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Does online sms portal profitable.

Posted on 2011-09-07
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Last Modified: 2013-11-19
Hi
i need to know from expert if the sms site that can be used to sell and buy sms messages..is a profitable site or not...


cheers.
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Question by:besmile4ever
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8 Comments
 
LVL 111

Expert Comment

by:Ray Paseur
ID: 36499239
What site?
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Author Comment

by:besmile4ever
ID: 36499284
the site that is used to sell sms to peple who is interested...

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Expert Comment

by:mlmcc
ID: 36499935
Are you trying to set up such a site?

mlmcc
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Expert Comment

by:Ray Paseur
ID: 36503283
Let me try this one again... What site?  By that I mean, "Please post the URL of the site you are asking us about."
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Accepted Solution

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Ray Paseur earned 1500 total points
ID: 36595158
These are not public companies so there is no really good way to see their books.  However you can read the pages here and draw your own conclusions.
http://site3.way2sms.com/content/about.html
http://site3.way2sms.com/content/advertise.html

They boast "More than 400,000 Unique visitors per day" and if they earn one cent per message, that means they have revenue of $4,000 per day.
They boast "More than 225 Million SMS exchanged every month" and at a penny per message, that means they have revenue of $2.25MM per month.

Obviously these numbers cannot both be true - the difference is greater than an order of magnitude.  But to the question of profitability you would need to know their costs as well as their advertising revenues.  I can tell you that there is nothing like this that is very popular in the USA.
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LVL 101

Expert Comment

by:mlmcc
ID: 36595330
They claim the sending of messages is free.  I don't see the revenue stream.

The number of unique visitors has little correltion to the number of messages sent.  A visitor can login and do nothing or can send hundreds of messages to hundreds of people.

For instance if I log in and send a message to 100 people that is 100 messages.  A person can sign in many times during the day and only counted once in the unique count.
If this is being used for advertising, a company undoubtedly signs in and sends a message or several message to not just 1 person but 1000 or 10000 or 100000 people.  If they sent 10 messages to 100000 accounts then it could be counted as 1 million messages from a single signon

mlmcc
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Author Closing Comment

by:besmile4ever
ID: 37016805
thnks.
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