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How to Start a VoIP Business

If you have landed on this article, you probably know a lot about VoIP technology, its endless features and the benefits it provides for today’s businesses and you want to be part of this future technology by starting your own VoIP business. The question is: how should you start selling VoIP and what do you need to know to ensure your success?

In this article we will explain the different business models that are available for VoIP sellers and help you find your way to a successful business opportunity.

Understand VoIP telephony

Before you start your VoIP business, you need to understand the basics about VoIP technology, how it works, its countless features and benefits for businesses and its limitations and challenges. Your clients need to be confident in dealing with your company and purchasing VoIP systems from you. Dependent on which business model you are after, you can start with online blogs which usually provide really good information about VoIP telephony in an easy-to-understand language, such as VIP VoIP blog or you can purchase advanced books and learn more technical and professional details about VoIP.

Choose your business model

VoIP Business models-01

The next step in your VoIP selling journey is deciding which business model you want to start with. To simplify this as much as possible, we’ve created the above illustration that highlights the three common models of VoIP selling business:

1- VoIP wholesale

VoIP wholesale providers sell their hosted VoIP service to VoIP resellers and other companies or dealers that are interested in reselling VoIP systems to their clients. The wholesale packages usually include standard and extra features that are provided in exchange to a monthly fee. The standard features usually include:

  • Origination and termination, which is the ability to send and receive calls from a PSTN number.
  • Full access to international numbers.
  • Access to emergency calls – E999
  • An online control panel that you can access from anywhere to manage your VoIP system.
  • Full access to all the features and capabilities of their VoIP system while being responsible for maintaining and managing VoIP equipment and hardware.

The extra features can include virtual landlines, call centre solutions, toll free numbers, auto attendance, virtual conference calls and more.

This business model is becoming increasingly popular nowadays as it offers the companies a full control over their VoIP systems including the costs and the quality of their service.

2- VoIP reseller

Many people confuse VoIP wholesale providers and VoIP resellers. VoIP resellers work by purchasing a VoIP service from VoIP wholesale providers and then resell it to their clients in exchange for a monthly fee. They are not responsible of maintaining and repairing the majority of VoIP equipment and hardware or managing the complex VoIP system.

A VoIP reselling business is a very tempting career as it allows you to start a profitable business at low costs and minimum risks. Your company will appear as the main VoIP provider in front of your clients without having to invest in expensive infrastructure yourself.

VoIP resellers have their own billing system. They pay VoIP providers what they owe them monthly and then have a full freedom on deciding their clients’ monthly rates and their profit margins. The only thing they need to do is attract more customers to keep their business going.

3- Dealers

Dealers are the most common business model in VoIP selling world. They don’t have their own billing system and they don’t actually provide the VoIP service. They sell VoIP wholesale services to clients and earn a commission for each sale. It’s a lucrative business opportunity that doesn’t involve risks or high start up costs. It’s a good start to build a customers’ database, increase your connections and master VoIP selling before moving up to more complex models.

Choose your VoIP provider

The key element to your success is finding the right VoIP provider with a high-quality service and a good reputation. You need to find the right deal that have no hidden costs and allow you to exercise a full control over your company rather than being restricted by long contracts and complicated rules. A good deal will allow you to:

  • Have a full control over your relationship with your clients – Your clients will never know that you are a reseller or dealer.
  • Apply your own branding to all the interfaces of your customers’ platforms.
  • Set your own pricing and profit margins.
  • The ability to provide customised and flexible solutions for your clients when needed.
  • No long-term contracts.

Learn more why VIP VoIP is one of the best VoIP providers in the UK.

Choose your software switch

Once you’ve decided which business model you want to start with, you need to acquire your own infrastructure. The key platform is a software switch (also called softswitch) which connects calls between your clients and VoIP providers.

VoIP wholesale providers need to acquire a class 4 switch, whereas VoIP resellers need a class 4 switch. You can also get a class 4 & 5 switch which is an all-in-one solution if you are not sure yet of which business model you want.

VoIP dealers don’t have to acquire any switches as they won’t be providing the VoIP services directly to their clients. They play as the middle man between VoIP wholesale providers and clients.

Find your market

To build up your customers’ database and increase your chances of success, it’s always advised to start selling VoIP locally and develop good relationships with local businesses in your area. You can then gradually broaden your target market and grow your business.

VoIP telephony is a fast-growing market and yes there’s a big competition in selling it out there. Working with the right VoIP provider is a huge advantage for your business. You customers will enjoy the high-quality VoIP system and refer you to new potential customers. Your business will grow gradually but most importantly your customers’ satisfaction rate will increase and that’s the core element of your success.

Here are some more tips to help you get more customers on board “VoIP sales pitch

Speak to us about your VoIP selling business and we will help you start making money with us easily and at a low-risk: 03300881182 or email us at