Questions about the Buy Back Program

If I purchased a phone today that costed $600 but $200 with new 2 year contract activation, would the Buy Back program money back percentages come from the $600 or $200?
Also in about 6 months if I decided to return the phone for another that costed (imaginary prices) $700 but $300 with a new 2 year contract, would the money I got back from the first phone go towards the new contract price ($300) or would I have to pay for the phone in full ($700)?
Thanks in advance.

Crystallee,
Thank you for your kind replies to my question, but I'm still not getting it.
Please let me give a specific scenario that could happen with my situation.
I bought the Nexus s unlocked for full retail of $529.99 from my local retail Best Buy about 3 weeks ago.  I also purchased the "Buy Back" program with it.
I then walked next door to the T-Mobile store with phone in hand and opened a non-contract "Even More Plus" month to month plan.
At that time my current line contract with AT&T had expired, so I had no early termination fee when I cancelled service to start with T-Mobile.
Now, If I decide to purchase a new phone four or five months down the road, my understanding from the sales associate at BB, is that I would give over my nexus to BB in exchange for a BB Gift card in the amount of 50% of what I paid originally, $529.99 for the Nexus s.
I could then proceed to open a new line of service with another carrier that BB sells, i.e. Sprint or Verizon and would only be liable for the new contract price for that new phone, and I would be able to use the Gift card from the nexus turn-in (Buy Back) to pay for the new phone on a new 2yr. contract.
That was the understanding I had from the BB sales associate, who I think was a lower level manager.
Let me know if I have misunderstood the "Buy Back" process as I've described it here.
Thank you again for your patience.  My son would understand all of this.  I'm getting too old! (lol)

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