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Is There Money To Be Made In The 900 Business? |
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Page 8 of 8
After paying the long distance phone company, after paying the local
phone company in the foreign country, after paying the adult operators
who answer the calls, and after the promoter gets his cut, the usual
payout is around 20 CENTS Per Minute.
With these kind of payouts, 809 and 011 can be as risky as advertising 900 numbers,
making it extremely difficult for lineholders to make a profit.
Just think about it: If the average call is 15 minutes long, at 2OCents
per minute, you will get $3 per call. If you spend $150 for a simple
newspaper classified ad for one week, you need to get 50 calls just to
break even on the advertising cost. Now, that's a lot of calls to
expect from a classified ad!
1-500 NUMBERS
As discussed in a previous chapter, 500 numbers operate in the same
manner as 809 and 011 numbers, except for one distinct difference: The
person calling the 500 number has no
idea where the call is going.
Because 500#s are used and known as "Follow Me" numbers, they can be forwarded to
ring anywhere in the world, and for that reason, it can be made to
forward to an 800 number in the Bahamas without the caller knowing what
really happened.
This "unauthorized" use of 500 for pay-per-call is playing with fire.
It's rampant use for this purpose may taint the image of 500 numbers
and defeat the real purpose for which the phone company created them.
As a result of this conflict, it is imminent that the phone company
will take hold of this activity and regulate against entrepreneurs
using 500 for pay-per-call, particularly those
offering adult programs.
This makes 500 numbers extremely risky, It is quite scary to invest a lot of money on a
500 number that the phone company can take away from you or deny service at any time because of unauthorized use.
Nonetheless, because they are relatively new in the market, there is a
lot of hype about 500 numbers that attract entrepreneurs to explore
their potential. If you are shopping for a 500 number, here are a few
things you should consider.
WHAT TO PAY
Ready-to-go lines with built-in live adult programs sell for as little
as $750 each when purchased direct from a promoter or line
consolidator. However, from a middle man, expect to pay $1,000 to
$2,000 - generally higher than 809 or 01 I numbers because 500 numbers
are newer and hotter, making them easier to sell.
WHERE TO SHOP: To shop around for 500 numbers, you can read the
classified ads pages of the USA Today. You can get your very own 500
number direct from the phone company for around $5 a month. Just send
your registration card back to us and we'll send you all the details to
have your own 500 number installed immediately.
RESELLING 900#s
Although operating individual 900 Extensions is dead, selling these 900 Extensions is very
much alive. In fact, people who SELL (not operate) 900 Extensions
are about the only ones-who make money in the 900 business.
A 900# Master line can be sub-divided into as many as 9999999
Extensions. However, although it has unlimited capability, Resellers
would rather limit extensions to have a maximum of 3 digits. If you
have a 900# Masterline with extension numbers from 0-0-1 up
to 9-9-9, you'll have a total of 998 extension numbers. If you paid
$2,000 for your Masterline, you're average cost would be around $2 per
extension.
If you buy your own Masterline, be prepared to pay an extra $500 to $800 for set-up
and programming charges (usual service bureau fees to subdivide your Masterline
into Extensions.)
THE $99 FACTOR
For the past three years now, the price of 900 Extensions has been sitting steadily at $99.
The three biggest sellers of Extensions in the country have pretty much
stayed with this number and forcasted their business based on the $99
factor.
However, you don't have to do the same! You can sell your 900
Extensions for $79 or $59, or as little as $49.95. Since you do not
have any major investment on equipment and personnel, you can be very
competitive and market the same products at a discount.
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Money