SMS reselling offers a wealth of opportunities for new business endeavors. According to Bloomberg Research, the global SMS market currently exceeds $60 billion. SMS is an acronym for “short message service,” and it remains the most widely used messaging medium in the world. Given the market size, there is no better time than the present for entrepreneurs to become resellers. But how does a newcomer launch a new SMS business from scratch? A look at the essential steps for SMS startups can provide insight on how to ensure success from the day you start this exciting new venture.

Research and Select Your SMS Provider

SMS reselling starts with obtaining bulk credits from a wholesale SMS provider. The business owner then resells these SMS units or credits to targeted customers for a profit. Because the SMS supplier plays a crucial role in how much money you can make from reselling credits, it is important to choose a reputable wholesaler or telecommunications provider. Checklist factors to consider include reseller program structure, wholesale pricing, reseller support, and scalability.

Reseller program structure refers to a reliable infrastructure and guaranteed uptime that you can pass on to your customers. A good reseller program should also provide training, solid APIs, and full platform integration. Lower wholesale costs translate into higher profit margins for your business, so always check for the most reasonable rates. Reseller support refers to the responsiveness of the SMS provider’s technical and account management teams. For example, some programs assign an account manager or representative to help with each step of the setup process. Finally, scalability refers to SMS providers who can accommodate growth and have no deliverability limits. These providers demonstrate fast SMS delivery to maximize open rates and engagement, and they can also demonstrate widespread coverage to expand your customer reach.

Establish Your SMS Management Platform

The next step in becoming a successful SMS reseller is to establish your management platform. This usually involves a dashboard for reviewing contacts, numbers management, messaging templates, reports, and analytics. The online platform also allows your customers to access and manage their SMS plans. If you work with a white-label reseller platform, you can also customize your front-end website and company logo. This allows customers to identify with your unique company branding and can help build a loyal client base. Your clients can manage their personal accounts from your website, and in turn, you can manage overall client accounts from your program dashboard. The ease of usage allows you to focus on important factors like marketing and providing excellent customer service.

Determine Your Pricing and Packages

Your profitability depends on the markup you can charge as a reseller, so decide on the pricing and plan options you will offer clients in exchange for sending SMS messages. For example, some resellers charge per message or offer monthly discount packages. Charging per message is an easy way to keep track of sales units, and monthly packages can create a recurrent stream of revenue. Others advertise prepaid credit systems or tiered pricing. Prepaid credit is a great way to obtain the revenue upfront, and tiered pricing is a great way to encourage increased client usage. The key is to calculate your profit margins and ensure that your plan packages are higher than your wholesale expenses. Once you feel established in the industry, you can offer options like unlimited plans and premium features.

Market and Promote Your SMS Services

Once you have established your provider, platform, and pricing, it is time to market your reseller business. Many resellers focus on digital marketing across blogs, search engines, and social media. For example, you can create blog posts featuring long-tail keywords or purchase paid ads on Facebook, LinkedIn, and Instagram. You may wish to focus on local businesses that are more likely to use SMS messages for their own outreach. These businesses can include retailers, restaurants, or professional services. Finally, you can also partner with web agencies, IT providers, or influencers who can help resell your system.

Grow Your Reseller Business

After you make a sale, create a smooth onboarding process that integrates the SMS service for the client and answers any customer support. Excellent customer service is the first step in growing your reseller business. As you build your reputation, you can gain more clients through document reviews or even a customer referral program. Other ways to grow your business include upselling packages or cross-selling new features. For example, you can offer premium features like vanity numbers or cross-sell other services like MMS messaging.

Conclusion

For many entrepreneurs, the world of SMS reselling is ripe for the taking. Success in the field depends on planning and consistency. With the right structure in place, you can grow your business into a reliable source of monthly income.