AT&T Channel VP: Agents Get Commissions Up Front

Celine Azizkhan, vice president of indirect-sales channels at AT&T, spoke with section editor Matt Villano about the company's drive to "simplify" its channel.

CRN: Why did AT&T eliminate partners?

AZIZKHAN: This was part of our annual review process. The partners we terminated were not performing at a level we would have liked them to.

CRN: Among those partners that remain, some are questioning the company's commitment to the channel. What is your message to them?

AZIZKHAN: The most important value that [AT&T] places on the channel is in our partners' ability to acquire new business and new customers. In recognition of that, we moved the commission dollars earned to the beginning of the customer sales event, increased the commission dollars paid as a percentage of annualized revenue, and reduced the cost that agents have to incur to manage our customers.

CRN: Who gets the commission on the accounts that were maintained by terminated partners? Who will service those accounts?

AZIZKHAN: Those accounts, few in nature, will move to the direct-sales force for service and support.

CRN: Interesting. So with this in mind, why would an existing partner direct business to AT&T when other carriers offer yearly commission?

AZIZKHAN: There are many other attributes that are important to our agents. Our commission plan is far more competitive than it was before. In addition, we pay it out earlier. Agents do not have to wait over the course of a year or two to get paid. We're paying it at the sales event.

CRN: What are you doing to prevent competitors from swooping in and recruiting your partners and the accounts that are in limbo?

AZIZKHAN: Customers have the ultimate choice of what carrier they want to select and who they want to purchase their services from. The AT&T brand makes it easier to sell to business customers.