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What is VoIP Reselling?

Updated on February 26, 2014
VoIP Reselling
VoIP Reselling

What is VoIP Reselling?

The tremendous growth of the VoIP industry has led to the creation of many opportunities for both individuals and businesses. There is a growing market for experts in the areas of security assessment, installation and maintenance, network monitoring etc. In the same vein, VoIP reselling can be the perfect business model for those looking to supplement their existing IT business with additional services for their clients.

VoIP reselling works similar to the way in which many Internet services such as web hosting and domain registration are resold. Web reselling became popular thanks to freelance web designers who would buy bulk hosting space from ISPs and resell them to clients. This enabled them to offer customers a consolidated package for designing, developing and hosting a website. VoIP resellers are usually consultants, network specialists and other businessman in the IT industry who wish to become a one-stop destination for IT/telecom services.

White Labeling

Many VoIP service providers offer white label VoIP solutions which can be used by resellers to offer services under their own company brand. The vendors usually provide wholesale rates for calling and resellers are free to customize price lists based on their individual customer needs, thus making a profit. Typically resellers also charge for network assessment, installation and maintenance which provide a large profit margin.

Consultants and freelancers who already provide IT services are able to sell additional services to their clients without any significant capital outlay. Customer support, price lists and profit margins are completely within their control, ensuring a substantial value addition to their core business that does not have much risk. Although individual reseller agreements may vary, most vendors offer integrated billing and allow the reseller to brand the service in any manner they choose. In general, they are not obligated to disclose the name of the primary service provider either.

Is it for Everyone?

VoIP reselling can also be useful for vendors, especially for smaller operators who cannot afford to spread their marketing efforts too thin. Certain business segments may also be more receptive to sales pitches from a trusted consultant. Resellers can concentrate their sales efforts on such specific market niches which might otherwise be inaccessible to the primary service provider. Reselling also offers a way for vendors to utilize excess capacity that they might have.

VoIP reselling can be very lucrative and offers substantial benefits to both the primary service provider as well as the reseller. For IT specialists who have the necessary expertise and a built-in client base, reselling business VoIP services is an easy way to increase revenue and profit margins.

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