10/8/2008 1:12:00 PM
Orange set to take out 20% up-front commission
Orange is expected to change to an ongoing commission structure, following a similar move by O2 earlier this month.
Orange’s commission scheme will be a slightly diluted version of O2’s. The most likely plan is to remove 20% of the total amount of commission a dealer or distributor makes on a customer and to pay it over the lifetime of the contract.
The remaining 80% will be paid up-front. Other plans are still apparently being considered.
Meanwhile, O2 pays its dealers and distributors 48% of a customer’s ARPU, with the first 14 months’ worth up-front and the remaining amount on a month-by-month basis.
Orange plans to implement the scheme from January.