By Jack Beddall
I don’t suppose there is any business that can be explained perfectly in a few sentences. I’ve had some questions about every business pitch I’ve ever seen, and you probably have also. How these misunderstandings are handled is a critical element in how well a person does with their business.
VoiParty is an interesting business in that it’s so different from existing business models, the misunderstandings are all basically the same. It would be difficult to do a top ten, or even a top five. There are only two that come up repeatedly.
1) “Landlines are on the way out” (or, “I only have a cell phone”) — That’s not true, for a couple of very good reasons. First, fully 75% of all phones are still landlines, and the number of landlines in the US actually increased last year. Second, and more importantly, the seven “baby bells” which were created in the great breakup of 1984, are required to maintain their legacy systems. As much as the big players would love to do away with all the poles, wires, and central offices required to maintain their systems, they can’t. The “end” of landlines is nowhere even close to the horizon.
2) Some version of “I don’t want to change my existing service.” — This can be, “I already have voip,” “I have unlimited long distance already,” “I use my landline for local calls, but make my long distance calls with my cell phone,” or something similar.
This is by far the biggest misunderstanding about VoiParty, and the one that keeps the most people from really seeing the potential of the business.
VoiParty doesn’t work on the retail level. It doesn’t involve any degree of “getting people to do something differently.” It works on the wholesale level, and it works like this:
Fact: No single company can terminate calls to the entire US. AT&T is the largest, with 36%.
Fact: When a customer calls a number outside their company’s authorized area, their company has to pay someone to carry and terminate the call.
Fact: Similar to how Travelocity finds the cheapest flight, the phone companies have software that finds them the cheapest way to route and terminate the call.
Fact: This is an “invisible” $800 million a month wholesale market.
VoiParty is not about getting other people to change their phone service. The market is already there, and the money is generated by people who don’t even know the business exists. (There are currently in the neighborhood of 90k InterExhange Carriers competing for your calls. Can you name them?)
VoiParty members buy a termination box. They plug it into a high speed Internet connection, and into a local phone line. That’s it. People from around the country make calls to that local area, and their phone company looks for the cheapest way to terminate the call. Their system finds the VoiParty box, and routes the call to it. The member gets paid. No one, including the people on the call, even know anything different happened.
It literally is like being able to buy a telephone pole, and then getting paid for all the calls that go over it, or like being able to buy a door at Wal-Mart and then getting paid for all the people that walk through it.
This misunderstanding about where VoiParty operates and generates its residual money, is the biggest misunderstanding about the company, and the one that keeps the most people from taking advantage of this business.
Jack Beddall is an experienced Internet Marketer who specializes in resources for the e-entrepreneur. You can visit his main marketing site at SuccessvilleNews,
and his business network at The Successville News Network.
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