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Moto Droid for $20???

No, the $20 price requires new service. If you cancel after 30 days and before 181 days you'd pay both Amazon's fee and Verizon's ETF.

Upgrade price through Amazon is $129.99. No contract price is $529.99. You can see for yourself at http://www.amazonwireless.com

This is simply bad business on Verizon's part from my perspective...hopefully I'm missing something.
How so? You still pay Verizon for service. That's what the carriers actually sell and make money from.

Consider the fine print in your worst case scenario:

If you cancelled at 5 months after buying a phone through Amazon...you'd basically be spending $70.00 more than you would if you cancelled at 5 months after purchasing a phone through Verizon. Hardly a deal breaker. In fact, it doesn't even come close.
How did you arrive at $70? My math skills are awful but it should be $250 more through Amazon.
 
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Can you add Asurion insurance when purchasing through Amazon or other 3rd party vendors???

Yes, you can. My wife was past the two year contract on her LG/ENV. Purchased a Droid for her from Amazon for $49.95. I believe the $19.95 price at that time (a couple of months ago) was limited to "new" service. Her contract (not the primary phone on our plan) was extended for two years and the Asurion insurance was included in the purchase.

Phone arrived a couple of days later. Activated through VZW though I had to explain that I had purchased the phone through Amazon. No problems.
 
The $20 is for new VZW customer. I was a customer already, with a family plan. So the price went up to $69 from Amazon. Still way below the $200 from VZW directly. I even went in to a VZW store and asked if they could match the pricing. I was told now and that I should jump on the Amazon deal. I plan to keep the phone for a couple of years, so no issue with the 6 months commitment. Phone was brand new in VZW packaging. The only difference from the one that I purchased for my wife 2 months before is that the amazon box was a little smaller than the box we got from VZW. Same documents, charger, and phone. Purchase from Amazon has bee great so far.
 
How so? You still pay Verizon for service. That's what the carriers actually sell and make money from.

The fine print suggests that this discount is being offered by the carrier: Verizon. Perhaps "bad business" is the wrong phrase, but it's pretty disgusting to know that Verizon has their hand in offering the droid for $20 yet they still require 15x that amount up front if you purchase in the store.

Promotions through authorized resellers are obviously a common practice. However, it typically involves incentive for another third party. The fact that I can type MOTOROLA DROID in Google and immediately realize a discount 15x cheaper than what I'd be paying in the store is totally ridiculous...especially since the discount is being managed by Verizon.

How did you arrive at $70? My math skills are awful but it should be $250 more through Amazon.

You pay 20 dollars for the phone. If you cancel before 6 months, there is a $250 charge through Amazon, making your total $270. A phone from Verizon is $200. $270-$200=$70.00
 
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OK then, I'm a little confused, which is actually the better deal, Amazon or Wirefly? I'm probably gonna make the purchase in the next couple of days, so any help would be greatly appreciated.
 
+1 for the Amazon deal.

I've been using a company issued cell phone for years and haven't had a personal one. I'm trying to separate work from home more so I've been looking into a new Droid for personal use.

Picked this up through Amazon a couple months ago for $20. Showed up a couple days later with a local number, activated and ready to go. My local VZW store said they couldn't match the deal and that it was safe purchasing through Amazon.
 
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