Archive for the ‘Lines from Leutzy’ Category

Vendors Please Listen to Your Agents!

Tuesday, 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!

Chicago Telecom Update

Monday, 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?

Friday, 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!

Tuesday, 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!

Sunday, 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?

Wednesday, 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?

Monday, 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!

Sammy Sosa

Wednesday, June 17th, 2009

Just a regular rant here…Nothing to do with Telecom…..Or maybe it all does tie together in the end?

The news comes out that our beloved Sammy was on the list of names (that was supposed to be kept from the public) of players who tested positive for steroids.  Why is this such a shock to anyone…..Why is this even news?  Anyone who saw him as a young man with the Sox (before picture) and as a home run king with the Cubs (after picture) knows that he did steroids.  My good friend John Shear once said that he went from the skinny guy on What’s Happening to someone from the WWE.  The guy hit 66 home runs in a single season.  I remember the days when 50 was a huge deal.  Andre Dawson hit 49 and won the MVP for a losing team.  Anyway I digress.

The talk has turned to how this is going to keep him out of the Hall of Fame.  Everyone knew he wasn’t going to get voted in anyway because he was suspected of using.  On ESPN tonight they put him in a group with Shoeless Joe and Pete Rose.  In my opinion Shoeless Joe got a raw deal.  Pete Rose bet on baseball as a manager.  On a side note I think the person most screwed out of the Hall is Ron Santo.  Anyway, steriods were not on the list of banned substances when Sammy tested positive.  Players have always used whatever they could to get ahead in baseball.  Spit balls, nail files, corked bats (Sammy did that too), pine tar, uppers, you name it.  In every profession people will do whatever they can to get ahead.  Salespeople do things to beat the competition (somtimes fairly-sometimes not).  My point is steroids were not on the banned substance list at the time.

I would even go so far as to say that the magical summer of Sammy vs Mac saved baseball and brought people to the park.  It was definately a resurection if not a savior.  I think we can all agree that he was just doing something that by baseball rules was not illegial.  Wait for it…Wait for it…Oh yeah, kind of like surcharges on telephone bills.  It is not illegal….The FCC says they can do it….They never really put any rules on it.  Now is time for I predict.  I predict that myself and like minded people will bring this issue to the forefront.  Just like the reporters did nothing through the steriod years.  What happens every time companies get greedy?  I have sat back long enough, now is the time for action!   Help me bring the Surcharge issue to the forefront, just like it happened in baseball it can happen in telecom.

Taxes and Surcharges Out of Control!

Thursday, June 11th, 2009

I have an issue that is really burning my ass lately. I just don’t understand how this whole surcharge (which have been made to look like taxes on phone bills) thing has gotten as out of control as it has. I review customer’s phone bills every day, and every day I want to pull out what is left of my hair.

It is very simple. The price of a PRI has dropped significantly over the last few years. What we used to sell for about $500.00 now can be purchased for as low as $299.00. At first glance you mark it up to a PRI becoming a commodity or competition in the marketplace. I am here to tell you it is neither. By the time you get done your bill is still going to be close to the $500.00 mark.

There are two reasons this chaps my ass. The first is the consumer is getting hosed! The second is that agents only get paid on the base price. Consumer bills are filled with what I like to call “bullshit charges.” These charges are made to look like taxes and have some very funny names like “Regulatory Recovery Fee” and “Universal Service Fund Surcharge.” The government let’s telcos get away with this. My question is why?

As simple way to look at this is your average cell phone bill. You think you pay $49 for that package but your bill is $75. Sure some of it is actual taxes, but some of it is also bullshit.

I just signed up a new customer here in Chicago and I took a vendor in to explain all of these charges to that customer. He told me that he bought from us because he knew he was getting screwed, but we were the only ones who were honest about it and took the time to walk him through all of it. So what happened to this poor guy? He gets his first bill and there is a new surcharge on it for “Network Maintenance.” He said to me, “Didn’t they know they were going to have to do maintenance on their network?”

We were honest and told him everything, and then some suit decides he can get another $10 of pure profit out of all their customers. Why? Because the government told him he could. How can we put a stop to this (or at least get paid on it since it is profit to the telcos)?

I know that many shady salespeople don’t even talk about these fees. I try, but it is obvious that I can’t even keep up with it and I deal with it every day. Something must be done, and I am looking to everyone reading this post for help. Please let me know your thoughts!

Contracts are Contracts

Saturday, June 6th, 2009

Has anyone else noticed that customers are looking for more and more ways out of a contract?  They all want a 3 year price with a month to month contract.  This is how Wikipedia defines contract:

A contract is an exchange of promises between two or more parties to do, or refrain from doing, an act, which resulting contract is enforceable in a court of law. It is a binding legal agreement. [1] That is to say, a contract is an exchange of promises for the breach of which the law will provide a remedy.

I recently had a customer that wanted to buy an Internet T1.  He liked my price of $299.00 with a router but said that he was concerned about the contract.  So, I gave him a one year price.  He thought that was too high.  So, I went back to the vendor and got him a business downturn clause, another addendum with an out for poor service, and a 90 day trial period.  He still balked at everything.  This is a three hundred dollar a month deal with as many outs as I could give him and he still was not happy.  He wanted a clause that basically said he could take his ball and leave at any time.  I finally told the gentleman to quit wasting my time and hung up on him.

This is not the first time this has happened to me recently.  If you sign a 3 year lease on a car can you take it back halfway through the lease?  I don’t think so.  So, why should you be able to get out of your telecommunications contracts?  I deal with a lot of traders who only do one year deals and spend the extra money so that they have this flexiblity.  Why don’t others see it this way?

I do however have a solution.  SBC/Ameritech used to do it this way.  You sign a 3 year deal and if you leave after one year you pay the difference in what the one year vs the three year contract was.  If anyone knows of a vendor that handles things this way, I would love to work with them, and would appreciate you letting me know about them…..Thoughts?