A short message system (SMS) reseller acts as a go-between between customers and SMS providers. The reseller will typically buy a large number of units in bulk to take advantage of wholesale prices. The reseller then sells it to consumers or another SMS reseller who does not sell in bulk at a higher price.
SMS reseller programs were first developed in response to the growing popularity of text messaging. The use of SMS as a business tool has grown as a result of SMS applications or SMS short codes. The rates can be used for marketing strategies and instant polling in addition to sending a standard text message.
It is typical for an SMS reseller to work with a single wholesaler, but this is not required. The reseller will create an administrative account with the chosen service, from which he or she will be able to manage users and promote the services available. The SMS reseller will also purchase message units, which are the actual product that is resold to customers, through the administrative account.
There are a variety of potential expenses that the SMS reseller may face, depending on the company with which he or she works. The first is an SMS fee, which is similar to a licensing or start-up fee that a wholesaler charges resellers to sign up. Although this is sometimes a recurring SMS expense, it is usually a one-time cost.
The marketing that is done to connect the reseller with their customer base is the other most common expense that an SMS reseller will face. In many cases, the wholesale company will have a number of tools, such as a website, that resellers can rebrand and use. This is to assist resellers in lowering their initial startup costs.
The purchase of SMS credits or units is the final major cost. This is the product that the reseller will sell. The reseller can then set any price he or she wants when reselling them, which is what makes this process unique.
The SMS reseller will exist as long as the cell phone remains a popular tool. The reseller’s ultimate goal is to establish connections with a target market that would otherwise go unnoticed larger telecom companies. The reseller will then take advantage of this market and sell SMS credits for a higher price than they were purchased for. Because resellers buy in bulk and can set their own prices, this is possible. As a result, they may be able to cover all of their potential expenses profiting from price margins.