
 Advertising and Communities - Developing a Business Plan - sergiutruta
http://www.sergiutruta.com/2007/05/17/advertising-and-communities-developing-a-business-plan/
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sergiutruta
of course it is...but a service which sends 1.000 or more messages, can
negotiate a good price for the sms. For example let's say 4 cents. If you
charge the publishers 4 cents for each ad, you'll be able to pay for the
messages. If you negotiate a better price or charge more for the ads, you'll
make extra cash ;) Advertising on mobile phones is a really hot topic these
days. But most of the implemented solutions are like this: you agree with the
service to receive advertising messages, and you get something in return. This
is not very efficient because the users can delete the messages without even
opening them. I'll give more details in a dedicated article so stay tunned.

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yubrew
right, if advertising revenue greater than cost of SMS, then there's potential
for profit. that part is easy to get.

but i still don't understand technically how such a transaction would work.
how will you get a carrier to not charge me when i send SMS to someone? where
is it that you step in the process? will i need to SMS you, and then it parses
the number and message, and sends from you to my intended recipient?

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sergiutruta
there are several services here (and I'm sure in other countries too) where
you have a web page and can send messages for more or less money. look for
"send sms" on Google and I'm sure you'll find some. The carrier may offer a
web based service to which you can connect and send messages to. Sending sms
from a web page is nothing new, not paying for it is :). Try to understand the
idea of giving stuff for free to your users. The number of the users will
increase exponentially (well, depending on the service you're giving) .

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sergiutruta
the carrier will charge for the sms. but the user won't pay for sending the
sms. I/my service will pay for the sms. The money will come from those who'll
want to insert ad messages.

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yubrew
meaning, you will need to contact and gain compliance with carriers. this
could be a very substantial barrier. how do you plan to overcome this?
\--hopefully you don't take this negatively, i'm curious what you come up with
:)

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sergiutruta
I'll share with you the business plan for my startup.

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yubrew
isn't SMS pricing controlled by carriers?

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danw
Yes, which is why we need to follow Japans example and switch to mobile email.
Free + it enables scale-free networks.

