Last updated on October 31st, 2017
In one of my recent post, before this “online business modeIs in Nigeria” I described how Nigeria was rated as the 3rd internet user across the globe and how much, an average Nigerian spent daily online. Internet business in Nigeria is sky rocketing and many entrepreneurs are still left behind.
Starting an online business in Nigeria can be very successful once you know the right model for your business and this, of course, can be known based on what you want to offer or the kind of products you want to sell. For example, if you are a fashion designer and you want to show case your business online. What kind of business model are you going to embrace?
Here are five online business models in Nigeria that can make you money or even transform your business if you have a business already.
Online business models in Nigeria
E-commerce is a term for any type of business, or commercial transaction that involves the transfer of information across the internet. E-commerce is currently one of the most important aspects of the internet. It allows consumers to electronically exchange goods and services with no barrier of time or distance.
Just like the traditional ‘brick and mortar’ store for offline business, e-commerce is an online retail store where your product and services can be purchased over the internet. The good thing about e-commerce is that there are ways you could make money without investing on store inventory, in other words, you don’t have to have a product yourselves to make money. You can easily sell other people product on your store and make money doing nothing. This is called Dropshipping.
Drop shipping is a method where a store doesn’t keep the products it sells instead when a product is sold, it purchases the same product from a third party and has it shipped directly to the customer without seeing or handling the product. The difference between dropshipping and the standard retail model is that dropshipping doesn’t stock or own inventory. Instead, the merchant purchases inventory as need from a third party wholesaler and have it shipped to the final consumer.
Dropshipping is one of the best ways to make money running an e-commerce business with little or no experience you can be up and running in no time.
The Freelancing world is a market place of ideas, skills, and talent, fueled by passion. While some believe it’s the easiest way to make money online because it requires little or nothing in setting up and most freelance websites are free to sign up, yet making money as a freelancer can be a daunting task if not done the proper way.
Once you have a passion backing your work you can start making money in your first week of joining. There are so many areas as to which you can work as a freelance; web developer, app developer, freelance writing, graphic designer etc. the list are endless it will be wisdom for you to work in the area of your passion.
For you to be a successful freelancer you need to follow the steps below:
- Choose a niche- after signing up; don’t just go about doing the entire task you see in the bid of making money quick. The best thing to do here is to choose a niche, find a topic you know you have a passion for and go for it and gradually grow yourself.
- Set up a profile- this is very important when it comes to freelancing. Your profile is tantamount to how successful you going to be. Set up a nice and attractive profile; showcase you’re your expertise highlights some relevant past experience and includes your contact information so that potential clients can easily find you and focus on getting positive reviews
- Find a project- working as a freelancer can be a competitive one, depending on how you package yourself, but once your account is set up you can look for projects that fit your skill descriptions and bid for it. Before you start working, make sure that both you and the employer are aligned in terms of project scope and deadlines.
- Get paid- once your work is done you can get paid, most freelance website process payment through PayPal Wire Transfer, checks or direct deposit.
These are few of the top freelance website you can work with and make money, Freelancer.com, Fiverr, iwriter etc.
This is one of the best online business models you can ever think of, affiliate marketing is simply a way of referring people to purchase an online product and make a commission once the product is bought.
The commission made can varies depending on the company and the products, some company pays from 2%-18% commission on the product sold.
The good thing about affiliate marketing is that:
- There are no limits to the amount of money that can be made. It’s possible to make from $100- $50,000 on a monthly basis
- You don’t have to have a blog before you start making money, but at the same time, you can make more money with a blog.
- Anyone can start affiliate marketing with little or no experience and grow over time.
- No investment is required you can start for free and start making serious loads of money.
For better result on affiliate marketing you need to follow this step or learn more:
- Find a niche- choose a niche and concentrating on promoting that niche.
- Join a network- before you sign up for any affiliate network a proper research before join will be expedient.
- Create a blog- it’s possible to make serious money promoting products on the social media but the place of a blog cannot be over emphasize
- Publish articles- once your blog is set up you can start publishing articles to engage readers and grow your audience
- Promote your affiliate offers- you can start promoting the products once your audience are growing.
- Start all over- consistency is the key to success.
A membership site is one the best way to make money by creating an online business. The difference between a blog and a membership website is that the content is private or exclusive to members only while blog content is publicly published.
Content in the sense here means products you offer to your members based on a monthly subscription or instant payment and this content can include; digital products like podcasts, ebooks, webinars and online courses. For example, a make-up artist can create a membership site and offer its members’ video tutorials, podcast, ebooks etc. on how to become a make-up artist and of course on a premium terms.
Here are some examples:
- Copyblogger.com – copyblogger is one of the most successful membership sites online. What they do is, they provide copywriters marketing tips on how to become a successful blogger with tons of free e-books. They also hold seminars and webinars with their premium members, while charging on a monthly or annual basis.
- Pencilkings.com– pencilskings is a membership site where artists can advance their education. This type of site is perfect for those who don’t have time to take on-site classes. They offer subscribers 7days moneyback with 56courses taught by professional artists at a low monthly price.
How to start a membership site
Like every other online business models, for you to create a successful membership site you have to find a niche in your industry where you can offer something special enough for your customer to be willing to pay for.
Additionally, you should consider the size of your customer, will you be able to provide enough content for the available customers or you are going to be repeating content? Members will leave your site if they find out you are providing content that can be easily accessed on the web.
One of the best incentive to creating a successful membership site is to offer free content.
Here is the truth of the matter, many people often go about blogging the wrong way thinking they can make a fast income from blogging but the end is often not palatable as they think it will be. Blogging can be frustrating if you don’t know what you are doing and often the reason we preach blogging niche.
For you to be a successful blogger you must choose a niche you know you can easily blog about. This could be health related topics or fashions, politics, sport etc. once you’ve established a niche you know you can easily blog about coupled with patience and extra learning behavior then you can start making money from a blog in the following ways.
How to make money from a blog
- Google Adsense- Google allows you to make money on cost per click adverts run on your blog. The amount you can make from this depends on the size of your audience and the traffic your blog generates.
- Affiliate marketing- most of the links you click on blog sites are mostly affiliate links. How this work, is that you place a link on your blog and if the reader clicks through to the site and make a payment or buy a product, then you going to make a commission a the sale. A good example is Jumia, Konga, Amazon etc.
- Sponsored post- this works just like normal sponsorship. A company can pays you to represent their product, write an article about it and promote it to your readers.
- Writing reviews- just like a sponsored post you can also make money by writing reviews about a product on your blog. When doing this you will want review products that are relevant to your niche, that your audience would be interested in.
- Selling eBooks- selling of eBooks is one of the popular ways to make money on your blog. This can be done by writing new or converting your old articles into pdf files and sells it to your audience, but this has to add a real value to your audience.
While all this are proven ways to make money online they still require time, patience and consistency before one can start making a real passive income from this. Do not forget to share your thought in the comment box and share this if you find it helpful.