Q&A: Why Cloud Trumps Connectivity For Master Agent's Partners

Why do you believe fellow master agents are still actively pursuing connectivity sales opportunities?

For [PlanetOne’s] peers that boast about cable success, I think they look at the book of business instead of what that book of business actually costs. Most of my peers are very entrepreneurial, but if you break it down – say, one standalone cable sale -- is this good business for my business? And if it is, why? If you look at the economic modeling of it, and let's say you have a $100 cable deal, and let’s also say you get a few of them on a regular basis: Typically, the partner in the field is going to receive 70 to 80 percent of the compensation. The partner could get, on average, $12 a month for commission … Most partners won’t be able to afford, or even process, that paperwork. They also have to pay people out of that amount, too. So they could lose money on the transaction -- it would actually cost the company money. The modeling often gets worse if the customer renews, because the price goes down.