[amamun20@hotmai]

Hi
I wonder is there any money left in VOIP business ? To start VOIP business I made a little prestudy where I want to set up a 30 Port Gateway . Including software , Hardware and PSTN switch board my total investment is around 10000 USD . My monthly operating cost including telephone and internet around 600 USD . Network support and customer service is around 4000 USD . Including my Investment with 12 months IRR and operating cost my monthly net Expense is around 5400 USD .

With moderate estimation If I sell 100000 Minutes per month and 4 cents per minute I earn 4000 USD and for termination if I pay 2 cent per month I give away 2000 USD per month . With local tex 20 % I pay away again 800 USD per month . So at the end of month My net earning is 4000-2000-800 = 1200 USD . My monthly Expenses including investment is 5400 USD ,

There fore my monthly net profit is 1200-5400 = - 4200 USD . Now is there any expart can tell me how I can make money from this business and How we could beleive those marketing people . Techonology is good as long as its makes money .

waiting for some interesting comments from this forum .

amamun

[oasis-k]

I'm a bit late on this but thanks for this message. It's very sobering and we all need to have enthusiasm rooted in reality - which is after all the bottom line.

The VoIP market is reminding me more and more of the California gold rush. A few people found gold and got rich - but most of the guys just wasted their money buying the picks and the shovels to dig the holes. Needless to say the guys who made the most money were the ones who sold the shovels, maps, liquor and women (and jeans too, some guy called levi strauss!). I'm sure the vendors you paid for the gateway and the monthly dues are doing nicely.

What we learn from this is - do VERY CAREFUL costing before you start.

oasis-k
Asterisk & VoIP Training and Consultancy

[cigdog]

I hope theres money left in Voip business :)

[cigdog]

good points made here

[njmst12]

If your actually own your own routes (and expensive routes too) you'll make a lot of money. If you have to resel then offcourse your margin is low.

[voipbaby]

Yes there is if you know how to develop your backend and market your services.

[miko1227]

What is the bottom line here trying to make money on something thats free or using this medium to promote and advertise. The VOIP revolution is not close to finished growing but how much money do you think you can make marketing a product that is software. Voip is just like email were as it is free to those who want it for free and it costs for those who want to pay. The money is in the advertising that you see on your email account. If a big email company would have asked you to find them advertisers to promote their business, which is free by the way, and pay you a lot what would you have said "YES". This is what my company does. If you are really looking to make money let me know. You can email me or leave me a private message. If you are intrested in my wwebsite that is also available under my name.
Regards

[KADEE TELCOM]

voip business on a global scale is still a highly fragmented market.
At first glance it may seem that market penetration is very wide,
but the contrary is the case actually. The industry has had a lag
in implementation due to fact that the quality of service was not
up to par with what clients expected. Only since few years the
technique there to actually deliver what was promised. As such
not too many customers have migrated (relatively speaking) Accurate
stats are difficult to come by, and below might be off mark at some
points, but some key points in the sea of info:

- only 15-30 pct of companies have switched (depending on country) but
60pct are expected to do so by 2007
- global corporate revenues 2004 where 1bn but wil rise to 5.8bn in 2008
- USA residential voip services where 1.3bn in 2004 - expected 19bn in 2009
- the residential increase of global voip use (annually) estimated at 20-25pct.
(many use 35pct)
- total voip lines where up 70% at 6.5mln in 2004 vs 3.8mln in 2003.
similar expectations for 2005.
- hosted voip services globally are expected to be a $7bn mkt by 2008.
(today its only a fraction if that)
- western europe voip revenues for Q4 where up 13pct fm Q3
- voip equipment sales as mentioned by some of you are soaring.
If somebody is selling a lot, then somebody is investing a lot.
High investment levels are key sign of a healty market! (simple but true)

I believe the VOIP market in general is still a very healthy market... In
general the first signs of a market with a high mkt entry treshhold
(for start-ups) are factors suchs as
- intensive consolidation, and consequent economy-of-scale benefits
for the large corporations.
- very high product market penetration in % of ttl users.
High product awareness with customers
- annual growth rates below 5pct
- struggling investment rates

Voip is non-of-above, in fact the opposite. Its a market
- driving on newly developed technical breakthroughs as they appear
- (in relative terms) low mkt penatration and product awareness
- HIGHLY fragmented market with many operators in many segments
(low customer loyalty towards a chosen few)
- showing growth rates in equipment and service sales of 20-30pct
(depending which mkt info you take as accurate)

surely the above growth rates will ensure that the market WILL be
more saturated in the next 3-5 years. But thats a lot of time to get
on the map, and position yourself into a niche.

My own personal opinion (which feel free to shoot holes in!) is that most
voip business automatically take for granted that VOIP is what people want.
('Why would somebody NOT die to call more for less etc etc') The truth is
that many people have grown accustomed to their pbx lines for generations,
and are weary of giving them up. ALso more people of the 700mln
global phonelines than you think are weary (or uneducated) of internet
and migrate their PBX into their broadband. Which means the excellent
growth till comes from a minority of potential users. funny enough it is
not just 'cheap' that makes people go for VOIP... It also needs to be
simple to use - and be of quality! (which wasnt always the case past
5 yrs)

With voip growing fast it will be imperative for start-ups to avoid trying to
catch on to the 'big wave' and attract those global visitors. Best/easier
would be to FOCUS on which specific market you wish to target. If you
do this correctly your marketing will be that much more effective
(and cheaper) leading to (much) more traffic than the 100k you projected
in your calculation. Again, shoot holes in above where possible (pls) but I
fear that if 100k min/month is the ultimate goal outlined in your biz plan
(based on the mentioned investment) that indeed something is going
astray from the start. It's great to start with modest expectectations
but when investments come around the corner why not investigate
what you can/must do to make 500k min, or 1000k min a month?
And then grow? I surely believe those are realistic targets if you focus,
and get it all right.

big PS here:
I am in process of starting up myself, so I have no hard achievements
(yet) to give you. I do however wholeheartedl believe in above and
have my entire business model fully designed on it!

Hope this was a worthwhile addition to the forum. If not than by all
means let me know where I flawed (I can take it!) Especially people
how strongly disagree with me on specific issues are MOST welcome
to let me know their thoughts. (so I can learn from you)

best regards,
mark

[k.washburn]

Thanks for the post, Voip is great. I believe if we continue to treat Voip as a commodity there will be opportunity to grow a profitable future for all. The only limitation is equipment, cost of "white routes", and the F....... governments! Any how, take care there are a lot of bad people out there. Cheers, K.Washburn

[admin]

Originally Posted by KADEE TELCOM

voip business on a global scale is still a highly fragmented market. At first glance it may seem that market penetration is very wide, but the contrary is the case actually. best regards, mark

Great post. This is the kind of post we believe helps our visitors the most and helps build a good information oriented community.

KADEE TELCOM, please keep posting. We want to hear more of your observations of the telecom industry.

[promom]

Maybe someone out there is better prepared! I was going to get into the business of VOIP service reselling but didn't have the capital I needed to really get started right. Therefore, I am going to sell off the domain names and perhaps recover my initial investments. I have a bunch but here I will post these (make offer): COMPANYVOIP.COM
DIALMYVOIP.COM
VOIP2ME.COM
VOIPIPE.COM
VOIPNUTS.COM
VOIPinc.COM
and others - email if interested, please. I think I will try again at a later time when VOIP has a better reputation with my particular client base.

[ipolex]

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