SIPTRUNK BLOG

How to Make Money As a SIP Provider

sip providerWhere you live no longer determines your income opportunities. The internet makes it possible for you to start a profitable business from just about anywhere in the world.

Today, you can see a steady growth in SIP trunking providers. These VoIP providers have already crushed the competition since many people today now use internet phones instead of landlines and data plans.

And who can blame them? People and even businesses are saving up to 40% by switching to a SIP provider. VoIP growth is expected to be quite impressive, with a 28% increase between 2016 and 2020.

In a nutshell, folks are paying less for a whole lot more. No data limitations or talk-time restrictions to worry about.

Becoming a SIP provider seems like a great idea. If you’re interested in starting your own VoIP service, then you can use the following tips.

First, Why Become a SIP Provider?

The growth potential alone should be enough to motivate you to join this industry. Being a SIP provider will allow you to empower businesses with a cost-cutting strategy for their communications.

With SIP trunking, businesses will be able to handle seasonal call volume peaks. This is done by centralizing PSTN access in data centers. There’s simple failover for backups as well.

Now that more and more companies are jumping aboard the bandwagon, it’s only going to open the door for more business. Those taking advantage of the interoperability of VoIP systems will eventually adopt SIP trunking.

The profitability of SIP trunking is also worth noting. Traditional phone services from AT&T can cost around $25.60 monthly per line. But if you’re going to use more than 500 minutes monthly, you can expect to pay $49.50 monthly.

Then if you want to have unlimited talk and data, the price shoots up to $86.95. Selling SIP packages with unlimited minutes packages will entice businesses to purchase your services.

Across the net, you can find providers offering unlimited packages at $20/month per user, and some even include phones. So if an average of 1,000 minutes is being used per person each month, then you’re getting $10 profit per user.

Of course, factors like where they’re calling and what other offers you’re providing will determine your actual profit. But showing the potential cost savings to AT&T customers may help to convert them.

The Costs of Providing SIP Trunking

There’s hardware associated with SIP trunking, if you’re adding it to existing telecom or IT integration business. This is determined by how your customers will connect to the outside world. The two options are hosted or on-premise.

Your customers will have to purchase this hardware if they opt for the on-premise option. Otherwise, a hosted set-up is cheaper for the customer, since it’s built into a cloud server space. This is normally rented at prices starting around $20/month.

Reselling SIP Trunking to Businesses

It just makes economic sense for businesses to integrate SIP trunking into their telecommunications network. Thankfully, more and more companies are catching up on this, which will make it easier for you to gain their business.

The market is expanding, thanks to developments in communications technology.

Seal the Deal By Highlighting the Benefits

Cold calling everyone you can find on Google business pages isn’t exactly a solid strategy, especially if you don’t have an effective way to convert them.

Offering unlimited SIP trunks is a great way to draw in customers. But the key is to highlight the benefits of purchasing your services. Let’s take a look at some of the advantages you can hone in on.

Easier Budgeting with Guaranteed Monthly Bills

Businesses have strict budgets. Dealing with unpredictable communications bills is something no owner wants to endure. With VoIP, companies are able to better budget their monthly funds, given SIP trunking offers a set bill.

For example, it can be $24.95 for four channels, which would calculate to around $100 per month.

No Metered Rates to Worry About

Since there are no metered rates, there’s no worry of fluctuating monthly bills. The typical rate is around 2.5 center per minute, which means businesses have to constantly monitor how long business calls last.

No Hassles with Contracts

Simply because there aren’t any. Like most SIP providers, you can promote having a “no contract service.” This is still a big deal for businesses that are looking for freedom.

There are some businesses that are new to SIP trunking. They may want to experiment with it first before fully committing. And even once they do, they can switch providers if they find one better, without worrying about cancellation fees.

This also means your SIP trunking service needs to be on par, so your customers stick around.

Different Services to Offer As a SIP Provider

There are various solutions you can offer as a SIP provider. For one, you can offer VoIP call center solutions. You can assist businesses set up call centers, improve call volumes and handle calls.

The second option is to sell minutes to customers. This is known as VoIP wholesale. This would normally attract individuals instead of businesses. Or you can offer prepaid calling cards, which come with a pin to access the minutes.

Then national and international calls can be made using a landline or mobile phone, without needing the internet or a computer.

Then there’s residential and mobile VoIP options. With the mobile option, customers can use SMS, video and voice. This is excellent for individuals and businesses that engage in conference calls with family and co-workers.

Lastly, there’s the IP PBX, which operates using a server. This is ideal for both homes and businesses. The customer also needs one or so SIP or VoIP phones, and in some cases a VoIP gateway.

Get Started on Your SIP Trunk Business Today

Once you’ve brushed up on all the benefits of being a SIP Trunk provider, you’re ready to take your first step to becoming one. But where do you find a trusted and authoritative source that can tell you the specifics of how to become a SIP trunk provider? Right here, of course. We’ll give you an idea of where and how to start your SIP business.

The best way to go about finding SIP Trunks and other VoIP solutions to sell is to find a trusted services platform. Such platforms should provide comprehensive network support, cross-compatible VoIP systems, and custom-labeling options that allow you to maintain your business branding.

A great service platform should provide confidence in your investment by offering quick and painless SIP reselling solutions. If you want to jump into SIP trunking — for the first time or otherwise — contact us today, and we’ll help you become a successful provider.