SIP Trunking: The Conduit to Cash

conduit2cashSIP is the Conduit to Cash – Garrett Smith

SIP services have ushered in a new era of success in the telecommunications industry.

If you are a frequent reader of our blog, you are likely familiar with SIP as a lucrative service you should be providing and reselling to your customers. For all of the innovative things you can accomplish and business problems you can solve with SIP trunks, it’s the cash that you can generate that is all-too-often overlooked.

Let’s take a look at how life looks for typical agents, consultants and dealers:

They have 50 small business customers who tap them for “network and telecom stuff.” On average, each has five business lines, for a total of 250 lines under management.

Now these are lines that they’re probably not making any money on – unless a new one needs to be turned up or down.

They’re making money on the install, set-up and ongoing break-fix… not enjoying a revenue stream from a utility they almost never need to touch.

Fine for some, but what are they missing out on by not recommending and reselling SIP trunks to that very same customer base?

Here’s why SIP is the conduit to cash:

In the same scenario as above, if you were managing 250 SIP lines, which you resold through a SIP trunking provider such as, you’d be looking at:

250 lines @ $20 USD = $5,000 USD in SIP service charges
$5,000 USD @ 20% Commission Payout = $1,000 USD in monthly commissions

That’s an additional $12,000 per year! Talk about a pipeline to cash.

What if you took it even further? Because, of course, when you’re already selling SIP trunking, there are a few other things you should consider including:

  • Faxing services
  • IP surveillance systems
  • Video conferencing

When you add it up, you’re looking at thousands in extra cash each month…and years of potential upsells and cross-sells. All while adding a tremendous amount of value to your customers.

SIP Trunking is the Conduit to Cash – Peter Radizeski

Today, SIP trunks are sold as replacements for traditional phone lines (POTS) and PRIs (the ISDN T1 that usually is attached to PBX boxes). Since the Federal Communications Commission approved an order to sunset the old phone system, the carriers have been in transition mode from TDM to IP communications. Other providers (ITSPs) have been providing VoIP longer.

The SIP trunk is the base unit of VoIP, but its functionality is understated. The SIP trunk is the conduit to cash for partners. Here are several ways that the value of a SIP Trunk can bring a partner cash.

The SIP trunk converges the voice and data networks. The business no longer needs a dedicated voice circuit.

SIP trunking has disaster recovery built in. Most SIP providers offer redundancy of their switch and a means for customers to still receive calls if their internet access is interrupted. For example, all calls can go to voicemail, simultaneous ring can be turned on, or calls can be forwarded to cell phones (either beforehand in DR plans or on the fly).

SIP trunks can offer more features than a traditional phone line. For example, many SIP providers offer a portal to their customers to configure the trunk and its features.

If the SIP provider offers a cloud communications platform, the customer is just one step away from buying Hosted PBX. When the premise PBX fails, the customer already has a connection to the ITSP. It is a simple upgrade to add features. For example, if the voicemail system crashes, the ITSP can likely provide voicemail as well as the dial-tone.

WebRTC introduced people to the power of SIP and real-time communications. SIP trunks can power WebRTC, code that powers video and voice calls as well as screen sharing via a browser natively (without a plug-in to download).

It doesn’t have to be just voice calls. People use Apple’s Facetime all the time to make video calls on the go. Why not make video calls from the office? That can be done over a SIP trunk.

In short, the SIP trunk is more than just a simple replacement for dial tone. It is the beginning of the journey into cloud communications.

Peter Radizeski is president of RAD-INFO INC, a telecom consulting firm in Tampa, FL. He has worked with more than 40 VoIP providers since 2003.

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