• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

  2. Forum *Official* Book Discussion
    Atomic Habits by James Clear

    The forum has voted to discuss this book. Grab it, discussion begins soon!
    Buy: Buy | Discuss: Atomic Habits, by James Clear (Review | Discuss)

WEB/DIGITAL Texting Biz

Discussion in 'Business Models, Niches, Industries' started by bad_dog, Nov 14, 2007.

  1. bad_dog
    Offline

    bad_dog PARKED

    Messages:
    6
    Likes Received:
    0
    Joined:
    Oct 7, 2007
    Location:
    Calgary, Alberta
    Rep Bank:
    $33
    Hey everyone

    I was skimming thru a european Maxim mag not too long ago, and was also watching a football match at my local pub, and was blown away by all the "TEXT ____ to ____ FOR ____" ads over there.

    Why has this not taken off on our side of the pond to the extent over there? Why can I not enter my # into a website service and be updated with traffic info, etc. or text my # for stuff over the TV, radio?

    Regulations???? I'm confused!
     
  2. bad_dog
    Offline

    bad_dog PARKED

    Messages:
    6
    Likes Received:
    0
    Joined:
    Oct 7, 2007
    Location:
    Calgary, Alberta
    Rep Bank:
    $33
    I think there would be incredible opportunity with the younger generation and their phones..
     
  3. Jorge
    Offline

    Jorge Contributor

    Messages:
    583
    Likes Received:
    99
    Joined:
    Oct 5, 2007
    Location:
    Mendoza, Argentina
    Rep Bank:
    $227
    I've thought about this many many times.
    In Argentinian TV you see this ads all the time, but most of them are useless: Jokes, Horoscope, Ringtones and wallpapers. Thats it. No value in that service.

    A friend of mine has a friend who works in a Mobile Company (Movistar) but never let me know how to get a Code. Its a somewhat "underground" business.

    I have plenty ideas but without a code, I'm trapped.
     
  4. Rawr
    Offline

    Rawr Gold Contributor Speedway Pass

    Messages:
    1,801
    Likes Received:
    1,647
    Joined:
    Aug 12, 2007
    Location:
    south florida
    Rep Bank:
    $5,483
    Could you please provide some examples of what you saw?


    I see a lot of txt advertising - usually some giveaways or "should I dump my boyfriend" nonsense ;)
     
  5. JScott
    Offline

    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

    Messages:
    3,789
    Likes Received:
    6,109
    Joined:
    Aug 24, 2007
    Rep Bank:
    $43,962
    Here are the basics (feel free to ask questions if you want more info):

    There are companies called "SMS Aggregators" who have relationships with each of the major mobile carriers; in order to send large-scale SMS messages, you need to contract with one of these aggregators, register your "short-code", set up your application and servers, get your application approved by each of the carriers, and then when you want to send SMS messages, you send them to the aggregator through a special type of server called an SMPP gateway, and pay a fee for each SMS sent.

    A few more details:

    To register a short-code (the 4-6 digit phone number from which the SMS message appears to come from) costs between $500-1000 per month, depending on whether you want a vanity short-code (one you pick yourself) or a random short-code (one provided by the aggregator).

    After you create your application and document it, the aggregator will help you get it certified by all the major carriers (AT&T, T-Mobile, Verizon, Sprint, etc), at which point you're allow to send messages.

    You set up your infrastructure on your end, including your server (that hosts your application) and an SMPP gateway, which is used to send and receive SMS messages in the format specified by the aggregator.

    For each message you send, you will be charged by the aggregator. The cost depends upon your contract with the aggregator, but expect to pay on the order of $.01 - $.20 per message, depending on your volume (and your negotiation skills).

    The thing that should be obvious is that it's not cheap to manage one of these services, so if you're not making money off of it, it can get expensive.
     
    Jorge likes this.
  6. JScott
    Offline

    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

    Messages:
    3,789
    Likes Received:
    6,109
    Joined:
    Aug 24, 2007
    Rep Bank:
    $43,962
  7. Jorge
    Offline

    Jorge Contributor

    Messages:
    583
    Likes Received:
    99
    Joined:
    Oct 5, 2007
    Location:
    Mendoza, Argentina
    Rep Bank:
    $227
    Great info! Thanks!

    Now the thing is, in this ads, at the bottom of the screen it says something like this:

    "$3,50 for each message sended, other charges my apply"

    Are they making a deal with the mobile company, or what?

    Because if you send a message for example to get a joke, in your monthly bill you get that credit billed also...
     
  8. Andrew
    Offline

    Andrew Contributor

    Messages:
    190
    Likes Received:
    41
    Joined:
    Aug 8, 2007
    Rep Bank:
    $61
    Huge industry, I would guess somewhere north of $500 million a year right now. The big wildcard is the mobile providers make all of the rules and the contracts are written so that they can chose not to pay you for any reason.

    Assuming everything is set up right you can make about $6 profit a month per customer, factor your marketing costs in to that.
     
  9. JScott
    Offline

    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

    Messages:
    3,789
    Likes Received:
    6,109
    Joined:
    Aug 24, 2007
    Rep Bank:
    $43,962
    Can you provide some source to backup that claim?

    In my experience, the carriers have little incentive not to pay application developers, and I've never seen them "choose not to pay."
     
  10. LightHouse
    Offline

    LightHouse Legendary Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    3,979
    Likes Received:
    5,342
    Joined:
    Aug 13, 2007
    Gender:
    Male
    Location:
    Northern VA
    Rep Bank:
    $29,293
    I wont dig into this too much, however, one of my tenants does this business. last year they were offered 33 mil for the company... this year they cant find a buyer becsue the carriers are taking it in their own hands. this business has come and gone for the quick money (if even ethical in the first place).

    developing a system to text to get new etc etc would be a huge expense and chances are the texting generation wont dig. just my opinions on the subject.
     
  11. Andrew
    Offline

    Andrew Contributor

    Messages:
    190
    Likes Received:
    41
    Joined:
    Aug 8, 2007
    Rep Bank:
    $61
    There still is "easy" money involved, but you need to know what you are doing. Understanding the advertising angle is absolutely critical. If you have no experience in doing large ad buys you will have a rough time.

    As far as ethics, the mobile providers have to review and approve *everything.* I'll leave it at that. I don't know if that was the case 12 months ago.

    JScott -- this doesn't even involve application developers, it involves SMS billing. The contracts have all kinds of holes and no one is in a position to change the terms with a $120 billion+ company such as Verizon. I am not going to go into the reasons of "choose not to pay" here, but its fair to say they are there, other than it would still be a future event.
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page