The question you have to think about is how much money do you want to make and will the turnover sustain your needs? Nevertheless, this is a great way to start your own cellular business – first selling prepaid airtime and then adding other services such as prepaid Eskom electricity vouchers, a repair service and selling new phones to the community.
Related: Free Sample Business Plans
Virtual airtime sales through your PC
There are software programmes that you can install on a PC to sell airtime without having to order and buy stock. These systems work on a pre-paid basis. When you deposit funds into the supplier’s bank account, your virtual account is credited as soon as the funds reflect in the supplier’s bank account.
Your margins are typically 5% to 10%, depending on the voucher provider. Accounts are viewable online and you would use a password for Airtime transactions. The online account shows all the deposits made, commissions paid and earnings from customers. It also lists the names and cell numbers of your clients, plus all their deposits from which you will be earning commission.
This is an efficient system where a client purchases pre-paid airtime by sending an SIMS to a server. The supplier will then reply with a pin number that becomes the virtual voucher.
One of South Africa’s well-known suppliers, Smartcall, has specialised in providing prepaid cellular services and products to South African mobile vendors since 1998. Today they are one of the largest distributors of starter packs and prepaid airtime to vendors in South Africa.
Through their packages, you can recharge your customers and yourself with airtime at up to 9% discount. Registration is easy and after paying a minimum of R100 deposit you can start selling Vodacom, MTN and Cell C airtime and Telkom PrepaidFone credit from any Vodacom cellphone.
You can also make money with your own prepaid airtime vending machine. Prepaid airtime vending machines work well in rural areas, blocks of flats, schools and at universities or collages. These vending solutions enable vendors to offer customers pre-paid airtime from the convenience of a small electronic device.
For Airtime Vending machines – contact Kazang on their website.
You don’t need much capital to start this kind of business
There is nothing stopping you from buying airtime vouchers and paying cash for the vouchers and receiving cash in payment when you resell the vouchers. You can buy airtime at a discount of up to 10% and resell it to your clients, friends, or family. Contact Vodacom, MTN, Virgin and Cell C for more information, or become a pre-paid airtime and electricity vendor that you can arrange through a number of companies around the country like Kazang for example.
Open a bank account
It is always best to have a banking account. It’s much safer and by having a bank account you can build a credit record which will be necessary if you wish to expand your business later on.If your business grows you would have to register your business declare your income earned from the business to the South African Revenue Services (SARS).