Pros and Cons of VoIP Business That Every Businessman Should Know

Every potential businessman interested in VoIP should know about the pros and cons of VoIP Business. It is only with the knowledge and proper management, that the business will experience good growth.

pros and cons of VoIP Business

Pros and cons of VoIP Business are the two sides of a coin. VoIP Business is one of the rapidly growing sections of the telecom industry.

VoIP or voice over internet protocol is the outcome of the combination of traditional telecom technology and internet protocol. These business solutions provide low cost calling solutions to individual users or to organisations for their companywide communication.

Telecommunication technology has come a long way since the invention of VoIP. In the present day things are faster and in addition to this many other things are also possible because of the availability of numerous features.

The best part about this technology is that apart from providing a cost-efficient solution for telecommunication, this technology creates a lot of business opportunities.


Types of Businesses

The prime sections of VoIP Business are retail business and wholesale business. The retail business section mainly includes calling card business, reseller VoIP or agent VoIP, hosted VoIP.

On the other hand, wholesale business deals with bulk transaction of VoIP Routes. The pros and cons of VoIP Business are spread across all the sections of the business.

One can buy or sell and even exchange routes in this business. VoIP Routes are present for every destination. There are various types of routes and their rates are different from each other.

The rate of the routes depends on a number of factors like the quality of the route, destination demand and also the availability of routes for that destination. Usually, it’s better for a beginner to start with retail VoIP and gradually progress to the wholesale level as it requires much more understanding and expertise.


How to Start a VoIP Business

To start in the retail section one has to obtain the VoIP Service from a bigger VoIP Service Provider. This service provider provides the necessary resources and helps one to set up the business. The rates for the service depends on the type of business one chooses. At times the rates also vary with the addition of an extra feature or service.

Starting one’s business in association with a trusted provider has many benefits. A properly established and experienced service provider is reliable and thereby removes any chances of fraudulence. This provider with years of experience in the industry has products and service of good quality.

In addition to the above, this type of service providers also has a good support team round the clock to solve any queries at the earliest. To know more how to start a retail VoIP business check here: How To Start Your Reseller VoIP Business


The advantages and disadvantages of VoIP

VoIP business is a profitable sector. Its growth is faster than its contemporary businesses. The addition of the latest technologies and the constant evolution gives it the edge to present something new frequently. Therefore in doing so, it retains the interest of the users from all over the world.

But similar to every other business there are some pros and cons of VoIP Business too. And therefore any businessman who wants to invest or an entrepreneur wanting to venture in this sector must be aware of all the pros and cons of VoIP Business. Knowledge about potential gains and some relatively common issues beforehand helps one to manage the business efficiently.




Easy to start

Starting a VoIP business is relatively easier than other businesses. As it is advised for any beginner to start through retail VoIP, in that case, one needs to search for a reliable VoIP service provider offering the service and choose accordingly.

Many providers offer service in packages. This package deals are usually helpful as they save the time and money required to look for separate components. Also, further compatibility issues remain with separate items. In all-in-one packages, the service provider offers all the necessary items together for a fixed price. Although prices vary at times with the addition of extra items.


Global Market

VoIP business is online based and therefore while the local market plays a crucial role, one can also make a profit from the global client base. Providing calls to multiple destinations attracts much more consumers than catering to a single destination. As for wholesale, A-Z Routes can help generate more profit than just a few country routes.


Minimal Production cost

Compared to all other businesses, VoIP business relatively requires a very less amount to start. As this business is managed online and is mostly software-based, it requires minimal hardware. Therefore it saves one huge infrastructure cost and the money required for further maintenance.

The software for this business gets regular updates from the service provider thereby saving any further expense. All that is necessary from the client’s end is a device like a PC/a laptop or a smartphone with internet accessibility and a stable internet connection. The service provider provides the rest.


Safe & Secure Multiple Payment Mode

Operating a global business requires international payment portals. For this business, service providers offer safe and secure payment portals which are supported internationally. Usually, these portals are encrypted and therefore add an extra layer of security.


Minimal Risk Factor

This is due to the low investment requirement. One can start a business like agent VoIP or reseller VoIP for a minimal amount of $100. Due to this low investment amount, this business is often regarded as a risk-free business.

Other businesses too like Hosted VoIP, calling card business does not require any heavy amount. As retail VoIP is comparatively easier to manage and simpler than wholesale, a small amount of money is enough to start in the retail section.




Service Provider Selection

The pros and cons of the VOIP business are related. While the availability of multiple service providers offers options for a person to choose from, it also makes way for fraud companies to disguise themselves.

These companies put up attractive offers to scam people. Therefore to choose a genuine service provider proper research and background check is necessary.

Different service providers have various rates for services and therefore their service charges differ from one another. To get a suitable one, it is therefore recommended to keep multiple options and select the best-suited one from the list.


Network Blockages

Even in this 21st century, there are many areas around the world where internet connection is not available or the connection is very poor. Such places face a problem in VoIP usage.

In other cases, there are countries or regions that deliberately block VoIP due to security reasons or to maintain a monopoly of their services over that region. Providing VoIP Services to these regions is a challenging task.

A solution to this issue is to use tunnelling software. To know more about tunnelling software check here: Importance of Tunnelling Protocol in Mobile Dialer


Internet and Power Dependency

Among the pros and cons of the VoIP business, this is a very basic point, still, it is worth mentioning. VoIP business requires a constant internet connection and a very basic level, electricity.

Any power shortage or any interruption in the internet connection can cause a disturbance in the business management and business transactions and operation.


Cash Shortage & Payment Delay

Usually, the issue of cash shortage arises in Wholesale business. Wholesale VoIP business follows a fixed monthly billing cycle. This at times led to cash shortage for businessmen as the money is available only on the fixed billing date.

Therefore to counter the problem some service providers offer instant billing or instant payment options for wholesale business. This is one of the major points in the list of pros and cons of VoIP business for the wholesale sector.



As a part of the pros and cons of VoIP business, the issue of security plays an important role. Hacking, VoIP frauds, thefts and numerous other security breaches come up all the time.

Sometimes it is due to poor security on the service provider’s part. Other times it is due to lack of security on the client’s part. Therefore using multiple measures is necessary to build up strong security and eventually safeguard your business and prevent any loses.

To know more on VoIP Security check here: Security Measures For VoIP Business Components



Knowing the Pros and cons of VoIP business will help a person to understand the risks and how to manage the business. It will make that person aware of the parts where effort and proper measures are necessary. Thus skilful management ensures the success of the business.



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