Lets say you start a GPS/SMS-service so you receive an SMS, do some stuff with the data and sends back what they ask for.
So you have a transaction and thus a way to make money.
How can you charge money for this?
Can you contact a telecompany and somehow split the profits?
Like, you put a prize of 40c for an SMS then you split it 30c/10c telecompany/me.
Any tips on how to go about this? This must be possible right?
1) Secure a 5 or 6 digit ShortCode from Neustar(the only seller of shortcodes, usshortcodes.com) This will take approximately 1 month and cost $1000/month billed in 3 month intervals. Premium messaging only works with a shortcode, so this is necessary.
2) Secure a contract with an SMS provider. I strongly suggest m-Qube, which is now owned by Verisign. Their service is excellent in every way. Great APIs, superior uptime and performance, superior support, very competitive rates, excellent relationships with the carriers.
3) Draft a 'Program Brief' following the carrier guidelines, that explains your application. These guidelines are very specific (things like how you offer the ability to opt-out, advertise your tariffs, etc.) and your application must conform to them perfectly before the carriers will approve it.
4) Submit the Program Brief for carrier approval. This process takes between 1 to 3 months depending on the nature of the application, particular carrier, etc. The approval process may, and often does, include redoing some of your application to suit the carriers.
5) Assuming all the carriers approve your Program Brief, you can then start charging users when you send them a response. (sending a message is the only event you can charge a premium tariff for).
The carriers each have a specific revenue sharing breakdown that is dependent on volume, price point, etc. In the case of m-Qube, they also take a small cut. Negotiating directly with the carriers is another endeavor entirely that I dont have any expertise in.