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Short Code SMS Business : How To Set It Up and Make Money From It

June 5, 2014

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jidetheblogger Avatar
jidetheblogger

ShortCode SMS business simply involves setting up a system that allows you to use a “ short code ” to provide variety of mobile content through text messaging. People that subscribe to your “shortcode” are billed automatically by their network provider and you get your own share from it.

What is a Short Code?

Well, it is a 5 or 6 digit phone number which GSM users can send some information to. You can get it from companies or sites that offer short code services in Nigeria . You cannot get it directly from MTN, Glo etc

The way people that text a shortcode are billed is different from the way they are billed when they text gsm numbers. Shortcode have the following tariff, N30 , N50 , N100 . The tariff is the airtime value that will be deducted whenever anyone respond to the code.

Big Brother Africa, Nigerian idols are examples of TV programs that use “short code” for SMS voting. It can also be used for SMS competitions, Text 2 Win promotions, charity sms donations and can also be used to provide information services eg health tips etc

If you set up a shortcode, you can make money in partnership with the company that issued the code to you, while you also have access to the phone numbers of the short code subscribers for other marketing purposes.

example of short code

There are basically two types of gsm short codes: the dedicated short code and the shared short code .

Dedicated Short Code vs Shared Short Code

A dedicated short code is leased and exclusively used by only one brand. All of the setup costs and fees associated with a dedicated short code are the responsibility of that one brand, which can make the option of buying a dedicated short code out of reach for some.

Shared Code is used by multiple brands, which share the setup costs and fees, making it affordable to smaller brands. Keywords makes it possible for brands to share one short-code. It is the keywords that partitions each user to his own account without interference of other people sharing that code.

The keyword is what your prospects will type first before any other information you want them to send to the code. Eg. Send ‘vote’ space ‘contestant name’ to 33811″.

The keyword in the example above is ‘vote’ while the shortcode is 33811′

How Much Can I Make From ShortCode Business in Nigeria?

The N30 , N50 , N100 airtime value is what you will share with network providers eg MTN and the company that issued the short code to you.

Below is how much each GSM network will deduct:

Tariff (NGN)
Visafone
MTN
Airtel
Glo
Etisalat
30.00 NGN
10.930
8.851
14.781
9.851
13.210
50.00 NGN
21.088
18.702
22.018
13.623
21.043
100.00 NGN
30.233
35.334
48.501
24.939
40.340

 NB : The charges above might have changed by the time you will be reading this.

How much you make from a short code depends on the agreed sharing percentage between you and the issuing company.  On a neutral ground, the issuing company gets 50% while you get 50% too.

Once a GSM user responds to your GSM short code, lets say with an MTN number, MTN will deduct their own money immediately according to the table above. The remainder is now what you and the issuing company will share based on your agreement during the set up process.

The number of people that respond to your short code, will determine how much you make from the business.

How To Make Money From SMS Short Code Services in Nigeria

Firstly, you have to acquire your own shared gsm short-code.

Secondly, you need to get people to respond to your shortcode. The more people respond to the code the money you rake into your account. Meaning it’s game of volume.

Typical campaigns like health tips, educational tips, relationship tips etc. will be a very profitable venture because they are niche almost everyone have a particular need for.

Here is a typical campaign you can promote with your short-code,

“Health is wealth. In order to live healthy you need to constantly stay inform with daily health tips. Send ‘health’ to ’33810′ to receive sms three times weekly. SMS Cost N100″.

The campaign above can rake in good income from a large number of mobile phone users. Because nobody wants to die. Hence, such campaign can easily attract people to respond. Another topic is News/Alert .

But then, you have to get this message of yours out to the public before people can start responding to it. This can be done by promoting your short code offline with fliers, posters etc, via radio or tv stations. You can also buy gsm database and use bulk sms sites to promote your short code offer to the phone numbers.

Where To Get Short Code in Nigeria

If you are ready to get your short code now, go to www.supremeshortcode.com .

You can get a great discount from an on-going promotional offer here .

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29 responses to “Short Code SMS Business : How To Set It Up and Make Money From It”

  1. Funmi Avatar
    Funmi
    May 19, 2014

    Fantastic explanation there. Thanks Jide

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  2. Anonymous Avatar
    Anonymous
    May 19, 2014

    With the way MTN has been disturbing me with all those short code sms, its obvious they are making lot of money from it. Thx for the info bro

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  3. Tyson Tim Avatar
    Tyson Tim
    May 20, 2014

    Thanks Jide, but can write a comprehensive tutorial about how to open a bulk sms site?

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    1. Jide Oguns Avatar
      Jide Oguns
      June 6, 2014

      Mail me

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      Reply
  4. dammy16 Avatar
    dammy16
    May 24, 2014

    Nice information.. Thanks jide

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  5. Nosa Avatar
    Nosa
    May 28, 2014

    Thanks for your info… Love your post

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    Reply
  6. Nnaemeka Eze Avatar
    Nnaemeka Eze
    May 30, 2014

    Nice post. I have been hearing about this short code service for a while now but never put interest in it. I think its time to have rethink

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  7. Get Free Internet Business Tips Here Avatar
    Get Free Internet Business Tips Here
    May 31, 2014

    Very valuable information here. The shortcode business is a great way to make money if it's rightly setup! Thanks for the info Jide!

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  8. Naija Money Online Avatar
    Naija Money Online
    June 2, 2014

    Thanks for the Info. Looking forward to have it too

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  9. 2dayknowledge Avatar
    2dayknowledge
    June 2, 2014

    Thanks man, will try it soonmore grease to ur elbow boss

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  10. Nigerian Social Forum Avatar
    Nigerian Social Forum
    June 4, 2014

    Thanks for your information.

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  11. Okafor Arinze Avatar
    Okafor Arinze
    June 12, 2014

    This is a great information you shared. looking forward to have mine soon.

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    Reply
  12. Meteorika Avatar
    Meteorika
    July 1, 2014

    Nice post 🙂 anyway, your blog is fantastic.

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    Reply
  13. John Avatar
    John
    October 1, 2014

    fantastic 🙂

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    Reply
  14. Tuham Sanusi Avatar
    Tuham Sanusi
    October 4, 2014

    Thanks for the great info. But how do someone make money from it.. I mean Will the remainning percentage goes to bank account or how?

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  15. Abegunde Michael Avatar
    Abegunde Michael
    December 16, 2015

    Very informative. Thanks.

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    Reply
  16. Unknown Avatar
    Unknown
    February 18, 2016

    pls can i generate my shortcode numbers myself

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    Reply
  17. Akins Avatar
    Akins
    February 18, 2016

    Pls can i generate my short code numbers

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    Reply
  18. ilesanmi aminat Avatar
    ilesanmi aminat
    May 16, 2016

    God bless you for this information for more than two years now I have been looking for someone to explain how this short code business is done thank you

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  19. Alikwe Favour Avatar
    Alikwe Favour
    July 5, 2017

    thanks for the post,please how do i set it up and running,kindly send me your mail address,

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    Reply
  20. peju Avatar
    peju
    December 10, 2017

    nice one

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    Reply
  21. danjuma lasisi Avatar
    danjuma lasisi
    December 20, 2017

    Comment*pls how do i get started with small capital like #20000.?

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  22. Entrepreneur Avatar
    Entrepreneur
    February 3, 2018

    From your post, Networks do not offer “short code” rather sites and companies. Whom do they register with and how do the companies go about it? Thanks for the post, it was enlightening

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  23. mc philip Avatar
    mc philip
    May 6, 2018

    is their ANY WAY I can do business with Mtn office direct.????they can take their profit and give me mine without passing through a different company giving me short code and sharing a profit of 50%- 50%

    please what is the way out……

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  24. stanley Avatar
    stanley
    June 11, 2018

    Thanks a lot for the info, please am doing a reality show and I want to use shortcode for my voting please you can write me directly how to go about that. stacomzy20@gmail.com

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  25. Michael Avatar
    Michael
    November 29, 2018

    Awesome insight Jide but my question is who is eligible to set up a short code?

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  26. Unaija Avatar
    Unaija
    January 29, 2020

    I want to one business that is different,I don’t know if it possible

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    1. Olypep Avatar
      Olypep
      May 9, 2020

      Thanks dear I want to get a short code please help me out

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      Reply
  27. Kess Avatar
    Kess
    April 23, 2021

    How do I meet this company to generate the short code. And how does my own share enter my pocket

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