A technology services distributor (TSD) is a company that signs partner agreements with many technology providers, such as carriers, cloud, security and contact center providers, and makes those providers available to a network of independent technology advisors. The TSD typically handles contracting with providers, commission payments, quoting tools, pricing and escalation support, so individual advisors don’t need a separate agreement with every provider. TSDs were traditionally called master agents.
At a glance
- A TSD sits between technology providers and the independent advisors who recommend them.
- Advisors get access to many providers through one TSD relationship instead of dozens of separate contracts.
- In the common model, providers pay commissions that flow through the TSD to the advisor.
- The buyer usually contracts with the provider, not with the TSD.
- Many TSDs also offer advisors quoting, engineering, pricing and escalation support.
What problem it solves
Providers want to reach mid-market and enterprise buyers without hiring a direct sales force for every region and segment. Independent advisors want to offer clients a broad choice of providers without negotiating, administering and collecting commission under hundreds of separate partner agreements. A TSD solves both sides: it holds the provider contracts, tracks orders and pays commissions, and supports advisors with tools and specialists.
For buyers, the TSD is mostly invisible, but it shapes what an advisor can offer. The providers available through an advisor’s TSD relationships, and the support the TSD gives on quoting and escalation, affect how wide a comparison the advisor can run and how much leverage they have when something goes wrong. Knowing the model helps buyers ask the right questions about independence and compensation.
How it works
Provider agreements. The TSD signs partner agreements with providers. These set commission rates, order processes and support contacts. A TSD’s provider list typically spans connectivity, voice and UC, contact center, cloud, security and managed services.
Advisor network. Technology advisors sign with one or more TSDs. Through them, an advisor can quote and order services from many providers.
The sale. The advisor works with the buyer to define needs and compare options. The buyer signs a contract with the chosen provider, and the order is tagged to the advisor and the TSD.
Commissions. In the common model, the provider pays an ongoing commission, often a share of the monthly billing, to the TSD, which keeps a portion and passes the rest to the advisor. Arrangements vary by provider and TSD.
Support. TSDs often provide engineers, pricing desks, quoting platforms and provider escalation contacts that advisors use on their clients’ behalf.
Because advisors tracking many providers’ contracts also help manage renewals and billing issues, this model connects closely with telecom expense management.
When it matters for buyers
- Choosing an advisor. Ask which TSDs they work with; that affects which providers they can easily quote.
- Checking independence. Understand how the advisor is paid and whether compensation differs by provider.
- Escalating a problem. The advisor’s TSD may have contacts at the provider beyond the normal support queue.
- Consolidating vendors. An advisor with broad TSD access can compare many providers in one exercise.
- Comparing with resellers. Know whether you are buying from the provider, a value-added reseller (VAR) or an aggregator, since that decides who holds your contract.
Questions to ask vendors
These are mainly questions for your technology advisor.
- Which TSDs do you work with, and which providers can you quote through them?
- How are you paid, and does compensation vary by provider or product?
- Who will we sign the contract with, and who bills us?
- If the provider misses an SLA or a deadline, how will you and the TSD escalate?
- Are there providers you can’t offer, and how do you handle a request for one?
- What happens to support if you stop working with a TSD or a provider?
How it differs from an aggregator
An aggregator buys services from many carriers and resells them under its own contract, bill and support desk, so the buyer is the aggregator’s customer. A TSD usually doesn’t resell: it holds partner agreements so advisors can sell providers’ services, and the buyer signs directly with each provider. Some companies operate in both models, so ask who holds the contract for each service.