Originally Posted by johnlatessa
I don't work in this industry, so I honestly don't know. But I have to ask this:
Do you not make any money by selling someone a phone at full (non-contract) price? Or do you just make MORE money if you sell the phone at a discount with a contract?
its different for every business, but in mine, we make a few dollars on an outright sale, independent of the price of the handset.
on an activation or an upgrade, we make a few dollars for the sale itself, and its added into another part of our commission, which makes us more money, and also added into another part, which makes us more money still.
on one outright phone sale, for instance, i make $4. if it was a new activation, the max i could make would be $15, and it would boost the amount i make on all the other sales. kinda like a pyramid scheme, where once the snowball gets rolling, there is no stopping it.