This is a very good article on why every company should have an independent agent look into voice and data carrier costs.
Pluto Networks provides unbiased carrier voice and data sales to customer worldwide.
Ever increasingly, businesses are choosing to get their telecom services fromindependent agents instead of direct carrier account manager. We look at the top10 reasons why we see this shift occurring in the marketplace today.
1. Mergers and AcquisitionsSales is already known as a high turnover profession, but the recent rash of mergers andacquisitions in telecom make it highly unlikely the representative who signed you to yourterm agreement will still be there to assist you within a year. After making it past the phaseof bankruptcies following deregulation, the next phase is mergers and acquisitions. In thepast couple of years, a few of the major mergers include Level3/Broadwing (Focal),XO/Allegiance, ATT/SBC/Bell South, MCI/Verizon, Paetec/US Lec, and TimeWarner/Xspedius among many others. By using an Independent Telecom Agent, you can besure that regardless of continued merger activity or bankruptcies, your IndependentTelecom Agent will continue to have the same contact phone number and email address.He/She will not be laid off or fired, and will continue to supply you all of the options youneed.
2. Single Point of ContactRegardless of whether your Independent Telecom Agent recommends a single carriersolution or a multi-carrier solution, you still have a single point of contact to deal with theperson who knows your account best. During the pricing and evaluation process for a newcarrier, it is typical to get at least 3 bids and have at least two appointments with at leastthree carriers. The number of appointments you have to schedule could easily reach up to adozen before an educated decision is made on your company’s communications. If you usea qualified Independent Telecom Agent, you can spend one appointment determining thebest course of action, and just one more evaluating the best options available in yourmarket. Having a single point of contact is a huge time saver!
3. Person who understands your company, how you make decisions, and why.Your Independent Telecom Agent acts as an assistant buyer once he/she understands yourbusiness needs and preferences. He/she gets to know your organization, your goals andlong range needs, and how you make decisions and why. Why would you want to repeatthat process every couple of years?
4. You get to hear the truth!Perhaps this should be ranked #1! When you use an experienced Independent TelecomAgent, you tap into a wealth of knowledge and experience of someone who has been in thefield for many years-and most likely with multiple carriers. Your agent will typically haveexperience dealing with multiple carriers in your market, and can tell you howthey really perform. Not the rosy picture they all want to paint for you. Who has the mostreliable network? Who has billing problems? Who is going bankrupt? Who can make thedesired install date? When using an Independent agent, you don’t have to listen to “TheCompany Story” for each carrier, as they always tend to dress up their deficiencies. You getto hear the truth.
5. Unbiased opinion of multiple carriers and their product linesBased on where your business is heading, whether that be expanding, streamlining, orcontracting, your Independent Telecom Agent can put you in the right situation. Just likebuying an inexpensive phone system that can’t grow with you, and can create the need fora forklift upgrade sooner than expected, getting stuck with a carrier that can’t meet yourfuture expectations can be crippling to your operation. Since most carriers have gone toterm agreements in the T-1 age of communications, it’s key to get set up with a carrier thatcan move with your needs. Do they have MPLS? Do they do SIP trunking? Can they offer anIP-VPN solution for your remote sites? Your Independent Telecom Agent knows the carriers’products and limitations, and can put you in the right solution for your company.
6. Agents are invested in your success long termThis is an incredibly important concept to understand when choosing to use an IndependentTelecom Agent! When you work with a direct sales representative for a telecom company,one that may be here and gone tomorrow (rep or company), they are paid only to bring inthe sale. As we all know in the world of corporate sales, comp plans drive behavior, andsales reps are specifically told, “If the customer has a problem, send them to the Help Desk.Do not get involved. You are paid ONLY to bring in new business.” There is absolutely nomotivation, despite the direct representative’s best intentions, for them to ever speak toyou again after you sign the dotted line. It’s sad but true. On the flip side, becauseIndependent Telecom Agents are commission only and residual based, earning a smallpercentage of the monthly bill, it takes them, in many cases, up to 24 months to get paidwhat the direct representative will get paid in month number one after the sale. The entiremotivation for someone even becoming an Independent Telecom Agent is to build a book ofbusiness of happy customers that don’t have to find someone new every couple of years todeal with. This relationship only makes sense for the agent if you stay with them for over 24months, so they have EVERY motivation to assist you in solving any service issues that youmay ever have. A good Independent Telecom Agent isn’t just another business associate;they become part of your team.
7. They don’t have a quota to makeOne of the biggest issues I have with local RBOC/ILEC, is that if you call in to the call centerto order new service, you will only be told about what THEY want to sell you. NOT what isbest for you. Everyone LOVES to sell bundles in telecom, but let me ask you this. Why doyou need Centrex calling features or voice mail on your alarm or elevator lines? Do youneed call transfer or remote access to call forwarding on every line in your hunt group andon your fax lines? Do you have mysterious items in the back of your bill for web hosting orother items you are afraid to disconnect in case you actually use it? When I call theILEC/RBOC directly from the agent channel, I get offered different packages, and moreattractive packages, than I get over the phone through the call center. It is verycommon for Independent Telecom Agents to uncover up to 10-20% of pure fluff on your billduring the auditing process. Why does this happen? Simple. The direct representatives youbuy from have a quota to make and will often sell you what is good for them, not what isgood for you. They are directed to sell what is profitable for the carrier they work for, andare paid accordingly based on their ability to do so. Top Independent Telecom Agents,almost without exception; do not carry quotas with any carriers. Because they do not carryquotas, you will not find them pushing you towards a solution that doesn’t feel quite rightjust to meet their numbers. Be frank and ask your Independent Telecom Agent if they carry quotas with the carriers proposed. If they do carry a quota, be sure to ask enough questionsabout the solution they are suggesting to make sure it is right for you.
8. Extra Incentives and PromotionsThe Telecom Industry is moving increasingly towards the Independent Agent Channel. Infact, last year, a local ATT/SBC agent manager said the Agent channel gained morebusiness through their agent Winback program than they did their direct Winback program.Even they were shocked! There are several reasons for this. Independent Telecom Agentsare typically more knowledgeable, better trained, set proper expectations with the clients,their clients tend to remain clients longer (since they were sold the right program), and it ismore cost effective for the carriers to deal with Agents. They do not pay base salaries orbenefits, in addition to commissions. Strangely enough, where I have seen this benefit thecustomer most, is in the form of special incentives and promotions offered only through theAgent Channel. It is not uncommon for agents to compete head to head with a directrepresentative for one of the carriers they are presenting. It is also not uncommon for theagent channel to have promotions or incentives that the direct representative has not beengiven for the customer, and the agent will typically win the customer because of that fact. Ifthe direct representatives have promotions available, they are often compensated extra ifthey do not use them. Independent Telecom Agents will pull out any available promotionsavailable in an effort to gain your business for the long haul, as they are typically notincented or penalized for use of promotions.
9. Same PricingThe exact same standard pricing is used in the Agent Channel and the direct channel. Inspite of all of the additional knowledge you can tap into with Independent Agents, you canbe sure you are not charged any extra for it. For large projects, special pricing is availableto both Agent and direct channels at the same amounts. It’s an incredible model that helpsthe customer and agent win, and insures all clients are treated equally.
10. They understand Next Generation TechnologyIndependent Telecom Agents will typically be better versed in MPLS, IP-VPN, VOIP, hostedsolutions, call center applications, and SIP technologies since they need to understandmultiple carriers’ offerings and have attended their trainings. Direct representatives willoften know a few tweaks to their individual limited product line a little better than agentsthat do not exclusively sell their product, but they will not have the overall understanding ofall that is coming with new technology. No carrier can be the master of all technologies andmaster of all niches. It’s a business impossibility. So it follows that it is nearly impossible fora direct representative to have the same breadth and width of exposure to the applicationsyou are facing decisions on. Business is fiercely competitive, and implementation of some ofthe new technologies correctly can literally save larger companies hundreds of thousands ofdollars. That may be the exact edge your company needs to gain the competitive advantagein your marketplace for security, marketing, recruiting, or even retention. Likewise,implementing a bleeding edge technology that is not ready for prime time may cost you thesame. Using an experienced Independent Telecom Agent who is looking out for your bestinterests may make all the difference.
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