Tele2 started selling SIM cards via the network marketing model

In the sales office of the cellular operator TELE2

First in Telecom

Tele2 starts to distribute SIM cards on the principle of crowd selling — variant network marketing, which is used by companies such as Avon, Faberlic, Oriflame, and others, told RBC representative of the operator Konstantin Prokshin.

All, according to him, Tele2 intends to get 100 thousand new subscribers by the end of the year through the new program; it will operate in 61 of the 65 regions of Russia, in which the operator works. Only the operator 38.4 million subscribers by the end of the first quarter of 2016.

“Direct selling is an effective and inexpensive way of promoting and selling goods, but prior to that, he was never used in the telecommunications industry”, — said Proxin. Attracting new customers will cost the company 30% cheaper than through traditional sales channels, he added. At the launch of a new sales channel for Tele2 spent 1 million rubles, which went on to create a separate page on the website of the operator and the development of software to manage the program (keeps a record of subscribers, counts of remuneration, etc.). In the future, the operator will incur other expenses for promotion and payments to partners, the amount of future costs is not disclosed.

To participate in the program, which was called “Your+”, anyone needs to register on its website. As soon as he gets the consent of the potential subscriber for connection to Tele2, partner should leave the contacts involved in the system on the program website. Employees Tele2 will contact him and confirm his agreement to become a subscriber of the operator, after which he will deliver a SIM card.

Once a new user starts to use the services of Tele2, which attracted his partner will receive 10% of all its spending on a connection for eight months. According to the calculations of Tele2, “connecting” five new subscribers a participant in the program for eight months to earn approximately 0.6–1 thousand RUB. Also, if a new customer decides to become a “partner” and also start to give subscribers a “leader” will get an additional 10% of the remuneration earned his “partners” throughout the duration of the program, says Proxin. Participants in the program will receive a monthly income for Yandex.Money” Webmoney, Qiwi, and within six months the list will be added and credit cards.

Given the fact that the average revenue per user (ARPU) at Tele2 in 2015 was about 217 rubles. per month, for eight months of the partner can earn on average only 150-200 rubles for one attracted client, said senior consultant of the Department of cellular and digital devices J’son & Partners Consulting Alexey Tyrkov.

Based on the plan of 100 thousand new subscribers and in the average size of potential income “partners”, for eight months of expenses for payments to members can be about 80 million rubles For comparison: in 2015 the company spent on sales and marketing 16.5 billion rubles, 3 billion — Commission to dealers for connection of new subscribers.

To reduce mono-brand retail network operator is not going, says Proxin: this is the main sales channel, through it connect, about 50% of new subscribers. Although retail high cost of attracting one customer is justified because thus attracted more loyal customers, he explains.

“The scheme is pretty”

Such actions “bring a friend” was widespread among Internet service providers, although they acted not for everyone, but only for subscribers, saying the General Director of analytical Agency “TMT Consulting Konstantin Ankilov and the analyst iKS-Consulting Maxim Savvatin. Many operators offered to their subscribers to attract new customers, although it is usually “paid” bonuses and discounts, not money, says Ankilov.

Tele2 “can easily cross the mark of 100 thousand new connections within a new sales channel to the end of the year, he said: “the Scheme of the operator offers and earn more”. The alleged Commission of 10% for eight months is significantly below the amount that typically pay cell phone operators for the sale of their SIM cards to independent retailers, says Tyrkov from J’son & Partners Consulting.

Problem may be the loyalty attracted so subscribers, said Savvatin: those customers who decide to connect to the operator to approach the issue more deliberately, so are likely to be more “quality” subscribers. Besides, insignificant amount of earnings may not serve as a strong incentive for joining the program, I agree Ankilov.

If other operators will see that this scheme of attracting subscribers is working, it is possible that they are also interested in it, said Savvatin. The “big four” differences in estimates. MegaFon “scheme a La Oriflame” is not needed, because to connect to an operator in its own retail network, as well as in “the Messenger” and “Euroset”, said the representative of the operator Julia Dorokhin. The subscribers of “MegaFon” are primarily interested in good communication and fast mobile online at a reasonable price,” she said.

MTS, by contrast, does not exclude the possibility of establishing direct channels to attract new subscribers, says a representative of the operator Alexey Merkulov. The company will make a decision “depending on the prevailing market conditions, regional characteristics and market segments,” he said. “VympelCom” considers the different formats of services to new and potential customers. We aim to maximize the digitalization of customer service,” — said the representative of the operator Anna Aybasheva.