Your business will generate income from your wireless hotspot. A typical Hotwireless installation involves a certain level of upfront fees – but after this you earn money . This is a very important aspect of the business model.
HOW THE SYSTEM WORKS
- Typically you can sell vouchers for about R50 per gig for internet use (this is much cheaper than purchasing data from a cell phone company. The price you charge per voucher is also determined by what price you are paying for data from your ISP. Obviously uncapped ISP’s will mean your profits are much higher.
- You can sell vouchers based on time and / or data use.
- If you have regular guests or customers, sell them a monthly or annual voucher at a good rate to ensure their loyalty – you might want to give complimentary vouchers to VIP guests or customers.
- Returning guests or customers will also ensure a higher income.
A TYPICAL BREAKEVEN SCENARIO
- Hotspot manger monthly fee = R 499.00 per month – Entry level venue
- Average internet user is 1 gig = R 50.00
- Therefore you will only need to sell 10 vouchers per month to cover Hotwireless’ costs.
- Thereafter you will generate enough to cover your ISP charges.
- Thereafter you can generate a new stream of income. e.g. 1 user per day for 1 gig = 30 days per month at R 50 per gig = 30 x 50 = R 1,500.00 per month. This is a very conservative example. Some of Hotwireless’ venues are extremely busy and generate incomes of R10k plus.
MARKETING AND ADVERTISING
- Sell advertising space on your landing page.
- Divert customers to your website after successful login and market new products or specilas to them directly on their devices.