Some people might think there’s a catch when they see an offer for a free cell phone, but it’s really just a matter of knowing one key piece of information: Wireless providers such as T-Mobile and Verizon make the vast majority of their money on monthly service rates – not on the phones they sell.
For example, if you pay $59.99 a month for a basic calling plan with T-Mobile, that adds up to about $720 a year (far more than the one-time price of a new phone)! Compare that to a new cell phone priced at around $200 and it’s easy to see where they make their money – monthly subscriptions… not phone sales.
Can you see now why they’re so willing to hand out free phones?
When considering where to look for free cell phone offers, you can go directly to a wireless service provider or look for an authorized wireless reseller.
- Direct through Wireless Providers
Wireless service providers like T-Mobile make a lot more money from your monthly subscription than from the sale of a phone – so much so that they’re always running promotional sales on brand new phones, complete with free shipping.
You get to choose the monthly plan that works best for you, and you can carry over your current phone number from another wireless provider.