3/19/2009 2:43:00 PM
Orange could increase ongoing commission beyond 10%
Orange defended the seemingly cautious 10% deferred payment, as it looks to monitor if it has the desired effect.
Some dealers and distributors have already questioned the model, describing the 10% of ongoing commission as ‘pretty unremarkable’.
The relatively low ongoing payment has been set after consideration of the cashflow pressure that many dealers have found themselves in from O2’s more aggressive model of 48% deferred.
Orange’s indirect sales chief, Duncan Hay, said he would look at a bigger weighting towards deferred payment after reviewing the scheme: ‘We want to get to the appropriate level that changes behaviour.
If we get the quality business at 10%, then that’s fine.’
He added: ‘We didn’t want to drive a radical change that would compromise their economics or their cashflow, but we do aim to change behaviours in the industry.’