The Hottest Trends in Prepaid and How to Monetize Them


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Learn about the most popular trends in prepaid calling card and PINless calling and how you can monetize them.

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  • M - In today’s webinar we’re excited to talk about the latest trends in the prepaid space and how you can put them to work for you. To fully understand the latest technology, we have to start with the foundation, which is the traditional prepaid calling card solution.Although there are many new ways that people can make international calls, the prepaid phone card market is still booming. In fact, the calling card market surpassed 2.2 billion dollars in 2012.C - Prepaid Phone Cards/Calling CardsI’m sure we’ve all used a prepaid phone card at one time or another \so we won’t go in to detail about how a phone card works, you can see in the picture an overview of how our technology works – you can develop your own brand of phone cards and use our system to take care of billing, call routing, and voice response system - if you’d like to get more information on our calling card technology, leave a comment in the comment box and we’ll send you a complimentary demo after the webinar.For the purposes of today’s webinar, let’s talk about how you’re going to make money using the technology.
  • Many people don’t realize that phone cards are actually supported by VoIP and the VoIP Industry is a multi-billion dollar market.
  • So, let’s talk about how you can get your share of this revenue.
  • FeesI think we all know that what is generally advertised on the front of a calling card is not what is delivered. This is because calling card providers have advertised a very low per-minute rate and then they make up for it by charging additional fees. They also may advertise a low rate to a particular country, but their customers are only able to dial a major city or landline in that country to get the lowest advertised rate. If a cell phone is dialed, the rate is more.Some fees include maintanence, connection, minute rounding, minute shrinking and step billing.**Disclaimer – consult with your local authorities about regulations about how to disclose your fee structure to your customers.Keep in mind that when determining our profit margin, the smallest piece of the pie is the straight markup from buying rate to selling rate. When you are printing phone cards, the majority of profit comes from fees, unused minutes, expiration dates, and minute rounding.Determining your profit margin – we can walk you through some examples – contact us for a free consultation to go over specific examples that will impact your business and specific market.
  • RatesAs you know, wholesale rates are driven by volume. The more minutes you send to one particular country, the lower rate you can negotiate from your carrier. As a start up it may take time to build your volume and be eligible for lower rates. This is why we’ve seen the best practice is to focus on a niche market (a particular community all calling the same destination) in order to build volume and ultimately reduce your buying rate.To get more details about how to choose the best carrier for you, we offer a complimentary guide. Contact us to request the downloadable PDF.
  • Here are some examples of imagery used by a few of our existing clients.We’ve seen the highest success rate with start ups who target a particular community and become the leader in that space. They do this by developing a message and brand that speaks specifically to their community. They may use images of a well-known soccer player, or an animal, flower, or flag that resonates with their customers.As a result, they start getting more and more customers calling the same destination. This is what drives the rates down. More volume =lower rates.Although rates are very important, where you can really sharpen your competitive edge is by offering additional services to your customers that are especially tailored to your niche market. So, you may differentiate your service by offering better quality, unique dialing features, or playing IVR messages in a different language.Example- you may wish customers happy Chinese New year in Mandarin as the welcome message when they access your service.
  • Martin - If you’re thinking about starting this type of business, your friends have probably asked you – how are you going to compete with Skype or BOSS Revolution?Carrie – Many of our customers have had the same concern and what they’ve found is that the larger players are focused on a broad message and many destinations so they don’t specifically cater to smaller niche markets. In fact, people get frustrated with the quality or customer service provided by the larger players and if they can find a smaller service provider that has good quality to their own country, they seem to like dealing with these companies better.Look at one of our clients, Kuhu Tel, for example. If you go to their website you automatically know they are focused on Bangladesh. If you are from Bangladesh and looking for a calling service, their site, message, and service will be much more appealing to you than going to a generic site.Also, think about customer service and quality. If you are calling a remote area in Bangladesh, and having quality problems, a large player is probably not going to take the time to address that issue. However, a company that has built their business on calling Bangladesh will constantly be taking measures to improve quality country- wide and more than likely they’ll have accessible customer service to help you.Martin - So what this is model creates is satisfied customers. They’ll tell their friends and the business will grow. And once you have established a customer base, there are many other services and features you can offer to them to increase revenue.
  • Martin – go over slideLet’s look at a few features and services that work to promote customer retention while attracting new business.
  • Carrie –We know how a calling card works – dial access number, enter PIN, call connectsPINless works a bit differently – customer signs up on the website and enters the phone number they will be calling FROM during the sign up process. They are then given a local phone number to dial, but they never have to enter a PIN because our system recognizes the number they are calling from and this is how the account is verified.In this model, it is not as common to charge connection and maintenance fees but there is extra money to be made on minute rounding and a savings from not having to pay printing costs or reseller/agent commissions.The key to this model is building a loyal customer base that comes back and uses your service consistently because it is convenient. With a prepaid phone card, the customer may buy your brand today and buy a different brand tomorrow but with special features like automatic recharge and the convenience of not having to enter a PIN every call, it is much more likely that your customers will keep coming back to use your brand once they sign up.You can also offer incentives like bonus points, free minutes and a referral program to increase loyalty.
  • How did he do it? There are some well-known PINless providers in the market, offering services similar to BOSS Revolution. The model is simple for resellers and agents to implement and use. He was able to sign up major chain stores like Albertsons grocery because employees did not need to enter a lot of information during sign up and account creation could also happen quickly over the phone. By using the SMS feature, the PINless provider was able to reach out to end users easily with promotions and low balance notifications, quickly creating a large pool of recurring business.Martin – mention SMS marketing stat.
  • Once you’ve established a customer base and distribution network, you can add additional services and convenient features to continue increasing revenue from the same pool of end users and agents.Cash paying customers who prefer not to have to use a website and credit card to buy minutes. Rechargeable calling cards allow prepaid phone card users to still buy a physical card and pay cash and then the account automatically becomes PINless after the first use. They don’t have to enter a PIN every time they use the card. They can also buy more cards and add the balance from those cards to their account. This increases the chances of the customer coming back to buy your brand because it is more convenient.Mobile top up- adding balance to prepaid cell phones in other countries – can be sold through agents to cash paying retail store customers and also online in conjunction with pinless service.We are seeing a lot of traction with this, especially in convenience stores, bodegas, and retail locations that offer money transfer. People prefer to send cell phone credit as opposed to case because the transaction fee is lower and they know exactly what the recipient is using the funds for.
  • The Hottest Trends in Prepaid and How to Monetize Them

    1. 1. Profit Treasure Map The Hottest Trends in Prepaid & How to Monetize Them
    2. 2. Today’s Agenda • Introduction • The Telephony Treasure Map • Evolution of Prepaid VoIP Market & Opp’s • The Most $uccesful Business Model • Key Factors to Grab Profits Today • Best Practices for Systems & Solutions
    3. 3. Your Host Martin Wales • Exec Producer of PayPal Radio • Host: Microsoft’s Your Business. • Original host: The Entrepreneur Magazine e-Biz Show. • Former Contributor & Columnist: TMC Media and many others • Co-author for two #1 Bestsellers on both Amazon and B&N
    4. 4. VoIP Industry Expert Carrie Fedders • Has helped over 200 Service Providers implement VoIP & Prepaid Solutions since 2006. • Works directly with clients to determine the best VoIP system for their custom needs & define long-term growth strategies. • Manages Enterprise Accounts, such as Sandals Resorts and Tier 1 VoIP & Wireless Carriers.
    5. 5. Who is IPsmarx? •The Leading Prepaid & VoIP Solution Provider •Supporting 1,000 VoIP Service Providers in over 75 Different Countries •Delivering Prepaid Calling Card Solutions since 2001 •Successful in Helping Startups Grow and Enterprises Expand with VoIP •We Deliver the Technology, Support, and Training Needed to Start and Grow a Successful Prepaid & VoIP Business
    6. 6. Evolution of Prepaid Profits • Pre-paid Calling Cards • PINless & E-Store • PINless Recharge through Resellers • Rechargeable Calling Cards • International Mobile Top Up • Mobile VoIP Applications, Breeze
    7. 7. Today’s Treasure Map!
    8. 8. “Show Me The Money!”* • Global VoIP Market 2012 Revenue: $63 Billion (up 9% from '11) • Forecast for combined market for enterprise VoIP & residential IP phone services: $83 Billion in revenue by 2017 • Cloud-based communication services 2012 revenue up 17% revenue from prior year * Infonetics Research
    9. 9. How Prepaid Calling Cards Make You Money • Fees, Expiration, Minute Rounding, and Unused Minutes • Building Traffic to Specific Destinations to Drive Rates Down • Promotional Phone Cards • Converting Calling Card users to PINless/recurring business
    10. 10. Phone Card Samples Provided by:
    11. 11. How to Get Lower Rates
    12. 12. Capturing Your Niche Market
    13. 13. The PINless & E-Commerce Model • Converting Prepaid Phone card users to PINless customers will help you expand your market share. • A 75% increase in profit was associated with a mere 5% increase in customer retention.* *Research study conducted by Bain & Co
    14. 14. Case Study: WOW Telekom
    15. 15. The PINless Recharge & Reseller Model • Agents Quickly Create & Recharge Accounts • Add a New Profit Source for Your Agents • No computer or Internet access needed in their store. • Automatically Send SMS Messages to new Customers & Create a Loyal Customer Base
    16. 16. Case Study: New BOSS in Town • Florida-based PINless Entrepreneur increases Monthly Revenue by $500,000 in just 6 months after implementing the PINless Reseller Solution.
    17. 17. $uccessful Model • Build AGENT LOYALTY! Offer this solution to your agents to give them a competitive edge! • Convert traditional, prepaid calling card buyers into your loyal PINless calling card customers! • Easily add additional services that can be used to Upsell your existing customers
    18. 18. Upsell Opportunities • Rechargeable Calling Cards • International Mobile Top Up Well-known Latin American Prepaid Phone Card & PINless Provider in the US says: “Retail stores need practical products and services that solve customers’ real- time needs. Our Resellers find the easy-to-use portals to be the perfect recipe to gain not only the end user loyalty, but reseller commitment. We’ve been using the IPsmarx platform for more than a year and our business is growing really fast.” -Elkin Caicedo, President, KARR Communications
    19. 19. The Mobile VoIP Market • Juniper Research predicts that the number of Mobile VoIP users will grow to one billion over the next five years. • In-Stat expects that by the end of this 2013 alone there will be at least 288 million mobile VoIP users. Easily add Breeze by IPsmarx, your own, custom-branded VoIP and/or PINless Dialer for smartphones!
    20. 20. Solution Provider: What to Look For • Proven Technology Partner • Flexibility & Customization • Track Record of Support & Customer Service • Competitive Features that Work, Out of the Box • Extensive Network of IP Vendors • Experts with Experience!
    21. 21. Turn-Key Technology • IPsmarx Softswitch & Calling Card Solution • DID Access Phone numbers • Server • Carrier to connect calls Results in Low Recurring Costs
    22. 22. Satisfied Clients Worldwide
    23. 23. Next Step: Book FREE Consult! • Call + 1.416.665.6999 or + 1.703.779.3594 • Email: