Last year, Alan Masarek made news as he left Google to become Vonage’s new CEO.
As Voice over Internet Protocol (VoIP) continues to gain popularity among residential and business customers, many people have started to see the appeal of becoming a VoIP reseller. If you are interested in entering the world of telecom service, a VoIP reseller program may be a great option for you. Or, if you would like to act as your own VoIP provider in your business, while also developing a small network of customers for your VoIP service, a VoIP reseller program may be a great start.
A VoIP reseller purchases VoIP service from a primary provider, and then turns around and sells it to customers. Unlike the primary provider, though, the reseller is not responsible for the care and upkeep of an entire complex telecom VoIP system. Much of the major hardware for VoIP service is still handled by the primary provider, whereas the reseller must manage only their internal systems.
And, in the eyes of the reseller’s customers, the reseller is the primary service provider. Unless it is explicitly mentioned, the customer may never even know their VoIP service comes from a reseller.
The VoIP reseller purchases all the basic elements of a VoIP plan (minutes, numbers, E911 service, etc.) from the primary provider at relatively low rates. And because a VoIP reseller is more than just a customer (they are more like an affiliate), they gain access to a personalized control panel. From the control panel, the reseller can customize the service for their customers.
Every control panel is programmed with the service the primary provider thinks the reseller’s customers will need. This typically includes a specific set of free minutes and at least 1 phone line.
To put it simply: VoIP resellers stand to turn a big profit. The business is responsible for billing their customers, but they also have the freedom to charge whatever monthly rates they want, just as long as the cost covers what they owe the primary provider but also allows them to turn a profit. Just like with any reseller, the business decides its own profit margins. They just have to find rates that attract customers.
For example, a low rate like $15.99/month for landline home phone service for customers can still turn a profit for resellers. The $15.99/month plan might include 500 pre-paid minutes, but those minutes may only cost the reseller about $5.00 at a rate of $0.01/minute. The reseller must also pay an E911 fee ($1 per line) and occasionally a Universal Service Fund fee, but those are very low costs. So, a reseller that charges $15.99 for a monthly plan stands to gain almost $10 per customer.
One way a reseller can attract customers better than a nationwide provider is by establishing itself as a local brand. In most cases, a customer will seek out a provider that doesn’t see them as a face in the crowd, one of a million subscribers. The reseller doesn’t need to service the entire country, but can instead choose a specific area and offer competitive rates that will entice customers. Also, the reseller can offer a personal touch to every one of its customers, treating them as if they are the only one.