TeleOSS Articles

Prerequisites to start a SMS Aggregation Business


Companies of all sizes around the globe are making use of SMS messages to reach their consumers. Using SMS Gateway Software for setting-up SMS Aggregation Business is no longer a rarity. This is a very good opportunity for new start-ups, experienced professionals in SMS industry as well as those who are currently working as SMS resellers in the market to start their own companies that offer these messaging services to the business owners.

The business challenges would be ROI, Vendor management, Competition, Pricing, Client support and service pressure from clients.

Main queries or prerequisites to start a SMS Aggregation Business are:
1. How to get the Gateway to set-up business
2. To whom you can Connect
3. Making Profit by giving Bulk SMS Services
4. Three Biggest issues with SMS Aggregators
5. Technology Compliance
6. SMS Gateway Software Provider Selection
7. Compromising on Technology with price as a reason

Get in touch to learn more about our TeleOSS SMS Gateway Platform

1) How to get the Gateway to set-up business  
You can get a SMS Gateway or a Bulk SMS Aggregator Platform, either ready to use (See Ready SMS Gateway Software Platform), or an open source application with developers over it or a freelance programmer.
The options to be selected from are:
a) A team of full time developers: It will be costly as well as time consuming
b) Ready Product: Better option if the product is scalable, robust, has good business functionality and with user friendly technology platform
c) Freelancer: Risky option
d) Reseller Account: Depends on the business volume (Being a Reseller is easy and affordable but at the cost of lower profit margins)

2) To whom you can Connect
It can be either Operators or Wholesale SMS Providers.
a) Direct Operators: They will definitely be cheap, but they might ask for higher volume commitment
b) Wholesale SMS Providers: They would be a bit on the higher side in regards to price, but they would give you multiple operator and global connectivity to give you good service

It is your decision. But you need to make sure that your Gateway has very good routing capabilities.

Also it’s important to note how difficult it is to develop relationships with the carriers. The carriers want to deal with as few connectivity aggregators as possible since it is easier to enforce their strict policies that way.

Kindly note that the carriers have all the bargaining power when it comes to prices.

3) Making Profit by giving Bulk SMS Services
This can be achieved in 2 ways
a) Sell at cheap competitive rates with high volume and more clients. Need higher number of Client base and a strong productive Sales Team
b) Give better Service and Support, take premium cost. Less Clients, but high volume and high margin. Additionally, the clients don’t leave you for market cost

4) Three Biggest issues with SMS Aggregators
a) Support: The biggest issue with aggregators is time and if their time get wasted with the poor support issues they will enter into a loosing business scenario.
b) Billing: Aggregators are Excel masters! However they again don’t have time to work on it manually. The way around this issue is the billing and reporting module working with data in a CSV file saving their time.
c) Reporting: Lack of proper reporting is an issue. The right reporting module with business status and statistics is the key.

5) Technology Compliance
Compliance can also be an issue and you’ll also need dedicated personnel who take care of compliance if you are going further with a freelancer or non experienced developers. If you go with a reputed company for SMS Gateway Software with customized requirements the technical or the project team of the company itself will provide you the compliance.

6) SMS Gateway Software Provider Selection
When it comes to selecting a better SMS Gateway Software Provider today, you will be confused with choices. But not all of these providers have the correct knowledge and experience to make your campaigns successful.

This makes it difficult for a business to select a good SMS Gateway Software Provider, as it is easy to get manipulated or deceived if you don’t have any knowledge about the business and technology details. It makes companies defenseless to providers who are trying to over promise with best services and very low pricing. It creates problems after buying the software in scenarios such as the business users increase, the support issues increase with scalability and other technology issues to be solved.

That is why it is a key issue for business owners to select an appropriate SMS Gateway Software Provider. With a proven track record and technologically strong gateway software that has been around for over 8 to 10 years, can be one of the better eligibility criteria.

7) Compromising on Technology with price as a reason
Many companies go for cheaper rated products compromising on product technology and are either completely unsatisfied or sometimes even cheated on technical features, support, scalability and advanced updates or business functionality. Here are some key live examples at Bulk SMS Industry Facing Problems with Incapable Technology!

TeleOSS – Ready SMS Gateway Software Platform

Aruhat’s TeleOSS – SMS Gateway Software Platform is a bulk SMS platform to become self-sufficient or independent Aggregators with advanced operational, services & business excellence features. It has a Scalable Architecture for Dynamic Routing and adding Mobile Value Added Services.

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