Case Study - Commission Based Agency Becomes Reseller
Commission based agency becomes Reseller of AT&T internet and built a voice platform.
By Altaworx Marketing
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The Problem
An agency started out making commissions with BellSouth and selling premise-based VoIP systems to clients. After researching equity value, the owner realized that commission-based businesses were only valued at ¾ the annual commissions earned, whereas monthly recurring revenue businesses where the contract is owned by the business can fetch 2-3X annual sales.
The Solution
The agency found a SIP trunk platform and started selling SIP trunks to customers where the agency was getting commissions off circuits. The agency signed with a reseller partner and started selling circuits to customers as the contracts ended. Later, the agency found a UCaaS platform, partnered with Catapult by Altaworx and began offering customers hosted VoIP seats as a replacement for the premise-based phone systems that were sold in the past. In the end, the agency was able to migrate all business from commissions to recurring revenue resulting in a 4.668% increase in equity value.
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