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Telecom Reseller Overview

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The phone and wireless industry sales is characterized by a two or three tier structure. Landline and wireless carriers sell residential and commercial services and equipment. They can sell it direct through their own online and phone sales processes. They also contract with resellers, dealers, agencies and agents to sell their services. Agencies can be master agents and can have sub agents and sales reps.

Agents can represent multiple carriers. Agents sell phone equipment and services to end customers and register the sale with the carrier. Provisioning of equipment can be from stock or from the carrier. The carriers take over the billing to the customer.

Commissions to Agencies are calculated by the carrier based on their own published schedules. Commissions can be for equipment sales, new orders, additional services, renewals and for recurring revenue. Agencies have compensation agreements with agents and sales reps as to what portion of the incoming commission will be paid out to them for their own sales.