A short message system (SMS) reseller is essentially a middleman who connects consumers with an SMS provider. The reseller normally will purchase a large number of units in bulk so that he or she can benefit from wholesale rates. The reseller then sells it at a higher rate to consumers or another SMS reseller who does not sell in bulk.
SMS reseller programs were first created primarily because of the increasing popularity of sending text messages. With the use of SMS applications or SMS short codes, the use of SMS as a business tool has increased. Along with sending a standard text message, the rates also can be applied to marketing strategies and instant polling.
An SMS reseller will normally work through a single wholesaler, but it is not a requirement. The reseller will open an administrative account with the chosen service and then will be able to manage users and promote the available services through that account. Through the administrative account, the SMS reseller will also purchase message units, which is the actual product that is resold to customers.
Depending on the company with which the SMS reseller is working, there are a variety of potential expenses that he or she will face. The first is the SMS fee, which is similar to a licensing fee or start-up fee that the wholesale company charges resellers in order to sign up. Although this is sometimes a recurring SMS cost, in most cases, it will be a one-time expense.
The other most common expense than an SMS reseller will face is marketing that is done to connect the reseller with their customer base. In many cases, the wholesale company will have a variety of tools, such as a website, that can be re-branded and then used by resellers. This is to help resellers minimize their startup costs.
The final major cost is purchasing the SMS credits or units. This is the actual product the reseller will be selling. The thing that makes this process unique is that the reseller can then set any price that he or she wants when reselling them.
As long as the cell phone remains a popular tool, the SMS reseller will exist. The ultimate goal of the reseller is to make connections with a target market that would likely not be noticed by larger telecom firms. The reseller will then leverage this market and sell SMS credits at a higher rate than the rate for which they were purchased. This is possible because reseller buy in bulk and can set their own price. That can then allow them to cover all of their potential expenses by generating profits off the price margins.
