New Comp structure for Indirect

**_KC_** · 06-05-2012, 01:47 PM

So what is everyone's thoughts on the new indirect comp structure? Hate it? Love it?

**_KC_** · 06-06-2012, 12:17 PM

No opinions on it? I assume everyone has gotten it by now.

**vzwinagent** · 06-06-2012, 01:51 PM

Haven't gotten it yet. I saw a preview of it and from what I saw, I think it's good. Basic phones were down some, but honestly not a ton. Smartphones in general seem like a decent increase and iPhone is the same. I'll take it.

Do you know when it goes in to affect?

**Downtown** · 06-06-2012, 02:01 PM

Lukewarm. Not a disaster, but not great. If they could stabilize the Droid pricing so we could build a business plan around them, it might actually be somewhat positive.

**JP Whoregan** · 06-06-2012, 02:13 PM

Originally Posted by Downtown

Lukewarm. Not a disaster, but not great. If they could stabilize the Droid pricing so we could build a business plan around them, it might actually be somewhat positive.

Damn true. This is a good part of the reason I sell iPhones. I know the price will be the same until a new one comes out. But how am I supposed to develop a campaign around a device that is $299 today, $49 next month, $199 the month after that, and then BOGO after 3 months? I swear when it comes to Droid models, these guys at Basking Ridge just have a parrot that squaks random prices, and that's what Big Red runs with.

**_KC_** · 06-06-2012, 02:16 PM

Originally Posted by vzwinagent

Haven't gotten it yet. I saw a preview of it and from what I saw, I think it's good. Basic phones were down some, but honestly not a ton. Smartphones in general seem like a decent increase and iPhone is the same. I'll take it.

Do you know when it goes in to affect?

Goes into effect 7/1 here. May vary by market. iPhone is actually better, as there is no more of the "secondary" commissions on it (ex. old Alltel $9.99 lines) where you don't make hardly anything. As for the new smartphone commissions, it looks good on paper but it all comes down to what the net profit is after the subsidy. But I am hopeful, especially with the data share plans coming, as the smartphone take rate should go up.

**VZWINDIRECTGUY** · 06-12-2012, 11:22 AM

I think the service is getting too expensive and we are going to see a drop in activations, verizon will make up for it by increasing their RPU and we will make it up by lowering employee hours and free services to the customer. In addition there are many other changes and other misc. compensation going away. One change I noticed is you now have to refer the customer to the verizon website if they want a certified device. If the device was ever activated, verizon is not going to pay you a dime on it.

Last but not least, if they lower the phone prices this is going to be a good joke at the dealers expense. Keep in mind that no matter how this plays out you are going to end up investing into a higher phone subsidy so you have to account for increased losses on your charge-backs.

**vzwinagent** · 06-13-2012, 12:36 PM

I finally got mine today. They actually left out any mention of the iPhone which I find odd.

Speaking of chargebacks. I had a couple a few months back that I don't agree with. Wondering if any of you have ran in to it. Basically they were lines where the user upgraded and then wanted the device on another line. I know one of them was a line on a total different account. They said we were charged back because the line went back to the existing equipment on the same day. The bad part is we really did renew them for two years, pushed their upgrade date back and they got the new equipment. I can't help where the customer wants the new device. Sure we did them in the store but it's no different then if the customer left and did it themselves. Then what would happen?

**VZWINDIRECTGUY** · 06-13-2012, 12:48 PM

Originally Posted by vzwinagent

I finally got mine today. They actually left out any mention of the iPhone which I find odd.

Speaking of chargebacks. I had a couple a few months back that I don't agree with. Wondering if any of you have ran in to it. Basically they were lines where the user upgraded and then wanted the device on another line. I know one of them was a line on a total different account. They said we were charged back because the line went back to the existing equipment on the same day. The bad part is we really did renew them for two years, pushed their upgrade date back and they got the new equipment. I can't help where the customer wants the new device. Sure we did them in the store but it's no different then if the customer left and did it themselves. Then what would happen?

We had the same issue in 2 of our stores, each time we contested it we lost. We actually had a customer who ported his google number to his smartphone, did not deactivate the service but instead used only the data since he was getting all the calls through his google number. Verizon charged us back, we appealed and lost, our rep called me one day and said drop it we are getting annoyed talking about this matter. The customer did not pay an ETF, got to keep a $600 phone for $200, and we lost the commission and the subsidy on the phone.

**vzwinagent** · 06-13-2012, 06:02 PM

Originally Posted by VZWINDIRECTGUY

We had the same issue in 2 of our stores, each time we contested it we lost. We actually had a customer who ported his google number to his smartphone, did not deactivate the service but instead used only the data since he was getting all the calls through his google number. Verizon charged us back, we appealed and lost, our rep called me one day and said drop it we are getting annoyed talking about this matter. The customer did not pay an ETF, got to keep a $600 phone for $200, and lost the commission and the subsidy on the phone.

I contested and also lost. I'm tired of giving away money to them. One was an iPhone and really hurt. I really don't get the issue. Are we supposed to tell people no? They will just go elsewhere and get it done anyway. What about all those upgrades we do at Christmas time that people deactivate and go back to old equipment on the same day to give as a gift later. Will we start getting charged back on those?