Orange has failed to allay dealers’ fears they could lose ongoing revenue if their distributor goes out of business or if they move to another distributor.
Dealers worried last week their ongoing revenue would not be re-routed to them if they change distribution partner for any reason.
An Orange spokesperson said: “We have and continue to pay commissions to sub dealers via our main distributors and we pay ongoing revenue based on the phone’s IMEI number.
“If a sub dealer moves to another distributor, then they need to check with their distributor what contract they have in place to cover this, as we don’t have that relationship already.”
However T-Mobile national sales manager for independent partners John Fannon said that any ongoing revenue a dealer has built up would follow them to their new distributor.
“We’ve always paid our commissions straight to the distributor, who then passes it on to the dealer,” he said. “It’s no different with the revenue share model. If the dealer moves to another distributor, the commission will follow the dealer.”
Futurenet proprietor Jez Harris (see left) explained: “It seems ongoing commission element of a dealer’s remuneration is not paid by the connecting dealer code (the dealer) but rather by the supplying distributor.
“Orange needs to jump in here and clarify what will actually happen.”