White Label Communications Blog

3 Options for Interconnects | VoIP Reseller Programs

Posted by Chris Griffith on Mon, Nov 05, 2012 @ 11:29 AM

VoIP Reseller ProgramsThe market share of VoIP services is sky rocketing and with it peoples interest in VoIP reseller programs. There is a major switch from the average phone lines to VoIP telephony due to its many benefits. VoIP has gained popularity and companies are always looking to buy these services. This has made VoIP reseller programs very common and people are looking to make money in this fast rising industry.

There are three options for people who want to become VoIP resellers.

1.       Become an agent for a VoIP company

This option can be said to be both the easiest and the worst because the carrier would own the end user and the agent would receive a small percentage of the recurring revenue each month. An agent basically sells these products and services in the name of the carrier while maintaining its own brand. The carrier would provide all telecommunications services, invoice the end user and provide support.  Another problem with the traditional agent model is there is no guarantee.  Carriers paying the agent commissions can pretty much cut you at any time for any reason.  Agents could build commissions up for literally years just to have the carpet pull out from under them when the least expect it.

2.       Build your own VoIP platform

This is a huge financial undertaking which could leave your pockets depleted, and it could take years to recover from this.  Building your own platform involves a significant capital investment which could take years to get back to even again.  This also requires staffing and engineering to support the infrastructure all costing millions of dollars. As the network grows additional capital would be required to upgrade the existing systems to accommodate growth.  You would also need a research and development team devoted to looking ahead at your roadmap and creating new functionality. 

3.      Private label VoIP reseller

This is the best option.  Private label VoIP resellers benefit without having to build out a network yet capture and own the customer.   At one point or another, the companies using standard phone lines will make a conscious decision to move to VoIP. This is where the services of a reseller will be required. Resellers will increase their bottom line revenue by selling branded dial tone to their customers in form of Hosted PBX and SIP Trunking.  This also creates shareholder value and equity appreciation to the resellers business.

The main question at this point would be how to find a genuine and profitable VoIP reseller program. All programs are not equal and some are constructed poorly and they still claim to be hosted VoIP reseller programs. There are key basics that are fundamental to the success of any VoIP program, lack of which the company will experience low customer numbers and low profit margins.

As established the cost of constructing a VoIP network is too much and most small and medium sized companies cannot afford it. It is also very difficult to maintain your own network therefore a reseller program gives you satisfaction while also providing relative ease of operating. The service provider deals with the headache of running the back end hardware while the reseller can concentrate on marketing strategies.

The customer will receive high functionality and this will draw in more customers once the word spreads about your company’s services. The reseller needs to make sure that the service provider is fulfilling his bit by maintaining the backbend infrastructure. The service provider should offer the following functionalities;

1)      Feature Rich Hosted PBX

2)      SIP Trunking

3)      Automated accounting system

4)      Provisioning of new and ported telephone numbers

5)      Complete training and support to the resellers

6)      Access to best practices 

 

Topics: VoIP, reseller program

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