What changes are ahead for you and your customers?
According to O’Connell, “The most significant change for some of our customers is the elimination of tiered compensation to owners. These are success-based fees where owners are paid a higher percentage in revenue share as subscriber penetration increases at their property.” For example, a property owner might earn a five percent revenue share if 40 percent of residents become customers. But if that figure tops 50 percent,
the revenue share increases to six percent. “These rules apply to both existing and new marketing agreements,” O’Connell explains, adding that while graduated arrangements are out the window, other types of contracts are not. Flat revenue share payments and “door fees“—or pre-paid marketing fees—are still on the table. A door fee is offered when an owner helps market and promote a broadband service to a property’s residents. O’Connell
believes “Many owners may view this change as a positive since it simplifies our contractual relationship and is easier to administer, track, and verify each month.”
THESE RULES APPLY TO BOTH EXISTING AND NEW MARKETING AGREEMENTS.
What’s the biggest change you see for multifamily residents?
“Under an EMA, we are the only service provider at a property with the right to actively market ourselves on site or to have our services promoted by property management,” he says. “And it is important to clarify that this doesn’t restrict other providers from offering services at the property.” The real change, though, is making transparency the priority. “Going forward,” O’Connell says, “we’ll disclose the existence of this EMA at the property so that current and prospective residents understand that there may be competitive alternatives.”
PAGE 50
Powered by FlippingBook