Does online sms portal profitable.

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

Question by:besmile4ever
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LVL 110

Expert Comment

by:Ray Paseur
ID: 36499239
What site?

Author Comment

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

LVL 101

Expert Comment

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

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LVL 110

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."
LVL 110

Accepted Solution

Ray Paseur earned 500 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.

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.
LVL 101

Expert Comment

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


Author Closing Comment

ID: 37016805

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