BULK SMS BUSINESS MODELS: 4 Different types

Bulk SMS Business models vary and you can choose which you would like to go with depending on the time you have available and how far you want to take your bulk sms business.

THE AGGREGATORS:

Bulk SMS Aggregators are the main channel partners of Telecom operators or Bulk SMS Gateways. An SMS gateway allows a computer to send or receive SMS transmissions to or from a telecommunications network, which are then(usually) routed into mobile phone networks.

SMS Aggregators accumulate SMS from operators, for delivery in retail or wholesale markets. They use multiple SMS Gateway tie-ups for SMS routing and relay the text messages using various routing methods.

The routing method chosen determines the speed (Transactions per second/minute) and other value added features available, such as control of the sender Id, delivery reports, and local time stamps. The routing choices usually feature trade-offs between quality and price.

Bulk SMS Aggregators mainly serve SMS vendors who cannot afford the direct tie-up cost with Telecom operators. Purchasing Bulk SMS services from such Aggregators give SMS resellers the benefit of lower set-up cost and set-up time. Aggregators of Bulk SMS are also able to offer vendors already negotiated SMS services with multiple operators.

Bulk SMS Aggregators typically sell to wholesalers, but can also have retail users as their customers, to which they can offer competitive prices and enhanced service experience.

THE WHOLESALERS BULK SMS BUSINESS MODEL:

These are those businesses that buy a large number of units from the aggregators and then resell to retailers. The sheer bulk of units bought confer on them the ‘wholesaler’ title an example of which is RenTech SMS. Needless to say, the start-up capital cost involved is considerably higher than that required for retailers.

Wholesale resellers are granted access to the Short Message Service Centre (SMSC) of their service providers, enabling them access to several routing options and services.

These services promise Low Cost Routing (LCR) platforms, high transmission speeds– some in excess of 2,000 transactions per second, and an indexed global routing table to ensure stable, high quality routing and pricing.

Wholesale resellers typically sell to retailers through their custom website, and may even take on end users. They can provide their services to as many resellers as they want to, reselling the SMS credits at competitive costs but still with comfortable profit margins to their business.

THE RETAILERS:

Being a bulk SMS reseller is one of the most profitable, in-demand bulk sms business models. The retailer option is an avenue for market-savvy people who have realized the potentials of bulk SMS reselling but may be a little short on finances to take advantage of the opportunity. As a wholesaler, so they purchase less SMS credits for reselling than wholesalers.

Retailers typically sell to end users through their custom websites, and have the freedom to promote their own brand names. Just like wholesalers, since they also have full autonomy over their site’s domain name and customization.

THE END USERS

These are the people who need the bulk SMS service to market their services, send reminders, update customers, send promotional offers/incentives/special deals/‘redeem’ codes, get feedbacks, confirm bookings or confirmations, etc.

The uses for Bulk SMS are actually endless and depend on the creativity/innovation of the end user, who buys from resellers to meet these needs. As expected, the demand for bulk SMS amongst end users remain robust due to its unrivalled delivery speed and engagement rates.