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Thread: MVNO dealers

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    MVNO dealers

    I was wondering how Red Pocket dealers make any money. On other MVNOs the seller marks up the phone. But RP doesn't brand their own phones, then presumably customers bring their own- so where's the profit? I'm assuming dealers of MVNOs do not get much in commission since the customer does not enter a long term contract. (This same question applies to all MVNOs w/o branded phones).

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    Prepaid Wireless Dealers and how they make money

    Quote Originally Posted by elishar View Post
    I was wondering how Red Pocket dealers make any money. On other MVNOs the seller marks up the phone. But RP doesn't brand their own phones, then presumably customers bring their own- so where's the profit? I'm assuming dealers of MVNOs do not get much in commission since the customer does not enter a long term contract. (This same question applies to all MVNOs w/o branded phones).
    Red Pocket and many other mvno dealers make money in a variety of ways besides refills. The profit on refills is very small. Usually in the mid to high single digit range. A dealer relying ONLY on refills has to do it on a massive scale to make money. Usually online dealers do this . Activation fees, service fees for other activities like provisioning, porting, etc are often charged as paid services. A lot of them also do additonal related services like phone sales, tablet sales, repairs, internet and the like. Sometimes mvnos, often new ones or ones doing promo type campaigns, almost always short term will reward dealers with a spiff or commission paid at the time of a new activation with a new number or port onto that mvno . But Spiffs NEVER last . They are not meant to be a regular source of income for dealers. Also, there is no standard on what a dealer charges generally nationally unless it's something set like refill rates. There are many types of prepaid wireless dealers including ones that are corporate (Boost mobile, Cricket, Metro stores) and others that are independent . You tend to see more of a variety of services at independent stores then corporate. But corporate store quality is supposed to vary less. Independents vary more by their nature. The independent prepaid wireless dealer in this age and time is in probably one of the most competitive phases in its history unlike say in 2008. A lot of dealers tend to view prepaid wireless as having hit the modern era when Boost launched their original unlimited everything nationwide $50 plan back in 2009 or so.

    In this day and age, some customers feel they don't need a dealer. That's fine. They can diy , go online, buy hardcards at a gas station, call cs on their own and maybe save a little money. But others prefer having a dealer help them out . There is room for all in this market.
    Last edited by Ike D.; 08-31-2015 at 02:07 PM.

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