Opal sweet on dealer channel

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Carphone Warehouse’s B2B arm Opal Telecom began distribution of its office broadband products in the mobile channel at the end of last year.
It reckons it can take more than 10 per cent of the business broadband market through mobile dealers by the end of 2009.

Opal head of the reseller channel Andy Hollingworth (pictured) claims its pricing structure will draw customers and its remuneration structure will attract dealers.

Interestingly, and shrewdly for a business looking for a quick take-up, Opal has moved to provide 100 per cent upfront commission on new business, a pay structure that mobile airtime providers have moved away from in recent times.

Hollingworth says: “We want to gain 10 per cent of the B2B broadband market in the next 12 months.

“There is no reason to believe we won’t far exceed that figure because we’re bringing upfront commission back into the dealer channel while offering a new product with great short-term gains.”

Opal pays dealers commission for its office broadband connections once the connection goes live.

A basic package provides dealers with £75 in commission straight off. They can add ‘builders’, or add-on services, to generate more pay.Each builder is worth £15; they include services such as PC security suites, bundled minutes or online services. Hollingworth reckons dealers take £100 per sale on average.

“We make the process as close to a mobile sale as possible to ensure dealers are comfortable with the proposition. A business builder acts as an additional option on the tariff, just like adding more text messages or data bundles,” he says.

“Mobile networks have reduced upfront commission and have told dealers once a customer is out of contract the income stops. Our commission will attract dealers who want that money now rather than having to wait.

“As long as they continue to sign new connections, they continue to get their commission on an ongoing basis – rather than getting a small amount over several months, they’ll get a lump sum each time they sell.”

Full article in Mobile News issue 437 (April 20, 2009).

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