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Zola F
New member
Username: Zolafrumm

Post Number: 6
Registered: 01-2009
Posted on Friday, February 06, 2009 - 02:29 am:   

I am in the US and I am wondering if any of you have any companies you would recommend to me for a premium short code service.

I am looking to maximize my revenue shares and don't want to charge my users over $.15 -is this possible?

THANKS!
Des - NowSMS Support
Board Administrator
Username: Desosms

Post Number: 442
Registered: 08-2008
Posted on Friday, February 06, 2009 - 05:00 pm:   

Hi Zola,

I hope you will get some other responses.

I mentioned a few possible providers to check with in our earlier discussion at:

http://support.nowsms.com/discus/messages/1/24728.html

Keep in mind your leasing charge for having the short code (info at http://www.usshortcodes.com/).

And generally operators have minimum charges that they support. I don't know if USD $0.15 is below that level in the US or not. Based upon what I've seen elsewhere, I suspect that may be too low.

--
Des
NowSMS Support
Zola F
New member
Username: Zolafrumm

Post Number: 7
Registered: 01-2009
Posted on Friday, February 06, 2009 - 06:00 pm:   

Ah thanks.

So if I want to run a premium service (where users are charged for my service) I'll have to go through an aggregator, correct?

Is it difficult to become an aggregator on your own? From what I have found, they have enormous revenue shares.

Because of that, it makes me want to buy a SIM card through an operator, get unlimited texting, and just pay to use NowSMS through a modem. Then to charge my users, there would be a credit-based system where they go online and purchase more credits to continue to be able to use my SMS service. Are there any shortcomings to doing this that I am not seeing (aside from the hassle of them having to pay for credits online)?

THANKS!
Des - NowSMS Support
Board Administrator
Username: Desosms

Post Number: 445
Registered: 08-2008
Posted on Saturday, February 07, 2009 - 04:01 pm:   

Yes.

And while the aggregator is taking a cut (revenue share), it's actually the operator that is typically taking the biggest cut.

The operator is the one that actually collects the money from the customer. And the operator has to deal with any resulting billing disputes or inappropriate content disputes (and is the flashpoint if there is any legal action resulting from a dispute).

My personal opinion is that the SMS aggregator business is one of low margins and high volumes.

True premium rate SMS requires going through an aggregator (you could strike your own agreements with all of the operators, but don't underestimate how long and drawn out this would be) ... and can't be done with a GSM modem.

Setting up your own credit system may be an alternative for your scenario.

I would caution you about reselling any messaging capacity to others in an aggregator type of scenario, however, as your service agreement may prohibit resale. I'm not an attorney, and I'm not offering legal advice but, the way I see it ... selling content that uses a transport is one thing ... reselling the raw transport access is another.

--
Des (My personal opinions only)