its partners – to work on a strategic operating plan for 2010, he explained, noting this week’s meeting in Dallas was part of that effort. “This gets into the network, the product, price points, compensation — to figure out where specifically we need to build and how we need to create continued sustained growth.”
Power called TNCI’s approach “unprecedented.” “This is not a carrier sitting behind closed curtains and developing its operating plan and then trying to engage the partners to get their buy in.” Instead, he said it’s a transparent and collaborative process to get to the end objective.
That object is for TNCI to be sold in late 2011. Twomey said TNCI already is identifying potential buyers and has entered into preliminary discussions with some.
Those conversations are “more evidence that this is a real opportunity for agents,” said Power, noting that the program is still accepting participants but time is growing short for agents to accumulate the revenue to achieve a substantial payout.
Agents can earn an equity share equal to as much as 7.5X to 9X of their monthly billing base at the time of a transaction, TNCI said. This equates to four to five years of commission. To participate agents must meet a minimum threshold of $25,000 in billed monthly revenue by the end of 2011. In addition to a windfall at the time of the transaction, agents also will have evergreen commissions after the sale.
Power said about half the participants in the program are new to selling TNCI’s services since the program was launched.