So you want to start a bulk SMS business but don’t know how to do it?
This article is for you.
Since Neil Papworth sent that first SMS in 1992, the messaging world changed forever.
Even though instant messaging platforms continue gaining popularity, can any service replace SMS?
You might not be Neil Papworth, but you, too, can take advantage of bulk SMS.
We gathered insights from experts in the bulk SMS industry to teach you how to start and scale a bulk SMS business. To help you make enough money to fund your lifestyle.
Let’s go!
Why start a bulk SMS business? 4 benefits of starting a bulk SMS business
No one can deny the popularity of bulk SMS services.
Everyone sends text messages.
Is your rent due? Your landlord sends an SMS reminder.
Have you booked a flight ticket? Your airline sends an SMS with your flight details.
Do you have a package in transit? Your dispatch service sends an SMS for tracking purposes.
So the question is, “why do these people use SMS?”
The simple answer is that SMS is the easiest and most reliable way to communicate with anyone.
What does this mean to you?
It means a lot of business opportunities and customers if you run a bulk SMS business.
Below you’d find four benefits you can gain from running a bulk SMS business.
1. Cost-effective and high-margin
We don’t need to stress too much on this one. With little seed money, you can start a small bulk SMS business.
Sending a single SMS costs a few cents on average, and a bulk SMS plan can be as low as $40.
And what’s even better?
The reduced costs don’t mean that you’re getting less value. You can expect high results for just a few bucks.
In addition to that, you decide how much you sell your SMS services. This gives you control over how much money you make. In addition to that, you also control your profits.
2. No particular prior skill is required
You don’t need to be the most tech-savvy for your bulk SMS business. You don’t need any tech skills.
You can start your business with basic internet skills and an internet connection.
This means you can start right away. You can start today and start making money.
As you delve further into the business, you’ll pick up skills. And soon, you’d be using bulk SMS terminologies like any of the top 10 bulk SMS providers.
3. Easy setup
Bulk SMS services like SMSCountry make your setup easy and swift.
Once you understand how to start a bulk SMS business, you can set up your business in the shortest time.
With the ease of setup comes a faster time to market. So you can start selling your SMS services and making money in a matter of hours. Not days or weeks.
Here’s a pro tip. Choose an SMS platform with dedicated customer support and an easy-to-use platform.
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4. Wide reach
With an estimated 6 billion Smartphone users worldwide, your customers know that their SMS will reach their target audience.
That’s not all.
SMS has one thing going for it.
What’s that?
SMS has a 98% open rate. Compared to emails with a 20% open rate, it’s clear who the winner is here.
Mark Nielsen, Co-Founder of TextPower, says, “This is a great example of the power of texting to reach the vast majority of customers within seconds to change behaviour immediately.”
This apparent advantage makes your bulk SMS business an asset to your customers.
This means you’d always be in business.
We believe you’re ready and pumped to get started.
So in how many ways can you run a bulk SMS business?
The different ways you can run a bulk SMS business
You can choose any of these two ways to sell SMS services:
- Bulk SMS reseller
- Bulk SMS aggregator
We explain each of them below.
As a bulk SMS reseller
Starting as a bulk SMS reseller makes life and business super easy for you. This is because, as a bulk SMS reseller, you buy bulk SMS at a subsidised rate, and resell it to clients at a different rate.
For example, as a bulk SMS reseller, you can buy 1,000 SMS credits at $0.02 at a reseller price.
Then, you sell these SMS units to your subscribers at $0.04 per SMS.
At the end of the day, you’re making double your investment money.
Compare this to starting your SMS platform. You’d agree you have a lot to do, from purchasing your servers to setting up your bulk SMS gateway.
It doesn’t end there. You’d need to hire programmers, designers, developers, writers and managers to design and maintain your platform.
Does this sound like something you want to do?
Instead, you can go another route. That is, start with an established SMS service provider. It could be one of the top bulk global SMS providers.
Another benefit of going this route is that you set your rates for SMS and voice credits.
Connect with one of the best bulk SMS providers, SMSCountry, to set up your reseller account.
As a bulk SMS aggregator
Here’s what working as a bulk SMS aggregator looks like.
An SMS aggregator is the middleman between the mobile network services and the businesses that want to send SMS.
What’s an SMS aggregator’s job?
As an SMS aggregator, you ensure that all SMS messages are routed and delivered right. Your job is to negotiate the best conditions to deliver SMS on behalf of your customers.
And since most SMS aggregators work locally, you can keep track of local regulations, and stay in compliance with them.
Sounds interesting, right?
We’ve got more interesting news.
Starting out as an SMS aggregator doesn’t require a degree or multiple online courses. What you really need is a real thirst for success and some basic business skills.
To begin, do some research and identify your niche market. Next, scout out some carriers, and begin negotiations (don’t forget your commission).
To become an SMS aggregator, you need to identify a niche market and begin negotiating contracts with carriers on their behalf in exchange for a commission.
As an aggregator, you must think like the customer.
Your customers want a service that’s easy and reliable. So, offer them free trials.
Offer excellent customer support, draw up a fair pricing, and promote your business.
Your pricing as an SMS aggregator will vary according to the wireless carrier you work with.
Since you’re in contact with the wireless carriers, the carriers charge you for your access to messages. Then, you reach out to brands and software providers for messaging access on these wireless networks.
The flow goes as shown in the image below.
Now you know the options that are available to you.
You must be wondering, “How do I go about this?”
We lay it out step-by-step in the next section.
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How do you start a bulk SMS business?
Venturing into a new business can be overwhelming, especially without proper guidance. That’s why we’ve gathered insightful tips from industry experts to guide you.
Below, we outline the five simple steps to start your own bulk SMS business, start making profits, and fund your lifestyle.
Step 1: Gather industry information
You need to understand the SMS laws and regulations of the country you expect your target customers to operate. As well as how SMS works.
For example, if you want to sell to customers in India, you must know all the TRAI regulations. As well as how to go about DLT registration.
Rashi Kirola, a marketing and sales expert in India, says, “Before you start your own bulk SMS business, ensure you have complete knowledge of TRAI norms & DLT rules & regulations. Because from 2020, many new rules & regulations will be implemented in the SMS industry.”
So step one is gathering as much information as possible about the SMS industry.
Interesting reads:
Step 2: Plan your finance
Like any other business, you must have financial plans for your bulk SMS business.
To get you started, answering the following questions will help you get your finances together:
- Are you starting as a reseller or an aggregator?
- How much would it cost to build and run your website?
- How about advertisements and hired staff?
- What is your business revenue goals?
- How many customers do you need to meet your target?
You might have the best strategy, but everything falls flat with no solid financial foundation.
Step 3: Find a niche
Scott Goldman, CEO and Co-founder of Textpower Inc, advises you to follow in their footsteps.
“Find a niche. We did, and it works. When you find one and understand that vertical, you can charge a fair price for your service because you add value.”
Scott goes further, “In short, it’s a cutthroat business. Margins are incredibly tight because someone is always willing to undercut your price.”
Everyone knows how effective bulk SMS is for their business. This means that the bulk SMS business is congested with people looking to make a profit.
Your best shot at standing out – especially in the early days – is finding a niche, perfecting it, and offering clients a one-of-a-kind experience.
A niche can be a specific industry you want to focus on, for example, e-commerce. It can also be a particular location (USA, for example) or a business category ( B2B, B2C, SMEs) where you want to sell SMS services.
Step 4: Partner with a reliable SMS provider
Without a reliable SMS provider, you could have the most concrete plans and still fail.
As a new business owner, you need the best tools and support to break into the market, delight your customers and grow.
With a reliable SMS partner, you can focus on getting customers for your business while they handle all the technicalities. This means fewer worries about downtime, undelivered messages or countless customer queries. A reliable SMS provider handles all of that.
This means you can focus on getting customers for your bulk SMS business and increasing your profit.
SMSCountry bulk SMS service brings enterprise-grade messaging solutions to help you provide the best SMS services to your customers.
What’s more?
Unlike other messaging platforms primarily built for big brands, SMSCountry brings enterprise-level messaging solutions plus unmatched support.
This means you can focus on getting more customers. At the same time, SMSCountry provides all you need to provide the best customer experience.
Step 5: Run ads
After figuring out your target customers and setting up a reliable SMS provider, you need to start advertising your services.
You need clients, and you need them fast.
While word of mouth is a sure way to spread the word, pay attention to advertisements.
Take advantage of social media, search and print ads to get your business out there.
Here’s a tip to get you started.
To pique your audience’s attention and make a lasting impression, you must make your ads catchy and memorable.
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What mistakes to avoid when starting and scaling a bulk SMS business?
Your bulk SMS business can bring in major profits.
But only when you avoid some of these mistakes.
Lack of unaccountability
Vasudev J, head of the customer service at Telebu Communications, says, “Don’t take reporting the quality of service and invoicing lightly.
Make it as easy and transparent as possible to understand how many and quickly messages get delivered.”
“Usually, the telecom operators we work with are not very accountable, and it’s important to hold them accountable for this aspect as it affects the quality of service to our end customers.”
Where there is no accountability, there are unclear goals.
You’re confused about what you’re getting from your telecom operators, and your customers are confused about what they’re receiving from you.
Selling yourself short
In the early days of your business, the temptation to sell yourself short comes.
It could be by offering cheaper services or by taking on more customers than you should.
Remember that offering value is always better than offering cheaper rates.
Vasudev J puts things in perspective. Refrain from using price reduction to gain people’s attention. Being cheaper never wins. Being better is always better.
Making things harder for your customers
How often have you returned to a particular brand just for convenience?
Think about it.
Would you rather patronise one brand with everything you need or multiple brands?
Put yourself in your customers’ shoes.
Offer them everything they need on a common platform to make their business easier.
Scrimping on support
Your marketing campaigns attract your customers, so now do your best to keep them.
How do you convince your customers to stick with you?
Simple, by offering them the best services and support.
A good bulk SMS business offers customers round-the-clock customer support. This way, any glitches on the customer’s side can be fixed asap.
Don’t mislead your customers in your quest to be among the top bulk SMS businesses.
Be completely transparent with your customers, and offer strict zero hidden fees policies.
Partner with an international SMS service provider
Starting a successful bulk SMS business can be challenging. But nothing good comes easy.
Or doesn’t it?
Our expert tips can make the early days of your SMS business easier.
But don’t just take our word for it. Take it from the expert opinions we’ve gathered.
At SMSCountry, we’ve been helping businesses establish effective communications with their customers since 2003.
Let’s add you to our list of success stories. Register with SMSCountry today as our partner or aggregator. We’ll handle all the technical aspects of your SMS business.
Join 3,200+ businesses like yours, already generating massive ROI from SMS with SMSCountry.
Reach out to book a demo, ask SMS-related questions or get help from our team 24/7
Get to know more about SMSCountry. We offer complete SMS solutions for your communication needs.
