The market for phone systems and voice service in the small to medium size markets has changed significantly over the last decade. Traditionally the market was served by Interconnects who were the systems integrators for the voice hardware. They gained the trust of the customer, gathered the requirements, and procured and implemented the system. On the back end, once the services were installed, the customer either on their own or more often the case through the recommendation of the Interconnect would select a provider for dial tone. Between the hardware and services the Interconnect would see one time margins of somewhere between 20% to 40%.
In this model, despite the Interconnect doing all the heavy lifting to gain the customer the economics were dramatically better for the dial tone provider. Interconnects were in a project business model where they sold something once and really had no meaningful opportunity to sell something to that customer again for 8 to 12 years which is the half life average for a typical system. On the other hand the dial tone provider, who had little to nothing to do with creating the customer relationship, received a recurring revenue stream with margins of upwards of 60%.
Convergence of Voice and Data
Convergence of the voice and data world through the development and maturity of VOIP has succeeded in leveling the playing field of the voice market. This represents an unparalleled problem and opportunity for Interconnects. The problem is that those who choose not to evolve their business model run a serious risk of getting squeezed out of the market as the traditional dial tone providers are selling directly to end users. The opportunity is to provide your own end to end service that includes dial tone where you can receive recurring revenue with upwards of 60% margins.
A summary of some of the major benefits of the WLC private label service are as follows:
- You have total ownership of your customer. We are completely transparent.
- For your premise based PBX sales change nothing you do but capture the recurring revenue you have been giving away to other carriers.
- Enjoy recurring monthly revenue with Margins of up to 60%.
- Create Equity Value for your business with recurring revenue.
- Increase your hardware and service sales opportunities.
- Provide a more feature rich, cost effective solution to your customers.
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P.S. Our resellers enjoy monthly recurring revenue with up to 60% margins.