Are you thinking of starting a bulk SMS business in Nigeria but don’t know how to go about it? This article is the complete guide you need to get started and grow your bulk SMS business.
The demand for custom bulk SMS service is on the rise because businesses, organisations, churches, associations always want to send SMS to a large number of people at the same time. Obviously, sending a normal text message can be quite expensive when you consider the number of people you are sending SMS to.
One of the advantages of starting a bulk SMS business is that it requires little capital to start. Also, you can make up to 200% profit if you know how to maximize the business.
Actually, the profitability depends on the business owner and other factors like knowledge of the business, market knowledge, competitive analysis, customer relationship, consistency, etc.
Do you want to succeed in the Bulk SMS business? There are steps you need to follow holistically to get the best of bulk SMS business.
After reading this article, you will be able to own your Bulk SMS website, buy and resell bulk SMS to your customers.
Before we dive in, let’s define Bulk SMS business.
What Is Bulk SMS Business
Bulk SMS Business is the business of sending constructed messages from phone or laptop to the phone numbers of a large number of persons at the same time through a bulk SMS website.
There are two major types of bulk SMS and you should be able to differentiate them.
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Types Of Bulk SMS
1. Promotional Bulk SMS
This is a type of bulk SMS used to promote a brand. Promotional bulk SMS helps create awareness about a brand, product, service, and event to new and existing customers. It is also used to disseminate new information to customers or group of people.
2. Transactional Bulk SMS
This is another type of bulk SMS used to send alerts or reminders of events to customers or groups. It is basically used to communicate transactions with clients.
How Profitable Is Bulk SMS Business In Nigeria?
This is probably one of the questions you will ask yourself because every business owner is obviously in business for profit-making. Truth, Bulk SMS business is a profitable venture considering its high demand and usage by many in Nigeria.
Additionally, many establishments are turning to the use of bulk SMS as against traditional text messaging. Bulk SMS business is profitable because:
1. It is not expensive to start
Most aspiring entrepreneurs complain about start-up capital being the reason why they have not started their businesses. And if they eventually get the capital, it may take a while for them to break even in the business as they need to make back the capital before profit can be recorded.
But in bulk SMS business, there is no need for much start-up capital. With as low as N10,000 or less, you are good to go. Also, you don’t need to set up a physical office for bulk SMS business. You can run the business on your laptop, phone, or from a cybercafe.
If you have a full-time job, you can run the business part-time while you maintain your 9-5. Actually, the benefits of starting a bulk SMS business far outweigh any disadvantages you might think.
2. It is easy to set up
Bulk SMS business does not require much expertise to set up. In most cases, you will only pay money into the provider accounts and then your provider handles the bulk SMS portal design, installation, host, and also test run your new business before handing it over to you.
There’s absolutely no complex or technical skills required to start this business although having a technical skill is an advantage. Hence, you can save a lot of costs which makes the business more profitable.
3. It has a high customer base
With just a few clicks, businesses can send messages to a large number of customers at a low cost. Hence, the list of clients to attract is endless. And you know that the more the clients, the more the profit. Who doesn’t like easy?
What You Need To Start Bulk SMS Business
To become a bulk SMS reseller, these are the basic things you need to start
- Laptop, or desktop computer
- Little start-up capital (N10,000 or below)
How To Start Bulk SMS Business In Nigeria
Step One: Feasibility Study
It is imperative that you conduct a thorough feasibility study about your target market, the cheapest companies with the best reselling plan to go for. Find out those already in the business and the reseller plans they use.
Conducting a feasibility study will save you from spending unnecessary money or subscribing to a plan that’ll affect your profit. There are several reseller companies and if you are not careful, you can fall into the wrong or expensive hand.
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Step Two: Create Your Own Bulk SMS Website
After a good feasibility study, the next step is to create a website for your bulk SMS business. If you are a programmer or web developer, you can create your bulk SMS website by yourself.
As a matter of fact, this is where the main work lies because the success of bulk SMS business is largely dependent on the responsiveness of your website.
Bear in mind that your website should have advanced features like automatically removing any duplicate number and the ability to integrate your API. You will also be at an advantage if your website is professional and welcoming.
Typically, if you are creating your website yourself, here are the basic steps you need to take:
- Register a domain name for your website
- Get a web hosting plan from a reliable web hosting company
- Purchase an SMS Gateway Account from an SMS gateway provider
- Link your SMS website to the SMS gateway provider with whom you have created an account
- Purchase SMS units from the service provider
Alternatively, if you don’t have the required resources to build a website from scratch, you can go for the option below:
Register With A Bulk SMS Wholesaler Or SMS Service Provider
This is the easiest and cheaper option to go for as a beginner. With this option, you wouldn’t need to bother yourself about building a website or linking your website to a SMS gateway provider.
A lot of wholesaler websites create a reselling portal for its customers. Through this portal, you can purchase your custom SMS directly.
To register with an SMS wholesaler, there are certain charges you will be required to pay. The pricing differs based on the wholesaler’s platform you choose.
The results from your feasibility study should guide you in selecting a cost-effective and reliable Wholesaler or SMS Service Provider. Once you have made that decision and registered with the provider, move straight to step three.
Step Three: Purchase Custom Units
You are not in bulk SMS business until you fund your account. After registration, you will buy a specific volume of custom units to start.
This SMS unit is what you will re-sell to your customers. In most cases, the wholesaler platform gives the SMS units to you at a cheap rate that allows you margins for profit. Once this is done, the wholesaler will then forward your detail and the guidelines for setting up your portal to you.
Step Four: Design Your Portal To Your Taste
At first, your portal will look like the wholesaler’s website so, you will need to customise it to your taste. Add the domain name of your choice, logo, and all other information that project your business identity.
Your site outlook and layout should be easy to navigate for customers. So, fashion that into your portal design.
Also, don’t forget to add contact information where prospective customers can direct their concerns and questions to.
Step Five: Register Your Business Name With CAC
This step is important because you need to open a corporate account that your customers will pay into. And, it’s impossible to open a corporate account in Nigeria without your business registration certificate.
In Nigeria, it is easy to get your business registered with Corporate Affairs Commission (CAC). All you need to do is visit CAC’s portal and follow the required procedures.
Most times, aspiring entrepreneurs find it difficult to successfully register their business themselves. In that case, you can pay an expert to help you register.
One of the firms you can trust is ReDahlia, located at 43B, Emina Crescent off Toyin Street, Ikeja, Lagos. With just N20,000, they’ll help you register your business. Another great news is that regardless of your location, your business can be registered and your certificate will be delivered to you.
Step Five: Advertise Your Business
The next step is to promote your business to your prospective customers. Without promoting and marketing the business, nobody will hear about it which in turn means there will not be clients, sales, and any form of profit. Here are the sectors to target when sourcing for customers:
- E-commerce and logistics
- Advertising and Event Management
- Airlines and Travels Agencies
- Religious Organisations
- Insurance Companies
- Hotels and Resorts
- Media and Entertainments
- Political Parties
- Academic Institutions
Start by promoting your business online because most of your customers are online. An active account on Instagram, Facebook, and Twitter is a good way to start. Google Ads is also very effective in this type of pf business. Offline advertisement is equally important when promoting your business.
Here are some of the marketing channels to explore:
- Word of Mouth Marketing
- Email marketing
- Paid online advertisement
- Social media influencer marketing
- Newspaper advert
Conclusively, before choosing the price to charge your customers per SMS, consider the amount you are paying for the units acquired from your service provider and any other cost you might have incurred. This will save you from undercharging and overcharging.
There you have it. You can start your Bulk SMS Business today! And we want to hear about your progress. We are here if you need to speak to a business consultant.