Spark Network Services - 900 Numbers Information

900 Numbers Information

Bob Bentz has been Director of Marketing and Sales at AdvancedTele.com since 1989. He is also the author of “Opportunity is Calling; How to Start Your Own 900 Number.”

The following questions are the most common ones that Bob has heard over the past three decades in regards to 900 numbers.

Why should I work with a 900 number service bureau?

A service bureau has already purchased the IVR equipment that you will need to process your calls. It has made a multi-million dollar investment in this equipment and has 24/7 coverage of the IVR system. By using a service bureau, you can concentrate on what you do best – the content and the marketing of the 900 number service.

Could I purchase my own equipment and get into the 900 number business that way?

Absolutely. But, wouldn’t it be better to put your money into the marketing of the program? I liken it to the following analogy. If your business needed some materials printed, would you buy a printing press to do the job? Probably not, because it’s not your business. Stick to what you know best and we’ll do the same.

Does your equipment ever go down?

Yes. All equipment goes down. Any company that tells you otherwise is not telling the truth. The fact is, however, that when something goes wrong at our company, a backup system jumps into action and your callers don’t notice anything is wrong. That’s because we offer triple redundancy on all of the equipment—the servers, the systems, and even the power supply!

You’ve seen a lot of successful 900 number programs and not so successful 900 number programs over the years. What is the common thread in the successful ones?

We’ve seen a lot of great programs over the years ourselves. The common facets of a successful program are:
• Unique information
• Information that callers are passionate about
• Timely and consistent updates
• Built in advertising (media partnerships or cost-effective advertising)
The least important factor seems to be the price of the call. Pricing to sales is inelastic in most categories of 900 numbers.

There seems to be less interest in 900 numbers today. Are they still profitable?

Yes, there is certainly less hype surrounding 900 numbers today than there was in the late 1980’s and early 1990’s. The interesting thing, however, is that many programs we operate are actually more profitable today than they once were. That’s because there is considerably less clutter in the 900 number business. While there once were a dozen or more 900 numbers promoted on a single page, today yours may be one of only a few.

What are chargebacks and how can people get away with not paying their 900 number bills?

A chargeback is when a consumer refuses or is unable to pay his 900 number phone bill. This is simply a cost of doing business in the 900 number industry. The good news is that if you offer good value for your 900 number, chargebacks will be less of a factor. Some services such as psychic 900 numbers have very high chargebacks, but other services such as sports handicapping 900 numbers have very low chargebacks. It all depends on your target market and how you are reaching that target market.

Chargebacks are a frustrating part of the 900 number business. Unfortunately, when 900 numbers first came on the scene, they were almost totally unregulated. This allowed many fraudulent programs to take off. Now, 900 numbers are over-regulated and legitimate 900 numbers are suffering from the early fraudulent operators. The source of the problem is a 1992 bill called TDDRA (Telephone Disclosure and Dispute Resolution Act). TDDRA allows for consumers who do not pay their 900 number charges to keep their home phone service intact.

I am trying to call a 900 number and I’m not able to get through. Why is this?

If you are calling from a cell phone, you won’t get through in the United States. No cellular carrier in the USA or Canada allows access to 900 numbers, because they prefer for you to use their own premium SMS services.

Also, if you are calling from a business, government building, or school, most have blocked access to 900 number calls for obvious reasons.

If you are calling from a land line phone and you can’t get through, then you most likely have a “900 block” on your phone. All 900 number carriers are required to block 900 number access from homes that desire to have 900 number access blocked. Although you may have not requested a 900 number block, you may have one on your phone due to the fact that the previous owner of the number requested a block. Also, some smaller carriers do not support the 900 number network and do not have 900 number billing relationships with MCI. If you find that you have a 900 number block, and you do not wish to have 900 number access blocked, you should call your local phone company and request that the 900 number block be removed.

What are the Katz Patents and how do they pertain to me?

The Ronald A. Katz Patent portfolio covers various aspects of the interactive telephony business. Spark Network Services, Inc. pays a royalty fee to the Katz Patent Portfolio on most interactive voice response services that it provides. Other licensees of the Katz Patent Portfolio include American corporate giants such as AT&T, CitiBank, Ford, Delta Airlines, Hewlett Packard, and MicroSoft.

What is the MCI Deferral on 900 Numbers?

MCI will defer 15% of your gross revenue for the first six months of your program. MCI does this to protect itself against high chargebacks that some 900 number programs have. After six months, MCI will start to return the money to you. So, you see that this is not really a hard cost to your program, but is really "money in the bank" if you keep your chargebacks to a reasonable level.

900 Numbers Facts & Information

Purchase your copy of the ultimate book on 900 Numbers, "Opportunity is Calling" by ATS' Bob Bentz.

For more information, contact a Spark representative today, or to speak directly to a Spark representative, call (847) 227-4111.