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Skype vs. Vonage: VoIP Services Explained!
by: Louis Philip
Many of you have probably already heard about VoIP, or voice over IP. This is a technology that allows you to make telephone calls using the internet. With VoIP you can save money on your monthly bill, get inexpensive or even free long distance, plus get loads of extra services without any additional cost. Unless you have lots of time to explore the more than 1100 VoIP providers that exists today, you will probably want to simply decide between two choices: Vonage or Skype.

In the world of VoIP you have two basic options; you can get the "regular phone replacement with lower monthly phone bills" option (Vonage) or you can get the "plug a phone into my computer and it costs me nothing" option (Skype).

If you go for Vonage, everything works pretty much like it works today with your home phone. The main differences are:

1) Your phone bill is somewhere between 15$ to 25$ a month.

2) You get inexpensive long distance rates, free if you are talking to another customer who uses Vonage.

3) You get a bunch of features included in the price. (VoiceMail, Call Forwarding, Caller ID, Call Waiting etc..)

4) You have a "box" that sits between your computer and your internet connection. (This box will cost you 50$ to 100$)

You will keep your current phone number. You will have 911 service, FCC has mandated that VoIP providers such as Vonage provide full 911 service by ~November, 2005. You will have a nice web interface to all your fancy new phone features. You will get some pretty good customer service. If you want to keep your regular phone wiring you can do that too, though you will need to be a bit of a handyman type.

On top of this, you get some nifty extra benefits. For example, if you travel frequently you can take your "box" with you, plug it into any internet connection, plug a phone into the box and it's like you are sitting at home with your telephone!

Finally, Vonage is a reasonably large, aggressive company. This means they want your business and they are willing to fight for it. You can expect their prices to be competitive and to remain competitive. For more information you can go to their web site http://www.vonage.com/ Don't forget that you must have a high speed internet connection to use Vonage or Skype.

Now, if you go for the "plug a phone into my computer and it costs me nothing" option then you want Skype. Skype is free, Skype is easy to use and Skype works. All you have to do is download, install and start using it. It is completely

painless. If you are like me, you will start using Skype because you want to stop paying for long distance. My mother lives in the Czech Republic. In the Czech Republic it costs a lot of money to call North America. I told her to get Skype, now she calls me all time and it doesn't cost us a penny.

After you get used to paying nothing for long distance, you will begin discovering some of Skype's other options. As of June, 2005 Skype has the following options:

1) You can get Skype Voicemail for ~19$ a year (that is about ~1.50$ per month)

2) You can call almost any phone number on the planet for 2 cents a minute, half of what Vonage charges in many cases! (Skype to Skype calls are always free)

3) You can get an incoming phone number for around ~39$ a year (that is only 3.50$ per month and they throw in voicemail for free! Remember, unlike Vonage which gives you a phone number when you agree to pay the 15$-25$ a month, Skype starts you off for free but will only give you a phone number when you start paying them 3.50$ a month. I started off using Skype for free since I was only making Skype to Skype calls at first)

4) You get a bunch of features included for free (conference calls, Caller ID, Call Waiting ...)

5) There are tons of add-ons (also know as plug-ins) for Skype, many of them are free. You can get a Skype Answering machine, you can have Skype integrated into Microsoft Outlook or you can even start Podcasting with Skype. All Skype add-ons can be found at http://www.summitcircle.com/

6) There are lots of Skype communities. You can meet people for fun and conversation, you can even meet people to learn new languages.

7) Last, but not least, Skype has instant messaging and file sharing.

Once you get going with Skype you will find that it starts to grow on you. I haven't replaced my regular phone with Skype, but it has become my second phone line and I use it frequently.

However, Skype does not have 911 service, nor would I expect it to have 911 service until ~2007. Skype does not have great customer service. To be fair, they are growing really fast. They are getting 150,000 new users everyday, can you imagine trying to have great customer service when you are getting 150,000 new users signing up every single day?

Nonetheless, if you are like me you will find that Skype is the easiest choice to make. I wasn't ready to cancel my home phone and I wasn't ready to commit to paying a company a monthly fee, I simply wanted to stop paying for long distance. After that I got hooked!

If you are interested in Skype, then download Skype for free at http://www.skype.com/

Once you have Skype, you can find a Skype phone, add-on or community at http://www.summitcircle.com There you will find all the Skype add-ons (or plug-ins) that you want, you will find links to dozens of different Skype phones along with reviews and comments by users and you will find links to all the different Skype community sites on the web.

About the author:
Louis Philip is the owner of http://www.summitcircle.com/where he writes about the world of Skype and maintains the largest Skype resource site on the web. He can be reached by e-mail: mailto:louisphilip@summitcircle.com


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Tips to Build Your Email Address Database

WHY BUILD YOUR EMAIL ADDRESS DATABASE?

Gaining your customers' email addresses will:

  • Provide an additional channel for reaching your customers
  • Increase the ROI of your marketing investments
  • Significantly reduce your customer acquisition and marketing costs
  • Allow you to easily measure the impact of your marketing campaigns
  • Increase your customer participation and retention rates

With ongoing postal and telemarketing pressures impacting marketing budgets for many organizations this year, email marketing could become the "silver lining " for many marketers.   But how do you create a successful email marketing campaign if you do not have a substantial email database?  That question may be one of the largest Internet related challenges facing companies this year.

Research shows that the majority of organizations have email addresses for less than 10% of their postal files.  So how do you level the playing field and start to add quality permission - based email addresses to your database?

Here are some tips that you can use to cost effectively build your email address database and increase your customer participation and retention rates: 


START TO ASK FOR IT!  

Every communication or touch point with a customer should start or end with a request for an email address.   By utilizing the four points below, you should be able to add email addresses for 5% to 10% of your postal file over the course of one year.

1.  Direct Mail Collection

Think about how much time and money you spent for copy and design on your last new direct mail piece.  Most companies have started to ask their customers for their email address information within these mailings.  This is a great step forward. However, companies need to look at one major improvement if they want to increase their email address collection rates. 

To date, most requests for email address information have been pushed, shoved or jammed into whatever white space remains.  It should be no surprise that the success rate has been less than stellar.

To improve on these efforts, you need to provide your members with a reason to release their email addresses to you.  E-newsletters, purchase confirmations, petitions, and special discounts and offers are but a few of the benefits that will encourage your members to come on board.

2.  Web Page Collection

Many companies have an email address collection function in place via the web.  To improve your sign-up rates, add text below the email request box that informs your visitors of the special email benefits that they will receive (i.e. e-newsletters, purchase confirmations, delivery updates, etc.) upon registering.  You can also utilize a pop-up link to inform users of these special benefits.

Finally, your email address request function should be available on your home page. Don't make your users go and look for it.  Every click away from your home page reduces the chances of your users taking an action and providing you with their email address information.

3.  Existing Email Database Collection

Don't forget to ask the members of your existing customer base for email addresses of their friends, family and associates.  Viral marketing is a powerful tool to use and is extremely cost effective!  You could ask them either to provide you with additional addresses or simply to pass on your newsletter, email specific offers, or other information to others they feel have similar interests.

4.  Telemarketing Collection

Don't assume that your telemarketing agents are asking for email addresses from potential customers.  Ensure that your agents have an updated script, which outlines the previously described benefits to potential customers of providing their email addresses.

The suggestions above are a great start!  Yet they really should be viewed as a secondary plan for building your email database.  To exponentially and expeditiously grow your email database, please read on!


EMAIL APPENDING  

Utilizing an email appending service enables you to add email addresses for up to 25% of your postal file, all within 3-4 weeks.

Email Appending - is the process of adding an individual's email address to that individual's postal record in side your existing database.  This is accomplished by matching the postal database against a third party, permission based database of postal and email address information.

Best Practices - Email Appending is not a prospecting tool. The DMA (Direct Marketing Association) and its interactive arm AIM (Association of Interactive Marketing) have guidelines in place that dictate that email appending only be used to append email addresses to your existing opt-in postal record house file.

The Process - Your opt-in postal file is securely transferred to an email appending provider, who will do an initial gross email address match of your file against its opt-in database of postal and email address records.  Your appending provider will then send these matches a permission-based message prepared by you.  All bounces and opt-out requests will be removed from the list.  At that point a valid permission-based email address file of your customers will be delivered back to you. 

Cost - Less than the price of a postal stamp!


IN SUMMARY

The first step of any successful email marketing effort is to build a permission-based email address list of your customers.  The simplest, quickest and most cost-effective way to do this is through email appending, which will enable you to add email addresses for up to 25% of your postal file.  Secondary efforts of email address collection via focused direct mail, web, viral and telemarketing practices are also important and will enable you to add email addresses for an additional 5% to 10% of your base on an annual basis.

Best of luck in building your email address database.  As many companies have already learned, the ROI and cost savings to be achieved will far exceed your expectations.

Bill Kaplan
CEO
FreshAddress, Inc.

FreshAddress, Inc., The Email Address ExpertsTM, provides a comprehensive suite of industry leading database and email deliverability services to help companies increase their e-commerce revenues.  For more information on how we can help "Build and Update" your email list, visit http://freshaddress.com/biz or email biz@freshaddress.com.



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