VoIP Firm Medallion Telecom Offers New Commission Plan

The proper reinforcement of channel partners is vital to ensuring ongoing operations. After all, channel partners help get products into new markets without having to commit a lot of cash up front. This is no different for hosted voice over Internet protocol (VoIP) providers, and for Medallion Telecom, it's recently taken a big step toward improving relations with the channel thanks to a new commission program.

The program in question, called “Pick Your Percentage Commission,” attempts to spark further interest in moving Medallion Telecom's line of hosted VoIP products. The program allows agents to sell and quote on a tiered pricing schedule, which in turn determines the commission percentage at which the agent is paid. The structure starts at 15 percent MRC, while going up to 30 percent determined by a slate of factors. Percentages paid, meanwhile, are determined on what the agent wants to sell the product for.

Those who sell at the higher prices get more commission, and lower prices get less. Most agents, reports note, will sell at $25 per user, which gets an 18 percent recurring commission, while also allowing the agent to appeal to the buyer on price.

Medallion CEO Lisa Khechoom notes, “This new commission structure empowers the agent to be more competitive in the sales process to their clients and at the same time allows the agent to have more control in their earning potential. In addition, all of Medallion’s 50+ VoIP features are available at each pricing tier and free phones per user included.”

Essentially, it allows agents a certain amount of freedom in determining pricing structure. Instead of having to get approvals for price cuts on the VoIP service, Medallion is effectively pricing at a range which allows agents to adjust quotes accordingly. It's probably not the kind of thing Medallion should have announced, though; imagine what happens when one agent goes for the top of the commission structure and some buyer calls said agent out, noting—as we've noted—that the average tends around the lowest points. It's easy to wonder, too, how much cannibalization of the market there might be if one agent decides to lowball commissions and write everyone else out of the market. It's the same service, so how could Medallion agents fight it?

Still, some freedom in pricing is good—it helps beat the pricing objection as a sales process—and if the territories are sufficiently well-defined, cannibalization may not be a problem at all. Medallion likely has a smart idea here, and one that should work well for all concerned.

Edited by Alicia Young