SMS Business Idea | Low Investment High-Profit Business Idea

As a part of our ongoing series on various Franchise Businesses, our next trip took us to the digital world. SMS and emails have become a major part of our modern world. Every day, we receive quite a number of SMS and emails from various brands, advertising about their latest developments. But how often do we wonder who is the person behind all these SMS and emails? So in this blog, we shall talk you through Ahmedabad based franchise, SMS Idea and their business model. A lucrative business, SMS Idea is helpful for anyone wanting to take it up as a part-time job as well as for someone looking to advertise their business via SMS.

We sat down for an interview with Kamal from SMS Idea. A veteran in this field for the past 11 years, Kalam has worked with some of the biggest brands. Read on for excerpts from the interview.

Where and how did SMS Idea begin?

My partner and I are both alumni of NIRMA and began this company in 2008. We were also curious about how these bulk SMSes were getting delivered. So we were researching a particular business idea which also needed a feature of bulk SMS. Thereafter, we moved ahead with the bulk SMS business idea itself. After starting the company we saw more opportunities in this field and began to grow. We also overcame the TRAI regulations in the recent past and have maintained a steady business trust among our clients. We have worked with Uber, Audi, some telecom operators and educational institutions. On the higher side, we have delivered around 15 crore SMS in a day. But this number keeps fluctuating and on average we send out 4-5 crore SMS in a day. We also have 250 Resellers connected with us.

What is SMS Business Idea?

On average, an individual receives about 20 SMS in a day. If you multiply that with the total population of the country, the scale of reach quadruples. Hence, the scope of reaching more and more people via SMS is massive. Most people are unaware of how this entire SMS cycle works. There are, however, three kinds of SMS. First is Promotional Message, where one advertises their business. Second is Transactional Message, where brands send out notifications and updates to their subscribers. Third, is OTP Message, which is generally automated alerts through APIs. These messages are regulated by the Telecom Regulatory Authority of India (TRAI).

Is SMS promotion cost-effective?

SMS, in general, is cost-effective. Also, since they are a digital product and are delivered directly to mobile phones, the response ratio for SMS is high. Compared to a newspaper ad or a radio ad, which goes out to an entire city, SMS can be more targeted to a specific audience. If one has the deliverable then can target the exact demographic via SMS.

What is the process of sending bulk SMS?

We have an online portal known as SMS Idea. Up to 10 lakh contact numbers can be uploaded on this portal and they can be used for sending out SMS. We are connected to a telecom operator, so we submit them all our numbers. Then the telecom operator delivers the SMS in bulk to all the numbers. It is a fully automated system and no manual work is required. There is also no limitation to the number of SMS one can send out in a day.

The system is also fully transparent, so we get to know the number of SMSes successfully delivered or failed. Detailed reporting is available. In case of failure, the reason is also provided.

The SMS Idea portal is very easy to use and requires just three simple steps. Customers just have to log in to the portal, register themselves, make the payment, add their contact numbers and hit send. It’s as simple as sending out SMS via your personal mobile. Customers can also view the detail delivery report once SMS have been sent out.

Who are the various players in this field?

There are three kinds of players in this industry. Firstly, there are the Aggregators. Aggregators are connected to a telecom operator and have a fully developed online portal themselves, like SMS Idea. Under the Aggregators are the Resellers. Resellers buy in bulk from the Aggregators and them sells in chunks. Lastly, there are Users who are the actual consumers. Users can avail this service via Aggregators as well as Resellers.

What is the SMS Business Idea Franchise Model?

One can buy the SMS from us in bulk and sell it forward in chunks. Thus, one can add their profit margins accordingly before selling. One needs a computer system and internet for this franchise. Then they can create logins for their customers and add the balance for each and sell those logins. Thus, this franchise does not require a lot of time or hard work. We also provide the feature of White Labeling, where individuals who already own some business can add the SMS Idea feature to their business. They need not add our brand name anywhere and can sell the SMS just with their branding. There is no geographical limitation to this service. Customers sitting in another city can be easily tended to. SMS Idea also provides global connectivity for international business plans.

What are the requirements to start this franchise?

The Resellers role here is basically of sales. Hence, they need to be prompt in their marketing and communication skills. Anyone with an aptitude for selling or a team with this skill can get into this business. As a Reseller, one does not need any technical nuance.

How much investment is required to start this franchise?

We have designed a special start-up package for newbies to get a taste of this business. This package entails Rs 10,000 as the training and set-up cost, where we deliver a new website for running the business. Along with this, we charge Rs 10,000 for giving you 1 lakh bulk SMS for usage. Hence, an initial investment of Rs 20,000 plus GST charges is our special package offer. Anyone can drop in their query regarding this franchise business here.

What other services does SMS Idea provide?

The other services we provide to Resellers are Bulk Mailing, Voice Call, Missed Call Service, Long Code/ Short Code Service, International Messaging and Digital Marketing. These all tie-up with each other, as they are in the same field. Hence, customers usually require one or more of these services and we provide them customized packages accordingly.

What support do you provide to Resellers?

If a Reseller is new in this field then we do some initial hand-holding for them. We provide assistance to close deal with customers and tend to the customer support. In this field, if one finds an SMS of less than 10 paise, then there are more chances of fraud with that. We provide a marginally higher price value because we deliver on quality. In general, TRAI charges 7 paise per SMS. Telecom operators charge Rs 2.50 per SMS. So adding the value of our resources marginally increases the price. There are also cases of SMS fraud which you can learn about here and stay aware of.

You can get in touch with SMS Idea via this link.

Watch our full interview with Kamal below.

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