Tuesday, May 12, 2020

Selling Internet Access Wholesale vs through Master Agent

I work at an MSP in California that focuses on setting up office networks and WiFi, over time we're expanded our services to help our customers choose an ISP for their office. We handle all the quoting and comparison of options and then have our customer sign with the ISP that makes the most compelling offer. After signing we handle project managing the installation of the connection, riser work, and then support the customer through any issues they may have over the life of the connection. Our customers love the service but our costs to provide it are scaling as our volume grows. We're looking to offset those costs by generating revenue either by transitioning to buying connectivity wholesale and reselling, or signing on with a master agent to earn residuals.

Enough ISPs in our market have agreed to let us wholesale that we can pursue that route, but we take on more risk financial holding those contracts in our name. The master agent route reduces our financial exposure but I'm not the most excited about introducing another party into the mix with our customer, the ISP and ourselves.

Has anyone made this decision before and have some feedback to share? Any veterans of the telco channel or agent game care to chime in?

One of the questions we've been trying to understand is if being successful as a subagent and driving a good volume of contracts will help help us get access to some of the better wholesale programs in the future if we decided switch to wholesale.



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