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Do You Own A Bulksms Website Or Business ? by rolexsms(m): 8:43am On Dec 18, 2015 |
(I got the permission to share this article from my mentor ) Good morning everyone... Listen, Before You Start a Bulk SMS Business… Understand that a bulk sms WEBSITE is NOT the same thing as a bulk sms BUSINESS. Just because you have someone build a bulk sms website for you doesn’t mean you own a bulk SMS business. 1 Like |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 8:50am On Dec 18, 2015 |
Haven’t you seen those 70 kobo bulk SMS adverts all over the place? Any grounded business student will tell you that competing based on price is absolute foolishness except you’re a Wal‐Mart with deep pockets to undercut everyone else by the sheer volume of your purchasing power and except that’s also going to be your core pricing model and strategy. But how could Nigerians understand all these concepts if they’re not approaching it strategically and as a business? Mark Joyner writes in his legendary book, The Irresistible Offer: “Some businesses think they can improve their ROI [Return on Investment] by simply lowering their price. It makes sense that by lowering the cost you can improve the value for the customer, but that’s a dangerous game. The economic graveyard is full of businesses who priced themselves out of existence by charging customers too little. You are in business, after all, to make a profit. There are ways to add value to your offer, and therefore to enhance customer appreciation, that do not detract from your own profit margins.” |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 8:54am On Dec 18, 2015 |
Now, this is how most Nigerian bulk SMS resellers think: If I make 25 kobo on every unit of SMS sold and I sell 1 million units, then I can make N250,000 profits. But here’s the rub: 98% of Nigerians don’t buy more than 1,500 units of SMS in three months! And the profit in that is less than N700! Yep, that’s right, less than seven hundred naira from one customer in 3 months. That’s why most bulk SMS website owners’ main business model is resellership. That is, having resellers under them. So, don’t be swayed by all those “make N400,000 every month in bulk SMS business.” I laughed when I visited one bulk SMS website recently while doing some competitive research and it advertised, “Rake in N400, 000 every month in bulk SMS business without lifting a finger.” That’s ridiculous! |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 8:57am On Dec 18, 2015 |
Listen, the real challenge in bulk SMS business is building a scalable business that grows to the largest size possible without your direct involvement. Of course, the guys asking to build bulk SMS websites for you will never tell you this. They’re just business opportunity peddlers. They don’t know any better. |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 12:54pm On Dec 18, 2015 |
3. Sales trickery I have seen adverts online for 65 kobo bulk SMS. But when I happily visit their website or call them, they tell me I have to buy at least 1 million units to qualify for that price. (Are you kidding me?) On top of that, they tell me I have to register with a one‐time nonrefundable fee of N10,000 (Oops!). And as if those insults are not enough, they confuse me with: delivery to GLO is 2 units deduction, delivery to Airtel is 1.8, delivery to MTN is N1.5, and delivery to Etisalat is 1 unit. Who are they fooling, really? |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 12:56pm On Dec 18, 2015 |
4. Search engine queries for cheapest bulk SMS provider Nigerians search for the terms: “Cheapest bulk sms provider in Nigeria”, “Cheapest bulk sms reseller”, “Cheapest bulk sms website in Nigeria”, and so on, so much so that Google created a category for the keyword “cheapest” in its keyword database. What this reveals is still that same old mentality of yesterday. My question is: Is price the main issue or the quality is? Listen to me, as far as bulk SMS business is concerned, DELIVERY OF SMS is the main issue. If your website cannot deliver SMS consistently, you don’t have a business. Period! Now, because people are looking for cheap bulk SMS, bulk SMS providers in Nigeria go for cheap SMS delivery routes that get blocked by GSM providers in Nigeria. |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 12:57pm On Dec 18, 2015 |
5. Me‐too websites I see some bulk SMS websites and I can’t help but fall down and laugh. I see HTML errors, grammatical blunders and misspellings, difficult‐to‐read fonts, large graphics and slides, cluttered pages, lack of content, promotions of different kinds of products, GSM numbers extractor, non‐strategic placements of modules… I could go on and on. That’s what happens when you pay peanuts to get people to build bulk SMS websites for you. You get monkey websites. That’s what you get when you approach Internet business with an opportunist and make‐money‐quick mentality. Now, this next one will surprise you… |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 12:59pm On Dec 18, 2015 |
6. Google Adsense adverts on bulk SMS websites Google Adsense shows ads of advertisers on your website based on your content and Google pays you when people click on the ad or view the ad. In order to increase their revenue, bulk SMS websites in Nigeria integrate these ads on their sites, and because Google show ads based on the content of the website, they show ads of competing bulk SMS websites on these bulk SMS websites! It often makes me wonder, are we these ignorant? (I’m trying to sound nice here, the word I wanted to use was stupid!). |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 1:00pm On Dec 18, 2015 |
7. Building bulk SMS websites for others as a business model You’ve probably seen most bulk SMS websites blatantly advertise building bulk SMS websites for you at just N10, 000 and they promise to deliver in 24 hours! I dey laugh o, to borrow the words of former Nigerian president, Olusegun Obasanjo. For the records, I still wonder how they perform this magic without compromising excellence. An unsuspecting bulk SMS reseller who got “burned” by these people once lamented to me that the person who built a bulk SMS website for him gave him a hosting space of just 150 MB! (I’ve already used the word ridiculous elsewhere in this report, I think disgusting is fitting to describe this one). I also heard from good authority that these bulk SMS website builders usually lock up the ability for their resellers to use other bulk SMS gateway APIs, so they get stuck with them and buy only from them (whether they are delivering their SMS or not) or else they pay N25,000 to unlock it. Isn’t very sad the length some people can go to make money in this industry? Indeed, it’s very sad. Now, the issue is, those guys helping others to build bulk SMS business see it purely as a business model. But the thing is that it is not a sustainable business model and certainly not something anyone should build a business around or bet his lunch money on. Why? Because it will get to a point where it will peak and everything will come all tumbling down. The last guys standing will be those who build a real business around the core of bulk SMS. |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 1:04pm On Dec 18, 2015 |
You Can Only Succeed in Bulk SMS Business If… …You approach it strategically and treat it as the business that it is. Let me repeat that because it’s what you need to understand before you start a bulk SMS business in Nigeria… You can only succeed in bulk sms business if you approach it strategically and treat it as the business that it is. It is what will determine whether you will succeed or fail in this business. I’ve said it before and it’s worth repeating: Having a website just isn’t enough. It’s a starting point. Now the question is, how do you approach bulk SMS as a business? How do you approach it strategically? |
Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 1:09pm On Dec 18, 2015 |
To Approach Bulk SMS Business Strategically and as a Business, Ask Yourself These Ten Questions in The Following Order… Question #1: Do I have the core skills required to succeed in this particular business and do they align with my strengths? Question #2: What’s my vision? Question #3: Who are my target customers? Question 4: How am I going to make it scalable so that the business doesn’t depend on me to run or succeed? Question #5: Do I have a business and marketing plan? Question #6: What is my business model? Question #7: What is my pricing strategy? I need you to understand something that most people don’t understand in business: Your pricing is also part of your core identity. There are at least 6 pricing strategies. What’s yours going to be? For instance, at Rolex SMS, we deliberately don’t come cheap and wouldn’t want to be known as a cheap bulk SMS provider. In fact, we want to be known as an expensive bulk SMS provider because unconsciously, people attach quality to expensive stuffs and that’s what we stand for – QUALITY. Question #8: What’s my backend strategy? Question #9: What are my assumptions and how am I going to establish them? Question #10: What are my sources of finance? |
Re: Do You Own A Bulksms Website Or Business ? by adejumoadeoluwa(m): 10:53pm On Dec 18, 2015 |
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Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 3:41pm On Dec 20, 2015 |
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Re: Do You Own A Bulksms Website Or Business ? by rolexsms(m): 11:50am On Jan 24, 2016 |
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