VoIP Reseller Program News

At this point, there's not much left to figure out about the future of VoIP. VoIP is the future. And this early, we are seeing where the industry is headed in 2012.

The Numbers Are In

Legacy voice service subscriptions declined during the third quarter of 2011; and by the looks of it, this will be the trend. The performance of wireline service companies offers proof. AT&T wireline subscriptions went down by 10.5%; Verizon's by 7.6% and Century Link by 6.8%.

On the other hand, VoIP companies continue with their upward trending performance. There is some slowing down for cable companies that offer VoIP. This is attributed to "cord cutters," or those who opt to go wireless, as well as the current state of the economy. Still, growth is seen across the industry's many players.

Consumer VoIP has enjoyed an impressive jump. Testament here is AT&T U-Verse, with it's 648,000 increase in subscription for one year alone.

The numbers of some of the more visible VoIP service providers also speak volumes on how telecommunications is trending towards VoIP's dominance in the future. Comcast, for instance, now has 9.2 million VoIP lines, which translates to a penetration rate of 17% for the third quarter of 2011. Charter, on the other hand, has 5.4 million subscribers and a 16.3% home penetration rate. Time Warner Cable has 4.6 million.

In Time Warner's case, the company was able to gain 13,000 new business lines during 2011's third quarter. Even with a 5,000 decrease in residential VoIP users, they made headway into this lucrative sector.

The Future of VoIP

Everything points towards continuous growth in the VoIP industry. Even with declined increases in cable VoIP services -- which some point out as the peaking of the sector -- there is still so much opportunities.

An example here is how enterprise, medium and small-scale businesses are shifting to VoIP. VoIP allows communications convergence, wherein data and voice meet in a single efficient platform that connects every need to know per day-to-day. It cuts costs and maximizes the use of a the IP network of the business.

Major VoIP companies such as Charter Communications, Inc. and Alliance Solutions knows about this trend and are tapping into the market through expanded business services. On Charter's part, it is now offering SIP Trunking services for medium to enterprise scale businesses.

These are step-ups that expand the opportunities for the VoIP industry in 2012. Undoubtedly, VoIP has made its mark. It is on track to take on the new year.

Sources: Consumer VoIP services grow in Q3But cable operators' success with VoIP may have peakedBy Larry Hettick, Network World http://www.networkworld.com/newsletters/converg/2011/112811convergence1.html

Charter Business SIP Trunking to Expand Improved Communications with Cost-Effective Voice Offering for Medium and Large Business http://www.fierceenterprisecommunications.com/press-releases/charter-business-sip-trunking-expand-improved-communications-cost-effective?utm_medium=nl&utm_source=internal

Joining an online reseller program can help you get through today’s harder economic reality. With easier access to fast internet, you have many options. Some of which can provide you with ample returns for the amount of time and capital you are willing to put in.

The key is in choosing the right program for you. For one thing, there are several industries to choose from. Popular ones include those in the web hosting, ISP and VoIP industries. Among these, VoIP reseller programs are considered some of the best, based on current industry trends.

A study made by the Infonetics Research found that the demand for VoIP services is increasing at an impressive rate. This is partly due to lower call tariff rates and VoIP equipment costs. Likewise, VoIP technology is improving and is seen as comparable to (if not better than) traditional telephony. Thus, there is so much potential to expand its market reach further.

There are several VoIP reseller programs to choose from. VoIP companies like Alliance Solutions and Vonage have different VoIP reseller program options that come with a variety of features.  If you’re interested in joining one of these, you should consider how much time and capital you are willing to invest. Returns are often exponential to what you put in. Likewise, know what you need as a VoIP reseller and know what the different VoIP companies are offering.

VoIP Reseller Program Options

1. Affiliate Programs: Affiliate programs aren’t really VoIP reseller program. However, it is a common marketing channel for many VoIP service providers and members (or referrers) have been able to make sizable profits through these programs. Affiliates earn commission in the form of cash or service whenever they refer members through their referrer signup link. You will need to know a little bit about SEO here.


2. Non-branded VoIP Reseller Programs: For these types of VoIP reseller programs, the VoIP service provider’s brand is retained. The reseller merely acts as a dealer or distributor; and earns commission or mark-up off each membership sold. It is somewhat necessary that the VoIP service provider has a good reliable name so that its reseller can easily sell their services. Some non-branded VoIP reseller programs offer tools and features to its resellers, such as hosting facilities, default web pages and signup forms. Other programs may require for resellers to devise their own.


3. Branded Reseller Programs: If you want to build your own VoIP brand, the branded reseller programs are the options for you. Several VoIP service providers offer these programs, such as Alliance Solutions and Vonage.  The different VoIP reseller programs come with a variety of inclusive features and reseller support services. Some VoIP reseller programs package in all that a reseller might need, such as hosting, website, signup pages, billing and administration control panel. Others may even provide customer and reseller support. And of course, there are those that require their resellers to provider these for themselves.

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A common marketing issue faced by VoIP resellers is the ATA expense. Some prospective customers may see the ATA equipment cost as an extra; thereby, barring them from switching to VoIP services. The ATA, as you may know, is a requirement for the convenient use of VoIP as a replacement to traditional phones.

There are several approaches that a VoIP business can take to address this issue:

1. Box rental scheme: With this approach, a VoIP reseller can opt to shoulder the initial ATA cost and recoup through compounded rental fee revenues.
2. Activation charge: Through this approach, a VoIP business “hides” the cost of the ATA through a blanket initial charge. However, this just seems to be a “tomato, to-mah-toe; potato, po-tah-toe” kind of arrangement. The prospective client will still need to shell out a good amount at the start of the service.
3. Required ATA purchase from a 3^rd party: This scheme separates the VoIP reseller from the required ATA equipment purchase. Thus, it can claim low initial and monthly fees. The user also gets the option to buy cheaper ATA equipment, rather than those packaged into VoIP services. The downside here is that a separate ATA purchase can be an inconvenience to the user.
4. ATA purchase as a separate transaction: In this scheme, the VoIP reseller will still offer ATA equipment along with its VoIP service. The difference is that this is treated as a separate transaction. The user can opt to buy through the reseller or a third party, depending on model, price and convenience.

For the Well-Funded VoIP Reseller

For a VoIP business that can afford the cash outlay required for its users’ ATA equipment, the best way to go is through a box rental program. Standard pricing here is about $5 a month, which is affordable for most users. This way, the prospective client spreads out the cost of the equipment. The VoIP reseller, on the other hand, can potentially earn from rent after some time.

For a Less Well-Funded VoIP Reseller

A VoIP reseller with less financial means can have its customers purchase their box right up front from them or through a third party source. While this might turn off some clients, it does get the requirement out of the way. The VoIP business can offer purchases through them or a third party. They can also offer advice on the best ATA equipment available. From experience, Grandstream ATAs have the best bang for the buck.

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The news is months past but people are still talking about the partnership between Verizon and Skype Mobile. Logical rivals, this marriage between VoIP and mobile telephony can only mean one thing for the VoIP industry – that it is truly poised for a takeover.

The Time Has Come for Mobile VoIP

In the Verizon and Skype Mobile partnership, Verizon customers can choose to download Skype’s mobile software and use it to stay online, make free Skype-to-Skype calls, or even call international at cheaper VoIP rates. This is available to any Verizon user with 3G-enabled handsets and the appropriate data package. While such partnership can eat up some of Verizon’s call revenues, it can encourage consumer loyalty and some profit through data packages. After all, in the changing telecommunications landscape – where value and quality are coming together via the VoIP industry – mobile carriers have no other choice but to adapt.

Contrast this with AT&T, which continues to fight a losing fight, even choosing to contest the venerable Google’s own mobile VoIP software. Considering the trends, this is a vain attempt to slow down what’s inevitable. With the consistent availability of Wifi, people will opt for the more affordable VoIP options, and the mobile carrier that gives them these options.

Trends in Mobile VoIP

VoIP industry analysts expect  an increase in VoIP minutes this year. The increase is estimated at 15 billion, which would bring the global total to 470 billion minutes. According to studies, more than one fourth of this is in the United States.

3G networks are credited for this rising trend. When wifi becomes easily available, anywhere even in some buses and trains, it makes mobile carriers vulnerable. This used to be solely their turf.

The delivery of mobile VoIP services is through mobile carrier partnership or VoIP application download. Partnerships like Verizon’s and Skype’s legitimize this setup, while other users have found run-arounds that enable their smartphones for VoIP services.

This is a clear indication of a shifting preference for VoIP services. Once regulated to the side lines, VoIP has come of age as the more affordable and accessible telecommunications option. In fact, analysts estimate that mobile carriers will lose traffic and profit to the VoIP industry today and for a long time to come. By 2015, their loss is estimated at $5 billion. If at least a fourth of this is in the US, then it spells a big problem for US mobile carriers.

At this point, building partnerships seems to be the better strategy as it can lessen the impact of mobile VoIP.

Implications of Mobile VoIP

Those in the VoIP industry and even entrepreneurs who want a piece of the VoIP pie know this can only mean one thing – that VoIP is slowly becoming the standard in reliable, affordable and good quality telecommunications. Despite past setbacks and technical glitches, there are more options today for VoIP wholesalers, resellers and consumers. The ready acceptance and use of mobile VoIP is an indication of changing attitudes and preferences. Consumers are opting for VoIP – the value and quality it offers. It is up to businesses to take advantage of this.

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When new to the VoIP industry, one of the most important steps to take is to pick out your competition. This allows your VoIP small business to get a clearer focus of your target market, and align your marketing strategies. The biggest mistake that could be made here is to select the “wrong” VoIP competition.

For example, if you pick a competitor such as Vonage, you may be setting yourself up to make the same mistakes they did/do. Vonage has been reputed to provide only so-so VoIP services. Add to that, they’ve pegged these service so low that they’ve resorted to “other fees.” If you try to compete with their pricing, you might end up offering your customers the same so-so services, while not earning enough to become a profitable business.

Your “True” VoIP Competition

When you become a VoIP small business, it is important to partner with a good wholesale VoIP service provider. This way, when it is time to market, you can push for higher reliability and service quality. Your competitors, in this case, are cable companies.

There are several advantages to focusing on cable companies as your competition. First of all, these companies are in a vulnerable position. Customers seem to have an innate distrust of these companies, perhaps rooting from years of impersonal and sometimes inattentive support. As a VoIP small business, you can provide your prospective customers with something different than what they’ve come to expect from cable companies. This way, you align yourself with cable companies while differentiating your business.

Likewise, the niche that cable companies cater to is actually a good target for your VoIP small business. These prospective customers are known to value quality, not just pricing. This gives you enough leeway to cost your services where you can get enough profit. The contention is that you provide good VoIP services – something definitely better than Vonage and these cable companies.

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The Cornerstones of the VoIP Customer Experience 1: Presented Image

For the longest time, many VoIP services where you can actually get “real savings” from have been under the shadows (or notoriety) of Vonage and MagicJack, their more popular counterparts. This is, of course, with all due respect to Vonage for its pioneering history – and, in some ways, MagicJack too, for its marketing innovation. The popularity of these brands has helped catapult the public image of VoIP as the practical telecommunications option.

Still, it raises questions. Are Vonage and MagicJack the only real choices for the best VoIP services? Or, is their popularity doing the rest of us a big disfavor? (Us, being legitimate wholesale or retail VoIP service providers with better and more affordable services than Vonage’s and MagicJack’s).

Vonage: Why it’s Not Really Cheap
Vonage is being sold as one of the cheapest, if not the most, amongst the VoIP services around. Is it really? Let’s add things up.

You will need to get set up before you can start using Vonage services. First of all, you need to make sure your broadband internet connection averages between 90 and 200 kbps. If it doesn’t, Vonage VoIP services may not work for you. You also need to get a Vonage branded phone router or adapter. You can’t opt for the cheaper generic routers or adapters.

When you’re finally good to go, you have to contend with the real cost of being with Vonage. Their basic VoIP fee is just that – basic. In reality, you will have to pay for other fees. These include the “Enhanced 411” and the “Regulatory, Compliance and Intellectual Property” fees.

Plus, should you be dissatisfied with Vonage’s VoIP services, you need to make sure that you are still within the 30-day money back guarantee and that you’d have enough patience and time in your hands when you cancel. To do this, you will need to call their toll-free number, which will dutifully put you on hold for about 30 minutes. If you cancel after the money-back guarantee period and before you hit your two-year anniversary with the company, you need to pay a cancellation fee.

MagicJack: Hyped Up?
MagicJack is another VoIP phenomenon that you just can’t stop hearing about. The MagicJack is simply a USB devise that contains software and configuration that allow the user to make free calls to the US, and free international calls to other MagicJack users worldwide. Calls are facilitated by YMAX, their sister company. Your initial year with MagicJack is free; following years come with a $19.99 fee.

Nice, right? Well, there are downsides to all this.

First of all, to use the MagicJack, you have to be on your computer all the time. That’s extra cost right there and a great inconvenience. Plus, when you’re logged in, you get sent tons of ads. There is no way of turning this off. Your call data (the numbers you usually call etc.) is mined and processed to push more targeted ads your way. There’s a practical lack of privacy when using the devise.

Where There’s Real Savings In VoIP
As it is, there are too many “fringe” costs to using Vonage and Magicjack to call them the cheapest and best VoIP services available. Other VoIP service – those that don’t necessarily have rock-bottom pricing – may actually be the better options. Real savings rarely come with the lowest price anyway. You’d have to go deep and add things up.

For consumers, the best way to go about shopping for the best VoIP services is to do your homework first. Hit the online forums and review sites for unbiased reports on the VoIP service provider you are eyeing. Prepare a list of expectations and features you’d want. Really think about how you intend to use your VoIP services. Will you only be using it occasionally? If this is the case, then maybe one of the free services is better for you? Or, if you want your VoIP service as replacement for your traditional phone line, then it might be best to go with mid-priced or high-priced VoIP services that offer true convenience, affordability and flexibility.

For resellers wanting to get into the VoIP industry, it is necessary to have an intermediate understanding of the technology. You should have an idea about the differences between the companies offering wholesale VoIP services. There are VoIP companies that offer low resellers fees. Yet, you’d end up losing your customers to them eventually; or becoming merely a call card shop. If you want to be a true-blue reseller digital telecommunications company, then do a background check on your prospective provider. Ask them about their technology and the details of your business relationship.

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While we’ve talked about Branded Reseller VoIP solely, it is not your only option if you want to get into the VoIP industry. The harder and more costly option is to put up your own VoIP, from scratch.

The cost here is at least a hundred times your average cost for signing up with a wholesale VoIP company. There are reasons to go this road, of course. It is more suited for businessmen with enough capital and time to put up the necessary hardware, software and data/switch centers in order to market to a broader spectrum – that is, resellers and end-users. With this setup, it usually takes a couple of years before you can break even. Likewise, you will be responsible for consistent upgrades and maintenance, as well as the usual network attacks, frauds, spams, online terrorism and what-have-yous.

All things considered, if you still want to put up your VoIP from scratch, here’s what you need (at the very least):

1. 2 trunking sources
2. A system to manage the trunks, according to routing fail-over capacities and rating, as well as track destination-specific trunk failures
3. A system to manage end user connections
4. A system to auto-configure ATAs for residential customers
5. Class 5 features servers
6. A system to control your VoIP service’s “extra” features and voice mail services
7. End user interfaces where your customers can configure their features, access their account details and more
8. Database servers for your tons of user data
9. Full-featured web servers
10. Switching systems that can be controlled via direct web APIs or database.
11. Technical and customer support systems
12. Billing platform for recurring billing, and equipped with fraud monitoring systems

Now, this is just the systems end of the deal. In order to have all these up and running, you need a major investment in hardware. These are what you’ll need, for starters. You will be able to serve only up to 2,000 users with these minimum requirements:

1. Two database servers
2. Two web servers
3. Two session border controllers
4. Two class 4 switch servers
5. Two voicemail servers
6. A redundant network-accessible mass storage system for voicemail

All in all, this sums up to about half a million US$. There are free software available in the market, sure. But, from experience, these end up costing you more. First of all, none of these free PBX can be used for your residential customers. You need a separate investment for that. At the same time, you will need to develop a session border controller for this. As for asterisks, you need to develop dialplans. You can do this if you hire very expensive professional help.

Likewise, the cheaper options for softswitches have limitations. The softswitches that go for up to $30,000 are only designed to work as “call-shops” or “dial-around.” They won’t do anything for end-user dial tone delivery. For a passable softswitch, you need at least $65,000. The more capacities and load it can handle, the more expensive it gets. Those capable of real end user server go for at least $150,000.

In any case, it can be a worthwhile investment of time and capital if you really want it. The VoIP market is still very much wide open and there are opportunities for you. Of course, if what you want is to quickly expedite your marketing plan and take advantage of the burgeoning market, then the reseller VoIP route is the better option.

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It’s a sales formula that, unfortunately, many businessmen still hold foremost. It goes like this: you get a cheap product, offer it for a little markup; and, since it’s cheap, many people will buy. The assumption that mass selling can result in profit is a mistake that many have made.

Definitely, this formula has no place in the ever-competitive VoIP industry. Of course, there are those companies (hello, Vonage?!) that claim to sell cheap. However, if you inspect their payment terms more closely, you’ll find a bevy of “hidden fees.” In truth, these companies are priced in the middle, and not at all cheap as they claim. This practice, while it saves their business from financial meltdown, can turn off customers.

And then, there are also others in the VoIP industry who opt to sell cheap VoIP through cheap low-quality VoIP service. They package the service real nicely, making it attractive to bargain hunters. Yet, in the long run, customers tend to abandon because of poor quality, regardless of how cheap they claim to be. (If they need to suffer when it comes to quality, then might as well opt for free services like Skype’s, right?)

Factors in VoIP Pricing

When entering the VoIP industry for the first time as a reseller, you need to factor in several considerations before you can optimally price your product. First, you have the cost of your wholesale VoIP service. Good quality service doesn’t come cheap. You will need to put in a little extra here, compared to what you would pay with a cheap VOIP service provider.

Yet, having a great wholesale VoIP provider is crucial to your service package. The investment you will need to put into advertising and promotion, as well as customer service, becomes more worth it. This is because you end up with a product that, when marketed correctly, can gain you loyal customers who don’t mind paying a little more for good-quality VoIP service. Your service is actually used – if not preferred – by your client base; and account/registration renewals can be expected.

Of course, before you get to this, you need to sell your product. You will need to spend on acquiring your loyal client base. Customer acquisition cost can make a difference in your product pricing. It can be a daunting number but keep in mind that this also gets you quality customers.

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I just got this in the mail. And while a dollar is just a dollar, it can sum up to a lot for a company like Vonage. And yeah, they offer one of the lowest rates in the VoIP market but if this new charge is not a "hidden fee" then I don't know what it.

First of all, I do not appreciate not having a choice about my "Enhanced" 411 and E911 services. This is basic service that's provided by ALL VoIP companies -- they are obliged to. And then, add Intellectual Property to my Regulatory and Compliance fee? Is this even a real item they can charge for?

Not to go ballistic again about Vonage... I do respect them for pioneering in the VoIP industry. However, I do appreciate some straightforwardness in the companies I use and admire.

If Vonage has to raise fees, why can't they say so. Their price is already impossibly low. I honestly can't imagine earning off it, even for something as big as Vonage.

______

From: Vonage Customer Care [mailto:VonageCustomerCare@services.vonage.com] 
Sent: Monday, April 12, 2010 10:28 PM
To: *******
Subject: Important Information About Your Vonage Account

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In my last article, I said that the audio codec is one of the cornerstones of the customer experience. That kind of begs the question, "What are the others?" As it turns out there are quite a few corners to the customer experience. In order of contact they are: presented image, initial expectations, enrollment process, service deployment, call completion, audio quality, dial pad features, technical support, and customer service. I'm going to run briefly through each of these here. The audio quality is already addressed at length in its own article and I might just turn the others into their own articles as well. Each could certainly be the topic of an entire book if I had that kind of time on my hands.

Cornerstone of VoIP Customer Service 1: Presented Image

It is critically important that the first impression be the right one for your prospective customer. They are used to communications companies being big, smooth, and somewhat uncaring. Somehow the wire-line providers have managed to align their images with the same kind of detached professionalism as commonly seen in medical specialists. Managing to establish an image like that is an admirable accomplishment from a marketing standpoint because the customer has been made to actually find comfort in mild (or not-so-mild) abuse.

For someone marketing a replacement phone service, this is a double-edged sword. There is room to sway the prospective customer with a promise of better service, but this must be done without portraying a certain well-meaning incompetence. Having witnessed everything from a keg-tapping motif all the way to direct knock-offs of the wire-line provider, it seems that the best approach could be described as living on both sides of the spectrum at the same time. The cold, big, unstoppable part of the wire-line image is a keeper. The promise of better service should be presented as a sound business tactic and not an emotional appeal. Something to the effect of, "We are committed to maintaining superiority in the marketplace by setting new standards for customer satisfaction through service." You can use your own form of corporate-speak, but you'll notice that there is nothing touchy-feely about that statement: We want your business and we're going to earn it by giving you good service NOT we want you to FEEL happier about a NICER provider. Within the context of the industry, the latter paints you as the village idiot.

-- SVJ

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