Wednesday, April 05, 2006

Call Center Model That ALmost Makes the Grade

Call Center

Last post I was ranting about call center outsourcing and that some businesses that sell these services are just full of hot air. This is a post-rant apology - well not really. The truth is that is how I feel about call center US based companies using less than honorable techniques to get business and try to keep it.

Today I will get into more detail about the business model that is pretty good, however the overall execution from the people at the top miss the ethical mark, resulting in my opinions about this company.

Here is the model in a nutshell...

Create a network of owner operated call centers. The advantagous are:
  • The Center onwers have a vested interest in the success of the business
  • The Marketing Company (head of the network), can push most if not all of the expenses to the centers.

However, doing this can create resentment from the owners, which is what is happening with this companys plan.

Another issue is that the owners are paid per hour but clients make payment per minute, per call and by pay for performance. SO what happens? If you continue to push cost to the owners they figure a way to make it up.

This company has so many problems. The funny things their ego is so large that they don't realize it.

The critical execution of this plan or business model is a strong central organization. If you don't have that, then clients are going to come and go. Which is what is happening with this company.

They are weak in organization and leadership. In fact if they didn't climb on the backs of other brokers they wouldn't have any business at all. I will go it that more in the future.

So bottom line is that they need strong leadership - which they don't. In fact they have achieved success due to some questionable business practices. They don't understand that the call center industry is a small one - with a memory. They are burning bridges faster then there is business.

Things get even juicier. Keep an eye on my next post and I will share about some of the things they do when conducting business....

until next time. If any of them happen to be reading this....you know what I am talking about. How do you sleep at night?



The company's model starts with a network of owner operated call center 48 - 96 seats.