Are These Sales for You?
You may be considering adding prepaid calling cards to your service offering. Unfortunately, just like other industries, there are some less than legitimate companies out there. Here are some tips to make sure that the calling card company you sell for won't be a wrong number.
1. See if the cards have an expiration date. If so, you may end up with a wad of useless plastic.
2. Use your sense when it come to cents. If the cards are .099/minute, don't sign-the average cost to the calling card company is higher than that.
3. Be wary of high up-front fees.
4. Don't fall for "Get in on Ground Level" or "Limited Time Offer" schemes. If it really is a good company, it will be around for quite a while and you'll have the chance to join another time.
5. Find out if ongoing commissions are paid on recharges.
6. Check to see that all taxes are calculated into the retail price of the card. If they don't mention it, ASK. If the answer is yes, get it in writing before you sell the cards. If it's no, find another company or it will be your responsibility to pay state and federal taxes.
7. Make certain that the company has the proper licenses not only in the state where they are located, but in all states where you plan to conduct business.
8. Find out the name and number of the underlying carrier services. (There should be a specific representative assigned to them, if their volume is decent.) Call and get the carrier's opinion about the calling card company.
9. It sounds silly, but ask if they're operating under Chapter 11. (You'll never know unless you ask!)
10. Find out all you can about the company. See what associations they belong to, such as the Telecommunication Resellers Association. Check with the State Attorney General to see if they are under investigation. Call the Chamber of Commerce and see if they're familiar with the company. If it's a public company, access an online source, such as Edgar On-line (http://www.edgar-online.com) and see what you can find out, such as how long the company has been in business.
11. Finally, ask for the names and numbers of a few agents who you can call for references.
Prepaid calling cards can be a windfall but they can also be a pitfall. Use these tips to make sure you get the one that's best for you and your business.
