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Wifi Business Models

Author:  wade34   2008-09-17  Word Count: 566  Category: Broadband Internet  Print  Copy

It’s worth mentioning that not all public wifi hotspot software is created equal. Truthfully, each individual piece of software has been developed with characteristics unique to the vision of the developer. This is not a product review… rather it is simply a high level overview of the most popular business models made possible by the various strains of wifi hotspot software available. That said, let’s plunge into what is still one of the most popular business model among wifi hotspot locations today… paid access.

Paid Access – You’re familiar with this model if you’ve ever opened up a laptop at any of the largest coffee chains. In essence, upon opening your web browser, the wireless router redirects you to the hotspot login page which is served up by hotspot software resident on a remote server. At this point, you’re usually presented with a couple of payment methods… you can either pay with a credit card via the login page or if you don’t have a credit card, you can usually buy access in the form of a prepaid voucher. Upon payment completion, you will be allowed to surf the internet for whatever time period you purchased access to. The advantages of this model are that the hotspot software provider will typically do a revenue split with you meaning you will earn direct income from your wi-f hotspot. In addition, guests sessions will be capped with time limits meaning a guest can’t occupy one of your tables for eight hours straight (unless you’ve sold them a day pass etc.).

Ad supported access – This is an access method that has been quick to gain popularity among location owners because guests get free, time limited access and location owners gets a cut of the revenues generated via the hotspot software providers arrangements with advertisers. The downside is that in many cases, revenues probably won’t add up to what you could earn with paid access (at least on per user basis) although you may make up that lost revenue through seeing a higher volume of usage.

Free access with time limits – This is a great way top provide free access to guests without having to worry about people overstaying their welcome. The best way to do this is to tie X amount of time with $X amount of minimum purchase. In effect, you are encouraging wireless guests to spend your specified minimum in exchange for free access. You are in effect, indirectly charging for access.

Free access without time limits – You can do this model without hotspot software providers. All you need is any old store shelf “home” wireless router. The problem with this method is diplomatically confronting wireless guests who have overstayed their welcome. Probably the easiest way to provide free access is with built in time limits.

So, those are the four models, three of which require the services of a hotspot software provider. It probably really depends on your clientele as to which access model is best suited to your particular location. If you cater primarily to students (maybe a campus café), you might want to try out the “free with time limits” model or the “ad supported” model. If you cater primarily to business travelers (maybe you’re located near major hotels), you might do best with the paid options because you have a captive market.

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About the author: Wade is a web developer with 82nd Street Wireless which provides hosted wifi hotspot software to hospitality industry locations and supports both the "paid" and "free with time limits" guest access models. Contact: 82nd Street Wireless www.freewifihotspotsoftware.com

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