How to Become a Cell Phone Dealer

Co-authored by wikiHow Staff

Last Updated: January 28, 2023 References

Becoming a cell phone dealer can be a very appealing and rewarding career. If done well you can make a decent living, set your own hours, and even employ other people. Being a cell phone dealer allows you to explore your love for electronics and keep up with the latest technology. In order to become a cell phone dealer you must conduct research, develop a business plan, and open your business.

Part 1

Part 1 of 3:

Conducting the Research

1
Talk to local cell phone providers. Start your research by asking local cell phone dealers about their experience becoming a cell phone dealer. Ask them what their day to day work is like. Discuss commission and rate of pay that they receive from the service provider.
2
Gain knowledge through experience. Find a job with a local cell phone dealer. Many cell phone dealers hire cashiers or sales agents. Working with a cell phone dealer will give you hands on experience to better prepare you for this career path.

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3
Research service providers. Each service provider will have it’s own requirements to become a cell phone dealer. These requirements can typically be found on the company’s website. Some cell phone dealers offer more than one service provider within their business. If you cannot find the information you are looking for on the company’s website, call their customer service number to discuss the details.
- Check to see if the service provider offers good cell phone coverage in your area.
- Ask about commission rates and pay schedule.
- Know how much capital you will need to begin your business.
- Ask for any other application requirements that they might have such as a business plan, resume, credit check, or credit availability.
4
Survey the market. Scope out the areas that you would like to set up shop. You don’t want to put your business right next to a similar business unless you are ready to compete for customers. Actually ask the people in the area if they would be interested in having a different option in cell phone providers in their area.^{[1]
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- Conduct your research by going door-to-door.
- Create an online survey and post it to local social media group or email listservs.

Part 2

Part 2 of 3:

Establishing Your Business

1
Select a service provider. Choose a service provider based off of your previous research. You may even want to choose more than one service provider in order to offer a variety of choices to your customers.. Make a choice based off of expected return, coverage in your area, and the application requirements.
2
Develop a business plan. Before you apply to become a dealer or ask a bank for a loan, you should develop a business plan. Your business plan will explain the objective of the company, make financial projections, and list marketing strategies. This business plan will be submitted to the service provider with your application and to a bank if you are applying for a loan or line of credit.^{[2]
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Trustworthy Source
U.S. Small Business Administration
U.S. government agency focused on supporting small businesses
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3
Obtain the capital needed. There are a lot of costs associated with becoming a cell phone dealer. You will need capital for your initial investment in inventory, rent, utilities, and marketing materials. This money can be in the form of cash, business loan, or line of credit.^{[3]
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- For example, Boost Mobile advises that you have about $20,000 available to you before applying to become a dealer. They estimate that it will take you six months to break even.^{[4]
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4
Submit an application to the service provider. Each service provider has a different method to apply to become a dealer. Most dealer applications can be completed and submitted on the service provider’s website. In your application you will need to provide a business plan and proof that you have enough capital.^{[5]
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- If you cannot find the application online, call the service provider’s customer service number and request an application.

Part 3

Part 3 of 3:

Opening Your Business

1
Decide on a location. Find a storefront for your new business. You can do this process on your own or through a real estate agent. A realtor will help you to locate good locations within your price range and negotiate the price and terms.^{[6]
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- Consider the amount of foot traffic that your storefront will get.
- Analyze parking or the convenience of your shop.
- Determine how much space you will need to display your products.
2
Purchase the inventory and marketing materials. The majority of your inventory will be purchased and supplied by the cell phone provider. You will need to purchase cell phones, tablets, and accessories. You will also need to purchase display cases and marketing materials such as business signs, promotional displays, and brochures.
3
Set up your store. Once you have all of your materials, you need to set up shop. Place your inventory in display cases. Hang signs and promotional displays. Decide on and display your business hours for customers to see.
4
Advertise your new business. You can’t expect anyone to come to your store if no one knows about it. Use a variety of advertising methods in order to attract a wide array of customers.^{[7]
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- Promote your business on social media sites like Facebook, Twitter, Instagram, and Snapchat.
- Place ads in your local newspaper.
- Rent billboard space in high traffic areas.
- Record commercials for television or radio.
- Sponsor a non-profit event.

Community Q&A

Question

How do I know how much it costs to start being a cell phone dealer?

Community Answer

Ask the service provider that you are interested in carrying for details about the costs associated with becoming a cell phone dealer for their company.

Warnings

Your first business may not succeed. Don’t let it stop you from trying to start another business. Use it as a learning experience to create a better business plan in the future.

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Avoid the urge to apply to become a cell phone dealer with a service provider before you meet all of their required qualifications.

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