Don't sell a monthly SMS service. Sell an SMS blast!

29 replies
I feel like no one here has explored the option of selling an SMS blast rather than a monthly SMS list service. If you're interested in doing SMS marketing, go with the blast!

In comparison, each way has their own benefits.

Selling a list service, all you have to do is sell the service and you get paid. Selling a blast, you have to have a pre-built list of subscribers. But you can make much more with a blast.

I find it to be ridiculous to sell a list service for more than $150 a month. I've found so many sellers that do it for less than $200 so I don't know why any business would pay $200-$300 unless they are an idiot or just oblivious to their options.

But, if you can build a list of 5,000 - 10,000 local customers, you can make much more than selling a monthly service.

The guy here in my town sells a blast and he charges $6 per 100. He has a list with 4,600 on it and he charges $276. Of course, it costs him $138. But if he used Chad Wyatt's plug in, it would only cost him $46, so he would profit $230. Too bad he's an idiot and I'm going to put him out of business.

The guy that does it in my town makes at least one blast a day.

Businesses don't want to build their own list! That takes time! They want to increase profit NOW!

If you're going into SMS marketing, consider building your own list and selling SMS blasts instead of trying to sell a list service.
#blast #monthly #sell #service #sms
  • Profile picture of the author xichabodx
    Conversely, those that are on the list will be getting blasts from businesses they aren't interested in, thus will opt-out more often. I'm not sure about those on this guy's list you speak of, but if I got a text every day from businesses I hardly frequent (even if I got some special deal), I'd not be on that list too long. It's just not focused enough for my interests, both as a consumer or as a mobile marketing consultant.

    I prefer sending my messages to those that are actually interested in each respective business they opted-in to. The shotgun approach, by going the "blast" route, is flawed, to say the least. Also, with a monthly service, I'm not having to constantly sell my list to businesses...it's a one & done, recurring income. However, if I could do this with just 3 businesses per week, that's 12 businesses a month.

    Using the figures of the guy in your town doing this, one could make $300 in one day with each blast to a list of 5,000 people (not counting costs to send). If I send blasts for 12 businesses per month, that's $3,600 per month. Not bad, but how often does he do this? Does/can he do it every day? Does he do it once a month for each business?

    Now, if I were to go the "list route" and charge a measly $150/month, I'd have to sign up 24 businesses (1 time).

    I, too, thought of going this route, but decided not due to the reasons above. I'd gladly give it another look if the positives outweigh the negatives. It all comes down to ROI and which route would be better for both the businesses as well as the local consumers.

    Thanks for the share!
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  • Profile picture of the author Neodism
    Well, most of the businesses that utilize SMS blasts here in my town are restaurants. Everyone loves food! Sometimes Cici's offers a buffet and drink for $5 (pretty much every Tuesday), Arby's does a combo for $3.99, some Mexican restaurant sends something but I've never gone there because I don't like Mexican food. Local retail stores use the service quite a bit too.

    People are all different so I can't really speak for anyone or any group in general. But I wouldn't think someone would want to subscribe to a list for every business that they enjoy. That would be a lot of subscribing!

    I feel like people would much rather subscribe to one list and then all the local businesses could utilize it. It just seems much easier on both ends, the customer and the business. The subscribers won't expect to be interested in every deal they get. And although it's not as targeted as subscribing to lists only for businesses that they enjoy, they still do subscribe manually and want the offers.

    What I am currently doing is offering reduced rates to businesses who promote my list. I give them a locked in rate of 3¢, but with my pricing structure, once I reach 4,500 subscribers it averages to be 3.2¢ per text anyways so I won't really be out of pocket.

    Also, after selling the service to a business and they see how effective it is they will come back to you. 5,000 people on the list and a business who wants to use your service twice a month... winning.


    When I started I was going to sell the monthly service. But businesses here are into the blasting service and they find building their own list to be obsolete.

    Offering both services doesn't hurt though. =) We all know how cheap and easy it is to run the said business, so you just really have to beat your competitors prices.
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    • Profile picture of the author johnniec
      Hey Larches,

      Great strategy! Thanks for the share! I have an interesting proposition for you but am unable to PM. Unfortunately not up to 50 posts yet. Can you contact me via PM so I can share my offer with you. -johnniec
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  • Profile picture of the author xichabodx
    Larches,

    You make some good points. I'll be looking more into this.
    How are/will you be approaching these business owners? How often will you be sending blasts out to your list?

    Let us know how things go!
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  • Profile picture of the author David Potthast
    Larches,

    What strategies do you use to get people to join your list? Other than having businesses promote your offer.
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    • Profile picture of the author Neodism
      Originally Posted by johnniec View Post

      Hey Larches,

      Great strategy! Thanks for the share! I have an interesting proposition for you but am unable to PM. Unfortunately not up to 50 posts yet. Can you contact me via PM so I can share my offer with you. -johnniec
      I don't think you will be able to reply even if I PM you first, but I'm not sure. I will send you a PM and if it doesn't work, you can catch me on Skype or Gmail - colton.colcleasure for both.

      Originally Posted by xichabodx View Post

      Larches,

      You make some good points. I'll be looking more into this.
      How are/will you be approaching these business owners? How often will you be sending blasts out to your list?

      Let us know how things go!
      Well, I hang out at a health food store/smoothie bar a lot. They were trying to get 1,000 people to sign up for their cleansing program and were talking about how they were going to contact all of them, since email is unreliable. So I offered my service. A mass text service that will allow them to contact all of the people who sign up to their program with just a single text.

      So now they are going to be using my service for 2¢ per text but I will get their 1,000 subscribers on my list as well, and they will be promoting my list to their customers in the store. That puts me 1/3 the way to my goal.

      Originally Posted by potthastd View Post

      Larches,

      What strategies do you use to get people to join your list? Other than having businesses promote your offer.
      Well, currently I'm offering businesses a reduced price on my service until (and for 2 months after) I reach my goal of 3,000 subscribers. So, they end up pushing my list and doing all the work for me. Of course, I don't make as much money off of these businesses in the future, but it saves me so much work that I don't want to do myself. F that.

      But you could also go to a grocery store at a busy hour and put out 1/4 page flyers on windshields asking people to subscribe to the list to get local deals sent directly to their phone. It works at bars and busy restaurants too!

      If there's a college near by, go post your flyers there! Put logos from local restaurants on there, though, to catch their eye and interest them. (McDonalds, Cicis, etc. Branded businesses. Even if you won't be working with them, use their logos to get people to subscribe.)
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  • Profile picture of the author herbaluss
    I was actually thinking of doing both... get local businesses on their own
    also have my own master list...
    With this list it would help those missed customers they didn't get through their current marketing.

    Maybe setup a different short code so it looks different also.
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    • Profile picture of the author Neodism
      Originally Posted by herbaluss View Post

      I was actually thinking of doing both... get local businesses on their own
      also have my own master list...
      With this list it would help those missed customers they didn't get through their current marketing.

      Maybe setup a different short code so it looks different also.
      Well, I would suggest using Chad Wyatt's Wordpress Plugin. 1¢ texts, Longcode numbers, unlimited keywords because you own the number. Go to the WSO section and find it. That's what I use.
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  • Profile picture of the author NameThatCandy
    Hi Larch,

    It is a great idea to build a master list, I have few questions for you.

    What kind of business are in your master list? How often do u plan to send a text to your subscribers?

    Thx

    Waiyi
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  • Profile picture of the author P1
    I'm guessing this will only work in small towns. I live in LA so using 10 dollars in gas to get a deal half way across the county isn't going to work.
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    • Profile picture of the author Neodism
      Originally Posted by NameThatCandy View Post

      Hi Larch,

      It is a great idea to build a master list, I have few questions for you.

      What kind of business are in your master list? How often do u plan to send a text to your subscribers?

      Thx

      Waiyi
      I don't think you quite understand what my list is.

      My list is a list of local subscribers. I post flyers everywhere and get businesses to promote my list. Local consumers subscribe to my list to get discounts and deals directly to their phone. So once my list is big enough, I will charge businesses to send a mass text ad to my list.

      I build the list of local subscribers. (1,500+ to start)

      I contact businesses to sell / businesses contact me to buy mass texts.

      I get paid per mass text. Some businesses use the service several times a month.

      There are no businesses on my list. Just local consumers. The businesses come into play when they want to use the service to reach thousands of people instantly and drive sales. (Or if they are helping me promote my list for a discounted rate.) One list; mine. But everyone will use it.

      Originally Posted by P1 View Post

      I'm guessing this will only work in small towns. I live in LA so using 10 dollars in gas to get a deal half way across the county isn't going to work.
      No! It will work there as well. You just have to choose a specific area. You see, you don't have to do the whole county, just focus on a city there.

      For example, if I were running this business in Fort Worth, Texas, I would choose a suburb such as Arlington, Grapevine, Hurst, Lake Worth, or somewhere with a big population but not the whole area. Of course, I could stretch into other neighboring suburbs and even Fort Worth once I had cash flow. Start small and centralized.

      If you're in Long Beach, target privately owned businesses there. Build up a list for Long Beach businesses to use, then go start building a list in Santa Ana. Etc. Hope this helps!
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      • Profile picture of the author NameThatCandy
        Originally Posted by Larches View Post

        I don't think you quite understand what my list is.

        My list is a list of local subscribers. I post flyers everywhere and get businesses to promote my list. Local consumers subscribe to my list to get discounts and deals directly to their phone. So once my list is big enough, I will charge businesses to send a mass text ad to my list.

        I build the list of local subscribers. (1,500+ to start)

        I contact businesses to sell / businesses contact me to buy mass texts.

        I get paid per mass text. Some businesses use the service several times a month.

        There are no businesses on my list. Just local consumers. The businesses come into play when they want to use the service to reach thousands of people instantly and drive sales. (Or if they are helping me promote my list for a discounted rate.) One list; mine. But everyone will use it.

        Ok I got it, so you charge business if they want to use our list to advertise their service.

        So did you finish build up your list yet? Just curious how long will it take to build a list of 1500+ subscribers. How much are u going to charge the business to use your list?

        thanks for answering my questions.

        waiyi
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  • Profile picture of the author Steve Sieverding
    Hmmm this could be very interesting to try in my local town of 50,000... how do you go about building the list? Flyers? Ads? Shouting it out?
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    • Profile picture of the author Neodism
      Originally Posted by samking009 View Post

      @Larches, what opportunity do I have with a special BulkSms website that can send sms to mobile numbers with a custom Name...like the name of the company which shouldn't be 11 letters long instead of the normal short code numbers or mobile numbers like 1234567890. I think it give the company more respect and professionalism? Wanna hear your say!
      Thanks.
      I don't understand what you're asking. Could someone decipher this or can you rephrase it?

      Originally Posted by ToxicSteve View Post

      Hmmm this could be very interesting to try in my local town of 50,000... how do you go about building the list? Flyers? Ads? Shouting it out?
      My town only has 25000. Most are college kids, though. Partner with businesses to get them to promote your list. Offer a discount price for their help. If there are no competitors in your area you can get away with 6¢ per text. Offer a discount down to 4¢ if they promote you.
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  • Profile picture of the author IngeniousBastard
    I consider this to be sort of a Groupon-esque approach that definitely has it's place in the World. I guess for me it would be a question of why not offer both? You build your own list of numbers to which you can offer the blast AND offer businesses a way to build their own. It's a double win-win. The blast gets them in the door and helps expedite the building of their own list.
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  • Profile picture of the author TycoonRob
    Why not build several lists for yourself - restaurants, services (oil change, tanning, etc), and some other niches. Then target businesses in each niche to help build your list since you will be blasting their ad once a week or whatever. This way there is less chance of people dropping out and each day you can blast a different niche - Mon, Wed, Fri are restaurants, Tues are services, etc.
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    • Profile picture of the author xichabodx
      Originally Posted by razztek View Post

      Why not build several lists for yourself - restaurants, services (oil change, tanning, etc), and some other niches. Then target businesses in each niche to help build your list since you will be blasting their ad once a week or whatever. This way there is less chance of people dropping out and each day you can blast a different niche - Mon, Wed, Fri are restaurants, Tues are services, etc.
      I think this is a great idea. I believe it would decrease opt-outs dramatically (a flaw with the Groupon/Deal of the Day-type campaign whereby you're blasting your entire list with all sorts of different offers). Also, with texting, business owners aren't taking a hit. I'd also recommend an expiration date.
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      • Profile picture of the author Neodism
        Originally Posted by razztek View Post

        Why not build several lists for yourself - restaurants, services (oil change, tanning, etc), and some other niches. Then target businesses in each niche to help build your list since you will be blasting their ad once a week or whatever. This way there is less chance of people dropping out and each day you can blast a different niche - Mon, Wed, Fri are restaurants, Tues are services, etc.
        I guess that is a good idea, but then it would take much much longer to build the business. I want to have at least 3,000 people on my list before I start trying to sell the service. If I ended up doing niches and making 5 lists, then I would have to have at least 5,000. (Considering, you could market a targeted list and get better conversions, so you wouldn't necessarily have to have as many subscribers.)

        It's a good idea and I will be pondering it today. Actually, it's a very good idea! I just hope I'm not too lazy to execute it.

        But, if a lot of people are subscribed to multiple lists and something like a health food store wants to blast to the 'health' list and the 'food' list, then they may end up sending double texts to a lot of people. At 4¢ a text, it's not that big of a worry, but it's still something to think about.



        Originally Posted by xichabodx View Post

        I think this is a great idea. I believe it would decrease opt-outs dramatically (a flaw with the Groupon/Deal of the Day-type campaign whereby you're blasting your entire list with all sorts of different offers). Also, with texting, business owners aren't taking a hit. I'd also recommend an expiration date.
        There aren't many opt-outs anyways. They opted in to get deals. They get deals. If they don't like one that doesn't mean they give up!

        And when it comes to SMS marketing, an expiration date is always used in order to draw business quickly.
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    • Profile picture of the author NameThatCandy
      Originally Posted by razztek View Post

      Why not build several lists for yourself - restaurants, services (oil change, tanning, etc), and some other niches. Then target businesses in each niche to help build your list since you will be blasting their ad once a week or whatever. This way there is less chance of people dropping out and each day you can blast a different niche - Mon, Wed, Fri are restaurants, Tues are services, etc.
      It is a great ideas to do several lists! Now it makes me want to start to do SMS blast instead of just monthly SMS service.
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      • Profile picture of the author Neodism
        Definitely. I can beat my competitors price by a long run. And building my list to his size won't take too awfully long. But having targeted niche audiences will really push my service over the top!


        Originally Posted by NameThatCandy View Post

        It is a great ideas to do several lists! Now it makes me want to start to do SMS blast instead of just monthly SMS service.
        Hey, Candy. Would you want to talk on Skype? Exchange ideas and knowledge? Help each other out in our endeavors?

        Or anyone else that is interested in SMS marketing?
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        • Profile picture of the author NameThatCandy
          Originally Posted by Larches View Post

          Definitely. I can beat my competitors price by a long run. And building my list to his size won't take too awfully long. But having targeted niche audiences will really push my service over the top!




          Hey, Candy. Would you want to talk on Skype? Exchange ideas and knowledge? Help each other out in our endeavors?

          Or anyone else that is interested in SMS marketing?
          I don't have skype, do you want to exchange email or msn?
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  • Profile picture of the author eyesocialize
    Do you have any ideas how to create coupons using the wordpress platform for Chad's plugin? There is another warrior that has a great WSO out about this very same concept. His name is jasonthewebmaster. I just want to be able to create coupons for the businesses so customer's can redeeem them in the business using the wordpress Twilio platform from Chad.
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    • Profile picture of the author NameThatCandy
      Originally Posted by eyesocialize View Post

      Do you have any ideas how to create coupons using the wordpress platform for Chad's plugin? There is another warrior that has a great WSO out about this very same concept. His name is jasonthewebmaster. I just want to be able to create coupons for the businesses so customer's can redeeem them in the business using the wordpress Twilio platform from Chad.
      hi,

      Can you pm jasonthewebmaster WSO?

      thanks
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    • Profile picture of the author Neodism
      Originally Posted by NameThatCandy View Post

      I don't have skype, do you want to exchange email or msn?
      My gmail is Colton.colcleasure. I have Google talk on my phone so you can contact me at any time.

      Originally Posted by eyesocialize View Post

      Do you have any ideas how to create coupons using the wordpress platform for Chad's plugin? There is another warrior that has a great WSO out about this very same concept. His name is jasonthewebmaster. I just want to be able to create coupons for the businesses so customer's can redeeem them in the business using the wordpress Twilio platform from Chad.
      I don't quite understand what you're trying to do.

      The platform allows businesses to send text coupons to their customers.
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      • Profile picture of the author NameThatCandy
        Originally Posted by Larches View Post

        My gmail is Colton.colcleasure. I have Google talk on my phone so you can contact me at any time.
        just emailed you.
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  • Profile picture of the author Bruha
    Why aren't you both building your own list and selling sms services to local businesses?

    We built our list of local people, then use it as a selling tool when we promote our sms service. If the client still does not want to build their own list, then we charge them a "blast fee". However, we have segmented our list out into 4 main categories.
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    • Profile picture of the author Neodism
      Originally Posted by Bruha View Post

      Why aren't you both building your own list and selling sms services to local businesses?

      We built our list of local people, then use it as a selling tool when we promote our sms service. If the client still does not want to build their own list, then we charge them a "blast fee". However, we have segmented our list out into 4 main categories.
      How did you go about building your list?
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    • Profile picture of the author NameThatCandy
      Originally Posted by Bruha View Post

      Why aren't you both building your own list and selling sms services to local businesses?

      We built our list of local people, then use it as a selling tool when we promote our sms service. If the client still does not want to build their own list, then we charge them a "blast fee". However, we have segmented our list out into 4 main categories.
      I am interested in how did u build your list!
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  • Profile picture of the author Bruha
    Facebook fanpage my friend! We use the wP Business Press theme.
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    Visit my website at www.ctbonlinemarketingllc.com to learn more about how to make money online!

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