Tenative Reseller Pricing

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%.

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
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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.

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
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Profit Per Toll-Free Number With Only 1 Hour of Use: $2.91

You put "Out Going" Usage on toll free number

Quote:

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Originally Posted by computergeek7632

You put "Out Going" Usage on toll free number

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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.

oh ok lol I get it

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?

Quote:

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Originally Posted by 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?

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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.

Thought it was $45?

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?

Quote:

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Originally Posted by 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?

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Tim's answer is authoritative, but my understanding:

Hardware:

• Must be purchased by Reseller
  
  • Typically, you then loan it to your customer while they have service.
    
    • Only PAP2T are offered right now. (Managed ATA)
    • RT31P2 are also supported. (Managed ATA)
    • GS HT286 may be supported in the future
    • Any SIP ATA/Phone possible as BYOD if you permit it.
    
    
  
  

Reseller Fees:

• Tentative 24.95/month to be a Reseller
  
  • Includes one user account for Reseller
• DID - monthly fees per DID
  
  • DID with inbound/outbound metered rates
  • DID with inbound unlimited/outbound metered rate
  
  
• E911 Fee
  
  • Required for USA monthly per Full Account
  • Call Forward account needs no E911
  • Virtual Number needs no E911 as the primary DID has it.
  
  
• LNP fee per LNP request.
• International calling
  
  • metered
  • varies by destination
  • can be disabled
  
  

• User Control Panel included
• Reseller Control Panel included

Things a Reseller will Need

• A means of selling service and collecting money
  
  • Typically your own website
  • A payment gateway
    
    • Like Authorize.net
    • Like PayPal
    
    
  
  
• Provide support to your customers
  
  • VOIPo can work with you, but you work with the customer
  
  

So we have to pay for the hardware as well?

What's the cost of the PAP2? or the lowest cost adapter?

$45 I believe...

Quote:

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Originally Posted by seeuhome

So we have to pay for the hardware as well?

What's the cost of the PAP2? or the lowest cost adapter?

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We are still finalizing, but it will b $40-$45. This is basically our cost on hardware.

We're trying to get it down to $40.

You can also purchase it from somewhere else if you'd like such as voipdw.com or voipsupply.com.

Hi Tim,

Will we be able to provide customers with IP Phones, I.E. Aastra, etc.....

Byod?

Been using voip for yrs and ready to launch a site when your proggie is ready...

Thanks

Quote:

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Originally Posted by stk

Hi Tim,

Will we be able to provide customers with IP Phones, I.E. Aastra, etc.....

Byod?

Been using voip for yrs and ready to launch a site when your proggie is ready...

Thanks

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You have SIP credentials for each account you setup and there are no restrictions on that type of stuff. We don't do provide any technical support for it.

Tim,

What is the status on this?

Your web page says first 3 account free. Here you say 1 account free.

Support refuses to offer any accounts for free saying that they were deleted.

Quote:

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Originally Posted by tloosle

Tim,

What is the status on this?

Your web page says first 3 account free. Here you say 1 account free.

Support refuses to offer any accounts for free saying that they were deleted.

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The reseller account does not include any free numbers/accounts.

The first 3 numbers setup are free, but that applies to the first 3 only to get you started. Once those are used up the first time, all future ones are billable.

Quote:

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Originally Posted by VOIPoTim

The reseller account does not include any free numbers/accounts.

The first 3 numbers setup are free, but that applies to the first 3 only to get you started. Once those are used up the first time, all future ones are billable.

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Tim (can only Tim answer this)

Why starting in April i'm getting charged for 2 of my 3 lines? Also the main Voipo website says all lines are $1 each including fax but when i started to setup a fax line it says the monthly will be $2.

How can we resellers get a straight answer on this?

When i signed up 3 years ago, it was my understanding 3 lines and 1000 minutes a month was included in the reseller account. So i setup test accounts and have been testing the service(as voipo keep saying its BETA for the reseller accounts), now that i just started porting in the numbers i will be using for "main line, fax line & 800 line" now these aren't gong to be the 3 lines i want?

Thanks!

Quote:

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Originally Posted by chevyman

Tim (can only Tim answer this)

Why starting in April i'm getting charged for 2 of my 3 lines? Also the main Voipo website says all lines are $1 each including fax but when i started to setup a fax line it says the monthly will be $2.

How can we resellers get a straight answer on this?

When i signed up 3 years ago, it was my understanding 3 lines and 1000 minutes a month was included in the reseller account. So i setup test accounts and have been testing the service(as voipo keep saying its BETA for the reseller accounts), now that i just started porting in the numbers i will be using for "main line, fax line & 800 line" now these aren't gong to be the 3 lines i want?

Thanks!

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The best way to explain it is that each account has 3 free account credits that can be used one-time. Once those are used, they are gone. They do not get issued again if one of the accounts that used a credit is cancelled.

For all paid lines, there is a $1 fee for each account/number. If you enable the fax functionality, it's an extra $1 for the fax feature (total of $2 for fax..$1 for the account and $1 for the fax functionality).

If you have more questions, it's best to e-mail reseller@voipo.com for assistance since they can get specific with your billing and account.