We are planning two major changes that will affect new Hotspot Providers:
1. We plan to do first-line customer support centrally. This is so that we can provide a consistent service to all Skryove end-users, while at the same time taking off the load from the Hotspot Provider. This support will be limited to telephonic suppport related to end-user problems. If we cannot help the user, we will contact the Hotspot Provider to check the status of the Hotspot.
2. We plan to implement different revenue-share models for Hotspot Providers. We will have two common models on our website:
a) Sign up as an ordinary Skyrover (Hotspot Provider), and get 50% revenue share. If you plan to only run a single hotspot for your coffeeshop or to share with a few neighbours, you'll qualify for this.
b) If you plan to install Skyrove at lots of different locations, you can also become a Skyrove Reseller. You might be running an IT company or have a passion for technology and entrepreneurship. You can get between 50% and 70% revenues, on a sliding scale based on total revenues. We also plan to provide more documentation, training, etc in return for a commitment to upholding certain minimum Skyrove standards and to keep setting up new Skyrove hotspots.
Skyrove resellers will also have an opportunity to provide a service to ordinary Skyrovers, and we are thinking of linking up ordinary Skyrovers with Skyrove Resellers. For example, we could promote Skyrove resellers on our website, and if someone wants to start their own hotspot, they can choose to get a Skyrove Hotspot-to-Go or to use the services of a Skyrove Reseller to come and install at their location.
Currently, we have not finalised all the details, and therefore would like to ask you for any feedback on how best we should implement this.
We have only one goal with the new models: To get more Skyrove hotspots out there!
We are offering a free Skyrove router to the best feedback we receive, positive or negative. Please email your feedback to henk(at)skyrove(dot)com or leave a comment on this blog.
Wednesday, 09 May 2007
2 Big Changes for Hotspot Providers
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7 comments:
Great Idea!
The 3 Tier system works well in The rest of the ISP game and It also gives Resellers more incentive to grow large Hotspot networks and share the revenue with the location owner.
I would suggest building this 3 tier system into your billing engine, so management is simple for all users, be they owners or resellers. Everyone should be able to login to the Skyrove website and view their comm. online with their various access rights.
Well Done, keep up the good work.
Seems to me that you're reducing the commision available to the small "man" and not really supplying anything else worthwhile.
I run a Skyrove hotspot in the UK with a very limited catchment area - a residential appartment block with a few short let appartments.
My hotspot has been running since December and i've made $15 after commision. It's going to be a long time before I ever see any pay back for offering the service.
Why make it even harder for new hotspots like mine?
My main need is to be able to have agents who each have their own network under my main network of skyrove hotspots.
We have just ordered our routers (delivery tomorrow) and each of my 4 agents are fighting to get to them first. I did not know how to manage them and give them more control over their respective hotspot. Even if it could have a Reseller - Agent - Venue system where I have my lets say 10 percent added and taken off the top. Then the agent can see his percentage and the venue owner can see their percentage, each one able to view their own bit of income. I do not know if this is what you have implemented as I am still unable to read the post
I also have told so many people about the network who would like to start their own hotspots in Australia and the UK that I really would like to have them operate under me.
Something that I would like to suggest and I think I may have suggested before is to have a presentation available in PowerPoint that we as resellers can use to inform potential venue owners. The reason I would like it from your side is so that it could be consistent (true to the brand) and we could maybe just change percentages on the powerpoint. I will gladly help with this with input from your side.
I have another idea that I ran by four conference organisers that I actually wanted to keep to myself as I think the income potential is great. Portable hotspots for conferences/ workshops etc. The need for hotspots at conference venues are increasing and there is always a struggle to get these up and running. Now combine the Router with an iBurst desktop modem and there you have your portable hotspot. Conference organisers pay a R300 rental per day from the conference funds. The organiser receives 50% of the profits at the end of the conference!
I am an iBurst reseller and would gladly give special prices to Skyrove hotspot owners if they get their iBurst packages through ClickSA (email me at info@clicksa.co.za) One conference organiser that I told about it today booked the service for three conferences in the next two months. You have a captive audience which is cut off from their usual connection. They just have to pay for access. (at some conferences this is provided free of charge but at some venues connectivity is limited to one computer in a corner of the reception hall and usually with a really slow connection.
The portable hotspot is also ideal for testing venues where the owners do not yet have an internet connection. Set it up for a month or two to test if there is a demand. Then the venue owner can see the advantages. If you then sell the iBurst modem to the venue owner you can also make a profit as the modem will be provided at a discounted price to you from ClickSA!
I hope you do not see this post as a ClickSA ad as this is not the idea. I just thought of the benefits for all resellers to earn even more with this GREAT Skryrove concept!
Idea!
After looking at the new login page I thought that if we as resellers market skyrove effectively more resellers will join. Couldnt there be a way in which we as providers earn a very small piece of the pie from these new resellers generated from specific hotspots. For example: Let's say I have 20 hotspots and two users decide to start their own hotspots after seeing how great it works. Is there a way in which I can get a piece of that pie? Maybe have a box on the signup page where they can enter where they found Skyrove. If they enter Cape Town Beans Factory then the owner of that hotspot will get a 5% commission on that hotspots' sales? Is this getting too complicated. Just thinking that I personally would motivate more people to start hotspots if I got a piece of the action and not try to keep it quiet and hope that I get to put up all the hotspots.
Nico Baird
I propose N-tier-ed scenario
Simply I would recommend that as a reseller I should be able to get people to become providers and set them up. Then as these providers are under my "network" I should be paid a percentage of the revenue they bring in.
So... You have Reseller, Provider and user <----the base model
The reseller may have users, but they can become providers too (he should still get paid something). Even better yet if my users-turned providers become resellers later, then that revenue should filter through...
Let's "steal" the "pyramid scheme" model.
What leads me to this is the fact that Henk et al would like to get these hotspots out there in masses. Now if there is a model out there with an ability to spread out of control (in a good way) - "Pyramid scheme model" is the one...
L8r!
Noto Modungwa
For me there is one flaw in the proposed skyrove model. The flaw is that skyrove calculates its share on the turnover and not on the profit.
The cost of the upstream connection is not taken into account.
I dont mind sharing 50% of my profit, but sharing 50% of turnover has a huge impact. Given the cost of internet access and caps etc. I did some calculations.
As a hotspot provider, you would have to generate significant turnover to turn a profit. I am talking in the region of 3 gig plus.
Most upstream service providers cap at 3 gig including ADSL Iburst etc. so you would have to select a more expensive monthly package to become more profitable, thus increasing your montly commitments and risk.
The only other option is to increase your wifi spot rates to compensate. The problem is that you become to expensive and users will select technology like 3G etc.
Any feedback on the model's progress and direction?
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