A mobile recharge business is a vast market. But people usually don’t analyze it before joining. There are multiple revenue streams in this business that one can be benefited from. But not everyone knows all its components and wonders how the mobile recharge business is profitable. Which eventually drives them to shut down their business. Because of not reaching the profit as expected .
Have you ever asked yourself, where the profit comes from in mobile recharge business? How does your money circulate?
Calm down. In today’s blog, you’ll get all your questions answered and reduce your worries. Because this blog is about how the profit model of a mobile recharge business works.
Table of Contents:
- Who can start the mobile recharge business?
- What is mobile recharge business?
- Types of mobile recharge business
- Which is the best recharge business: Local or international?
- Profits of local & International mobile recharge business
- 5 ways to profit from online mobile recharge business
- What does the approximate profit depend on?
- How countries and operators influence the profitability
- Profit margin depending on layer of recharge business network
- Recharge products that help you make an intensified revenue
- Why start your own mobile recharge business online?
- Summary or conclusion
Who can start mobile recharge business?
Typically everyone can start mobile recharge business from anywhere in the world. All you need is a stable internet connection and a device (smartphone, laptop, or desktop).
There’s no need for complicated technical knowledge. If you know how to use a basic smartphone, you can start mobile recharge business internationally.
What is mobile recharge business?
Almost 80% of adults have a mobile phone worldwide. And every phone’s primary job is to connect its user to others so they can talk. It’s always been the basic functionality of mobile phones.
A mobile recharge business means selling recharge and other related services to your customers online and offline. As our technology evolved and our phones have become our best friends. Now we can talk, chat, facetime, and create content with a phone. To provide these solutions globally, the recharge business has become international too.
Types of recharge business
There are two types of mobile recharge businesses available. These are-
- Local mobile recharge business
The local mobile recharge business allows you to send a recharge, data, or similar products around your locality or within the country. It is also called the domestic mobile recharge business. - International mobile recharge business
The international mobile recharge business does not have such barriers. Instead, you can send a recharge, data, or similar products worldwide within seconds!
Which is the best recharge business: Local or international?
| Differences | Local mobile recharge business | International mobile recharge business |
| What is it? | Sell recharge in your locality | Sell international recharge globally from your locality |
| Profit | A huge profit margin 0.2-0.5% commission | 5x more profit than local recharge business 1-10% commission |
| Devices & Connectivity | Smartphone or internet connections are not important | Smartphone or internet connections is a MUST |
| Market size | Limited inside your geographical area | It’s borderless. Which means the whole world is your business market. |
Let’s do some maths.
Your operators will fix your commission rates if you’re a local recharge service provider. So what will be your profit? It may be 0.5 to 1.5 percent.
Suppose you’ve sold a $10 local mobile recharge package. So, what will be the profit?
Recharge amount x operator commission
So, $10 x 0.5% = $0.5 is your profit on every $10 sale.
Again, if you work with an international mobile recharge service provider, the same recharge amount will bring a different result.
Here, you can add service charges as you want (competition). It’s your profit. Moreover, you can get a target-based sales commission from the service provider.
Here is a calculation,
Suppose you just sold a $10 international mobile recharge package. So, what will be the profit?
Your service charge + service provider’s commission
$2 as service charge + .25 service provider’s commission
So, the total profit will be $2.25 on every $10 international recharge sale.
Sounds cool. Right?
Here’s a clue, would you not take the advantage of making 5x more profit with the same effort as the local mobile topup business? I guess you have the answer 😉
Now let’s get straight to the money-making part. Because we all want it! Let’s find out how to earn profit from a mobile recharge business.
4 ways to earn profit from online mobile recharge business
The mobile recharge business can be very profitable. In fact, it is the most profitable business in the world because it requires very little capital investment. You can get started, sell the products, and earn a handsome ROI right away.
Here are 5 basic ways you’re likely to profit from this business.
- Service charge
Adding a service charge is the most convenient way to make a profit from a mobile recharge business. You can include your service charge before processing a transaction. You’re completely free to charge your customers as much as you want. - Commission
Suppliers and operators often offer commission-based selling. This means that the more you sell, the more commission you get from them. This will benefit you in two ways. First, the more you sell, the more service charge you can include on each transaction. Secondly, you’re getting commissions as well. It’s a double win! - Sale volume bonus
You’ll receive an extra commission if you can fill up the monthly sale target. Suppose you can sell a $1,000 recharge in a week, you’ll get an extra 5% bonus. This is your additional revenue. - Incentives
Operators and suppliers you’re integrated with can offer various incentives to help you generate revenue. Such as recharge campaigns, data campaigns, special combo offers, and more.
What does the approximate profit depend on?
The profit in the mobile recharge business is inevitable. You will never spend a day without making any profit. It’s not possible to measure the exact profit amount. The profit depends on different variables.
- Service charges
- Your sale volume
- Suppliers & operators
- Availability of destinations
- Service provider offerings
- Currency exchange rates,
And more.
How countries & operators influence profitability
There are many immigrants in your neighbourhood who are looking for an international mobile recharge service. If you work with an international mobile recharge service provider, you can serve your customers their desired destinations & operator’s services.
Suppose you’re living in Milano, Italy. There are many immigrants from Senegal around you who want to send recharge to their families back home. You can help them get their service from your recharge center to their favourite operators within seconds. Such as Tigo, Expresso, Sudatel, etc. For you, Senegal is your hot destination.
Like this, many countries have popular mobile operators you can send recharge to. You can grab the opportunity by providing this service. The more hot destinations & operators you work with, the more you make a handsome margin.
Profit margin depending on the layer of recharge business network
Your profit also depends on the types of recharge business you are likely to start. If you want to start small, go for an international recharge agent. And if you want to start big, go for an international mobile recharge reseller or distributorship. Every model has its own profit margin. Both models are a great starting point!
- Agent
As an agent, you can profit directly from customers by adding service charges before each transaction. You also get commissions from suppliers. - Reseller/Distributor
As a reseller/distributor, you can add unlimited agents under your account. The profit flows in multiple ways. You can set different rates for different agents without letting others know. The more your agents sell a recharge, the more profit it will generate.
Recharge products that help you make an intensified revenue
- International mobile recharge
- PINs
- Gift Vouchers
- Grocery voucher
- Electricity voucher
- Fabric voucher
- Medical voucher
- Construction voucher
- Bill payments
- DTH recharge
- Utilities (gas, water, electricity)
Why start your own mobile recharge business online?
It’s a fair share. Once you start your own mobile recharge business, you’ll never have to look back again in your career. Yet, here are some amazing reasons to get you started-
- Quicker revenue in less time & effort
- Global business opportunity
- No shop or physical business required
- Connect with world-class famous operators
- Create a loyal customer base in your community
FAQs
Here are some frequently asked questions that we get before people join the online mobile recharge business-
As long as you have a steady internet connection and a smartphone or laptop/pc, you can start anywhere in the world!
Tips: Make sure to look for the demand in immigrants for international mobile recharge around your community.
There are a certain number of risk factors if you don’t do your research before starting a global mobile top-up business. If done correctly, the profit will flow in multiple ways towards you.
Of course, you can! There’s no lowest or highest investment required to start this business.
Sure you can. The entire business can be operated with only one smartphone.
Before choosing the best international recharge service provider, you should consider some important factors. Such as commission rate, dedicated support, package availability, list of famous destinations, etc. All these factors are what make Viva Recharge unique from the rest. You can learn more about our business here
Summary
Now that you know all the possible revenue models of a mobile recharge business. It is a multi-profit scheme that you are going to invest in. You now have the numbers and factors that you can completely rely on. So consider starting this business with full potential. If you still have questions, feel free to contact us.
