Verizon Changes Commissions

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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Verizon Changes Commissions

Shockingly, Verizon has dramatically changed their commission structure for 2011.

The changes are effective for all orders issued into Verizon's legacy system after 1/1/2011.

Commissions have moved from a Residual and Acquisition structure, to an all Acquisition (up-front) structure.

Commissions for all products will be capped, being paid as if they were 1-year-term deals.

Commissions are due to be paid 90 days after service completion date.

For commission purposes, Verizon is differentiating between customers that have no service at all and additional services sold to existing customers. New logo customers will receive a new logo incentive on Strategic and Foundational products.

Product Categories are:

  1. Strategic 
  2. Foundational (replaces Growth) 
  3. Core/CPE  
  4. Renewals

The following products are now non-commissionable:

  • Dial tone line 
  • Stand Alone LD PICs  
  • ISDN BRI   
  • FlexT 
  • Flexgrow/Rider 
  • DirecT  
  • Ring Service  
  • Frame Relay/ATM  
  • VzB Dedicated LD Data  
  • VzB DSL (out of territory DSL)

This means Agents will likely have to sign on with Granite Telecom or MetTel or another POTS CLEC.

To get paid for Dynamic T1 services, Agents will need to look to CLEC's.

For Frame or ATM, I would suggest offering MPLS from a number of carriers including AireSpring, XO, Level3, MegaPath and ACC Business.

For Dedicated LD, Global Crossing, Qwest and AireSpring (and other IXC) would love that business.

This follows the path that VZ is on to become just a Cloud and Mobility company. So if you aren't selling Cloud or Mobility, VZ is not the place for you. And even if you were selling Cloud with all the changes that VZ makes to the Indorect Channel, it probably still isn't the place for an Agent.

You know who really wins here? Comcast, Bright House Networks and TWC who are actively looking for Business Voice and Broadband bundles as well as Enterprise Voice via SIP Trunking.

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