Advertising single 900 Extension numbers is risky business. As the volume of calls made to 900#s continue to
decline, owning 900 Extensions can be the fastest way to lose money. Think about this ...
FACT: 900#s are the most over-regulated business on the face of the earth.
Congress, the FTC, the FCC, the Attorney General, State and Local government agencies all have their hands on
regulating what 900 can and cannot do.
FACT: 900#s are the most restricted business you'll ever find. Imagine, even the phone company itself offers the
general public "Call Blocking" for 900#s. This is like the phone company protecting the public against 900#
operators.
FACT: Some of the best money-making programs in the 900 business
(Adult, Work-At-Home, etc.) are now BANNED from 900.
FACT: 900#s nationwide call revenues are down to around 1/10th its projected earningsin 1992.
There is, however, one other FACT that works very well in favor of 900 Numbers: As a business opportunity,
900#s have the appeal of @ Money. It is the lazy man's business. This is why, in spite of its declining revenues,
people continue to buy 900 Extensions for $99 and then spend several hundred dollars advertising their lines.
SO... SELL 900 EXTENSIONS!!!
If you are an entrepreneur who is already heavily vested in the pay-per-call business, or someone who is just
seeking to get into the business for the very first time, this book is for you. In the following pages, you will learn
about new treads that will help you make money in the pay-per-call business.
RESELLING 900#s
Although advertising 900 Extensions is dead, there are still a lot of people who buy 900 Extensions. In this book,
you will learn where and how to get 900 Extensions for as little as $2 each and then resell them for $99.
You will learn how to become your own service bureau and get your lines direct from the phone company. (Did you
know that MCI 900 numbers are free?)
If you do not have the money to invest in your own voice processing equipment, you will have to contact service
bureaus and buy Master Lines with extensions. You will also learn how to deal with Aggregators who put together
deals and acquire large blocks of 900 numbers from which you can buy a part of. You will also learn how to buy
Extensions in blocks of 10 and 20 at a time, for as little as $19 each. Sell each one for $99 and you'll make a
$1,600 profit.
809, 011, AND 500 NUMBERS
You will also learn the ins and outs about these three new types of pay-per-call numbers and how they compare
against 900#s. Because 900 is highly restricted and heavily regulated pay-per-call entrepreneurs seek out other
ways to offer information and entertainment programs via the telephone, using other vehicles by which they can
bill & collect from callers.
These amazing new numbers, which are still in their infancy and still having some difficulties, are a promising new
breed that you may want to explore and consider for your pay-per-call business. In this book, we will show you
how and where to get 809, 0ll and 500 numbers. We'll tell you how much they cost, and what types of payout to
expect from them.
FREE ADVERTISING This book also includes Ad Placement Forms that will allow you to place up to $600 worth of FREE ADS on the Classified Ads Section of the INTERNET for a period of one year. If you already have a number that you are already operating, you may advertise your numbers to potential callers regardless of the type of program you are offering. If you are (or when you become) a 900 Reseller and want to offer 900 Extensions for sale, you may use your FREE ADS to advertise in the Business Opportunities category of the INTERNET ADS.
THE PAY-PER-CALL CONFUSION How 011, 809,1-500 and 1-900 Numbers Work & Compare Against Each Other. In the early 80's, the pay-per-call business expanded to allow individuals and businesses to provide and to charge for information offered via the telephone. The first forms of pay-per-call numbers were local in scope and the numbers 9-7-6 became the designated prefix used specifically for this purpose, based on a rate structure that governed its application.
ABOUT THESE NUMBERS The Pay-Per-Call Business operates with the use of special telephone numbers (that are easily recognizable) specifically developed to accommodate independent Information Providers to offer information and entertainment programs to telephone customers on a pay- per-call basis.
There are two kinds of Pay-Per-Call numbers: Those sanctioned by the Phone Company and recognized by US telecom regulators, and those NOT sanctioned by the phone company, called BY-PASS numbers.
SANCTIONED NUMBERS There are two types of pay-per-call numbers sanctioned by the phone company: These are the regional 976 and the national 900 numbers.
976 NUMBERS In the beginning, the pay-per-call business was simple and limited to the use of a special seven-digit phone number with a specially designated prefix of 976. (In some regions of the country, instead of using the numbers 9-7-6, the local phone company may designate 540 or 303. They all work in the same way, however.)
To call that number, you simply dial 976 and the remaining 4 numbers. You get connected to a recorded information or to a live person, and you are billed a set rate of $2, out of which around 50 Cents goes to the Information Provider - the person who rented this fine from the phone company and is providing the information or entertainment service via the telephone.
900 NUMBERS Because 976 was limited in geographic coverage, the phone company introduced a new pay-pet-call number that can be called from anywhere in the country. The phone company assigned the area code 9-0-0 to identify these calls and charge 900# callers accordingly.
Another favorable feature of the 900 number is the flexible rate system. The Information Provider who operates the 9009 can set his own rates. He can go to the phone company and say "I want to charge my callers $4.25 per minute", or whatever rate the Provider decides to charge.
With 976 numbers, this feature is generally not available. The local phone company offering the 976 lines sets a standard rate for all 976, numbers, and regardless of the type of information you sell, you are bound by that rate. Likewise, as you will see, non-sanctioned pay-per-call numbers are also faced with the same limitations.
NON-SANCTIONED NUMBERS Due to still government and phone company regulations governing the use of 900 numbers, pay-per-call entrepreneurs have been, for the past five years, experimenting with alternative ways to setup telecom systems that will allow people to call their numbers and be "automatically" billed for the usage.
Furthermore, since Adult programs, which are the most profitable type of pay-pet-call service, are banned in the USA, pay-per-call entrepreneurs are forced to circumvent these laws to stay in business. Hence, they use foreign gateways to set up their equipment, creating a whole new slew of pay-per-call numbers, including 809, 011, and the new 1-500 numbers.
809 NUMBERS The numbers 8-0-9 is the area code for the Virgin Islands and the Bahamas. It is an ordinary area code people use to call up the Virgin Islands or the Bahamas. It is not normally used for pay-per-call.
However, there are now a small group of entrepreneurs who have set up shop in the Bahamas, got some lines from the local phone company there, and connected to a so-called "magic box" that allows these entrepreneurs to charge their own rates for long distance calls coming into their magic box. (This so-called "magic box" is a simple computer system similar to those used by small, independent telephone companies who resell long distance service.)
When a caller dials a pay-per-call 809 number, the call goes to this magic box in the Bahamas and is metered based on rates established by the pay-per-call service. The call is then forwarded back to the USA, to a specified phone number which is being answered by a live operator providing the Adult program.
809 operators make their money on the difference of the long distance rates, between what they charge and what the phone company (like AT&T or MCI) really charge.
The bill that appears on the caller's phone bill is structured around what the pay-per-call entrepreneur wants to charge. (For example, if the pay-per-call entrepreneur wants to charge $5 per minute, the phone company has no choice but to reflect this amount on the phone bill. After collecting this amount, the phone company deducts its normal long distance charge to the Bahamas which can be as low as 75 Cents per minute. The difference of $4.25 is rebated back by the phone company to the pay-per-call entrepreneur operating the 809 Number.
011 NUMBERS Again, if you notice, the numbers 0-1-1 is actually an access code for dialing long distance to most foreign countries. For example, if the call is going to the Philippines, you will have to dial 01-1-632-XXXXXX, because 632 is the code for Manila, Philippines, and XXXXXX represents the local phone number used by the pay-per-call entrepreneur in that country.
Again, like 809 numbers, the scheme with 011 is to have the caller dial a phone number that is connected to a magic box in that country where the magic box is located. That box enables the pay-per-call entrepreneur to do two things: (1) set their own long distance rates that they want to charge their callers, and (2) forward the call back to the USA where it is answered by live operators who provide the Adult entertainment program over the telephone.
500 NUMBERS This new type of phone numbers has been designated by AT&T primarily as a "personal" roaming number. You can make it forward anywhere in the country and your callers will be able to reach you, anywhere you may be, by simply dialing your 1-500 number.
For example: Let's say you are from Minnesota and you are going on vacation to California. Once you get to your hotel in California, you dial a special code on the telephone to "forward" your 1-500 number to your hotel room phone. If your business associate dials your 500 number, it will ring in your hotel room phone. You don't have to tell people where you and what phone number you have. All you have to do is give them your 1- 500 number once and they will be able to reach you wherever you are.
Because 1-500 numbers are in effect "transparent" (i.e. people who call the number do not know where the call is going to), many pay-per-call entrepreneurs use the 1-500 and have it call-forward to their magic boxes that are usually in the Bahamas or other foreign countries. These pay-per-call entrepreneurs use 1-500 to mask the call, making the caller think that they are calling somewhere local.
HOW ARE THEY SIMILAR Caller-Paid Service. Both Sanctioned and Non-Sanctioned numbers deal with Caller-Paid services. Callers get charged an access fee every time they dial a 976 or a 900 number, as well as when they call the 8-0-9 area code or the 0-1-1 and 1-500 numbers. The call fee or the long distance rate is automatically charged by the phone company, and is added to the caller's monthly phone bill.
HOW THEY ARE DIFFERENT Accessibility. 900 Numbers can be accessed nationwide; 976 numbers can be accessed only within the state where the service operates. On the other hand, 809, 011 and 1-500 numbers can be accessed from any phone with long distance access.
Pricing. 900 Numbers are designed for flexible sponsor-set pricing, enabling the IP to determine how much they want to charge their callers; 976 numbers follow a fixed rate chart. 809, 011 and 1-500 make their money from the margin between the (higher) rates the pay-per-call entrepreneur charges and the (lower) rates from the phone company
To better understand how these numbers compare against each other, and why one type of pay-per-call number is better than the other, it is best for you to get a more in-depth understanding of how 900 numbers work. After all, the 900 number is still the grand daddy of all pay-per-call numbers, although - as of late - it's have some serious health problems.
HOW 900#'S WORK
Compared to the new pay-per-call access (such as 809, 01 1, and 500 numbers), 900#s are more stable, cut-and-dry, and, in spite of its inherent limitations, are better structured. However, since very little is written about how 900 numbers really work, it is saddled with a lot of myths, particularly where pricing is concerned. For example, there are still some people in this business who think that 900 numbers are extremely expensive, believing that they cost around $5,000 to $ 1 0,000 each. This is hogwash.
Long distance phone companies who offer 900 numbers offer 900 numbers at different service levels. For example, MCI does NOT charge any installation fee, and does not have any monthly recurring service charges for their 900 numbers. On the other hand, AT&T may charge around $ 1,000 for setup, plus $175 a month per line.
More misinformation plagues this business when it comes to 900 Numbers that use Extensions. 900 Extensions are produced when a Service Bureau subdivides a single 900 Number (called Master Line) into multiple extensions, selling each unit as a business opportunity package. People who buy this package get nothing more than one Extension of a single 900 Number which is shared by hundreds of other users.
A single 900 Master Line can produce UNLIMITED number of extensions. A service bureau can break a Master
Line into as many Extension as it wants to sell. If an Extension uses 3 digits, this means that a single 900 master
line can have as many as 999 extensions (from 001 to 999).
If an Extension uses 4 digits, this means that a single 900 master line can have as many as 9999 extensions (0001
to 9999). This approach of breaking up a single line into multiple extensions is one of the biggest money-making
opportunities in the 900 business.
900 Extensions are good and bad depending on which side of the business you belong to. If I were selling 900
numbers, I will sell them as extensions, if only because I can have more lines to sell out of a single 900 master line.
However, if I were to acquire a 900 number, I will not consider buying an extension.
To begin with, I will not feel comfortable having a hundred or a thousand other people
advertising the same 900 number that I have, and the only thing that sets us apart are our)
digit extension numbers. (If I own extension 234, and the caller dials 243, I'm cooked.)
The use of 900 Numbers is probably the simplest, easiest, and the most affordable
business opportunity ever invented!! It is commonly compared to owning an electronic
vending machine with unlimited sales potentials.
It is the ultimate business opportunity for the small entrepreneurs, and those seeking to
operate a business on the side, on a part time basis.
With a 900 Business, you do not need a lot of capital to get started. And because, once
properly started, it almost runs by itself You can inform, entertain, announce, help,
advise, consult, promote, discuss, educate, sell - in fact you can do almost anything.
In order to create a highly profitable 900 business, all you need is your 900 Numbers.
There are no equipment or furniture needed. No computers, no gadgets, and no employees.
You don't even have to over a telephone. There are no office hours. And you usually don't have to work at all
because you can setup your 900 number to be answered
automatically by either a machine or by an outside five operator service.
You cannot afford to pass this opportunity by - whether your objective is to increase your
present income, or to free yourself from a dead-end job, 900 numbers represent a
business opportunity that can truly help you secure your financial Future.
ADVANTAGES OF 1-900#s.
When 900 Numbers were first introduced over 6 years ago, the built-in features made it a
dream tool for people seeking to sell information or entertainment. Imagine people
paying an average rate of $2 per minute for information over the telephone. That's
more that what anyone would pay per minute for a movie, pay-per-view or for a college
degree.
900 numbers became an instant winners! People seeking to make a fast buck were easily
attracted to and gobbled up 900 numbers by the dozen. Here are some inherent advantages that attracted
entrepreneurs to 900 numbers when they first came out.
ACCESSIBILITY 900#s can be accessed from anywhere in the United States, by simply dialing "1", and then 9-0-0 which serves as the area code, and a seven-digit phone number. They can be dialed from any touchtone phone without incurring additional toll charges. The caller only gets billed the rate of the call set forth by the Information Provider.
NATIONAL MARKET BASE 900#s have wider geographic coverage. It covers approximately 82.5 million homes from every area code across the United States.
MARKET AWARENESS 900#s were widely used by thousands of line holders, creating a rush or bonanza-effect and have therefore gained more exposure nationwide. More and more people are becoming aware and more familiar with 900#s and their uses.
VARIIETY 900#s have a wider program base. Nationwide coverage means many interest groups can be reached and the type of information that can be provided is limitless.
PROFITABILITY 900#s use flexible sponsor-set pricing. As an Information Provider, you are allowed to charge your callers as much as you feel your information is worth to your callers.
AVAILABILITY 900#s are immediately available and are relatively easier and cheaper to get than other types of pay-per-call numbers.
HOW CALLS ARE HANDLED 900#s operate the same way 800#s do in that they can be accessed and terminated anywhere in the country. Their principal difference lies in the billing process. With an 800 number, the party who receives the call pays the per-minute transport cost of the incoming call. This is why 1-800 numbers are also known as Toll-Free numbers, because they are free of charge to the caller.
With 900#s, the reverse is true. More than just being a caller-paid service, charges for a 900 call are based on what is called sponsor-set pricing. This simply means that the Information Provider (Sponsor) who operates the 900 service dictates how much the phone company must charge the caller, either on a per- minute or per-call basis.
The call is handled in 3 simple steps:
1. Caller Dials Number. The caller dials 1-900 and the seven-digit phone number of the program the caller wishes to access.
2. Phone Company Switches Call. This activates the phone company's switching center which directs the call to the city
where the service bureau handling this 900# is physically located. Simultaneously, it
activates the phone company's computers which then identify the caller's phone number,
measure the length of the call, and compute charges based on prescribed rates.
3. Service Bureau Gets The Call. The call is sent to the Service Bureau's Voice Processing Unit which then plays the
pre-recorded information or connects the call to a live operator, if such were the program
being offered.
WHERE TO GET 900#'s
Although Long Distance phone companies are the principal source for 900
numbers, entrepreneurs seeking to get their own 900 numbers are better off by getting their lines from a Service
Bureau who have their own equipment used for handling calls
to 900 numbers.
PHONE COMPANIES
There are two major national long distance carriers that offer 900 numbers: AT&T and MCI. You can order a 900#
direct from these phone companies. However, if you do not have your own call-handling equipment, the phone
company may have to refer you to a
Service Bureau.
SERVICE BUREAUS
Unless you can afford to purchase sophisticated telecommunications equipment to handle
inbound 900 calls, you will require the services of a qualified Service Bureau.
SB's get their 900#s from the phone companies in large quantities and can assign you any
quantity of 900#s for your programs. Ordering your 900# from an SB means a lot of
set-up time saved, since their lines are already physically connected to their call
processing computer.
Some Service Bureaus specialize in selling individual 900 Extensions for $99. Others
specialize in selling dedicated 900#s (undivided 900 numbers where you can offer your
own custom information programs) as well 900 master lines which can be subdivided into
multiple extensions.
When securing a dedicated 900# or a 900 master line, make sure you are clear about
all the charges involved. Since all bureaus have variable front-end and back-end charges,
it's best that you shop around.
SET-UP FEE.
A one-time fee for having you as a client. This may or may not include the cost of
acquiring and activating your 900#.
PROGRAMMING FEE.
A charge for programming your 900 Number in their system. Interactive or multi-
menu application are usually more expensive than live programs. Average rate can range
$200 to $1,500.
VOICE CAPTURE.
If you want to "capture" your callers' messages (name, address, etc.), this feature can cost
from $50 to $150 or more.
LIVE TRANSFER.
This may or may not be included in the programming fee. If a live transfer is optional
for the caller (must press a number to activate live transfer), then this feature is made
available to you at extra charge. SBs will also require you to get your own 1-800 through
which the call will be transferred to your live operator.
BUREAU ACTIVITY CHARGES.
These charges are usually determined by the actual performance of your 900#, based on the volume of calls it generates
MONTHLY SERVICE FEE.
Same as Maintenance Fee. This is a fixed cost regardless of your actual call traffic.
Can cost from $10 a month to $500 a month.
CALL QUOTAS.
A minimum call volume you must produce on your 900 Number to avoid any penalty.
ACTIVITY CHARGE.
A fixed amount (usually from 10Cents to 75Cents). charged on a per-minute or a
per-completed cal I basis, depending on the SB's accounting system.
SERVICE COMMISSION.
In lieu of a Service Fee, Call Quota, and Activity Charge, some SB's charge a
percentage rate contingent on the Gross Value of all calls your 900# generates.
Types Of Pay-Per-Call Programs
The following are some of the most popular pay-per-call programs, as well as some of the
most popular services that are being offered using 'regular phone numbers and
pay-per-call numbers.
DATELINE
Millions of men and women of all ages and lifestyles place personal ads, and millions more
answer them nationwide by area code and sexual orientation.
Telephone dating offers everyone a convenient and immediate means of contact.
There are no delays, no questionnaires to complete, no personal interviews, and no long
winded correspondence while you wait to arrange your first meeting.
The central database has the capability of storing all personal data and matching them with
others in the network, while notifying them of messages and matches. A caller may first
go through messages left by others and respond to any or all of them. The caller may also
record their own personals ad for others to respond to.
All callers are required to call back each time they want to retrieve their messages. This
feature of Dateline programs generate profitable call minutes. The Dateline is a favorite
of all ages and lifestyles, making it a top dollar producer in the pay-per-call business,
with calls running an average 8 minutes each.
PARTY LINE / CHAT LINES
Most Live Party Lines can accommodate 12 to 24 simultaneous callers who talk to each
other all at once. Successful chat lines always have a live host (called monitor) on the fine to keep the
conversation clean and flowing.
Vulgarity and explicit sexual language is never allowed. The live monitor makes sure
there is never a dull moment. While Party Lines are meant for younger audiences, callers
under 18 are not allowed.
With most Chat Lines additional privacy is offered to callers who wish to speak to each
other "privately". Most callers may choose to leave the party and go into a private
conversation with another caller.
Terms Of The Trade
Glossary of Pay-Per-Call Jargon
Every industry has its own jargon, its own collection of terms and expressions that have
become standard lingo of the trade. The 900 business is no different. Therefore, I
recommend that you become familiar with these 'Terms of the trade"
APPLICATION
May be interchanged with the word, "program", referring to the application for which a 900# is to be used.
(Examples: Dateline, Psychic, Sports, One-On-One, etc.)
AUDIOTEXT
Refers to any information program delivered in "audio" form as opposed to videotext or
"visual" programs. It is common among trade professionals to refer to the pay-per-call
business as the "audio text industry".
BLOCKED CALLS
Phone customers have the option to disable his/her line so that all 900 or 976 calls may be
dialed from his/her telephone.
CALLCHARGE
A per-minute or per-call rate the person who owns the 900 line wants to charge people
who call his 900#. (See Gross Call Value)
CALL COUNTS
Number of calls received by a 900il over a period of time.
CALLER-PAID SERVICE
As oppose to a toll-free service, this term is descriptive of 900#s wherein the caller is
charged a predetermined fee for calling a 900#.
CHARGEBACK
Chargeback is a 900 call for which the 900 line holder does not get paid. There can be a
number of reasons where a call is chargeback. (1)They refuse to pay the bill;
(2) The caller is unable to pay the phone bill; (3) The service bureau decides that your advertising is in violation of their policy and refuses to pay you for the calls generated by your 900 line. There can be several more reasons, making chargeback’s the most critical element of the business, an area which make or break the profitability of your operation.
CHARGEBACK RESERVE
A portion of the line holder’s earnings that is withheld either by the service bureau as a protection for themselves. It
serves as a buffer should your 9004 experience excessive chargeback’s.
CUSTOMER
The person who called the 900 number.
DEDICATED NUMBER
A single 900# assigned exclusively to a specific program that can be accessed by dialing
1-900 and its seven-digit number. It is the same as a master line, except for the fact
that dedicated numbers are not subdivided into extensions. They are used as a whole number, and do not require
the caller to dial an extension.
DETAILED CALL SUMMARY
A monthly report issued by the phone company for every Dedicated 900# and 900
Master line. (Please note that individual Extensions do not get a copy of this detailed report.) If you have a Master
line or a Dedicated 900#, your Service Bureau must send you a copy of this report which shows the total calls, total
minutes, and total dollars your 900# generated over a billing period which is usually a month.
EXTENSION NUMBER
This is created when a regular 9009 is subdivided into "extensions", commonly used by
Service Bureaus in order to market more lines than they actually have. (it's like breaking
down a single phone number to have extensions in every room in your house.)
GROSS CALL VALUE (GCV)
The gross amount of one call, based on the established Call Charge. A 10-minute call with
a call charge of $2 per minute has a GCV of $20.
INFORMATION PROVILDER (IP).
Descriptive name for any business or individual who "provides" information and
entertainment programs via 900#s. (Do not confuse with "Line holders" who have nothing
to do with the content and operation of the information or program offered via the
900 number.)
INTERACTIVE
A programming feature that allows a caller to choose information topics from a
'Menu" by pressing designated digits on their telephone keypad.
LOCAL EXCHANGE CARRIER The local phone company that provides telephone service to residents and businesses.
(Example, General Telephone, Centel, and Nynex, SNet, etc.)
LONG DISTANCE COMPANY
The national long distance telephone company who owns and maintains the actual 900#s.
The two remaining LOCs are AT&T and MCI.
LOC BILLING & COLLECTION
Usually a 10% surcharge imposed by the LOC for billing & collection services performed.
This surcharge is computed and deducted from the gross revenue of all calls generated by all 900#s during each
monthly billing cycle.
LOC RATE CAP.
The maximum amount an IP can charge on a per minute or per call basis, depending on the LOC's policy.
LOC RATES
The per-minute rate the LOC deducts from the gross revenues of each 900# as its fee for
handling the call. Example: MCI 900 numbers are subject to a rate of $0.30 per minute.
This amount, among other charges, is deducted from the gross amount or per minute charge that your callers pay
for calling your 900#.
MENU
Various choices and functions a caller is offered in an interactive 900 program.
PASSIVE
Also known as "announcement-only" lines. These 900 programs simply provide a
single straightforward, pre-recorded information piece which the caller listens to.
(See Interactive.)
PAY-PER-CALL
Descriptive term for people who pay each time they call. It is the correct terminology used to identify the business
of charging people for information or entertainment provided via the telephone hue.
PAYOUT
The revenue check paid to a 900 line holder.
PROGRAM
The information or entertainment material offered through the 900#. (See Application.)
RESELLER
An independent marketing company that acquires large blocks of dedicated 900#s and
re-sells them for a profit. Some re-sellers specialize in Extensions. They go to a service
bureau, buys a 900# Master line which they ask the service bureau to subdivide into
Extensions, and which re-sellers market by the unit or in blocks of I 0 to 20 Extensions at
a time.
SERVICE BUREAU A technical support company that owns and operates telecommunications equipment capable of handling inbound calls.
SB ACTIVITY CHARGE The amount a Service Bureau charges for processing calls generated by a line holder’s 900#. Charges may be based on number of calls AND number of minutes. In many cases, this charge is actually a combination several different charges which include the following:
= Monthly Line Lease = Monthly Line Maintenance = Per Call Charge = Per Minute Charge = Program Usage Fee
SB SET-UP FEE A fixed, non-recurring Service Bureau charge for setting up a 900 Master line of a 900 Extension. Some Service Bureaus charge $49 to $99 for each 900 Extension. Those who sell Master lines sometimes charge as much as $2,500 per 900 Master line with 999 extensions in it, bringing down the cost to around $2.50 per extension when acquired in blocks.
The Business Of Reselling 900 Extension Numbers
And Why It Is The Most Profitable Way To Get Into The Pay-Per-Call Business
The following is a brief summary of different ways you can make money given the current structure of the pay-per-call business. Based . on information from previous pages, you can compare these opportunities against each other, and conclude why reselling 900 numbers is the most profitable among the following:
900 EXTENSIONS Getting a 900 Extension is certainly the most difficult and the riskiest way to get into the pay-per-call business. After investing $99 for a line, you are required to invest more money for advertising. And after you realize that few people are going to call your 900 Extension (people don't call 900#s anymore), you're out a few hundred dollars.
809 & 011 NUMBERS These numbers are international access numbers not primarily designed for pay-per-call services. The only way promoters make money with 809 and 011 #s is from the long distance charges. The difference between what promoters charge their callers and the what they pay the phone company is where they make their money. There are two ways you can get your own 809 or 011 numbers:
SET YOUR OWN BOX
You can become a long distance reseller, and make all arrangements with the phone
company to set-up your own relay computers (magic box) in a foreign country of your
choice, and start charging your own rates to people who call up your phone numbers
in that country. (This can cost in the millions, considering the guarantees you have to make with the long distance
phone company, the local phone company in the foreign country of your choice, the equipment and the travel
cost.)
GET A LINE FROM A PROMOTER
You can buy (actually you are leasing because technically you do not own the phone
number because it sits on foreign soil) an 809 or 011 number for around $750 each,
depending on who you buy them from and which foreign country the call goes to.
WHAT TO PAY. If you are getting the numbers direct from the promoter who owns the
line, you may pay $500 or less if you buy them in huge blocks of numbers. However,
from a middle man, expect to pay $750 to $1,5 00 - the highest so far I have seen these
numbers being sold for.
WHERE TO SHOP: To shop around for 809 and 011 numbers, you can read the
classified ads pages of the USA Today on Mondays or Fridays where a slew of resellers
place ads selling ready-to-go numbers with programs already attached to them.
PROGRAMS: When you buy an 809 or a 011 number, chances are the numbers are already set up in such a
way that they are answered by five operators who provide "adult"
entertainment services.
Because 809 and 011 numbers fall into the cracks and are not under the microscopic tenses of the various
agencies that police 900#s, people who operate 809 and 011 are a lot more aggressive. Don't be surprise to find
809 or 011 numbers that offer hard core adult programs.
PAYOUTS: The problem with 809 or 011 numbers is not the cost of acquiring the fine
or the type of programming that usually goes with them. The biggest problem is VERY
LOW PAYOUTS. Because the money made in the call comes only from the long
distance charges, there is not really much room to make a large profit margin.
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 line holders 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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