How can you succeed in the new VoIP business?
The new technology in phone service is VoIP or Voice over Internet Protocol. This technology allows you to make voice calls over broadband Internet connections instead of regular phones. Your voice is converted to digital signal, so you can make calls from computers, special VoIP phones, or regular phones with adapters.
With some services, you can contact only others with the same service. With others, you can contact anyone with a phone number. You can become involved in the VoIP business by purchasing your own, becoming a reseller, or becoming an affiliate. Starting your own VoIP business is extremely expensive, so if you're just starting out, consider the other alternatives.
As a reseller, you redistribute the airtime of a VoIP company. The company will handle most of the business and technical angles. An affiliate promotes the VoIP Company on his /her website and receives a commission for links and sales.
What do you need to do in order to become a successful VoIP business owner?
- No experience is necessary.
- The company for whom you resell minutes will install the equipment for you.
- The company will provide training.
- As a reseller, you should have some technical and computer knowledge.
Any business has ups and downs. Here are some of the benefits of becoming involved in the VoIP business as a reseller:
- VoIP may be replacing traditional telephone services. There are projected to be 24 million users by the end of 2008.
- Big market. Everyone needs phone service and you can offer cheaper service.
- No inventory.
- Can work from home.
- Can set your own prices.
There are drawbacks to the VoIP business.
- Due to the fact that VoIP is a hot industry, the market is saturated.
- It can be expensive for resellers to buy necessary equipment, including airtime.
- It is extremely expensive to start of VoIP business from the ground up.
- Affiliates just earn commissions. They can't set their own prices or make decisions.
Depending on which aspect of the VoIP business you enter, you will need certain equipment.
- Affiliates need a website.
- Resellers need a computer and ancillary equipment.
- Resellers need to purchase airtime from suppliers.
- From scratch, you need an entire network, computers, minutes, etc.
VoIP is regulated by the Federal Communication Commission and requires a license. Check with either the FCC or your state for more information on appropriate licenses. Affiliates do not need any licensing.
The financial investment required to become involved in the VoIP business varies depending on which level you are pursuing. The least expensive is becoming an affiliate. All you need is internet access and a website. Resellers need to market their business and buy some on-site equipment, but can start for several thousand dollars. Starting a VoIP business in by far the most expensive option, it is easily a half million to several million dollars to start.
If you think that VoIP is the technology of the future, you may want to get in while it is still in its early stages. Unless you have a few million dollars around, you won't be able to start a business on your own.
A better option is to become a reseller, which allows you freedom to set prices and run your own business, like a franchise, while being able to depend on the company's name, reputation, and technology. Becoming an affiliate is a good way to start in the business also, because you need no start up money and you can earn commissions without doing much work.
Here are some companies which offer affiliate programs:
The following companies offer reseller programs:
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