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Rating: 
ISP Stands for
Internet Service Provider.
Level of Review:
Researched extensively, not tried.
Overview:
The idea is that you can make money as an ISP,
using the parent company's equipment, for which you
pay a monthly fee, sometimes by the user, sometimes
a flat rate.
Product: The
product is internet service accounts. Some programs
have a tiered compensation, so that reselling the
program is also a product.
Costs:
Usually several hundred dollars and up. Ongoing
costs for monthly rights, plus additional costs for
other services.
Compensation:
Compensation is flexible, you get paid by reselling
the product, and you can set your own price.
Competition is fierce though, so there is a fairly
low ceiling on the amount you can charge per month
for access.
Conclusion:
This business requires technical expertise!
They will tell you it does not, but it does. First,
because you will not even know whether the service
you plan to sell is a good one unless you
understand differences between services. Second,
because your customers will complain to YOU when
there is a problem, and if you don't have an
understanding of the industry, you won't be able to
help them. Third, because you have to understand
market value and competitive pricing and marketing
in order to make anything at it.
We did not try
this, partly due to the high cost, but also because
access is limited to specific areas. An internet
service provider has to give the customer a local
dial-in number, or has to provide local service for
DSL, Cable, Satellite or other connections. These
services are generally limited to certain areas.
Yes, they will SAY that you can do it all over the
US, but the fact is, that they only serve major
cities. Rural areas, small towns, or even mid sized
towns are not given the option of service.
Typically the service you can provide is for a
single area also.
The major problem
with this is that the cost is high, and the
competition is very stiff. With major corporations
out there offering ISP service for less than $19.95
per month, how can you compete when you have to pay
$18 for it wholesale? People tend to go with a
familiar name. The field is aggressive, and if you
cannot afford to market aggressively, then it is
nearly impossible to get any customers.
If you can get
customers, you are again at the mercy of someone
else's service representatives, and policies. If
the company has a lot of problems (and many do!),
or lousy customer support, then you will find that
you have bought a product that you cannot sell.
Projected sales numbers given by the companies are
based on repeat monthly billing. If you do not get
that, if your customers cancel on you, then you
have to spend all your time getting new customers.
That kills a business.
If you have the
technical expertise, or can get it, to know the
difference between a good one and a bad one, and if
you have the financial resources to get into a
competitive arena, this might be a good long term
choice, but it is not the solution for most people.
Even so you would have to carefully research your
company to be sure they were not growing too fast
to supply reliable service and that their tech
support was good.
Having said that,
be WARNED! There are legitimate companies out there
doing this. There are also a lot of scam artists
who purport to offer this service. Check out the
company with the Better Business Bureau, or other
sources before you make a purchase you might
regret! If you get an invitation to do this via
email, do not do it. Email invites for ISP service
are always scams.
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