How to set up a mobile phone company?

[lazytycoon]

Hi

I am just thinking about this at the moment...

How would one go about setting up a company which sells mobile phones + contracts? Similar to say Carphone Warehouse and Phones4U, but maybe purely web based?

If I had a site selling them would it link automatically into say O2s credit checking system etc?

Any info appreciated.

 

[JamesCartwright]

That's a very competitve industry - and I believe the profit margins are low. Have you considered testing the market as a seller on eBay? It may be worth it to get some experience.

I cannot tell yo much about how the website works, but I do know a bit about PPC advertising. PM me if you want some help with that .

Are you planning to sell contract or pay as you go phones (or both)? Since it's competitive, maybe you could specialise in a nice in the market?

James.

 

[lazytycoon]

I am not planning anything yet, just interested in how it all works and wondering if it would be a possible project. I expect the margins to be low, but that doesn't bother me too much.

 

[oldeagleeye]

Forget it Lazy. You ain't going to become a tycon trying to exploit the mobile phone industry. As James said it is highly competitive with low margins and you simply wouldn't be able to compete.

I suggest you find Stephan in the forum and take his advice too. He is an extremely bright young man who spent a year in that business and knew it well. Earlier this year he threw in the towel. Since then all the major players like Vodaphone and Nokia etc have also reported a 25% drop in demand.

This will drive even more independant retailers out and only those with a huge existing customer base will survive on replacing handsets for existing customers.

Time to think again if you are not to waste your time.

 

[Esk247]

it's over saturated to be honest and most people already have the name of a website in there head when looking for a phone e.g. carphone warehouse, O2, Orange or they just head in to town and have a browse in the many dozens of mobile phone shops on the high street.

perhaps look at another area of mobile phone technology or servicing/parts/fast repairs and data restoration rather than just selling new handsets which are already supplied to massive chains at discount trade prices..prices which they won't pass on to you.

 

[JamesCartwright]

Since it's a really competitive industry, maybe you could just do a price-comparison site between the existing players and earn commission for each phone sold to a customer you refer? That way you can still operate in that market, but take advantage of the intense competition rather than suffering because of it...

It seems like a market where many suppliers compete on price, and the they (like Carphone Warehouse) may already have affiliate programmes running that you could join.

Just a though, I'm not sure if it will work though! Good luck with whatever you do!

James.

 

[sm1]

Hi Lazy Tycoon

Thanks for the mention oldeagleeye - I was indeed in this industry for a year... would I recommend anyone to enter it? No - simple as. Unfortunately consumers are price driven, you will permanently make very little on each handset, then there's not enough money to invest in marketing to gain new customers, and it's a vicious circle. There's simply so little money in it, that you will not be able to grow.

Sorry to say it, but you'd be wasting your time. Even as an affiliate, everywhere is so oversaturated, you will struggle to find new areas to advertise.

If you have any questions, feel free to ask here or contact me

Cheers

 

[MH1]

I see sm1 has learnt something from the forum

 

[sm1]

Rephrase that to 'many'

 

[Textlocal]

With enough passion you can do anything Lazy!!

People told me I was mad for entering an already crowded mobile marketplace. From scratch I have build one of the UK's leading SMS text services for business - no investment, no funding.. all organic growth, expect £3m turnover this year - this is against competitors with £millions of funding. To this day I have no idea what they waste their money on!!

If you believe you can do it, give it a go - just don't overstretch yourself and spend what you can afford... and let passion do the rest.

 

[sm1]

Well, yes, in fairness you could do it - my advice is that your time and money would be better spent elsewhere...

 

[Textlocal]

.. where? I can not think of any better place to start a new business than in the mobile sector. Within 5 years everyone will be using the internet via mobile handsets - so mobile SEO, software sales, virus systems, marketing, search, shopping, local guides, location based services.. anything you can imagine is going to be worth a punt. Your market is EVERY MOBILE HANDSET IN THE WORLD.. that is a vastly greater market than even the internet in 2009.

.. maybe not handset sales. People already have those and are bombarded with upgrade info for all sides.

Any other mobile service should be considered however.... now is the time!!!

A.

 

[sm1]

Sorry there's a misunderstanding, I'm referring to the OP's interest in handset sales/contract sales... I agree there will be a market in mobile services.

 

[Textlocal]

.. oh and if you want a place to start then become a Txtlocal.com reseller - within your first month you could be easily making £3k - and this escalates each month with ongoing repeat commission. Sign up for a free Txtlocal account, email me ([email protected]) and ask for a reseller upgrade. We will then pass you half the profit for the life of any business brought to us (via your own rebranded system and signup pages - we handle all sales and support for you!) - which if you have enough imagination is considerable.

 

[sm1]

within your first month you could be easily making £3k

Easily? :|

 

[Textlocal]

Nah, I understand. As Mr Dawkins would say, it is "consciousness raising". People see the whole mobile industry and assume there is money to be made. There is.. but not in the obvious "handset reseller" market - but in the infinite software applications for those handsets. The goldrush has begun and anyone with enough entrepreneurial spirit should get a piece of the action now - get in early and create the new wave of £multi-million super companies.

Just learn how to code in PHP (takes about 20 mins with Google) and you will be on your way.

Yes SM1.. easily. 100 users = £2k per month ongoing (and rising) - if you have access to B2B customers then simply link to us. We are growing by 40% per month at the moment and massive things are about to happen before Christmas. Check out this review in PC Pro this week (http://www.pcpro.co.uk/reviews/software/350564/txtlocal)... and, well.. watch this space...

It is like Twitter... but with an ongoing revenue model - which anyone can get 50% of the business referred to us ;-)

I have been trying to say this in UKBF for 3 years now... but people are so close minded. "Oh, SMS spam... so it's you is it?".... no... it's not!!! All you have to do is grow (for free) a list of local contacts that choose to hear from you via SMS. Print "text WOK to 60777 to receive promotions from Wok & Roll" direct to your phone. You then send your news and offers directly to people who have chosen to receive it. There is nothing more simple or effective - by far the most powerful form of marketing ever created - bar none. 1000 people for £50 - with around 30-50% response rates.

Sadly people are so cynical they refuse to see the obvious.

Simple question... give me 1 good reason why you should not pay 5p to communicate any news or promotion instantly into the pocket of a loyal customer who has asked to receive it?????????? Go on.. just 1..? OK, now realise that there are a million (in the UK alone!) businesses, services and community groups that will benefit from such a service... and then ask why EVERY business does noyt already use SMS text as part of their daily business communications....

Sorry there's a misunderstanding, I'm referring to the OP's interest in handset sales/contract sales... I agree there will be a market in mobile services.

 

[business-zone.biz]

In reference to setting up a mobile business. Unless you have some serious capital to purchase the handset and have had expierence in the mobile market, most of the networks would not look at you.

5 years ago, the commissions for contract was worth it, but these days, with the low prices/promotions commissions are cut to the bone.

If you want to dip your toe in the markey place, see if there are any phone companies that offer a reseller programme. See how many you sell.

A small phone outlet could not compete on prices from the big boys. They have too much buying power.

But good luck with it

 

[business-zone.biz]

I know this is not related, but TXTLocal, your service rocks. I love your service and use it a lot

 

[Textlocal]

Thanks BZ!! (it's Alastair BTW, Txtlocal is just an extension of my imagination)

Your feedback means a lot - and I am glad you like the service - it is our passion to ensure you have the best experience possible. Please get in touch any time if you have ideas for improvement!!

Why not become a reseller? I have just "switched on" your account (!! - sorry, big brother esque - but I have the power!!) and will pass you half the profit for any business you bring to us. There will be a newsletter about this released next month - but it is now live so may as well get started? Simply log in and complete the 3 boxes.. you can then have your own control panel & logos... view users, commission generated and your own link to tag new activations to you

Al.

 

[maxine]

In terms of setting up a mobile company I would suggest talking to some of the dealers (you will see them listed on the o2 site etc or just search online for your area).

You normally have to get vat registered, get a dealer account up and running etc and then you will get details through of the price plans and your commission rates.

Word of warning though, it is unlikely that you will get much business just by being an online business as if you are selling contracts and phones people will want to know where they can come to have a moan when things go wrong.

I have done a lot of telemarketing for telecoms and the people who are interested in buying through a dealer rather than the network providers directly are where they want assistance to get them onto the most appropriate plan for them and also where they want cashback.

It is a very saturated market though. One way to go would be to offer your services to a local dealer so that there is the customer service support provided via them but work on a commission only basis of what you sign up with the commission levels varying by different dealers.

Good luck

 

[secondtimelucky]

Hey Al,

I'm inspired by your business, it's quite incredible what you've accomplished in such a short time. I have about 4500 business customers from my previous business who I think would welcome hearing about this, assuming they haven't already joined or use this service. I just signed up on your website for a reseller account. Would love to learn more about the best way to get started.

Toby

 

[Textlocal]

Oh, hello! Just read this - already sent you email

Thanks for the comment. I have never run a business before Txtlocal - or even made a website!! The whole thing has come about through a little madness, enthusiasm, and belief that the world doesn't realise what it is missing! I learned to program in 2 evenings (my Wife 'suggested' that I find a way to clear my debts from clubbing and Uni - and I am far too lazy to take a second job!!)... and Txtlocal v1 was up and running 3 days later and making profit. People make out that business is so hard... you just need to work hard, don't overstretch yourself and don't let ANYONE owe you money. Ever. All cash up front - then you have nothing to lose. It's pretty simple really.

Simply sign up at Txtlocal.com for an account (it's 100% free) and have a play around. When ready get back in touch with me and I will activate your account as a "reseller".

Seriously.. if you can get 500 of those businesses to use us each month then you could make around £10k per month ongoing and escalating.... just for referring..

Call me any time tomorrow to chat, my number is below (and on my email).

Night!!

Hey Al,

I'm inspired by your business, it's quite incredible what you've accomplished in such a short time. I have about 4500 business customers from my previous business who I think would welcome hearing about this, assuming they haven't already joined or use this service. I just signed up on your website for a reseller account. Would love to learn more about the best way to get started.

Toby

 

[lazytycoon]

Hey

Thanks for the replies. I was hoping someone would mention some kind of reseller, dropship type of company and I could just promote on Google Base etc...

I am pretty interested in this TxtLocal, when you say easy... How easy? How do you go about selling this?

 

[Textlocal]

Hi,

VERY easy to make a lot of money - if you have access to businesses

Check out our testimonials: http://www.txtlocal.co.uk/testimonials/ and case studies: http://www.txtlocal.co.uk/casestudies/ - you have a largely untapped market of EVERY business, service or community group in the UK... millions! Everyone has a use for SMS text messaging to send out instant reminders, news, promotions, appointment reminders to staff and customers for a few pence.

I can think of a use for Txtlocal.com for any business sector - some obviously much larger than others (accountant=small, nightclub=large... plumber=small, football club=large... takeaways=larger than you may realise!).

I notice that you have signup up for a free Txtlocal.com account already - I have upgraded you to "reseller" and you can start straight away. Good luck, and please come back here with any questions so others may also see the potential.

Cheers.

Hey

Thanks for the replies. I was hoping someone would mention some kind of reseller, dropship type of company and I could just promote on Google Base etc...

I am pretty interested in this TxtLocal, when you say easy... How easy? How do you go about selling this?

 

[sm1]

It is like Twitter... but with an ongoing revenue model - which anyone can get 50% of the business referred to us ;-)

So Alistair, you're saying that like your price guide, if I sold a 1000 package of SMS (your price guide states £65) I would make 50% off that? So any service that is sold, I'd make 50%?

Cheers

 

[Textlocal]

No.. not quite SM ;-)

50% of profit (after costs). So:

Bundle Size | Commission
100 £1.60
200 £3.20
500 £7.60
1,000 £13.20
5,000 £57.60
10,000 £72.80
25,000 £132.00
25,000+ Calculated per transaction

This is ongoing.. you get these payouts each time someone buys credits forever - so there is a cumulative effect.

A.

 

[sm1]

Ah, understood Thanks!