Telefix Communications Holdings Inc. (TLFX)

[pennypuptech]

CHANNEL SALES 101 aka Vertical Solutions Provider

$TLFX is organized as a VSP to leverage the Verizon network to grow their business. There is contractual obligation. There is sharing of revenue. There is sharing of marketing collateral. There is validation to TLFX's potential customers that they are working with a reputable player.

It's a channel sales agreement. Verizon acts as the provider, the intermediary (solutions provider) is TLFX. They utilize the resources that Verizon has already established in order to provide Verizon Channel sales and provide TLFX with direct sales.

This is a partnership. They are licensed to re-sell Verizon technology in a specialized manner. If you're still denying it, here is literally the first definition that comes up on google.

A business partner is a commercial entity with which another commercial entity has some form of alliance. This relationship may be a contractual, exclusive bond in which both entities commit not to ally with third parties.

Alliance - check.
Contractual - check.

Because TLFX will be using Verizon's name, it requires validation and acceptance on their end. This has been done as part of the VSP agreement. TLFX is a VSP because they focus on a specific VERTICAL - COPS solution for remote worksite monitoring.

Split revenues with Verizon - check.
Package Verizon products/network to provide TLFX COPS solution - check.
Utilize Verizon marketing collateral - check.

I said it 15 times, and I'll say it again. This is a partnership. Both parties are entitled to revenue that TLFX generates. If that's not a partnership, I don't know what is! Don't downplay this is a 'right to use Verizon's network.' I do that by going to the store and signing a 2-year contract. What you're talking about is a CHANNEL SALES AGREEMENT between both parties. Hell, I work for a company that does exactly that, and that drives a huge portion of our business through sales that our DISTRIBUTORS generate. These distributors are billion dollar companies doing the exact same thing TLFX is with Verizon. Let me get this clear - I am not saying TLFX is a billion, or even million dollar company, what I'm saying is that this simple distributor relationship opens up a world of opportunity for yours truly. They get to distribute a reputable brand in a specific vertical in order to fill a market gap to monitor and oversee remote work sites in a cloud-based solution that will presumably be shown per their latest PR in a conference call to be scheduled.

CHANNEL SALES 101