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So, let’s assume that you sold ksh. 5 million and you’ve got your lines. If you sell those 1,000 phone numbers, everytime an individual who bought a phone number from you, uses their line to make calls, you will get a 6% commission for the airtime they use on that line and that 6% commission exists for as long as they keep that number.

I’m going to try and recount how he said it works, but I may not be totally accurate and you should feel free to fill in the gaps if you are more familiar with this industry.

So, let’s assume that you sold ksh. 5 million and you’ve got your lines. If you sell those 1,000 phone numbers, everytime an individual who bought a phone number from you, uses their line to make calls, you will get a 6% commission for the airtime they use on that line and that 6% commission exists for as long as they keep that number.

Now, I was told that in theory, the idea sounds great, especially when you think about that 6% commission (that’s great passive income).  However, in practice (as with anything else), selling that amount of airtime is not that easy.  They are many factors that go into determining whether or not you will be a successful sales person.  The most important determinant being the location of your store.   For example, if your little kiosk is located next to an Uchumi hyper that also sells airtime, you may get wiped out by the competition.  However, if your kiosk is located in a rural away, far away from those large stores, but within a town with a sizable population that can afford to consistently buy airtime, you may be more successful.

Now, I was told that in theory, the idea sounds great, especially when you think about that 6% commission (that’s great passive income).  However, in practice (as with anything else), selling that amount of airtime is not that easy.  They are many factors that go into determining whether or not you will be a successful sales person.  The most important determinant being the location of your store.   For example, if your little kiosk is located next to an Uchumi hyper that also sells airtime, you may get wiped out by the competition.  However, if your kiosk is located in a rural away, far away from those large stores, but within a town with a sizable population that can afford to consistently buy airtime, you may be more successful.

Now, I was told that in theory, the idea sounds great, especially when you think about that 6% commission (that’s great passive income).  However, in practice (as with anything else), selling that amount of airtime is not that easy.  They are many factors that go into determining whether or not you will be a successful sales person.  The most important determinant being the location of your store.   For example, if your little kiosk is located next to an Uchumi hyper that also sells airtime, you may get wiped out by the competition.  However, if your kiosk is located in a rural away, far away from those large stores, but within a town with a sizable population that can afford to consistently buy airtime, you may be more successful.

Now, I was told that in theory, the idea sounds great, especially when you think about that 6% commission (that’s great passive income).  However, in practice (as with anything else), selling that amount of airtime is not that easy.  They are many factors that go into determining whether or not you will be a successful sales person.  The most important determinant being the location of your store.   For example, if your little kiosk is located next to an Uchumi hyper that also sells airtime, you may get wiped out by the competition.  However, if your kiosk is located in a rural away, far away from those large stores, but within a town with a sizable population that can afford to consistently buy airtime, you may be more successful.

Now, I was told that in theory, the idea sounds great, especially when you think about that 6% commission (that’s great passive income).  However, in practice (as with anything else), selling that amount of airtime is not that easy.  They are many factors that go into determining whether or not you will be a successful sales person.  The most important determinant being the location of your store.   For example, if your little kiosk is located next to an Uchumi hyper that also sells airtime, you may get wiped out by the competition.  However, if your kiosk is located in a rural away, far away from those large stores, but within a town with a sizable population that can afford to consistently buy airtime, you may be more successful.

Now, I was told that in theory, the idea sounds great, especially when you think about that 6% commission (that’s great passive income).  However, in practice (as with anything else), selling that amount of airtime is not that easy.  They are many factors that go into determining whether or not you will be a successful sales person.  The most important determinant being the location of your store.   For example, if your little kiosk is located next to an Uchumi hyper that also sells airtime, you may get wiped out by the competition.  However, if your kiosk is located in a rural away, far away from those large stores, but within a town with a sizable population that can afford to consistently buy airtime, you may be more successful.

Residual : This is the monthly commission paid on line usage. each dealer is allocated lines and once those lines are connected, the dealer earns 7.5% of the top up amount for life as long as that line is active. If a consumer tops up with 1000 bob a month, the dealer makes 75 bob from that line. Safaricom has 15 million users at last count and each of these users were connected to the network through their dealers.

Simex commission: if you loose your phone/line, you have to get a replacement for it. The dealer gets 50 bob for every line they replace.
Data commission: recently safaricom started selling mobile data modems. They are on the 3G network so the speeds are the best and the response is overwhelming. The initial price was 10,999 and has since dropped to 5,999. Dealers get 1,000 bob for every modem they sell. On top ot this, they earn 7.5% residual of the data usage.

There used to be only 18 dealers back in the year 2000. Then the number grew to 50 a year later. Trust me that all these dealers are multi millionaires now and there are even a few billionaires. Some of those early dealers have half a million lines to their name. So if dealer A has say 500,000 lines and assume an ARPU( average revenue per user) of 1000 bob a month that’s 500,000,000 in revenue for Safaricom. 7.5% of 500m is 37,500,000. One such dealer who i wont name and whose directors are multi- billionaires and own shares in every other listed company in Kenya. Ask people in the know they will verify this.
Remember that the early users of mobile phones were people with cash and so these dealers hold most of the premium lines in the market.

There used to be only 18 dealers back in the year 2000. Then the number grew to 50 a year later. Trust me that all these dealers are multi millionaires now and there are even a few billionaires. Some of those early dealers have half a million lines to their name. So if dealer A has say 500,000 lines and assume an ARPU( average revenue per user) of 1000 bob a month that’s 500,000,000 in revenue for Safaricom. 7.5% of 500m is 37,500,000. One such dealer who i wont name and whose directors are multi- billionaires and own shares in every other listed company in Kenya. Ask people in the know they will verify this.
Remember that the early users of mobile phones were people with cash and so these dealers hold most of the premium lines in the market.

There used to be only 18 dealers back in the year 2000. Then the number grew to 50 a year later. Trust me that all these dealers are multi millionaires now and there are even a few billionaires. Some of those early dealers have half a million lines to their name. So if dealer A has say 500,000 lines and assume an ARPU( average revenue per user) of 1000 bob a month that’s 500,000,000 in revenue for Safaricom. 7.5% of 500m is 37,500,000. One such dealer who i wont name and whose directors are multi- billionaires and own shares in every other listed company in Kenya. Ask people in the know they will verify this.
Remember that the early users of mobile phones were people with cash and so these dealers hold most of the premium lines in the market.

There used to be only 18 dealers back in the year 2000. Then the number grew to 50 a year later. Trust me that all these dealers are multi millionaires now and there are even a few billionaires. Some of those early dealers have half a million lines to their name. So if dealer A has say 500,000 lines and assume an ARPU( average revenue per user) of 1000 bob a month that’s 500,000,000 in revenue for Safaricom. 7.5% of 500m is 37,500,000. One such dealer who i wont name and whose directors are multi- billionaires and own shares in every other listed company in Kenya. Ask people in the know they will verify this.
Remember that the early users of mobile phones were people with cash and so these dealers hold most of the premium lines in the market.

There used to be only 18 dealers back in the year 2000. Then the number grew to 50 a year later. Trust me that all these dealers are multi millionaires now and there are even a few billionaires. Some of those early dealers have half a million lines to their name. So if dealer A has say 500,000 lines and assume an ARPU( average revenue per user) of 1000 bob a month that’s 500,000,000 in revenue for Safaricom. 7.5% of 500m is 37,500,000. One such dealer who i wont name and whose directors are multi- billionaires and own shares in every other listed company in Kenya. Ask people in the know they will verify this.
Remember that the early users of mobile phones were people with cash and so these dealers hold most of the premium lines in the market.

There used to be only 18 dealers back in the year 2000. Then the number grew to 50 a year later. Trust me that all these dealers are multi millionaires now and there are even a few billionaires. Some of those early dealers have half a million lines to their name. So if dealer A has say 500,000 lines and assume an ARPU( average revenue per user) of 1000 bob a month that’s 500,000,000 in revenue for Safaricom. 7.5% of 500m is 37,500,000. One such dealer who i wont name and whose directors are multi- billionaires and own shares in every other listed company in Kenya. Ask people in the know they will verify this.
Remember that the early users of mobile phones were people with cash and so these dealers hold most of the premium lines in the market.

The gravy train is however over with 400 dealers competing for a piece of the pie. The last dealer licenses were issued in November 2006 and a lot of those dealers easily make just 500,000 in residual commission lone so they are not faring badly at all!

That’s the dealer story from a safaricom insider.

The gravy train is however over with 400 dealers competing for a piece of the pie. The last dealer licenses were issued in November 2006 and a lot of those dealers easily make just 500,000 in residual commission lone so they are not faring badly at all!

regards