Vodafone edges nearer to full revenue share roll-out

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Platinum partners expected to receive between 47 and 48 per cent when scheme is introduced in the new year

Vodafone will roll out an ongoing revenue share payment scheme across its entire dealer base in the first quarter of the New Year.

Vodafone is said to have held discussions with a number of its leading platinum and gold partners to help formulate the model over the past months.

Vodafone said no final decision has been made regarding the roll-out – but dealers claimed last week that top-tier platinum partners will receive between 47 and 48 per cent, while gold and silver partners will receive around 45 and 42 per cent respectively.

It has been suggested a second option for partners struggling with cash flow will be available, offering a small up-front sum with a reduced revenue share.

As with O2’s anticipated changes to its revenue share model, Vodafone dealers connecting additional services such as One Net will receive an increased percentage – said to be around two per cent.

Dealers Mobile News spoke to said they are now reviewing their business financials for 2013 based on this model.

The move will bring Vodafone up to date with rivals EE (T-Mobile and Orange) and O2, who first introduced the ongoing revenue share model for all partners back in 2008.

Vodafone told selected partners in July it planned to roll out the revenue share model in October. Some dealers were told a December launch was still a possibility.

Vodafone head of partner services Rob Mukherjee said: “Our intention is to move all partners in the Vodafone Partner Programme to a new revenue share commercial model. The new model will reward our partners more effectively for their success in helping new and existing customers find better ways of working.

“We’ve listened to partner feedback and are confident this evolution will enable us and our partners to continue to deliver the best partner and customer experience.”

A number of Vodafone platinum and gold partners were put on a revenue share model as part of an ongoing trial around 18 months ago.
Partners involved in the trial receive around 45 per cent of the guaranteed line rental costs up front to help pay for hardware, which is then paid back over the duration of the contract.

Around a third of Vodafone’s 23 platinum partners are understood to be on the revenue share model already. Dealers who connected through Yes Telecom prior to the creation of Vodafone Partner Services (VPS) back in December 2010 have always received a small percentage of revenue share on top of their
up-front commissions.

Similarly to last week’s story regarding O2, Vodafone dealers say the operator has made no secret of its intention to reduce the number of its top-tier partners and is clamping down heavily on specific KPI targets.

Platinum partners are required to have at least five per cent of their customer base connected with One Net by the end of March – a figure many are expected not to achieve, leading to their relegation.

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