Resellers are best placed to cross-sell energy and exploit falling prices but only if they act fast, according to telecoms entrepreneur Simon Payne. He urges resellers to add energy to their service portfolio on a wholesale basis and is offering cash up front for deals won through his wholesale energy business Fidelity Energy.
Payne said: "My partner Alan Shraga and I have dipped deeply into the funds we generated from the sales of Cable Telecom and VNetworks to offer up front cash commissions on wholesale and direct energy deals.
"The industry norm is to receive commissions month-on-month over the life of the contract. We are offering as much as three years cash up front. In some cases, this can even be upon signing the order, which helps if the handover doesn't occur for a year."
Payne and Shraga, who now run Henley-based ICT service provider Fidelity Group, have made millions in the telecoms industry for themselves and their reseller partners over the last 15 years and have now negotiated deals with 14 of the UK's top energy companies to launch Fidelity Energy.
Payne says his new enterprise has generated £11.7m of energy contracts in just nine months by selling to the existing base of clients managed by Fidelity Group.
He says the net profit on this revenue is £920k and is now rolling out a wholesale energy model to enable other channel businesses to cash in fast on the current energy prices which are at an all-time low.