If you’ve been wondering how to start a data reselling business in Nigeria, here’s a guide you can use. Here, we’ll explain what data reselling is, what you’ll need to set up, as well as how to become a data reseller.
What is Data Reselling?
As the term implies, this business involves buying data in bulk from a wholesaler and selling it in smaller volumes or bits to users.
The wholesale sources are usually either telecommunications companies or Virtual Top-Up (VTU) service providers. You may buy data from them at relatively cheap rates and resell for a profit. But why would anyone want to buy data from you instead of just purchasing directly from telecom companies like MTN, Airtel, or Globacom? Here’s why. As a data reseller, you can get data in bulk from these sources at much lower rates than the regular consumer price. For example, 1.5 GB of MTN data costs ₦1,000. But if you’re a data reseller, you can buy 1.5 GB of data from MTN for as low as ₦450, and sell to a final user for ₦600. That’s ₦400 less than the regular price. It’s an offer many will find hard to resist.
Why You Should Consider Starting a Data Reselling Business
Each year, Nigeria adds millions of new individuals to its population of internet users. Between 2020 and 2021, the number of web surfers in Nigeria grew by 19 million—up 22% within that period. As of January 2021, there were about 104 million internet users in the country. That’s a huge market and one that will continue to grow for a very long time. So it’s not surprising that many people are jumping on the data reselling train. The good news is, there’s still plenty of room for new entrants to get in and make a profit.
Other reasons you might want to become a data reseller include:- Very Low Startup Cost: You can literally begin with just ₦1,000. In fact, you may even start with nothing. Just ask your customer to pay you, purchase data from the VTU platform, transfer it to them, and pocket the profit.
- High Turnover: There’s a lot of demand for data. Even if the profit margins seem small, they’ll compound very quickly to yield a significant amount of returns.
- No Special Skills Required: All you need is the ability to use the internet, make mobile or web payments, and share data with customers.
- You May Already Have All the Resources You Need: There’s more on this below.
What You Will Need
These are the things you should have to make your data reselling business a success.- Internet-Enabled Device: A laptop or smartphone will be sufficient. You will need these to access the telecoms or VTU platform, pay or receive payment for data, and transfer data to your customers.
- Reliable Internet Connection: This should grant you smoother access to VTU platforms. Also, ensure that the internet service provided by the company whose data you’re reselling is stable and reliable in your area. Your buyers will consider this.
- A Bank Account: Customers will pay into your bank account, and you’ll also have to fund bulk data purchases from that account.
- A Ready Market: There’s indeed a huge demand for data. But you still won’t be able to sell your data unless people are aware of what you’re offering.
- Funding: You can start with just ₦1,000, or with nothing at all (we have already explained how).
Steps to Becoming a Data Reseller in Nigeria
These are the things you’ll have to do to start a data reselling business in Nigeria.- Register as a data reseller on a VTU website or telecoms company platform you choose.
- Make sure your bank account or wallet has enough funds for you to buy data.
- Select and purchase your preferred data type.
- Resell by sharing data through your mobile phone, to family members, neighbours, and the wider community. Reach even bigger targets via social media and online platforms in which you’re likely to encounter a lot of people.
- Learn from customer feedback, and improve your services accordingly.
It’s that simple. Again, your revenues will compound several times in a short period, a benefit that makes the little margins worthwhile in the end. Final Words We have shown you how to start a data reselling business in Nigeria. Take the steps we’ve laid out here, and you’ll become a successful data reseller in little time. Featured Image Source: School Drillers
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