11/19/2009 10:21:00 AM
Orange plans dealer commissions overhaul in New Year
Orange is planning a major overhaul of its b2b dealer commission system in the New Year, industry sources claim.
The overhaul will see monthly dealer commissions dropped in favour of six month commissions, Mobile understands.
The move is set for January and is part of Orange’s plans to grow its b2b customer base. By increasing commissions from one to six months the operator is hoping to incentivise its indirect channel dealers.
Orange’s indirect dealers have said they cannot compete against Orange distribution partners Mainland and Midland Communications. Both firms are part owned by the operator and get favourable terms for only selling Orange products.
However, dealers complained that the gap is too wide, claiming that Mainline and Midland Communications’ box prices on Orange products differ by at least £50 per box.
By offering six month commissions, Orange hopes to level the playing field between the two channels.
One source said: ‘Orange is looking to acquire new customers but it needs to get dealers on board. It has a boom and bust reputation because of its monthly commissions, which are unpopular with dealers.’
Another source said: ‘Orange has been talking about this for sometime and it makes sense. We want to sell wider for Orange but it is hard when Midland and Mainline earn so much more per box. It is no exaggeration to say they can earn more than £50 per box. Orange recognises they have to align the pricing and we understand that will happen in the New Year.’
Sarah Davies, head of indirect channel and SME at Orange, said: ‘Since the launch of revenue share, Orange commissions have been consistent throughout 2009. We are constantly reviewing our b2b strategy and ensure we communicate any changes to our channel partners.’