if you're interested in starting your
own prepaid calling card or pinless
calling business this presentation is
the right place to start after viewing
this presentation you can contact P EC
telecom at one seven three two two nine
zero one nine zero zero or visit our
website at P EC billing comm during this
presentation we'll cover a few key
concepts that will help you to get
started in your own prepaid calling
business first we'll explain to you the
business model we'll show you what the
customers experience is today how the
business model traditionally worked and
how the business model is changing today
then we'll explain to you how to start
your own reliable prepaid calling
service we'll explain to you the
different components that are involved
and then help you decide whether to
purchase a solution or to rent or host a
solution then we'll explain to you how
to make money in the prepaid calling
card business we're going to explain to
you some helpful hints to really help
you maximize your profit in the business
and finally we'll explain to you what to
do next if you're actually interested in
starting this business first looks is
let's explain to you the customer
experience chances are if you're viewing
this presentation you've purchased a
prepaid calling card in the past
Henry visits the ABC retail store and he
purchases a calling card on the back of
that calling card is an access number
Henry dials this number and then he
hears a message welcome please enter
your pin number after hearing this
message
Henry enters his pin number and then he
hears a message you have $10.00
remaining please enter your destination
number Henry dials his mother in the
United Kingdom and then he hears a
message you have 100 minutes remaining
the phone rings in UK and his mother
answers the phone
Henry speaks for let's say 15 minutes
and then he hangs up now Henry tries to
call again and he only has $8.50
remaining in the case of a pin list
calling scenario steps 3 where he hears
the welcome message and step 4 where he
enters a PIN number will be eliminated
so now you understand the customer
experience let's explain to you what the
traditional sales model in the prepaid
calling card and pinless calling
businesses were so traditionally you had
a service provider distributors retail
stores and the internet and end
customers or the end users underneath
them so the service providers would sell
to distributors the distributors result
to the retail stores and the retail
stores sell to the calling card users
and the way the profit model would work
was that the service provider would sell
to the distributors at $3.75 this is a
$5 face value card the distributors
would sell to the stores at $4 and the
stores would sell to the customers at $5
now anywhere in between here the
distributor or the retail store can
choose to give a different price for
example if the retail store wanted to
sell for 4 dollars and 50 cents and only
make 50 cents profit they have the
option of doing that today the model has
changed a little bit the chart in front
of you looks a little bit complicated
but it really helps to maximize the
service providers profit so service
providers now have an option of selling
directly to the retail stores and paying
their own distributors they can sell
directly on their own internet site or
through a different internet site they
can continue to sell through
distributors to really push a lot of
volume or to generate the most profit
they can really sell directly to
customers now obviously the service
providers Reach is less than a typical
distributor would be so the volume would
be less if they're selling directly to
their own custom
however the profit margins would be much
much higher and today the way service
providers are doing it they're really
combining all of these different sales
models and they're selling directly to
retail stores selling through
distributors and selling directly to
end-users so they're maximizing their
profits and even small service providers
are able to generate enough profit to
generate a good fairly decent income so
we've explained to you how much the
distributors are making how much the
reach retail stores are making and how
much the customers are purchasing the
cards for but how much does the service
provider make we haven't explained that
yet well the truth of the matter is
printing a prepaid calling card is no
different than printing cash if you
print a five-dollar calling card you can
go out there and sell it for 375 to a
distributor or $5 to the end user the
truth of the matter is you actually
don't have to provide the service to
back that so essentially you're printing
cash now the profit for service provider
is determined by the service provider so
for example if you're selling to a
distributor and you say I want to make a
10% profit on this face value which on a
$5 card which is 50 Cent's you'll decide
that your cost for the card should not
be more than 325 so you'll determine
your rates and your fees and the
expiration dates for that account so
that you will not lose it will not cost
you more than three dollars and 25 cents
on that card so the truth of the matter
is you determine you as a service
provider determine the actual profit on
each card a typical service provider
will aim to set his cost on a five
dollar calling card at three dollars and
fifty cents so that means if he's
selling through the distributor he's
making twenty five cents through the
stores he'll being 50 Cent's and if he's
selling directly to the customer he'll
be making a dollar fifty and let's say
for example he wanted to sell it to the
customer at a ten percent discount
still be making one dollar because the
customer would be paying 450 for that
card
so as you can see again with this new
business model
it's come come to play today the service
providers are really maximizing their
profit
seven to ten years ago the cost of
getting into this business was was much
higher than it is today for each site
let's say for example you wanted to put
a site in New York it would cost you at
least a quarter million dollars and then
if you wanted to put one in an LA and
Miami will cost you an additional 250
for LA and 250 for Miami
in addition distributors and and retail
stores were very reluctant to work with
you because they were used to dealing
with these big companies and they
weren't used to dealing with new smaller
providers long distance carriers they
really wouldn't work with you unless you
you had a hundred or two hundred
thousand dollar deposit to give to them
in addition as I explained you had to
have one setup for each city and the
recurring expenses in addition to the
upfront costs were very very high in
each site for example your minimum cost
would be six to ten thousand dollars a
month so to break-even it really took
you some time so if you didn't have that
initial you know cash to cover yourself
with the first few months you'd be out
of business before you even got started
finally long-term contracts were
required and they were based on credits
so if you are a new company you didn't
want to tie your personal wealth to this
business there's no way you could have
started today things are different you
can get started and in as little as one
week
the monthly outlay is no more it
basically starts at six fifty a month
distributors and stores are open to
working with you
and very you know very cool thing today
is that from one system let's say for
example it's in New York you can serve
UK France the west coast of us that you
can serve Miami Seattle so you can
really serve all these cities and give
them access numbers and they can all hit
your platform in New York which you
could never have done before
also there's no long term Khan
trikes required today most companies
will work with you on a month-to-month
basis or require you know three month or
six month contract and there's no credit
involved so that's that's really
important and finally these large
carriers that used to never work with
you now they're willing to work with you
on a prepaid basis so you don't need
these huge outlays of cash to really get
into the business