Broadband and security services provider Nexon Asia-Pacific has overhauled its reseller program, offering its channel partners a new fixed monthly income for the resale of its ADSL services.
The new program means Nexton's reseller partners can choose to either receive a one-off commission for referring a customer to Nexon, whereby Nexton invoices the customer directly, or they can "own the customer" and receive a fixed monthly commission for signing up customers and managing their accounts. In both cases, Nexon provides support and all services.
The resellers make about 10 to 15 per cent margin on the monthly access fee that Nexon charges its customers, according to Charles Assaf, Nexton's managing director.
"What we're saying is it's their referral, and it's their client. We want to ensure that [the reseller's] client is happy and the reseller is happy with their client staying with us. So long as they can keep the client with us, they get the recurring fee each month. If their customer is with us indefinitely, then they're indefinitely receiving a monthly fee."
Under the previous Nexon reseller program, resellers only received a one-off commission, or spotter's fee, for referring the customer to Nexon. According to Assaf, this model was "not attractive enough" to partners. "The new program is far more attractive because they can build up a monthly recurring revenue base out of it," he said.
"We have one reseller now that has 25 customers who receive Nexton's ADSL product, and [the reseller] gets about $1500 a month. It becomes quite lucrative."
Nexon uses its own broadband network and its services are available around Australia and New Zealand. It owns the ADSL backbone infrastructure, which it inherited from its acquisition of Asia Online. "We utilise Telstra copper, but its our own infrastructure in terms of collection points, billing systems and radius, authentication systems and so on," Assaf said.