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Last week, on the master agent channel we highlighted the fact that in spite of the fact that telecommunication and IT were once viewed as two completely separate divisions, with the introduction of the cloud these two entities are quickly becoming one.

Patrick Oborn, vice president of Business Development, Telarus (News - Alert) revealed, “We do currently distribute IT hardware (NetApp) and software (VMWare, Microsoft), but we do it through one exclusive vendor, NewCloud, and through our carrier partners who have a focus on IT (Cbeyond, Earthlink (News - Alert), Windstream, etc.) We package these services exactly like telecom services, without any private-label and paying residual commissions, so that our existing base of sales partners can gradually layer on these products without too much of a change from their current models. We believe (strongly) that telecom agents can sell managed IT services and that, with enough training and experience, they'll sell a lot of it.”

The master agency is currently hard at work enticing VARs to sell its core telecom services. With the added bonus of placing each VAR that is referred to a Telarus agent partner into the one-of-a-kind VAR Network management system, it is easy to assign dozens of VARs to a single agent, pay those VARs directly on behalf of the agent, and provide both parties access to the CRM records of the accounts on which they are jointly engaged.

Oborn added, “Finding more VARs in each local market who are interested in selling telecom services is our core strategy for 2013.”

Another increasing trend being seen in the space are master agencies referring to themselves as “distributors.” Telarus is one company that touts itself as a distributor for the following reasons:

·         It doesn’t sell anything directly to end-users as the agent’s entire focus is to make it less complex for partners to source the right carrier service at the right price.

·         The company focuses on marketing so that partners have referral partners and warm leads to keep them busy. 

·         It creates software that enables VAR-agent relationships to endure the test of time and to foster collaboration and

·         Designs systems and hires the best people to ensure that partners receive accurate and on-time residual commission payments. 

“All of these things enable our agent partners to focus on selling and growing their businesses,” Oborn stated.

As time passes, we will definitely begin to see more master agents and distributor’s roles overlapping, yet “that overlap is being driven by our current suppliers getting into managed services, not by master agents looking to distribute more IT hardware and software services. Second, we are looking to distribute IT services through existing telecom partners to their existing telecom customer base – not by recruiting VARs who currently source those products through IT distributors,” he concluded.

Mergers and acquisitions will blur the line even further between agents and distributors as IT distributors will recognize the value of residual payment systems, collaboration software, and automated carrier quote tools like GeoQuote that can create an eco-system that allows each side to enhance its core business.  

Looking to grow your channel opportunities? Then be sure to attend Channel Vision Expo (CVx), collocated with ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at Channel Vision Expo. Follow us on Twitter.