Jola Cloud Solutions' Blog

Why sell mobile SIMs?

Posted by Andrew Dickinson on 21-Jul-2015 10:03:00

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You may not be a telecommunications provider so why sell mobile SIMs?

The market is converging

The mobile market is saturated and mobile companies are taking on specialists to sell IT Support, connectivity and cloud products into their bases. For the SME a converged solution finally makes the one-stop-shop proposition attractive and suppliers that don’t have a complete solution risk exposing core business to new competitors.

sim-cards

The market is changing

Following consumer behaviour, the business market in the UK is finally breaking the link between airtime and handsets. Leasing is now available for handsets and SMEs are moving to SIM only contracts - either using existing handsets or leasing new ones separately. With no base of legacy term contracts to protect this is an ideal time to get into the mobile market.

The proposition is simple

Suppliers no longer have to construct complex bundles or take a risk on hardware. They can sell SIMs on easy to understand plans for only a few pounds a month. The credit-risk is tiny on SIM-only and if they choose to lease handsets to their customers the leasing company credit checks the end users and takes the risk.

The recurring income is attractive

Recurring revenue is so important in a growing business. Seasonal variations are smoothed and you don’t have to sell a project every month to be able to make payroll. Staff feel more settled and secure and if you need to raise money or sell the business recurring margin attracts a much higher multiple than once-off margin.

Both dealer models and reseller models are available – if you want to bill and support your customer in your own company’s name Jola has a reseller programme and if you prefer for us to contract directly with your customer, support them 24/7 and pay you a monthly commission then that’s fine too. Jola Partners are often dealers for some products and resellers for others.

Find out more

 

Topics: Mobile

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