The Agent Advantage

“An agent has to be much more knowledgeable than ever before, and understand how phone systems and the network piece work together,” says Jonathan Watkins, cofounder of Digital Planet. “We understand what all the carriers can and can’t do well.”

Agents cut through the clutter of a crowded marketplace and help customers save money, both in upfront analysis costs and down the road. “The pricing we give customers is at the very least identical to what they’d get if they called the provider directly,” Foster says. “However, in some cases we’re able to get lower costs because of our ability to negotiate a better rate. We also help the client make apples-to-apples comparisons, because not all the sales reps for providers clearly spell out the cost of taxes and surcharges in their proposals. The carrier dictates what those charges will be, because they’re not a specific government-mandated percentage. We show the client exactly what their first invoice will look like.”

Working with agents may also challenge service providers to stay sharp. “Our agent partners know and understand a variety of providers, which provides us with a great understanding of the competitive landscape,” says John Phillips, vice president of channel sales development for Minneapolis-based service provider Eschelon Telecom, Inc. “They keep us honest in the marketplace. In order to gain their mindshare and their representation, it’s up to us to prove that our products, pricing, and service are better for their customers. It forces us to not only articulate that promise but deliver on it.”

At Northstar Partners, McKernan benefited from the Foster’s broad knowledge. “He was absolutely wonderful,” she says. “We had a hard time connecting our downtown office with our suburban location for data purposes and have that data run smoothly. We were having lots of drop-offs and speed issues. And we were on a T1, so we shouldn’t have had those problems. Jon worked through all of that for us.”

And McKernan didn’t pay Foster for his time. Agents like Fostar Telecom are paid an ongoing monthly residual commission by the service providers they represent. This billing dynamic provides an agent with an excellent incentive not only to recommend just the right customized solution but also provide high-quality post-sales service and support.

“Most direct sales teams are encouraged to acquire business, but not to retain it,” says Foster, who oversees a 15-person sales staff. “Knowing that we receive compensation only when the recommended provider is paid, customers understand why we are so committed to retaining their business as well as quality relationships with our providers.”