Vendors Please Listen to Your Agents!

Posted by: Bill Leutzinger
November 16th, 2010

Vendors Please Listen to Your Agents!

I got a boatload of emails today regarding end of year spiffs from what seems like every Master Agent and/or Vendor in the entire Telecom Industry.

I have to say that I enjoy these emails, because usually they are a way for me to make a little extra money.  Hey give me 125% upfront, or 10K if I sell 10K.  These are awesome spiffs.  Do you know what a bad one is?  Whey the spiff gives the customer a bunch of months free.

Vendors, this does us no good.  These are just months where the agents don’t get paid.  I was on the phone with a couple of them who are offering these “spiffs” today and had some enjoyable conversations.

One vendor told me that I should use it as a closing tool.  Gee, thanks for your help bud!  Why would I use his three free month promo (and not get paid for three months), when I can use his competition’s promo and get 150% upfront?  Plain fact is that I wouldn’t.

Now, I am all for helping the customer out and getting them the best deal possible.  However, that does not involve me taking money out of my pocket unless I absolutely have to.

Another vendor told me that their process for giving the customer the three free months is so difficult that most customers just give up or don’t even fill out the rebate forms.  Ok, now I have to deal with a customer that is going to be unhappy because this guy figured out a way to make it difficult and therefore no one usually gets the three months.  If I want to work with stuff like this I will go sell insurance and listen to people call me about their claims.

Finally, the third vendor I spoke with said that their accounting department never catches up with the credits when this happens.  Since, I only get paid off a static MRC number the credits “usually” don’t come back to haunt the agent.

The point of all this is that, and I speak for all agents that I know (which I probably shouldn’t) is that we don’t want to give away free months.  If you are going to give money away give it to us.  Believe me, it will help you sell more in the future.  My concern is that this will fall on deaf ears as the marketing arms of most companies come up with these promotions.  So, vendors…..talk to your marketing people and make this nonsense go away!

PRIs for $301 in Chicago!

Posted by: Bill Leutzinger
October 27th, 2010

PRIs for $301 in Chicago!

You heard it here first!  We can now offer local PRIs with unlimited calling for $301 per month in most areas of Chicagoland.

While this is great for the customer, it is not my favorite special to come along.  The prices keep falling, but our commissions do not go up.  So, these low prices make it harder for us the agents to make money.  If the market is at $375 why does someone have to come along and offer it for $301?  It is getting harder and harder for us to make the same money we used to make.  We have to sell 1.5 times what we used to sell to make the same amount of money…Let’s stop the insanity!

Chicago Telecom Update

Posted by: Bill Leutzinger
June 14th, 2010

Well, summer just got here and it is already flying by.  I thought I would get back to everyone with a few updates on what seems good and what seems bad in the marketplace.

Paetec has finally gotten their act together in regards to pricing.  Looks to me like they are finally taking advantage of their McLeod acquisition.  Give them a look if you haven’t lately.

Access One just got a DIA installed for me in under two weeks!  Hats off to the good work of everyone associated with that effort!

I need to sell a couple circuits for First Communications so that I can go to their Cubs skybox event.

Finally, I have to say that I am a little disappointed with One Communications.  I really had some high hopes for them, but their come to market strategy just has not panned out yet.  They lit up a few Central Offices, but not nearly enough to compete in the Chicago market.  I hope they don’t learn the hard way that if you can’t come in this town strong, don’t come in at all.

That’s it for the update…..Enjoy the summer and make sure you hit a few street fests!

Master-Sub Agent or Master Slave or The Octopus Effect?

Posted by: Bill Leutzinger
April 9th, 2010

Master-Sub Agent or Master Slave or The Octopus Effect?

I just finished reading the article about Ethical Dilemmas in the Channel No. 3 in the latest print version of Phone +.  I have to say that it took me a few days to read it because I kept getting so mad that I had to put it down.  Then, I had to pick it back up and see what else I was not going to agree with.

Let me start by saying that Master Agents are a necessary part of the Channel.  We need them because the smaller agents cannot take on the huge quotas associated with many of the larger telecom vendors.  However, we are not slaves to these masters.  I really think it should be the other way around.  The masters should be slaves to the smaller agents.  We bring them their revenue every month.  They would not have the customer base they have without us.

Secondly, I don’t know of one agent out there that works exclusively with just one master agent.  There are exceptions where a master gives an agent money to get started with an understanding/contract that requires exclusivity.  No agent wants all their eggs in one basket.  I know from past business experiences what happens when you put all your faith in one place and they go belly up.  Agents have to have revenue streams coming from many different places.  I call it the octopus effect.  If I have revenue coming in from eight different sources and one of them gets cut off, I can still survive.

The example that was used in the article really makes me laugh.  A master agency brings in a new player and since I attended a webinar, now I have to put all my business with that new player through said master agent?  Wait a minute.  I know that the new player put up all the expenses for that webinar.  They begged the master to do it and the master said ok, let’s take this to the masses and see how it plays.  The master then gets 50-90% of any of the business I put through this new player.  However, 99% of the time the master did not put up any of their money to put on this dog and pony show.

Most agents are now going to see which master agency they work with will pay them the highest percentage from this new player.  Or, they might realize that this is something they can sell a lot of and sign directly.  At this point it all comes down to business.  The new player is using the master to get some advertising.  They are most likely paying for it themselves and they are casting a very wide net to catch some new fish.

Next, the successful business person will sign an NDA with the new player and look over a contract to see if it is indeed a fit or not.  If the new player has a commitment level that the agent can swallow and the terms of the contract are all in place why would they not sign up themselves directly?  This is a basic business decision not an ethical dilemma.  The ethical dilemma is that the master agent is treating the sub agent like a slave.

Here is exactly how I break down the ethical part of all this.  We are all in business to make money.  We use the masters for what we need them for and we sign our own contracts when it makes sense.  However, once I have made the decision to put business through a master agent with a particular provider then it is unethical for me to go and sign direct.  But, if I have not used a master for a specific carrier/vendor then I can do whatever I want.  I tell every new agent I speak with to make sure and have their revenue coming from at least eight different sources.  It is the number one key to success/failure in the agent world.  At the end of the day it is your business and you can run it however you want.  I just say that you should make the decision to use or not use a master before you turn in your first sale.

One Communications is coming to Chicago!

Posted by: Bill Leutzinger
March 16th, 2010

Chicago needs to get ready for lower prices!

One Communications is coming to Chicago starting April 1st. Their pricing is going to shake up the SMB pricing structure as we know it. AT&T has been cutting commissions on POTS and DSL to the SMB market and One Communications is ready to pick up that market segment. I am hearing talk of $40-50 unlimited POTS lines, competitive DSL pricing and Integrated Circuits with unlimited local calling at an unbelieveable price range.

Their commissions are high and from what I have seen, their upfront payouts are really nice as well. If you haven’t looked into them yet, it is time to take a closer look. I am not that familiar with them as I don’t do a lot of business on the East Coast, but I have heard nothing but good things and I am very excited about my Agent Manager Andrew!

They have a few COs lit now, but I have not found anything in that area as of yet. April will bring a new pricing structure to the Chicagoland marketplace and I am cautiously optimistic. Those of you who know me realize that does not happen to me often. But, I think this is going to be an exciting time! More to follow after I have a couple of deals under my belt.

Thank You Las Vegas!

Posted by: Bill Leutzinger
March 7th, 2010

Gina and I just came back from the Vegas Telecom show and I have to say it was one of the best ever. US Signal threw a great party by the pool on Monday afternoon. The only issue with that was that it started out my day with a few too many drinks.

After their party the “floor” opened and it was a much different group of exhibitors than I have seen in the past. Sure it was full of the old stand bys, but I was happy to see that every other booth was not a Hosted IP company. So, we worked the floor for a few hours then went back to the room for a quick nap and some room service.

Around 10:00 Gina and I headed to the House of Blues for Netwolves party. Ryan and Michael always know how to have a good time and this party sure did not disappoint. The only bump in the road was another vendor who asked me to get him in and was so drunk and obnoxious that he embarrassed me. We all know just how hard it is to do that.

After the party broke up I went and tried to roll some dice with my good friend Ryan from Netwolves. He loves to bet the 12 or the Midnight Train to $$$ as he calls it. I was watching him throw $25 chip after $25 chip on it and it never came up. The second he leaves the table what happens? Train Tracks baby! Then Gina and I went and got some breakfast and slept till around 2:00.

I had a couple of meetings and then we went to the peer to peer event. I have to say that I was extremely disappointed in that event. I really only have myself to blame because I was on the planning committee. Anyway, after that we were off to the One Communications party at Rum Jungle.

These guys put on a great spread and the drinks were top notch. They let you order whatever you wanted and had people walking around with some of the best finger food I have had in a long time. Unfortunately, I was hurting a bit from all the fun I had been having over the last few days and really could not take advantage of the excellent looking rum drinks. But Gina was there and she made up for me. She was a trooper on this Vegas trip!

After Rum Jungle, we headed over to WTGs party at the Shark Reef. This was another very cool event. Walking around with drinks and seeing sharks and other fish swim above your head and below your feet. Gina told me it was time to rally so I got a stiff Vodka and Soda. I pounded down about 3 of them in 20 minutes and started to feel better. Plus did I mention the chocolate fountain? Oh yeah baby, I hit that bastard with a vengeance. Rice Crispy Treats dunked in the chocolate fountain cured every ill. Well, I think the Vodka and sliders helped a bit as well.

Gina ended up winning a really nice prize package in the raffle. It was a bunch of golf stuff and a golf shoe bag. So, I guess I really won on that one! After that, we headed to MIX for the Paetec party. I go to order some drinks and they tell me that will be $25. I said I was with the Paetec party and they told me that the free drinks were only for an hour and that ended a long time ago. Cheap bastards! So, we had our drinks checked out the cool view and headed downtown to old Vegas.

Long story short, I put ten bucks in a slot machine and won $260! Then Gina put ten bucks in a penny slot machine that had a wolf on it and looked like our dog. She won $356. We got some breakfast, laughed about the trip and went to bed. The End!

All in all Saxby and his people put on a great show. I give the award for best party to US Signal. I give the award to who am I looking forward to doing business with to One Communications. They are coming to town and their PRI, IA (Integrated Access), and pots/dsl pricing looks to be out of this world good and they pay a nice percentage!

That’s all and thanks to everyone who helped make it a great show and bought Gina and me beers and dinners. Sorry it took so long to get this blog out, but just like in the movie The Hangover, we had to review the pictures.

What is the Purpose of the Master Agent?

Posted by: Bill Leutzinger
September 30th, 2009

Master Agencies make up a big part of our telecommunications livelihoods.  We all can’t take on the quotas that come with the large service providers.  So the master becomes a necessary evil in our industry.

In my opinion, I look for them to bite off these big contracts and provide me with excellent customer service.  I don’t mind giving them a piece of my hard work if they can handle the above two requirements.  Some agents (like myself) desire to have a strong relationship with our customers, and others just want to hand the deals over and be on their way.

I suppose it works the same way with the smaller providers that we all sign our own agreements with.  However, the bottom line is that we need support.  Most of us are 1-5 man shops.  We don’t always have time to deal with service or install issues.  We need the masters and the vendors to help us when these issues arise.  But, what happens when they fall down on the job?

I run all of my Verizon work through a rather large master agency that I will not name in this blog.  I recently gave them a 7 line pots order for a construction company that I do a lot of work with.  They needed the lines for elevators and alarm circuits so that they could get the building inspected and opened.

This particular installation had only fiber optics coming into the building.  As we all know, POTS lines need copper.  So, a piece of equipment is needed to convert them.  I have spent the three days since I got back from Channel Partners trying to get this done.  I told the master agency this over and over again, but they continued to tell me that Verizon says the lines are installed and tagged at the DMARK.  This is just not so.  However, I can’t call Verizon because I don’t have a contract with them.  I rely on the master to do that.

I have been on the phone for three days with the customer calling Verizon and dealing with the area construction coordinator.  Techs show up and leave because they are “copper only” techs.  Should I be spending my time on this?  I think not.  This is the job of the master.  But, they keep telling me the customer should call Verizon directly.  They keep telling me the lines have been installed and tagged.  None of this ever happened but they don’t believe me.  What do I do?  I dig in and help the customer while the master with 30 employees sits on their hands and calls me a liar.

Thus the question that enters my mind tonight…..What is the purpose of the master agency?

Posted by: Bill Leutzinger
September 14th, 2009

I can’t believe this Part 2!

Ok everyone, I have gotten quite a few calls and emails regarding my last post.  I said that I would wait to see if the carrier did something or not well they didn’t.  The carrier is XO.  This only effects Chicagoland customers at this point.

Basically they are saying that they were not going along with the tariff correctly.  So, they went back and started going to the letter of the law.

My real problem here is that they did it but did not send notice of it until after customers were getting bills.  The other issue is that it was sold one way and they just changed it all overnight.  Basically, they found a way to screw the customer and make more revenue.  I cannot support any company that would do something like this and will not be selling their products anytime soon.  I ask the agent community to do the same as it is the only way to stop XO and other carriers from doing business this way!

I can’t believe this!

Posted by: Bill Leutzinger
July 29th, 2009

I can’t believe this topic!

I have been fighting for months over this whole taxes and surcharge issue. I swear, I am going to blow it up like Sammy Sosa and Mark McGwire, but I have to take this another direction. I never thought I would see what I have seen over the last week!

When you sign a contract with a carrier don’t you expect to pay that same price for the entire term of the contract? Well, carriers have added surcharges and taxes that are not really taxes to your bill over and over again. This week I learned just how far a carrier will go to screw the customer!

I am not going to name the carrier just yet, because I am hoping they will see the error of their ways when customers start breaching their contracts and leaving them high and dry. I already have four customers that are ready to start a class action suit.

Let me start with a little background. Most of you know that my agency is based in Chicago. We have some pretty weird local calling areas. I have yet to see anywhere in the country that works like ours. Basically, we have three local calling zones. Our lines are very cheap and we charge for every call you make. If you make a call in Band A it is a call that is roughly between 0-8 miles. Band B is roughly 8-15 miles and Band C (sometimes called local toll) is 15 miles to the end of the LATA.

A few years ago most vendors went to an expanded price for unlimited local. AT&T called unlimited local Bands A and B. They charged Band C as a long distance call. So, the CLECs started including Band C in their “unlimited” calling area to compete with AT&T. Everyone offered unlimited calling and included all three bands to compete. It was written into every contract.

Recently, a major national CLEC decided to cap local calling at 19 miles. They basically changed the terms of their contract to every customer in the Chicago area. Suddenly, Band C changed from 15 miles to the end of the LATA to 15-19 miles. I have a customer in the Western Suburbs that makes a lot of calls to downtown Chicago that received a local calling bill of $1000.00. These were calls that were previously included in their contract and suddenly were not included anymore. These calls were 20 miles in distance.

They questioned the bill with the carrier and were told that section……of their bill states that they could make this change. While legal is it the right thing to do? They had their lawyers look into it and realized they could screw the customers and make more money. Customers contacted their lawyers and were told that it is legal and they are on the hook for the charges.

I currently have four customers that called it a breach of contract and switched to other carriers. The vendor sent them to collections. Now I am out commissions because the customers refused to pay. Is this right? I will withhold the name of the carrier if they do the right thing. If they do not do the right thing I will call them out in a future blog. They know who they are and need to fix this ASAP. Please don’t make me call you out!

Cubs v. Sox gives insight into issues of today

Posted by: Shawn Drimmel
July 2nd, 2009

This is a totally random thought…

 

I recently attended a Cubs v. Sox game at the Cell.  I would like to disclose that I am a Cubs fan.  This is not a “my team is better than yours” rant.  I want to talk about the feel/vibe of the ball park and the attitudes and actions of fans.  I went with a mixed group of Sox and Cubs fans.  I was wearing a Cubs jersey.  After having 1 beer thrown in my direction, getting into 2 verbal altercations I realized something.  Most (not all) Sox fans hate the cubs more than they like the Sox.  Let’s think about that for a minute.  They would rather watch the Cubs lose, then a Sox win. When they pick up the paper to check the box scores its “did the cubs lose” then “I wonder how the Sox did.”  At the game Johnny Sox fan did not care that the Sox and Cubs were playing an exciting back and forth ball game that was won in the last at bat.  They were too busy screaming at every Cubs fan in sight. Hurling gay jokes, racial slurs, and all types of other mindless blather.  But nothing was mentioned about the game.  Then a 55 year old man stood up on his seat and pointed at every Cub fan he could see and yelled “F- YOU”, “F-YOU”.  This type of behavior continued the entire game.  Until the Sox won 8-7.  They spent the whole time rooting against the cubs as opposed to rooting for the Sox. 

This opened my eyes a little bit to some other issues we face as Americans today.  Today Americans are engaged in 2 hot wars in Iraq and Afghanistan.  And 2 cold wars in North Korea and Iran.  I think they same thing is true in all 4 of these conflicts.  The enemy hates The USA more than they love their country/religion.  It made me really think about our troops over seas fighting for my freedom and the huge challenges they face every day.  On this July 4th weekend I hope everyone can set aside a few moments to think about our troops.  Happy 4th of July.