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It’s about this time of year when successful telco partners start to dream:
What could my business become? How do I keep growing to the next level?
Could there be happiness outside my Big Telco partnership?
For many telecom resellers, especially those dreaming big, the ‘next level’ means breaking out as an independent white-label telecom.
Making the leap from channel partner to white-label provider is like graduating from a billy cart to the Formula 1. (Or from Padawan apprentice to Jedi master – for the sci-fi enthusiasts among you).
It’s not a small leap. It means changing your business and upending your business model. It means being responsible for billing and invoicing, for customer service, product range, plans, pricing, and marketing.
And means you’ll have to compete against the Big Telcos.
Becoming a white label telecom provider won’t be for everyone, but for those who dare to make the leap, it can be very rewarding on the other side.
As someone who’s been involved in the telecom industry for decades, I’ve seen first-hand the advantages that white-label providers have over traditional telecom channel partners.
Common complaints about telecom partner programs include:
Do these sound familiar?
While channel programs are an excellent ‘kindergarten’ – a low risk entry point to the telecom industry - eventually any successful provider longs for independence and growth.
White-label providers get wholesale telecom services at discounted rates and then resell them at a markup. Your wholesale supplier (like Telcoinabox) provides a simple interface for you to order, provision and manage these services.
Unlike the partner model, you get to brand, price and sell these wholesale products as your own. Enjoying greater independence and profit, without the Big Telco restrictions.
One key difference with a white-label model is that you – as the service provider – have direct ‘ownership’ of your customer base. End-customers have a direct relationship with you for monthly billing, technical support, sales, and product provisioning.
This branded resale model can be adopted by telecom providers, MSPs, IT providers, and even retail brands such as utility companies and supermarkets.
White-label telecom addresses all the downsides of the channel sales model. As a white label telecom provider, you can increase your profitability, improve customer service, and gain a competitive edge in the industry.
One of the main reasons to consider white labelling is to increase profitability.
In a traditional partner program, you earn a fixed commission on customer referrals. But the problem with fixed commissions is – well – they’re fixed. No matter how hard you work, or how effectively you sell, you get a capped amount of profit.
By contrast, as a white label provider you have full control over your profit upside.
You can set your own prices for services like nbn™ internet, mobile (MVNO) plans, white label VoIP, and Microsoft Teams calling.
You aren’t hamstrung by a corporate overlord. When you set your own prices, you control your destiny. Keeping a greater share of the profit margin in the process.
Imagine you’re selling hosted phone services from a Big Telco (BizPhone, Loop or DOT, as examples). As a partner you might earn 10-20% of monthly plan fees over a 24 month contract term.
Compare that to a white-label model, where you can earn up to 60% of monthly charges for the entire customer life. Plus, extra margin on any setup fees, professional services, or hardware (desk phones and headsets) that you decide to sell.
As a white-label provider, you’ll have the ability to maximise the value you get from your products and services, as well as the potential to increase profitability
Another key reason for a telecom channel partner to become a white label provider is to improve customer service. Responsive customer support is a driving factor for Australian consumers and small business when choosing a communications provider.
As a white-label provider you can manage customer questions directly, rather than handing them off to a Big Telco call queue.
You can control the end-to-end customer experience. Many providers that work with Telcoinabox make service their key differentiator.
Such as promoting wait times less than 15 seconds, or simply having a named person who is expert enough to fix any problem.
As simple as it sounds this personal, responsive service is often a revelation for customers. They are more likely to be loyal and satisfied as a result. I also believe it is one of the reasons that challenger brands are taking market share from the Big telcos.
The final aspect that’s worth talking about is brand building and differentiation.
Do you struggle to stand out from other Big Telco channel partners? If you’re all branded with the same partner logos, and resell the same range of telco products, why would customers pick you?
By having your own white-label services, you can differentiate your business from other companies in the industry and gain a competitive advantage. This can help you acquire more customers and win more business.
One example is our 1300 number solution, called Number Manager. This includes a web portal that can be customised with your logo and colours – or those of your end-customer.
In addition, you can choose to market the product as ‘Number Manager’ or choose your own name. You can also decide to package certain features together, creating basic and premium offerings.
Going even further, you could choose to use the Telcoinabox developer APIs and build your own portals or online ordering process. We support many successful customers that have designed automated systems for ordering mobile, nbn™ and SIP trunks.
This level of customisation is only possible as a white-label telecom provider, helping you maintain a competitive edge in the telecom industry.
It’s about this time of year when successful channel partners stop dreaming and start planning.
Your next step as a white label provider is just an enquiry away. By starting a conversation today, you’re setting up your business for profit, growth, and commercial freedom. Isn’t that why you started your business in the first place?
You already know that you can offer better value and better service than the Big Telcos. So now is the time to back yourself and make the leap.
If you’re ready to graduate to the next level, get in touch.
