Turn-Key VoIP Calling Card Business Model
Turn-Key VoIP Calling Card Business Model
Using a turn-key VoIP business system with a built-in Global Calling Card Business offers 2 distinct business models.
- Retail Calling Cards (Direct to market)
- Wholesale Calling Cards (Via Distribution Channels)
The Retail Call Card business is lucrative especially when focusing on ethnic markets to specific Countries. The margin between the wholesale rate paid by you as the calling card company and the rate paid by the end user can be as much as 50% profit, however, on average it is 40% profit. The profit is based on the difference between long distance cost of the client and the provider termination costs via a carrier. You may want to add costs to these spread sheets and in addition, increase the number of calling cards sold based on your expected marketing efforts. The direct marketing effort is more costly, however, in combination with the wholesale calling card business, the profits are substantial.
Wholesale Calling Cards business is where the firm hosts the applications and allows other telecommunications firms, marketers, and distributors to resell the service branded by the partner. This model is appealing because the volume of cards sold is greater and the penetration and control of the market costs less as it is focused on adding resellers to the network versus investing in marketing to obtain the end user. This model is most likely the cost effective method for growing a calling card business in a short period of time.
VoIP Turn-Key Calling Card Revenue Spread Sheet
Download calling_card_revenues.xls
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