SIPTRUNK BLOG

How to Build a Business Reselling SIP Trunks

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Did you know that successful entrepreneurs share some common traits? Passion, money management, and sales determination are all part of the equation. Honing your skills on the right product and price point can drive your business to real success.

The business communications infrastructure is undergoing a huge change. Telephony is no longer limited to a few large telephone companies and PBX manufacturers. VoIP (Voice Over Internet Protocol) is now the order of the day.

Be at the forefront of change with SIP trunks.

They’re ready to offer the flexibility and price not previously available. VoIP requires at least one SIP trunk channel, more as business call volume increases.

Read on to learn more about reselling SIP trunks as a valuable part of your business plan.

The Changing Business Communications Market

Telephone use in business is decreasing and slowly evolving to mobile-based communications. Fixed phones on desks and voicemail are giving way to text messaging, email and the like. While this is fine fodder for comedians, changes in how we communicate open up opportunities.

Voice and data service is no longer entirely dependent on the big copper wire utilities. Advancements in VoIP (Voice over Internet Protocol) services removed one of the greatest barriers to competition. No more huge infrastructure investments to get into business for yourself.

If you have the moxie to build and sell a phone server using a $50 Chromebox and some channels bought in bulk, you’re ready to take over the world of business phone systems.

Low Installation Costs, Low Sunk Money

Resale of SIP trunks makes perfect sense if you are already an existing IT or telecom integration business. You already deal with the necessary hardware. Depending on how your clients connect — self-hosted or cloud-based — infrastructure needs vary.

Either way, your cash outlay — and theirs — is minimal. An on-premises phone server can be created with an inexpensive purchased server and housed with other computer servers at the office. Buying cloud server space is also inexpensive.

The least expensive startup is simply offering a simple, one-price, SIP channel with no complications. Let your clients take care of their own setup. In this scenario, your only investment is your website and marketing.

The Margin Is Good

Right now, businesses buying traditional phone service from their local or regional telecom provider are paying at least $59.00 a month, each line. Including unlimited long distance, the charge jumps another $40.00 a month per line. That doesn’t include the exorbitant installation fees.

SIP trunking rates can be less than $0.01/minute with far less complexity than the traditional “guess and overpay” method of telephone billing. The mantra of any resale business is “buy low, sell high” and SIP trunk resale meets these criteria.

Imagine a medium-sized shop with two phone lines and a thriving delivery business. They might use 2,000 minutes a month. For those a little math-challenged, that means that each phone line is actively talking around two hours total each day.

You can set your client up with a 2,500-minute bundle with three direct-dial lines for about half of what they currently pay. Or give them even more services and an unlimited channel for one low price.

Market Is Growing

Did we mention the market is growing?

Verizon and other large wire-owning carriers are phasing out their wire services. Landlines use traditional copper wires of last century’s technology.

Most U.S. carriers will be phasing out service by 2021. Verizon stopped offering new PSTN services to businesses in 2013 and completes its switch for businesses in 2018.

Legacy businesses are now forced to adopt bridges to their old PBX systems or adopt new VoIP technology. As an entrepreneur, you can be poised to take advantage of this change. Landline systems are reliable and time-tested, but when they are no longer supported, they become paperweights.

Nearly all new business telephone service is now VoIP. VoIP requires SIP trunks. According to IHS Markit, the SIP trunking market will reach 53 million by 2021, when the last of the business copper is scheduled to end in North America.

Make a Business of SIP Trunks

There are three points to take away from the IHS Markit report:

  • SIP trunking revenue grew 12 percent year-over-year in 2017.
  • SIP trunks increased 26 percent year-over-year.
  • SIP trunks are less than half of existing installed business trunks.
  • North America comprises 59 percent of trunks, but all regions are growing.

Clearly, the business world is moving to VoIP. SIP is the communications solution of choice for business telephony. SIP trunks are no longer unfamiliar technology.

Helping businesses switch their unsupported PBX systems to modern systems will improve reliability, flexibility and allow for centralized services. It’s ideal for multi-site businesses and easy to sell.

After all, you’re offering to limit the risk of system failure as copper phases out. You’re offering a system that can absorb seasonal or sudden changes in call volume at a considerable cost saving.

How to Get Started as a SIP Reseller

There are communication opportunities everywhere. If you have 60 seconds, you can be in business as a SIP trunk reseller. Fill out this form and you’re on your way!

The market is expanding and the need for services is becoming urgent. If you are an IT consultant or telecommunications professional, you can easily generate ongoing sales through private label SIP trunks. You don’t need a huge amount of capital.

Clients need SIP trunking and VoIP to replace their existing services. As a one-stop shop, you offer them a great opportunity to save money, improve their efficiency and avoid the risk of a break in their business operations.

Need more information? Keep reading our blog for ideas.