The use of comparison sites, not just mobile phone comparison sites is increasingly surrounded by controversy.
A good example outside the mobile phone sector is direct line, the insurance provider. Now, direct line have always done as the name suggests, supply / deal direct with the public.
In the early days this was to cut out insurance brokers (middle men) and pass savings onto customers, however, todays “middle men” are not just brokers, they are online comparison sites!
Direct lines approach has been to refuse to participate in comparison sites, and to stick to their existing business model, to the extent that (in their television advertisements) they call comparison sites “middle men”.
So, as a customer, is this a good thing?
Well consider this question “Do Direct Line pay their own staff commission / performance bonuses for sales?”.
Then consider whether this amount is likely to be greater or less than the commission paid to comparison sites (where you, the user does most of the work!).
The point here is that, comparison sites do not add cost the way, for example, a telephone advisor does, and it could be argued that it is this cost saving that allows the payment of commission.
The fact is that whether you order a phone from this site, or the merchants directly, it will cost you the same. If you order via this site, then you are using something we have built, it did not cost the mobile phone retailer a penny. If you found this site via paid advertisements / search engine placements, we paid for those, they did not cost the phone retailer a penny. When you order your phone online, you fill in the application form yourself, it does not cost the mobile phone retailer a penny.
That is where the commission comes from… those savings.
So, why should a consumer choose to use a comparison site as opposed to searching the internet themselves?
Well, you can search yourself, but it will take you longer and you will not save a penny!
We list 50,000 deals which are organized into popular / custom searches for our users. For example if users want to find all 12 months free line rental deals, we have a search for that. You can view at an instant what all the phone retailers / phone networks are offering.
We like to feel we are offering value for our users, by suggesting the best value deals available.
In terms of offering value to the mobile phone merchants, we do our best, but, the fact is, we always push the cheapest deals first, as that is what our users want, those are the deals that sell. So, some merchants do better than others. That said, every retailer has its strengths and weaknesses… its special promotions. Some retailers specialise in free gifts, others in instant cashback, others in 12 month free line rental deals. In short, every retailer is good at something.
Our site simply connects users with the kind of deal they are looking for and helps them get the best possible price, without adding any cost to their transaction.