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sub dealer commission

Discussion in 'Working or Investing in the Wireless Industry' started by peteyflavor, Aug 25, 2008.

  1. peteyflavor

    peteyflavor New Member

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    hey im just wondering what the average commission is like for a sub dealer. Im opening up my own store and for every new activation i do i get $400 and for an upgrade i get $150. Im trying to compare the commission from other sub dealers so i can find out if this is a good pay out. thanks
     
  2. MIKEY123

    MIKEY123 Banned

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    I can definitely help you. Send me your contact information via private message, and I will contact you back expediously
     
  3. hellomobilela

    hellomobilela New Member

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    HI guys.
    I just joined here.
    I have same questions. so can you help me too?
    Thank you.
     
  4. elyal

    elyal New Member

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    I have the same question here.
    Trying to start a cell phone business.
     
  5. wirelessolutions1

    wirelessolutions1 New Member

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    Location:
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    My Phone:
    blackberry curve
    Wireless Provider(s):
    TMOBILE
    What Carrier are you with
     
  6. SwedishChef

    SwedishChef New Member

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    Does anyone have a comparison on Commissions?


    ---------------------------------------New Activation Commission----------Upgrade Commission
    Sprnt/Nextel--------------------------------- ? -------------------------------------------?
    Verizon---------------------------------------- ? -------------------------------------------?
    AT&T------------------------------------------ ? -------------------------------------------?
    T-Mobile-------------------------------------- ? -------------------------------------------?
     
    #6 SwedishChef, Dec 14, 2008
    Last edited: Dec 14, 2008
  7. lruiz06

    lruiz06 New Member

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    Location:
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    My Phone:
    Sanyo 8400
    Wireless Provider(s):
    Sprint/Nextel
    Does being an affiliate count?
     
  8. SwedishChef

    SwedishChef New Member

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    sure... what does the term affiliate mean???? i'm a total newbie...

    --rc
     
  9. aShraf

    aShraf New Member

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    Location:
    atlanta
    My Phone:
    Motorola V3xx
    Wireless Provider(s):
    T-Mobile
    How much commission does a sub-dealer get??
    i'm opening a cellphone accessories store in January. but i need to be a sub-dealer or dealer to get the extra cash in.
    anyone knows a good master dealer in atlanta?
     
  10. PacificWireless

    PacificWireless New Member

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    Best of luck with that one, it was hard enough to find one in my area, seems like most of the wireless industry is kind of a chit show, especially for how much money is in this industry lol.

    I find sometimes you can talk to other people in the area and ask who they use, if you paint a picture of you not being a competitor in their immediate area, other stores can be helpful.

    As a sub-dealer you should make 350-400 per new act and half to over half for an upgrade.
     
  11. SwedishChef

    SwedishChef New Member

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    anyone with some more specific answers? does anyone know specifically about what sprint BsPs get paid? I'm in Los Angeles...

    --rc
     
  12. aShraf

    aShraf New Member

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    My Phone:
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    Wireless Provider(s):
    T-Mobile
    Sub dealer commision is terrible nowadays.
    You can't even make more than $100 off activation minue the discount of phones.
    These wireless master dealer needs to stop acting greedy and start giving out more commision!
     
  13. aShraf

    aShraf New Member

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    My Phone:
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    Wireless Provider(s):
    T-Mobile
    Sub dealer commision is terrible nowadays.
    You can't even make more than $100 off activation minue the discount of phones.
    These wireless master dealer needs to stop acting greedy and start giving out more commision!
     
  14. wirequest

    wirequest New Member

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    Can we all just go directly to cricket and boost mobile and other t-mobile website and sign up as limited dealer? instead master dealer take all your hard work? just wondering>>>>:)
     
  15. aShraf

    aShraf New Member

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    Location:
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    My Phone:
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    Wireless Provider(s):
    T-Mobile
    TMobile won't even look at you if you don't show them total capital of $200k+
    Either they'll direct you to a master dealer or they'll throw your application away. lol
    Only way to be direct dealer is to open a T-Mobile store like the corporate store...which you need capital of $200k+.

    frankly, nobody is that dumb to open a cell phone store when they have $200K in their hand. So only choice we got is go thru master dealers. They keep $600+ of commissions...while we get $200-300 of it. Small piece of the pie.

    Hope that answers your question.
     
  16. fonboy

    fonboy New Member

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    Ladies and Gentlemen, please do not forget about the financial obligations in regards to chargebacks. I quit retailing about 10 years ago, and my high tier commission was only $250...after giving away the phone, I based the business on a net of $75.00 per unit...long time ago!
    All of the master agents have been hit with agent fraud and customer fraud which has impacted their businesses ...nope, not trying to stick up for them, but you gotta know why the commissions are as such. As an agent, you will also get hurt with chargebacks due to fraud .,...and most times you cannot control..that is unless of course you work everyday at your own store ...no employees! ...and when the "creative" people find a way around your security measures, they will tell ALL their friends ... be careful out there!
     
  17. aShraf

    aShraf New Member

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    T-Mobile
    you are absolutely right. We give away the phone at high discount so the money comes out of our commission. And pretty much we barely make more than $150 per activation.
    Top of that, T-Mobile is crazy and find even smallest thing to not pay you. Chargebacks are a pain in the ___...it can break you and your business.
    It's non-sense. But not everyone can succeed in wireless business. Some does...depends how you manage,market, location and etc.
    I'm barely making it in this crappy economy..and phones aren't cheap these days to stock up on...
     
  18. fonboy

    fonboy New Member

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    ....and the carriers need the business right now too! I think their pockets go a little deeper than us little guys, and they will do whatever they can to drive the business into their doors. You are not just competing against other carriers, you are competing with YOUR carrier!
    I don't want to come off as negative, but you really need to know what you are doing before you start "giving away" the "FREE" phones!
     
  19. aShraf

    aShraf New Member

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    My Phone:
    Motorola V3xx
    Wireless Provider(s):
    T-Mobile
    For everyone that is asking the same questions about commissions...here it is. This is the commission figure for MOST sub-dealers for AT&T, TMobile.... etc

    PLAN 2 yr-contract
    $29.99- $39.95 $170-190
    $39.99-59.95 $220-250
    $59.95-99.95 $ 250-270
    $99.99+ $ $320-350
    add-a-line $120-140

    FAMILy Plan: divide the plan rate by 2 and commission is 2 times the rate.
    example: Family plan $69.99, your commission is going tio be 69.99 /2 = $35.00
    So $35.00 plan falls under $29.99-39.95, which means $170-190 x 2 will be your commission!

    Upgrades will be like $100-110. Don't forget you also get commission for adding features and data, like text message, web, and other extra stuff.

    Hope this helps!!
     
  20. rubenyona

    rubenyona New Member

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    can anyone recommend a master dealer to me in Arizona. I am having alot of trouble finding a good master dealer. My store front will be ready next week and nothing in it. Can anyone please help
     
  21. aShraf

    aShraf New Member

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    T-Mobile
    QDi Wireless is around you. They are one of the biggest Master dealer in the nation.
    They are a NATIONAL master dealer, not just local. Also one of the faster commission paying one.
    It will take them 2-3 weeks to get you approved. By this time, get all your license together, get in touch with wholesalers for accessories and vendors. GOOD LUCK.
     
    #21 aShraf, Mar 12, 2009
    Last edited by a moderator: Mar 13, 2009
  22. Lundfakeer

    Lundfakeer New Member

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    Ashraf- Thanks for posting the commissions. I have a question about what percentage would I get to keep of that money. I understand that the retailer would have to pay for the phone also. If I sold a $99.99 package, what would be my income after phone costs?

    Thanks
     
  23. aShraf

    aShraf New Member

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    T-Mobile
    Well that depends on the market. I mean whatever phone customers wants and the price of your sale price. Let's say The BlackBerry Javelin 8900, Dealer cost would be around $400.
    For a customer that gets a two yr activation, they can get it for $179. ($100 rebate).
    So they pay you $279 initially.

    You paid $400 for phone, but you are giving it away for $279. So you are losing $120.
    But your getting paid commission of $300-340.
    $340-120 = $220 (your profit)

    So you pretty much made yourself $200+ Income off one activation.
    But average plans and minus phone discounts, you would make $125-250 per activation.
    You need to look for wholesalers to buy the phones for less! Your master dealers does not give you wholesale price, but they give you discounted price.
     
  24. WhoDoYouHave4Wireless

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    Why do you make this comment?

    I was thinking of becoming a Limited Retailer.
     
  25. aShraf

    aShraf New Member

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    T-Mobile
    You can choose to become one if you want. I never said you can't. But it's a risky business.
    But if you so good and bring in activations and revenue, than you'll do really great. But it's unlikely, but depends on your location and market.

    TMobile will help you to start it up... but good luck. These days small business is closing down on wireless business because T-Mobile pays dirt cheap commissions.
    But there are stores around my marketplace that pulls in $20K-40K a month. And there are others that barely makes $3K a month.
     
  26. WhoDoYouHave4Wireless

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    I thought T Mobile's payout was supposed to be higher than others. No? If you were looking to open shop in Atlanta (or thereabouts) who would you consider? Why?
     
  27. WhoDoYouHave4Wireless

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    I don't take what you mean to say in a bad light. I want all info, good and bad, before I make decision.

    Why do you feel it is unlikely to bring in revenue?
     
  28. aShraf

    aShraf New Member

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    My Phone:
    Motorola V3xx
    Wireless Provider(s):
    T-Mobile
    1. The economy now is just not stable. People losing jobs, canceling things they can't maintain.
    Cable, Dish, cell phone, some are going back to pre-paid. Some are getting out of contracts.

    2. People are afraid to shop, business are losing thousands of traffic daily. If big business can't get customers, what makes you think you can?

    3. January-April is the slowest sales in wireless business. Almost everyone has cell phones, where you think you'll get NEW customers? you really have to find a diverse or congested location!

    4. Commissions pay out is not even something you will be smiling about.

    5. If you have an established business, (electornics, technology or service related) than its good to have this on the side, or use wireless service to bring new customers.

    6. Limited store may be a good thing to start, but it involves LOTS of marketing and advertising, and you have to pick the place of heavy traffic and place without other cell phone stores nearby. And you should have decent amount of liquid asset. (cash).

    But If you have all these and you feel you will make it good, than you should go for it. But this business involves constant advertising and marketing! And it's always great to keep high-end new phones in stock, those can be very costly.

    But if you do make it, and you getting 50+ activations a month.... than you should do GOOD.
    There are some store in Atlanta, GA, getting 100+ activations, some 200+ activations. They are making it BIG!!! And most stores right now struggling to do 20+ activations a month.

    The good thing about this business is Minimum investment and you can push your sales by advertising and marketing and you fix the price and profit margin! You get good support from tmobile, or master dealers!
    THE KEY IS LOCATION AND MARKETING!!!
     
  29. aShraf

    aShraf New Member

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    Verizon or/and T-Mobile.

    At&t is too exclusive, even for a authorized dealer. They are extremely hard to get approved. You got to be RICH and LOADED to open an AT&T dealership!
     
  30. aShraf

    aShraf New Member

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    T-Mobile
    i doubt it. I posted what T-Mobile pays dealers. Few post above this. Those commissions were for Authorized sub-dealers.
    In my opinion to sum it all up, it's all the same for all big carriers. (at&t, t-mobile, Verizon)
    There will be few dollar difference depends on where you are located.
     

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