Free Cell Phones Explanation

We need to clarify what exactly the term "free cell phone" means. What does a free cell phone mean? That is a question that I get all the time. When answering that question, we must keep in mind that a cell phone is a tangible piece of hardware that has a manufacturing cost associated to it...

Free Cell Phone Promotion Examples

Let me give you a example of one of the free phone offers and how wireless companies make their money. The point here is that cell phone companies, like all others, are in business to make money and not to lose it.

AT&T has the Nokia  that is offered as a free cell phone and you also get $50 back in customer loyalty rebates. The phone cost $100 and the wireless company that activates a new customer with AT&T gets a commission from AT&T in the amount of $250 for activating a new customer on a wireless plan of $35 or higher. That brings the profit after the cost of the phone to $150.

Online Rebates

Now some wireless companies offers a rebate sometimes called a customer loyalty rebate.This rebate is paid after 6 months of service has been completed. Why 6 months? Because that is the chargeback period that wireless companies have to wait to make sure they do not lose their commission. If they had mailed out the rebate before the 6 months had expired they are out $150. A chargeback occurs if the customer cancels service, got disconnected for nonpayment, changed his plan to a lower plan or been disconnected for late payments.

Now if a company did not protect itself by waiting the for the chargeback period to elapse, they run a risk of losing $150 instead of $100 (the cost of the equipment and the rebate). Not good business sense to mail the money sooner.

Instant Cell Phone Rebates & Mail In rebates

The wireless carrier or the phone manufacturer might have their own rebates that usually takes 8 to 10 weeks before you receive a check. These are different from the customer loyalty rebates. If you see instant rebates that means at time of purchase you will be discounted this amount.

For more information or any questions please contact me.