vB Easy Archive - Commision

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Commision
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Posted by: phonesss

Does anyone know what knd of commission an authorized retailer would get for a 1 year contract with a razr at $39.99 a month national? I am asking this because a local store is offering to pay my $175 ETF with verizon to do that.
Thanks,
SW

Posted by: .7

That is competely illegal for them to do per FCC regulations and laws. I would stay far away from any involvement in that kind of transaction.

Posted by: CA

Wow poaching customers! If it was allowed the states with prorated EFT's would be like the wild wild west.

Posted by: cowboys93

Tripy,

I don't doubt your statement about the FCC laws. However, how is paying the customer's ETF any different from independent dealer/agents/etc using part of thier commission to reduce the price of the phone below the selling price of a company owned store or the Cingular website??

Example,

The razr phone is $199 for a new 2 year activation from Cingular. Many have reported the phone is available for $99 or less online or at local dealers.

As a former dealer, I understand the commission structure. During promotion periods, some dealers would do crazy things to drive new activations to get spiffs, bonuses, extra stock at lower prices, etc.

I can see the FTC having something to say, but not the FCC.

Posted by: .7

Im trying to find the referrence to the law, but I know its there.

Posted by: NukuCamui

nah, basically what theyre prolly gonna do is give the OP a $175 credit on their first bill so that way they arent paying the first maybe 2 bills.

Posted by: .7

Quote:

Originally Posted by tripy

Im trying to find the referrence to the law, but I know its there.

Looks like I was wrong, check this out.

http://www.fcc.gov/cgb/NumberPortability/#howmuch

"Carriers are also allowed to charge a fee to customers at the time their number is ported. However, there are no rules preventing a new carrier from paying an old carrier's porting costs for the benefit of the new customer. You should ask the new carrier whether it has a policy of paying or reimbursing such charges."

Posted by: nskgti23

Porting costs are very different than ETF's... It is illegal to pay for a subscriber's ETF. I have confirmed it with a number of people. There have actually been legal cases over this...

Quote:

Originally Posted by tripy

Posted by: .7

I would think you could fudge it as the same thing, but thats what I thought.

I wish I could find something on it.

Posted by: CA

Car dealers buy loan contracts all the time to sell cars for commissions. It screws the finance company some when its paid off early and they don’t get the interest.

Posted by: cowboys93

Quote:

Originally Posted by nskgti23

Porting costs are very different than ETF's... It is illegal to pay for a subscriber's ETF. I have confirmed it with a number of people. There have actually been legal cases over this...

Okay, we still don't have a law reference to it being illegal, and it would be the FTC (Federal Trade Commision) not the FCC that would have a rule about "fair business trade practices". The FCC deals with telecommunication service.

Keep in mind, I am not callig anybody out here.

You state "I have confirmed this...." and numerous legal cases".

All I am saying is post the proof or links to add credibility to your claim.

Without doing so, it is just "hearsay" or "I heard from my uncles, sisters, brother, cousins, dog (who never lies) so it MUST be true!!

Posted by: cowboys93

Quote:

Originally Posted by Sonix

Car dealers buy loan contracts all the time to sell cars for commissions. It screws the finance company some when its paid off early and they don’t get the interest.

What?

Car dealers provide financing for people who are buying cars. When they offer you a 10% rate, the bank is actually charging the customer (say) 8%. The dealer makes the difference.

Keep in mind (finance lesson) the current and future value of money comes into play.

The "total" finance charge is not earned or owned UNLESS the complete contract is fulfilled.

example:

Finance a $25,000 car at 10% for 5 years. Annual interest is $2,500 times 5 or $7,500 meaning if you make the minimum payments you will $32,500.

If you trade the car in say in 3 years, you don't owe an extra 2 years interest.

The finance company gets use of their money FASTER, an can therefor loan the money out again. Mortgage companies do this all the time.

Say the person financed the car when rate where low (1-4%).

Posted by: SuxBeingU

I Know carriers can't do it directly BUT they offer bill credit and such to "offset some of the costs" Why a dealer would do it on just one line is beyond me the risks far outweigh the rewards ($$). Unless hes going to issue referral credits on the next couple bills it make no sense to reduce the cost of the phone adn pay the ETF.

It makes even less sense on a 1year. His commission will barely cover the ETF and some commission for him. We still don't what phone and how much. If hes selling teh V276 for 300 then it makes sense.

Posted by: suicidal2af

Quote:

Originally Posted by tripy

I would think you could fudge it as the same thing, but thats what I thought.

I wish I could find something on it.

You're partially right.

It's illegal for a carrier to pay someone's ETF to entice them to switch.

However, an authorized agent is not a cell phone carrier; it's just a retail store. They can do as they please.

Posted by: cowboys93

Many people have stated they KNOW it is illegal...but have not quoted a single law or case. So where is the proof it is illegal?

It is not illegal for a dealer to have a retail price of the phone and a 1 year and 2 yr contract price. In this case, the dealer is essentially reducing the phone price with their commissions correct. How is this any different than reducing the phone price by the ETF fee? It is the same.

Site a Federal or State law. I believe all people are good, but we all know better than that!

Posted by: cowboys93

Tripy,

I missed your FCC citation. So we should all be in agreement that it is NOT illegal to pay someone's ETF to bring the aboard as a customer?

Posted by: Alfred_Neuman

do it. then post bout the comedic entertainment on the main forums.

but dont go to a corp store and mention this.

actually i'd make them write it down in the contract and have them sign it.

Posted by: cowboys93

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