Mobile Phone Distributors, How to Become a Wireless Master Agent

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Mobile Phone Distributors - How to become one!

Mobile phone distributors are a critical part of a prepaid wireless provider's success! Do you want to become a cell phone distributor? Here you'll learn about what it takes to be a wireless master agent, how it works, the technology involved, and more! The fact is that the world of mobile phone distributors is fascinating, and can be the life blood of many wireless carriers.

What are cell phone distributors?
First, let's define what exactly a distributor is and does. Different people will have different definitions and describe various scopes of responsibility, but generally speaking the following is very consistent. Having worked directly with prepaid wireless distributors for many years, I feel comfortable that the following information will help you get jump-started on becoming knowledgeable!

Distributors are often referred to as master agents. This is because they are at the top of the food chain if you will. What that means is that while a distributor or master agent may sometimes sell phones and airtime directly to customers, they typically mostly sell wholesale to dealers.

In turn, dealers have their own stores, but also sell wholesale to smaller stores. Sometimes there is even a sub-dealer between the dealer and store level.

A cell phone distributor will buy phones and airtime discounted directly from prepaid wireless carriers. They will then mark up the price and sell it down to the next level.

Mobile phone distributors can have relationships with dozens, hundreds, or even thousands of stores underneath them. The layers under them are often referred to as their sub-distribution. Depending on the size, reputation, and policies of a prepaid wireless carrier, some wireless distributors won't be able to work directly with the prepaid carrier. In other words, as a wireless distributor, you could have a direct relationship with the prepaid carrier, or you may have to work as a sub-distributor under another larger master agent who is working directly with the carrier.

What's the best level?
This can become a very personal decision. Are you the type of person who wants to run a large distribution network, and deal with the operations and warehousing that comes along with that? Or are you the type of person who enjoys working day to day directly with the customer? The answer will likely be a combination of what you enjoy, as well as what your strengths and capabilities are.

There's no doubt about it that the higher you are on the mobile phone distributor food chain, the more money you'll make, and the faster you'll make that money. The simple reason is because once you have a network of sub-distributors and stores, you'll be able to sell hundreds, or even thousands of phones in one deal, versus the bottom of the chain, where you'll be selling one phone at a time to the customer, which practically speaking, will simply take more time. But for that apparent ease, you'll have more overall risk.

Consider if you were to buy 10,000 phones from a prepaid carrier. If you don't have the operations in place to receive and ship out those phones in an efficient manner, it could take you some time before you get the products in the hands of those who will actually be selling them. And that doesn't include the cost of paying for the phone (or airtime) inventory, and the cost to store it. Many prepaid carriers require that distributors prepay for inventory. Some will give you payment terms (ex. 10 days or 30 days), but that is becoming less common these days. Even with payment terms, you'll still need to get the product out, and get paid in time to pay the carrier for the inventory.

As a side note, I've seen more than a few mobile phone distributors who have been extremely cash-strapped, and on the brink of bankruptcy, even though they sell millions of dollars of prepaid products each month! One operational issue, or trouble collecting money from your sub-distribution, and you're toast! But don't let that scare you off. Those issues really come down to poor management, and perhaps greed trying to grow their business too quickly. If you're wise, you should be able to profitably (and safely!) build your business without being on the edge of disaster.

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Mobile Phone Distributors - How to become one!

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