Whether you are a wholesale SIP Trunking provider or just using the technology, there’s one crucial question to ask yourself. Are you fully capitalizing on this technology?
At its core, Session Initiation Protocol (SIP), popularly known as SIP trunking solutions, syncs traditional phone systems with modern technology. Even so, it’s much more than that and can be an invaluable revenue stream in the future if used to great effect.
As such, there is a need to reevaluate your SIP trunking monetization strategy. If you don’t have one, you can’t afford to lose any more ground.
In this article, you will learn more about becoming a SIP trunking reseller and why you can’t afford to miss out.
Wholesale SIP Trunking | A Look at the Industry at Large
The thought of a new and possibly lucrative revenue stream is exciting. Nonetheless, it’s important first to explore its foundation. As a whole, the telecommunications sector has been growing steadily. While doing so, it’s also increasing the opportunities for telecommunications resellers.
This is just the tip of the iceberg for telecommunications resellers. With the rollout of 5G progressing, further growth, at a CAGR of 7%, is expected. As a result, the market is expected to reach $370.63 billion in 2025, up from $273.57 billion in 2020.
Why Should You Start a SIP Trunking Business?
Effective communication is an essential ingredient for organizational success. Any delays or errors can have a significant impact on collaboration, efficiency, and productivity. According to a recent survey, organizations lose approximately $37 billion annually to communication barriers.
In this regard, traditional PBX systems are a significant barrier. On top of being inefficient, organizations also have to purchase numerous lines. Scalability is one of the reasons why companies are swiftly transitioning to SIP trunking. Beyond the convenience it offers, it’s also more efficient and economically feasible.
Benefits of SIP Trunking to Organizations
Increasing competition and the need to provide reliable services are putting pressure on enterprises to improve communications mechanisms. Due to the features and capabilities SIP trunking offers, it’s becoming a necessity.
Some of the benefits organizations enjoy from SIP trunking include:
1. Unified Communication Systems
Beyond being cumbersome, disjointed communication systems cause delays. SIP trunking will allow your enterprise clients to use one IP-based network for varying data transmission needs. These may include video, voice, etc. With this, they eliminate the need for multiple overlapping networks and accompanying costs.
2. Boosts Productivity
At the core of company success is employee productivity. On top of individual proficiency, this greatly relies on collaboration. As SIP trunking improves and accelerates communication, it will enhance employee productivity. Instead of worrying about how to reach someone, they’ll spend their time on meaningful tasks.
3. Easy to Manage
While adopting a new solution may be intimidating, there’s no reason for this with SIP trunking. These systems are straightforward, making them easy to use and manage. Moreover, they also have intuitive platforms that can guide users, so employees do not need to rely on IT teams for assistance.
4. Flexibility and Scalability
The desire to scale is natural for any enterprise, however, traditional phone systems are a deterrence as scaling them is expensive and time-consuming. Since SIP trunks rely on an internet connection, there’s no limit to how much a company can scale, and it’s inexpensive and fast.
If efficiency and convenience are not enough, lower communication costs will certainly convince enterprise customers. This is arguably the primary reason why businesses turn to it. While providing a more reliable communications solution, SIP trunking also reduces communication costs by 25-60%.
This is how it reduces communication costs:
- Businesses can buy only what they need
- It eliminates a significant portion of local and long-distance fees
- It reduces administration needs
As an organization, poor communication and unreliable systems can be detrimental to operations. They demonstrate to clients that you are not dependable and may be unreachable when they need you. And this is exactly what companies using legacy systems deal with regularly. When events such as circuit or power outages occur, communications shut down.
With SIP trunking, all these disappear or are greatly minimized. Even if there’s a problem with the system or power, it will automatically reroute calls to mobile phones or another office with power. This ensures companies are always in touch with their customers, suppliers, and partners.
7. No Contracts
Another key benefit that enterprises enjoy is the flexibility that comes with SIP trunking. Unlike legacy solutions, there are no contracts involved. They are not committed to any provider for a long period. If the service does not meet their standards, they can easily switch providers.
How Will Wholesale SIP Trunking Benefit You?
There’s a lot of excitement among telecommunications companies about wholesale SIP trunking. Along with opening up a new revenue stream, it offers multiple benefits.
1. Enhances Your Value Proposition
As a telecommunications reseller, the basis of your success will be a loyal customer base. For you to maintain them, your services and customer service need to be great. Moreover, you should be their one-stop shop for telecommunications-related services.
It also allows you to add some value-added services that enhance user experience. Some of the options you’ll have with various services include:
Call Center Solutions/Message Broadcasting
- Autodialer/voice broadcasting
- Fax broadcasting
- Emergency alerts and appointment reminders
- Call centers
PBX sales and service
- Virtual numbers
- Hosted PBX
- Hosted IVR/ auto attendants
By adding SIP to your current services, you become an even more valuable element to their success. As the technology enhances their communication, it also increases their loyalty.
2. Consistent and Predictable Monthly Revenue
While generating income is always a good thing, it can be challenging if it’s inconsistent. Wholesale SIP trunking offers a fixed income stream. For each client you bring on board, you will receive a monthly commission for as long as they subscribe. This model makes predicting your monthly revenues from SIP trunking easy.
Moreover, it can grow gradually with minimum cost increases. But that’s not the best part. Predictable monthly revenue cushions you from cash flow challenges and makes it easier to make growth plans.
3. Additional Revenue Streams
In addition to being a revenue stream, wholesale SIP also allows you to unlock others. With these, you can increase the value of each client. Such additional revenue streams include:
- Inbound toll-free services
- Direct Inward Dial (DID) numbers
- International Long Distance
- Fax over IP of Fax to email
4. Hassle-Free Deployments
Being an internet-based solution, there’s no need to worry about tedious installations. This makes provisioning easy and can be done in real-time. Also, its flexibility allows you to configure it depending on needs.
If you are an IT firm, all you need to do is incorporate SIP trunking in your catalog. There will be no need for additional resources such as staff that may be costly.
5. Customer Satisfaction
Enterprise customers are in great need of efficient communications systems. It’s not a question of whether they’ll want SIP trunks but who they’ll get it from. Therefore, offering them a solution eliminates the hassle of searching for providers.
In addition, it’s also more convenient for them as you are their telecommunications provider. This means that they only interact with one brand for all their communications needs.
How to Get into the SIP Trunking Business
As a telecommunications reseller, getting into SIP trunking is not difficult, but it does require caution and strategy. Begin by expanding your knowledge of the marketplace. For this, you can use resources such as industry magazines, blogs, conferences, and trade shows.
From there, perform market research. Research involves identifying and assessing potential customers for your SIP trunking service. It’s also important to do competitor analysis. Try and find out how competitors structure their products so you can determine the appropriate pricing and ways to distinguish yourself.
Look for a reliable vendor once you understand the market and know how you’d like to fit in.
What to Consider When Choosing a SIP Trunking Reseller Program
While it’s possible to get numerous SIP trunking reseller programs to join, not all will give you an edge in the market. Some key factors to consider are the mode of implementation and rate plan flexibility.
A SIP trunk is an IP-based solution. It only makes sense for key functions such as implementation and administration to be online. Furthermore, with such hassle-free provisioning, you’ll have enough time to focus on your clients.
There are different ways to deliver SIP trunking services. Each caters to different needs. It’s essential that your provider offers such solutions. Otherwise, you’ll be locked in a box with only one option. Flexible rate plans come in the form of unlimited minutes and channels, and wholesale Trunks.
Get Off on the Right Foot
Undoubtedly, there’s great potential with wholesale SIP Trunking. However, it’s not just about entering the industry but doing so the right way and with adequate support. This is why the SIP partners you choose are vital.
SIPTRUNK is a company that makes it easier for telecommunications companies to unlock the value of SIP Trunk reselling. So, get started today to get your SIP Trunk reselling business off to a flying start.
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