ReveNews Online Revenue News & Opinions Since 1998

Moving Beyond the Wireless Closet-Sized Retail Store: VOIP Phone Service Affiliate Program Featured in New York Times

Gotta love telecom customer acquisition.

New York Times had an interesting story last week about smaller affiliates /
resellers that market VOIP phone service.

If you live in a larger city you’re used to the fact that in addition to a Starbucks in every corner you also have a wireless store (sometimes the size of a closet).

Here in suburbia where I spend the majority of my time these days it looks like it’s mandatory zoning regulations to have one wireless store per strip mall.

The reasons for this are obvious.

America love cell phones. People trade and switch phones and service providers like crazy. And acquisition costs are through the roof in the telecom space.

The telecom industry is a great space for smart affiliates and resellers to make money, on and offline.

1. Many customers are ok with buying telecom services online with minimum interaction.

2. Acquisition costs are high which lead to decent margins for affiliates.

Back to the New York Times piece. This guy works in a wireless store and sells VOIP service to walk-in customers with the permission of his boss and also buys Google and Overture clicks. After one month he generated 100 customers offline and 100 online. And he says that most of his clients are older. He makes $24.99 per signup and $2-3 monthly residual.

His dream? Residual commissions. Web hosting and telecom are two of the few industries that pay residual commissions. 2-3,000 customers generating $2-3 each a month. Nice income stream. With his current run-rate he will be there in 10-12 months. Quicker if he hits the road convincing other storefronts to sell for him.

But if he is smart he tries to maximize his upfront payment. Why?

There is no guarantee with affiliate and reseller programs.

Will the company be around? Will they change the commission structure? Will their churn rate go through the roof?

This is why it’s crucial in today’s world to build your own brand and your own customer list. Your own customer loyalty. Because companies will come and go. Offers will come and go.

But you will still be around. Right?

Good Luck!

/Ola

Search Through 10 Years of ReveNews Content:

• We Support New York Affiliates

  

• Subscribe to ReveNews

  • Get ReveNews Updates in Your Reader
  • Get ReveNews Updates in Your Email

• The Latest Comments

  • David on McAfee SiteAdvisor
  • Peter Figueredo on Affiliate Marketing Research Released
  • CT Moore on Affiliate Marketing Research Released
  • Eric Brantner on Is SEO Hampering Your Site’s Usability?
  • Jean-Francois Vigeant on Is SEO Hampering Your Site’s Usability?
  • Eric Brantner on Is SEO Hampering Your Site’s Usability?
  • Gerald Weber on Is SEO Hampering Your Site’s Usability?
  • Peter Figueredo on Affiliate Marketing Research Released
  • 5 Star Affiliate Blogs on Affiliate Marketing Research Released
  • Eric Brantner on 9 Ways to Keep Visitors Around Longer

• ReveNews Readers

• Archives

  Select Month November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004 June 2004