VoIP reselling

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Voice over Internet Protocol (VoIP) service providers allow the user to make calls or transmit multimedia messages over the internet, instead of the conventional telephone network. The incentives to using VoIP over the tradition Public Switched Telephone Network (PSTN) are many, mainly a superior quality, much lower costs, and additional features. On one hand VoIP opens many new avenues for businesses to decrease costs and increase efficiency, consequently driving revenues up. And on the other hand VoIP has given rise to an entirely new industry as well, i.e. VoIP reselling or wholesale VoIP.

VoIP reselling, as the name suggests, is basically buying VoIP services from a service provider and then selling them to your consumer at a margin. It is an ideal business model if you have a limited capital but have a stable consumer base. Using this model a business can leverage the capital investment of the VoIP service provider and benefit from its access to the consumers. It has become a lucrative business model and various VoIP service providers are offering wholesale VoIP at very cheap rates.

The way it works is that the VoIP whole seller offers the VoIP reseller a rate list. And the reseller offers his consumers a different rate list, which generally has higher rates than the one the whole seller offered. Thus the reseller earns the margin between his cost and the price he offers his end consumers. Reselling VoIP a business may choose to adopt one of several business models. For instance, you can decide to earn a fixed amount per minute to all destinations, e.g. 2 cents per minute. Or you can chose to earn a fixed margin, e.g. 15% on any destination. You can also give customized offers to the customers, giving special discounted rates to select destinations, or during select hours. Similarly you can design a number of revenue models that suite you and your customers in an optimal manner.

The general process of reselling VoIP is not complicated and involves the following steps:

  1. Create your account with any well-reputed VoIP whole seller.
  2. Configure your account and chose if you want to work as a VoIP reseller as well.
  3. Custom design your rate lists for your consumers.
  4. Add funds to your reselling account. This is the account the VoIP whole seller will deduct the amount from when you utilize the service.
  5. Collect funds from your end consumers.
  6. Provide the customer with the SIP details to call.

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The VoIP market is growing at a rapid pace and it has several advantages over the legacy telephone network service providers. It provides dynamic solutions for both, domestic and business users and establishing a foothold in this growing market by becoming a VoIP reseller means that you get to have the early mover’s advantage. However, not all VoIP reseller programs are the same and offers from the various whole sellers should be evaluated carefully before a business decision is made.