Greetings Everyone:
Qwest has made several changes to their compensation plan (see below) All changes are effective January 1, 2009:
- Referral Desk - it is still an available resource for In-Region orders for our agents to utilize but they will no longer offer a spiff to you for your new orders.
- In-Region Renewals - all renewals beginning on January 1, 2009 will be reduced by 15%. This equates to roughly a 2% residual reduction. The exact percentage is determined by your status with PlanetOne. So if you were getting 10% before when an account is renewed you would then be paid roughly 8%.
- Out-Of-Region Renewals - they remain as they have been. No changes here.
- Channel Integration/Teaming - any orders teamed after January 1, 2009 will see a commission reduction of 10%. Example: if you were getting 10% before you would be paid approximately 9%. The reduction will be proportionate to your status with PlanetOne (bronze, silver, gold, platinum) So we both are sharing in this reduction. The reduction applies to In & Out-of-region teamed sales.
- PLEASE NOTE: if you team on a new IN-REGION sale you will get paid 10% less. When you RENEW the In-Region Teamed account you will be reduced ANOTHER 15%. However, Teaming is not mandated on partner renewals even if they were originally secured under such arrangement if it is not a Government Educational or Global Account. Therefore an account can be renewed and only subject to the 2% pt residual reduction. So potentially you can subject to a double reduction over time for teamed In-Region accounts. This ONLY applies to new sales after Jan 1, 2009. If you renew an In-Region account previously teamed before 12-31-2008 the only reduction that applies is the one 15% reduction. Any questions on this please call us directly.
NOTE: If new services are added to a previously established account that was established as Channel Integration , and the “new” services are not channel integrated then there is no reduction.
Migration of In-Region Accounts between Qwest Partners - this is no longer allowed for In-Region renewals. QBPP is reviewing an exception process if the account is renewed by the original selling entity (sub agent) that has an established relationship with a client but is wishing to write such business under a new Qwest Business Partner. This has been put in place to help protect a sub agent and or partners account base. The selling individual needs to be the original selling entity for compensation purposes.
- Migration of Out-Of-Region Accounts between Qwest Partners - Out-Of-Region migration is not effected and remains the same. No changes here.
- New Sales - In-Region and Out-Of-Region commission percentages remain as they were in 2008. No changes here.
NOTE: These changes DO NOT impact current customers sold prior to 12-31-08. These changes are on a go forward basis and not retroactive.
In summary, this marks the 3rd time in 7 years Qwest has made significant changes to their Agreement with the Indirect Channel. It is the 2nd time in the last 3 years the changes have been almost exclusively directed at In-Region Partners. Qwest is the ONLY PlanetOne Provider that has the exclusive right to change their compensation model and quota requirements on an annual basis. They have this right with all their Partners. Each time changes have been to the detriment of the Channel. The 2007 changes were implemented on a retroactive basis and reduced In-Region compensation on accounts already submitted to Qwest. As a result of the most recent changes Qwest will not participate in our Preferred Vendor Program in 2009. To date, Qwest is the only PlanetOne Provider who has ever reduced our compensation in our 17 year history. In fact, two of our Preferred Providers INCREASED our compensation in 2008.
Planet One has a very significant book of business with Qwest and we will continue to do everything we can to fully support the existing base to the best of our ability. We will continue to sell new services for Qwest but I have a moral and ethical obligation to keep all PlanetOne Agents informed of any changes to compensation. Our job here at PlanetOne is to inform, support, educate and rigorously protect your accounts and revenue stream. We take enormous pride in our ability to preserve your capital and want you to know some of the inherit risks associated with the Qwest relationship. Therefore, as you make new Qwest sales you will be properly informed to make the best long term decision for your agency.
I apologize for the lengthy email but wanted to dispel any rumors pertaining to the recent changes at Qwest. If you have any questions on any of the above please feel free to contact me directly. Or you can contact Channel Manager Joe Womeldorf (602) 630-2519 for any one off scenarios.
Thank you for your continued support and making 2008 another record breaking year at PlanetOne.
Cheers to you and to a successful 2009 !!
Regards,
Ted Schuman
CEO
PlanetOne
800.231.6264 ph & fax
http://www.planetone.net
This communication is the property of Qwest and may contain confidential or privileged information. Unauthorized use of this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender by reply e-mail and destroy all copies of the communication and any attachments.
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