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Doing the Math on Wireless TEM

 

 

 

By Trent McCracken, President, Spectrum Inc.

There are many compensation models agents can work through in offering a TEM solution. However, many of the models clearly pay the agent more than they typically make.

To illustrate this to one of the master agencies licensing our TEM solution, we drew up the following example.

An agent sells a $20,000 MRC deal and gets 15 percent (and that’s on the high side) or $3,000 per month through the contract.

Now, let’s say the agent sells a TEM wireless deal for 2,500 devices at $8 per device (which equates to the same $20,000 deal above). The maximum cost to the agent is $6 per device from the TEM provider. That results in a gross profit of $2 x 2,500, or $5,000 per month. That’s equal to 25 percent commission payable to the agent, and nearly double the carrier commission they had been receiving.

If you look over the contract term, the increase is even more apparent. The carrier commission will be $3,000 x 24, or $72,000. The revenue from the TEM solution is $5,000 x 24, or $120,000, which is almost $50,000 more.

This example clearly shows where the agent gets the most return for their time and effort. In addition, the agent doesn’t have to wait 60-90 days to get paid, and also can handle the invoicing themselves if they wish.

If you do the math, wireless TEM pays.

Trent McCracken is president of master agency Spectrum Inc. and architect of its TEM platform, TrueVue. He can be reached at trent@3spectrum.com.


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