3 has altered its commission model on business connections to defer 10 per cent of upfront pay for six months.
Dealers connecting 3 business tariffs will receive 90 per cent of the commission up front, with the remaining 10 per cent coming after six months of the customer’s contract.
The move sparked alarm among dealers that it might preface the launch of a full revenue share model on 3 business connections. But 3 denied it was part of a shift towards revenue share.
“3 has changed the way it pays dealers for connections to business tariffs but this by no means indicates a move to total revenue share. It’s about ensuring we maintain a quality customer base and that dealers have money in the bank six months down the line.”
But one distributor source responded: “It seems like 3 is protecting its interests, but deferring 10 per cent is an indicator that a revenue share model is on the way.”
Others suggested it was merely a cost management exercise. One dealer said: “It would appear that 3 is looking to cut costs to protect its business with 10 per cent in the bank for six months.”