900 numbers have been heavily advertised over
the last few years as a great way to make money. Everybody from
Dionne Warwick to Don Lapre is getting in on the pay per call
action.
In theory (theory mind you) they are a great
way for people to make money. You start up a simple phone line and
people start calling by the thousands (I sound like someone I know
on TV.) When the numbers became popular a few years ago, sex and
adult lines were a large part of the business. Psychic lines are now
the rage. There are some psychic lines that are generating millions
of dollars in calls per month. (Although Dionne's did go bankrupt.
Didn't the psychics warn her?)
Every single one of these succesful lines has
a huge advertising budget. The people renting out lines are not
going to advertise a thing, only rent you the lines. There are many
companies that rent 900 numbers if you would like to get one.
When companies first started renting lines 10
years ago, the person renting would only get a small percentage of
each call, maybe 10% to 20%. Since so many companies are renting
lines now(increased competition), the call per-minute amount you get
is much higher. You can literally find hundreds of different
companies in the back of business magazines that will sell you
consulting and 900 lines.
976 numbers were the first toll lines that
came out. The problem was that they were local only and didn't have
that many features. Large advertisers wanted one number they could
advertise all over the US and get calls for, not just one small
local area. 900 numbers solved that problem.
There are really two big problems with 900
numbers. The first is perception. 900 numbers seem really idiotic to
most people. If you had a great business idea or way to make money,
900 numbers would probably be one of the worst ways to advertise.
How many friends do you have that call 900
numbers each month? How many 900 numbers did you call last month?
This is the sort of thing you have to think of when you are going to
start a business. If you would never use the services, why would
anybody else? This is something that people like Don Lapre would
never tell you. Don lapre just wants you to think that 900 numbers
are a big cash cow. This is not the reality.
The other thing is money. You need a lot of
money to really get a 900 number going. Starting with $500 isn't
going to do it. You need a heck of a lot more than that. Most of the
big companies have $500,000 monthly advertising budgets (that's even
out of my league.)
You are much better off getting into direct
marketing, network marketing, internet marketing or even real estate
investing over dealing with 900 numbers. It is like real estate or
network marketing. A lot harder to make money than how it is
advertised.
Matt Gagnon
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