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Outrage among T-Mobile dealers as compensation plan undergoes major overhaul

When you step into a T-Mobile store, you may find yourself in a corporate-owned location or at an independently-owned authorized retailer. The company-owned stores are directly managed by the corporation, while the authorized retailers have their own policies and may offer a different selection of phones. One of the largest T-Mobile authorized retailers is Wireless Vision, with over 500 stores serving more than 14 million customers and selling over 2 million devices annually.

According to the National Wireless Independent Dealer Association (NWIDA), T-Mobile dealers are expressing dissatisfaction with the parent company’s recent changes to their compensation structure. A tweet from a T-Mobile dealer under the username @jahblessdai sarcastically titled “Congratulations on Reinventing Payment Terms!” highlights a drop in first-month dealer compensation from 100% to 60%, with further reductions to 25%.

The affected dealer argues that these changes are unfair to independent T-Mobile store owners who have fixed expenses like rent, payrolls, and other operational costs that need to be met promptly. The dealer humorously suggests trying to negotiate a similar payment plan with landlords and utility companies without success.

To make matters worse, dealers will now be compensated through a 12-month retention plan, prompting criticism from the same dealer about delayed gratification and financial uncertainty. This situation reflects poorly on T-Mobile executives, including CEO Mike Sievert, as it portrays the company in a negative light reminiscent of how it used to criticize its competitors during the Legere era.

Overall, this dispute raises concerns about T-Mobile’s treatment of its dealers and the impact it may have on their businesses. It remains to be seen how both parties will navigate this challenging situation moving forward.

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