Tenative Reseller Pricing

[VOIPoTim]

Here is the tenative pricing for the reseller offering. This pricing is subject to change prior to full launch.


Reseller Account

$24.95 Monthly

1 Free Residential Account for Personal Use (Usage Included)

1 Free Telephone Adapter (US Customers Only)

1 Free Toll-Free Number (Usage Not Included)

$5 Initial Usage Credit to Use for Resold Accounts



Phone Numbers/Incoming Usage

US Phone Numbers - $1 Per Month
US Incoming Usage – 1 Cent/Min
Canadian Phone Numbers - $2 Per Month
Canadian Incoming Usage – 1.5 Cents/Min

Toll-Free Numbers - $1 Per Month
Incoming Toll-Free Usage (From US) – 2.5 Cents/Min
Incoming Toll-Free Usage (From Canada) – 6 Cents/Min


Outgoing Usage

Outgoing Usage (to US/Canada) - 1 Cent Per Minute

Outgoing International Usage: Varies Depending on Country



Other Fees

E911 - $1 Per Month

The FCC (in the US) and CRTC (in Canada) require all residential VoIP users to have E911. If you enable E911 on an account, you will be charged $1 Per Month.

USF Recovery Fee – Since VOIPo is a US-based provider, we are required by the FCC to contribute to the USF. USF recovery fee will apply to all minute usage charges. This will NOT apply to charges for the reseller account itself, phone numbers, or E911 charges. The FCC changes its formula for USF contributions quarterly. Currently the rate is 8.4%.

[VOIPoTim]

Residential Profit Scenario


So as an example, the average residential user uses about 470 minutes per month, so your costs would look like this if user has average usage:

Phone Number - $1
470 Minutes - $4.70
USF (8.4% x $4.70) = $0.395
E911 - $1
----
Your Cost: $7.06


We recommend targeting the mass market rather than competition on price. Vonage is the leader at $24.95 and most people are paying $50ish for a landline, so selling at at $24.95 here is how things look:

Revenue: $24.95
Cost: $7.06
---
Profit Per Account: $17.89 Per Month

In this case, you would only need to sell 2 accounts to be profitable. On top of that, your own service would be free.

[VOIPoTim]

Toll-Free Profit Scenario

Let's say that you sell a toll-free number and the customer forwards the number to a cell phone. Let's say the customers uses 1 hour of calling in a month. Your costs would look like this:

TF Phone Number - $1
60 Incoming Toll-Free Minutes - $1.50
60 Outgoing Minutes (Number Forwarded to Cell Phone) - $0.60
USF (8.4% x $4.70) = $0.131
----
Your Cost: $3.23


Kall8 is a market leader for toll-free service. Kall8 charges $2 monthly for the number itself and 6.9 cents per minute.

Revenue: $2 for Number + $4.14 for Usage = $6.14
Your Cost: $2.91
---
Profit Per Toll-Free Number With Only 1 Hour of Use: $2.91

[tylerscell1]

You put "Out Going" Usage on toll free number

[VOIPoBrandon]

You put "Out Going" Usage on toll free number

For a toll free phone number it comes in to our system via Carrier A and forwards out via Carrier B, so we must pay for both parts of the call, thus we pass on these fees.

[tylerscell1]

oh ok lol I get it

[GigeWeb]

I have a question, how are we going to be able to compete with you if your offering unlimited minutes for $15/mo + free adapter when we'll be charged 1 cent per minute plus what ever the adapter rental fee costs?

[VOIPoTim]

I have a question, how are we going to be able to compete with you if your offering unlimited minutes for $15/mo + free adapter when we'll be charged 1 cent per minute plus what ever the adapter rental fee costs?

It's all overselling just like in hosting. The average user on an unlimited plan uses about 470 minutes per month.

Here is how it would break down:


So as an example, the average residential user uses about 470 minutes per month, so your costs would look like this if user has average usage:

Phone Number - $1
470 Minutes - $4.70
USF (8.4% x $4.70) = $0.395
E911 - $1
----
Your Cost: $7.06

If you matched our pricing of $15, you would be making $7.94 in profit on an average user. If you matched Vonage which has over 2 million customers at $24.95, you'd make $17.89 profit on that single user.

The usage of your users will be higher or lower, but the industry average is in the 400s. If you target businesses, they'll have higher usage. If you target home users, most use their cell phones mainly and rarely use a landline.

In telecom, everyone pays per minute. The simple way to explain is is that whatever providers owns the physical equipment that services the phone number gets paid per minute for all calls that go into that number from the provider completing the call.

In terms of equipment...we don't charge a rental fee for equipment. You can purchase equipment from any vendor you choose or from us for a one-time fee of $40. Generally this is recovered with a setup fee.

[tylerscell1]

Thought it was $45?

[GigeWeb]

What are we exactly selling, your residential services or forwarding services? If residential what is the monthly fee for the hardware that we provide to our user-end?