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Tech-Net’s unique business model capitalizes on our ability to lower customer
acquisition costs by serving telecom service and equipment providers more
efficiently than the current direct sales force and indirect/alternative
sales channels. The “Site” charges a percentage fee on a closed sale’s
contracted value, being charged to vendors (Sellers), upon completion of a
transaction resulting from the services of Tech-Net.
The Site’s “Virtual Sales Channel” fee structure is significantly lower than
the 15% average fee currently paid to the indirect/alternative sales channel.
Most online B2B telecom sites are simply Agents/Re-Sellers (Indirect/Alternative
Sales Channel) that put their business models online. Agents/Re-Sellers
encounter substantial management and administrative responsibilities, resulting
in significantly increased operating costs, overhead and staffing expenditures
in order to meet their obligations to both vendors and customers. Tech-Net will
capitalize on a more efficient business model by engaging traditional and online
Agents/Resellers as participants in the bid process on the vendor side.
The nominal fee paid by Agents/Resellers for the qualified sales force provided
by Tech-Net segues into the existing Agent/Re-seller revenue model.
Telecom service and equipment providers have a strong financial incentive to
participate directly with Tech-Net’s Virtual Sales Channel to lower customer
acquisition costs and reduce the fees paid to Agents/Re-Sellers and incurred by
their direct sales force.
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