Direct Versus Indirect Dealers

There are many ways to apply for and get a cell phone subscription. Online, over the phone and at a store. The stores are what I want to focus on today. There are two types of stores, a "Direct" and "Indirect." Both offer the same phones and rate plans but the agreements can vary to a large degree.

A "Direct" dealer is a store that is owned and operated by the service provider. Typically these stores are set apart from any other store and the employees wear the provider's "uniform." They offer devices and accessories for one service provider only. T-Mobile stores, AT&T Stores, Sprint stores, etc.

An "Indirect" dealer is a store that typically offers services from more than one provider. They may have Sprint, AT&T and T-Mobile services all in the same display. These stores usually go by a different name such as "Joe's Cell Phones". Large department stores like Target, Wal-Mart, Best Buy, etc are also considered indirect. You may also see the term "Authorized Retailer."

The difference is not the devices they offer or the plans that are available but the agreements. Indirect dealers have options like charging more for activation or other extra fees. The contract agreements can also vary from a direct dealer. While an AT&T direct dealer may allow 30 days to return a device, an indirect dealer typically only allows 14 days. An indirect dealer may offer to waive activation fees, but these are the fees that the dealer typically charges, not the service provider's mandatory activation fees. Returning a device is not as easy to do when you get it from an indirect dealer as you must go to the store where you purchased the device and satisfy the indirect dealer's requirements, which may vary from the service provider's. An indirect dealer "buys" an account with the service provider and has hundreds of phone numbers reserved. This means that everyone that buys from them are on one account on the providers 'systems and you will not be able to get assistance from the provider, but instead must go to the dealer you purchased the device from.

In short, always go to a direct dealer and steer clear of indirect dealers. While the indirect dealers may offer what seem to be "too good to be true" deals on the price of the device, they usually include agreement requirements that will cost you more in the long run in the form of extra start up costs, less time to return the device and even extra fees on your monthly bills. If you are unsure if a store is a direct or indirect dealer, ask the employee or look for the tips below.

Direct Dealers:
Only sell one service provider's devices
Employees wear the provider's logo (Be careful here as some indirect dealers will wear a provider's logo as well).
The sign outside does NOT include the words "Authorized Retailer."
The store is by itself with no other services or items offered

Indirect Dealers:
Sell more than one provider's services
The Store name is something other than the provider's name (Joe's Cell Phones).
The sign outside includes the words "Authorized Retailer."
Typically located in a store that offers other services or items like Wal-Mart or Best Buy
Commonly found in kiosks in a mall (The small "booths" in the middle of the mall floor)