SIPTRUNK BLOG

Why Sell Wholesale VOIP?

wholesale voipAre you looking to build a business with relatively low startup costs? Do you want sustainable returns over the long-term? Selling wholesale VOIP could be your ticket.

There were nearly 75 million VOIP subscribers in the U.S. in 2014. By the end of 2018, that number is expected to grow to 120 million.

With a growing and stable market like that, it’s not difficult for savvy business owners to get a slice of the pie.

This overview can help you get started and forge a path to success.

What is Wholesale VOIP?

VOIP (voice over internet protocol) is technology that facilitates point-to-point communication. It uses the open internet instead of public phone networks.

VOIP companies invest in technology to build vast and reliable VOIP capacity. There is no end to the number of users their networks can serve.

But finding individual residential and business customers is time-consuming. It’s not the core competency of VOIP providers. Instead, they offer wholesale VOIP to resellers who then find customers and get them connected to services.

Why Become a VOIP Reseller?

In a word, reselling wholesale VOIP is profitable.

From the user’s perspective, VOIP is more attractive than traditional landlines.

Calls can be made and received using traditional-looking handsets, computers, or mobile devices. There are no per minute long distance charges. Many times, video calls require no special setup.

Individuals and businesses want VOIP. But they don’t always know who to buy it from or know what’s needed to set it up.

That’s where resellers come in.

Wholesale VOIP is the raw material of a VOIP reseller business. But it’s marketing and customer service that determine the success of that business.

From the perspective of capital investment, marketing and customer service costs are small. That is, you don’t need a lot of upfront money to resell wholesale VOIP. You can do wonders with t’s more about so-called sweat equity.

In other words, put the effort into good marketing and customer service practices and you can be profitable in a short time.

That’s why becoming a VOIP reseller is a smart move.

You Don’t Need to Be an Expert

Technical wizardry is not required for reselling wholesale VOIP.

A basic understanding of the technology and what’s needed at the customer’s end to make it work is all you need.

But over time as a reseller, you are likely to build expertise in certain aspects of VOIP technology. It’s not uncommon for business owners to leverage that skill and experience to expand their offerings.

Extra potential revenue can come from consulting and speaking at conferences and workshops.

The best way to build a profitable business is to focus on one VOIP technology, also known as VOIP protocol. Choose the protocol that best aligns with your skills, target market, and business plan. Resist the temptation to be everything to everyone.

Focus can help you build sustainable revenue streams in a short time.

VOIP Technologies (Protocols)

There are several protocols designed for VOIP. Each has its strengths from perspectives of back-end operation as well as end-user functionality.

When setting up your reseller business, you need to choose which wholesale VOIP protocol will be at the root of your business.

The two most common protocols are:

  • H.323
  • SIP (Session Initiation Protocol)

H.323 is the protocol the International Telecommunication Union (ITU) recommends. It uses a unified philosophy to provide audio-visual communication sessions on any packet network. It addresses multimedia transport and control and bandwidth control for point-to-point and multipoint conferences. For those reasons, it’s often used for video conferencing.

If you are seeking to build a business that caters to event planners or large public venues, take a look at H.323.

In contrast, SIP uses a modular philosophy. It can provide voice and video calls, internal IP telephone systems and point-to-point instant messaging. Newer than H.323, it has been standardized by the Internet Engineering Task Force (IETF). The modular nature of SIP makes it easy to add features and functionality if a customer needs them.

If you want your wholesale VOIP business to target resellers with individual or small and mid-sized business customers, take a look at SIP.

Marketing and Customer Service

As mentioned, marketing and customer service are the keys to a successful VOIP reseller business.

If these aren’t your strong suits, don’t worry. Start with a simple marketing plan that defines, at a minimum, your target customer, specific goals, and critical metrics. With those important pieces in place, you can hire freelancers to help you with the tactics, if you want.

Apply the same “start small and keep it simple” approach to your customer service plan. If you always strive to provide a positive customer experience at every point of contact with your business, you will make the right decisions about tactics.

Remember, yours isn’t the only business reselling wholesale VOIP. And there’s only so much leeway for offering different pricing.

The way to get and keep customers is by providing extra value. Help them know what equipment and infrastructure they need. Guide them through setup and testing. Listen to their feedback and make changes, whenever possible.

Keep customers satisfied (if not wowed) and you will earn their loyalty and new customer referrals.

How Profitable Is Reselling Wholesale VOIP?

It’s impossible to put an exact figure on the profitability of being a reseller. Each business owner has different operational costs, which include marketing, customer service, administrative.

But most wholesale companies offer VOIP services at low wholesale rates and attractive reseller commission structures.

Reselling wholesale VOIP can be so profitable that some businesses use it as an additional revenue stream separate from their core products or services. In other cases, individuals do it as a side job that doesn’t take excessive amounts of time away from their day job, family, or hobbies.

Next Steps

No matter the size of your resale business, finding a reliable VOIP wholesaler is the most important first step toward success.

Since SIP is popular among individuals and small to mid-sized businesses, it’s a good choice for starting a VOIP resale business.

At SIPTRUNK.com, we make it easy to get started as an independent reseller. Our platform makes it easy for you to sign, setup, and manage customers of all sizes. Our technology is reliable, our support is extensive, and our commissions are generous.

Learn more about working with us and reaching your financial goals sooner, not later. We look forward to hearing from you!