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The Case For Long Codes: Cost

December 29, 2010 11:39 am by

Last week we discussed the lengthy process of obtaining a dedicated short code. Provisioning a short code isn’t just a lengthy process; it’s also an expensive one. Leasing a short code has a number of costs. If you want a vanity code – any code that Neustar hasn’t randomly assigned you – it will cost you $1,000/month to simply lease the code. If you go with a random code the cost is $500/month. So, you’re looking at leasing costs of either $6,000/year or $12,000/year. At a minimum you have to pay for three months at a time. If you choose to pay for longer periods of time at once you won’t receive a discount.

You’ll also need to connect to a text messaging gateway, on top of your leasing fee to Neustar. You can work directly with an aggregator or work through a reseller. Either way you’re looking at additional monthly fees and messaging minimums.

Now let’s look at long codes. Costs range from a dollar or two a month to around $50/month, depending on the level of support you’re looking for and whether or not you’re using an API or a point-and-click application. Gateway and aggregation fees don’t exist with long codes. Messaging rates are comparable to short code rates and are often substantially lower. The math is clear; the difference is dramatic. Unless you have the budget and the need for a shorter number long codes are the way to go.

Want to learn more about text message marketing using long codes? Check out Group Texting’s long code service.

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