Larger distributors typically carry competing products in a wide range of industries.  A distributor’s “Line Card,” or list of products, can be overwhelming and it is very easy for a manufacturer to get “lost” in a distributor’s product list.  Distributors typically make little margin since they are a middle man between the manufacturer and the reseller.  Distributors try to make up the small margins with volume and incentives from the manufacturers (though this can lead to a disadvantage for  smaller manufacturers trying to compete with the larger manufacturer’s “spend” in that distributor).  Trying to list your product with every distributor can be a disadvantage long term since there may not be enough volume to create focus from any single distributors.  Think of Distributors as “Order Takers and not Order Makers.”  

Additionally, some smaller distributors can be considered “boutique” type distributors and they will focus on specific verticals and add more “value added” services to a manufacturer’s product (support, installation, accessories, bundles, etc.)   They may classify themselves as a Value-Added Distributor (VAD).  

The main value of a distributor to a manufacturer is they own and manage the “purchasing process” across many resellers so smaller resellers do not overwhelm the manufacturer.

As an organization missioned and designed to better support a specific vertical/customer set, resellers  can be a trusted advisor with more in-depth experience and better customer service.  A Value-Added Reseller (VAR) typically bundles additional products or services to provide more ‘value’ for the customer (e.g. installation services, accessories, support, experience, etc. could all be additional benefits a customer receives by purchasing through a reseller).    Resellers usually demand more margin and typically own the customer relationship.    Manufacturers can leverage resellers to better support customers.  

Agents are predominantly wireline focused but are increasingly engaging in wireless services.  They are independent consultants to their clients and can offer most telco type services or offerings.  They are compensated by the carrier and typically stay involved with the client in a long-term relationship.  They are motivated by monthly recurring sales and want to be the ones to “renew” the client’s services or move them to another carrier or service which could increase their commissions.  Most carriers have an agent program and most agents started their career as a carrier sales rep so they know the business well.  Some agency companies are run by a single rep or are part of a larger agency.

Master Agents have developed a “large book of business” so they have more aggressive rates from the carriers.  They will sign up “sub agents” who can take advantage of the master agent's carrier relationships to expand their portfolio of services and/or obtain better pricing.  The master agent will then share a larger portion of their commissions with the agent who sold the deal.  WTG, Intelisys, Telarus, etc.  Master agents must create a volume of sub agents to keep their carrier rates low and compete with other master agents by providing higher commissions than other master agents.

They provide some type of service or function that enables a piece of a larger project.  An example function could be project management of a network deployment, or an important function might be the “feet on the street” to install equipment for a large number of customer sites.

Typically on a proactive basis and under a subscription model, many MSPs are very small and regional in nature (they almost become a company’s outsourced IT department).  Some MSPs can be very large and a great partner for Accelerated because they are typically incented to provide the best ROI (where a reseller may want to sell the largest priced item and “run”).  

A facilities based ISP provides the infrastructure associated with their Internet access services, e.g. Comcast, Verizon/AT&T Wireless, etc.

A non-facilities based provider typically acts as an agent and/or purchase connectivity services in a wholesale arrangement.  Customers may find a non-facilities based provider as an organization that can “leverage” the best access technology for the client vs. a facilities based provider that will push only “their” network.  However, customers may also find the non- facilities based provider has trouble leveraging/supporting network infrastructure they do not own.  Customers will ultimately need to pick their strategy.

These are non-facilities based providers that typically act as a wholesaler of network services (e.g. cellular data connectivity).  Verizon Partner Program (VPP) supports the ability for third parties to purchase cellular air time in bulk and resell it to their respective clients.  The AT&T Partner Exchange (APEX) is a similar program and both carriers have legacy wholesale programs.