Driving sales in Telco

telco

The power of incentives in the telco industry

The telecommunications industry comprises multiple types of companies, including network operators (mobile, fixed-line, and integrated carriers), mobile virtual network operators (MVNOs), internet service providers (ISPs), telecom equipment manufacturers, over-the-top (OTT) service providers, satellite communication providers, and enterprise telecom service providers.

To ensure growth and market competitiveness, telecom companies must effectively manage and incentivize their diverse sales channels, which include: direct sales teams, retail stores, franchise partners, e-commerce platforms, indirect sales teams, resellers, strategic alliances, and enterprise B2B sales networks that offer a range of services, hardware, and related products. Incentivizing these sales channels with the right compensation structures, performance-based rewards, and targeted promotions is critical for revenue growth, customer acquisition, and market expansion.

Types of Incentives

1.

Activation-Based Commissions with clawbacks.​

2.

Recurring Revenue Commissions for postpaid and enterprise accounts.​

3.

Prepaid Sales Commissions for prepaid plans, top-ups, and recharges.​

4.

Device & Bundle Sales Commissions for hardware and services.​

5.

Retention based commissions to reduce customer churn. ​

6.

Promotional and temporary incentives and special bonuses. ​

Beneficiari

Direct Sales Teams – These are in-house sales teams responsible for acquiring new customers and upselling services. They often receive commissions, performance-based bonuses, and target achievement incentives based on new activations, contract renewals, and bundled service sales.

Telecom operators’ physical stores where sales representatives engage with customers face-to-face. Incentives include individual sales commissions, store performance bonuses, and incentives for upselling additional services like data plans, accessories, and device insurance.

Independently owned telecom retail stores operating under a telecom brand. These partners earn margins on sales, volume-based bonuses, and incentives for meeting customer acquisition and retention targets.

 

External sales representatives or agencies selling telecom services on behalf of the provider. They earn commissions per sale, bonuses for meeting volume targets, and additional incentives for high-value contract signings.

Businesses that buy telecom services in bulk and resell them to end users. Their incentives include wholesale discounts, tiered commission structures, and performance-based rebates for reaching predefined sales thresholds.

 

Partnerships with technology companies, device manufacturers, or digital service providers that integrate telecom services into their offerings. These partners benefit from revenue-sharing models, co-marketing incentives, and joint sales performance bonuses.

 

Teams or partners focused on selling telecom solutions to businesses, including large corporations and government clients. Their incentives typically include commission-based earnings, performance bonuses for securing high-value contracts, and retention incentives for long-term service agreements.

WHY YOU NEED VULKI’ S MODERN SALES PERFORMANCE MANAGEMENT SOLUTION​

Navigating the complexities of incentive compensation in Telco

Bidirectional commission tracking
A unified commission system that calculates both outgoing payments to sales teams and partners, and incoming commissions earned from third-party sales through the Telco platform is a must.​
Cross channel commissions
Necessary to ensure fair allocation by attributing sales across online and offline touchpoints common to the industry.​
Complex Product & Service Bundling
Telecom providers bundle products like broadband, mobile, IoT devices, and TV subscriptions, making incentive calculations more intricate.​
Multiple channels and a high volume of transactions
Define the telecom industry, requiring a compensation system that accurately manages commissions across direct, indirect, online, and in-store touchpoints.
Complexity of prepaid and postpaid sales
Models demands precise tracking to ensure fair and timely payouts.​
Strict Compliance Requirements
Compensation plans must align with telecom regulations and comply with GDPR and similar laws (e.g., customer and data protection, fair competition, data ).​
Flexibility in Sales Plans
Without a flexible system,​ adjusting quickly to market sifts becomes highly challenging.​
Need for Real-Time Feedback
Sales teams perform best when they receive instant insights on their commissions and progress.​

Real-Time performance and earnings insights for payees and managers

Give both direct and indirect salespeople real-time visibility into their performance and earnings, accessible from their mobile app or web portal. With instant access to data, sellers can see how much they stand to earn from a deal and track their commissions as they accumulate—building motivation and trust. At the same time, managers gain real-time insights into sales performance, enabling them to monitor results, optimize strategies, and drive engagement across the team.

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