How to Become a Long Distance Reseller
Long distance resellers purchase phone minutes in bulk from major telecommunication carriers and resell the minutes to customers for low rates. Resellers have streamlined expenses and are able to pass their savings on to consumers. Major long-distance carriers depend on resellers to expand their market reach without having to hire more employees or finance marketing campaigns.
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Instructions
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Purchase your long-distance minutes from a top-tier provider. Popular industry providers include Quest Communications International, Global Crossing or Sprint Nextel. Reselling minutes from a top-tier provider will ensure your quality and reputation as a reseller. Research all providers on the Federal Communication Commission's website at www.fcc.gov to learn if they are in good standing.
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Negotiate a high commission rate with the provider. Shop around for quality providers and do business with one that is willing to pay the highest commissions. You will be able to get a better price if you can buy a large amount of minutes with each purchase. The price you pay is called your "buy rate." Your profits will rise as you bring in more customers and purchase minutes in larger and larger bulks, getting the minutes at lower buy rates.
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Choose the distribution vehicle for your reseller minutes. You can manufacture calling cards or can resell minutes online. Calling cards will cost more money to make, but there is a learning curve involved with operating online software.
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Design a logo to use on your marketing materials and any physical products. Calling cards should have your logo on them so customers know where to turn for high-quality long-distance minutes at bargain prices. Repeat customers will help you expand your business over time.
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Maintain the minimum sales volume. Most long-distance carriers require their resellers to maintain a minimum level of monthly sales to continue as resellers. Carriers do not typically charge resellers any fee to be distributors, but instead demand activity. Ask the specific provider about its activity requirements or read its terms and conditions.
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Tips & Warnings
You can become a reseller in many areas beyond long-distance minutes, including Internet access and teleconferencing.
Do not complicate your business by creating integrated offers with your long distance. While this may seem like a good way to increase revenue, the added cost of the necessary software will make it difficult to make a profit.
References
Resources
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