Text Messaging AdvertisingThere are literally thousands of text messaging business opportunities available and many companies have got on the bandwagon. Services such as sending weather alerts, flight status updates, sports scores or even stock alerts have all been offered by many third party companies. We are using the term third party here to differentiate between the carrier who carries the message and the company who originates the message. These companies are all struggling to compete with free sms or text messaging over the internet. everything seems to be free online, however at some point these services must generate a positive cash flow business model and this is what the old style text messaging companies still have.

Text Messaging Business – Subscription

When a consumer subscribes to a text messaging business advertisement, they often do not realize the cost of these subscriptions. In some cases the cost of the subscriptions can be as high as $40 a month. The carrier will receive upwards of 60% of the fee and the business originating the message will receive the remainder.

Text messaging for businesses is a very lucrative opportunity, however we fear that the real money is going to the phone company and that the company using text messaging to get to their customers is not gaining that much.

The carrier delivers the message and does all of the billing and collection for the service. After taking their share they transfer the remainder to the 3rd party company. Many consumers are appalled at the cost of this level of premium text messaging and question their bills at the end of each month.

This is really not a good long term business strategy for small business to send premium messages in this manner. Customers simply have too many other free alternatives. If you are not paying attention to your bills and reviewing them in detail, you may end up with a high bill each month, much higher than you need to be paying.

Who is to blame for these high costs? The carrier is certainly getting the lion’s share of the revenue. They also do the lion’s share of the work to deliver the message and to collect the revenue. Does this make them any more responsible or not.

The competition bureau certainly thinks so has taken several of the carriers to court over the issue. Most people who experience this problem can get their money back if the follow through with their carrier and complain. Also ask for a stop order to be placed so that you do not receive any more of these messages.

You can control these messages and your costs as well simply by blocking these text messages. Call your carrier and get these messages stopped today if you do not want them. You can control your costs and do not need to put up with this type of spam.

For more about text messaging, click here.

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