White Label Communications Blog

Private Label VoIP for Interconnects

Posted by Chris Griffith on Mon, Jan 21, 2013 @ 10:39 AM

Private label VoIP is one way that Interconnects are staying alive in the evolving digital world. The days of playing intermediary between the dial tone provider and the small to medium business customer is ending. Interconnects need to redefine their role in the marketplace to stay afloat. Developing a private label service brings new opportunities to Interconnects that promises to build a more contemporary business model.

The Role of the Interconnect

In the past, Interconnects were the in-between guys. They did all the recruiting, installation and training while the dial tone provider raked in the profits. The Interconnect would get a one time payment from the customer and maybe earn a commission from the service company, but that was it.

The dial tone service provider, on the other hand, had a long-lasting business relationship that they did little to earn. The Interconnect established the bond, but the service company maintained it. This meant they would get the ongoing payments from the end-user while the Interconnect walked away. Needless to say, the Interconnect was getting the short end of that stick.

Technology Creates a New Scenario

The changes in technology are constructing a better world for the Interconnect. The marriage of voice and data in the blossoming communication industry has handed Interconnects a survivable business model via private label service.

VoIP is not nearly as complex as the old-school systems. With those platforms, end users needed both the Interconnect and dial tone service to get going. The development of IT solutions for telephony means there is no room for the traditional Interconnect any longer. Dial tone companies are doing their own legwork in the current market. To stay in the game, Interconnects must find their place in the new order, and that is going to be with a private label service.

Private Label VoIPWhat is Private Label VoIP?

Private label VoIP is an innovative choice for the Interconnect. It offers a turnkey solution that puts them back onto phone marketplace, but this time the Interconnect creates a more effective business model.  With a private label VoIP, they become their own phone company. Instead of pedaling someone else’s wares, the Interconnect is now selling only for themselves.

As the service provider, they establish the rates and collect the fees. By collaborating with a communications firm like White Label, the Interconnect gets access to an online service delivery platform. With it, they can develop their own personal private label product with a few clicks.

What are the Advantages of a Private Label VoIP?

With a private label VoIP platform, the Interconnect takes over the role of service provider. Previously, an Interconnect company could look forward to receiving a one-time reward for marketing the product, hooking the customer and setting up the system. With the new format, money the end-user used to pay the dial tone provider goes directly to the Interconnect as they create a lasting business relationship.

With a private label program, Interconnect companies can expect:

To be in charge – private label service means the Interconnect owns the business.

Recurring revenue – the job has not changed much, but the payout will. With this new model, the Interconnect does the same things but gets the ongoing profit instead of walking away. The revenues margin increases from 15 percent or less to as much as 70 percent.

Business equity – the recurring revenue means the business becomes worth more. The prior situation left nothing for the Interconnect. There was no repeat business opportunity for years and no ongoing payments – little saleable value. With the private label VoIP service, the company now has equity that is worth something should the time come to sell.

A better product means more customers – VoIP telephony is a more cost-effective solution for small and medium businesses. The features included with this system go beyond what the old-school environments offered. By vending a productive and rich communications platform, the Interconnect has more to give when establishing customer relationships.

Interconnects had a purpose in the old marketplace, but the evolution of IT telephony is making the position obsolete. VoIP service has changed everything in the phone industry. Now is the time for Interconnect services to start planning a new future that includes a feature rich product and stable business model. Through private label VoIP, the Interconnect goes from being just intermediaries to owning their own phone company.

 

White Label

Topics: private label

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