This feasibility study on recharge card distribution in Nigeria is to help you understand the scope of the business. If you have interest in this line of business, the possibilities before you are endless. Buy what makes this sector very attractive for business? It is obvious! Just like food, people cannot do without communication. This is moreso due to the availability of multiple telecom operators who provide a vital service of connecting people remotely. The revolution started almost 2 decades ago, and since then, there has been tremendous improvements in the way business is done, as well as the quality of services available to customers.
Today, peoples way of life as well as how we conduct our businesses have been radically transformed. You will bear witness to the fact that alot of telecom allied businesses have sprung up since its introduction in Nigeria. These include the sale of gadgets such as smartphones, laptops, iPads as well as smaller smaller devices such as cellphones and more. However, as useful as they are, without telecom services driving them, they will be useless to us.
How is this relevant to our discussion? Because recharge cards are like the fuel driving these products. Come to think of it, you need the recharge card to give you call access. Also, recharge cards are necessary to purchase data.
This trend offers tremendous opportunities for growth. If you are still having second thoughts on joining this business, you may want to change your mind by jumping wholeheartedly into this business. As long as there are people, there will be communication. How does this become possible? through the sale of recharge cards. This has influenced the choice of this topic, as we focus on how to become a recharge card distributor in Nigeria.
What to Consider Before Choosing an Operator
This is one of the most crucial steps in selecting a telecom company (in this case, your business partner). Before making this decision, you have to consider the trend and flow with it. What does this mean? It simply means that your choice of a telecom company to do business with has to follow the potentials and opportunities for growth it offers you. An interesting part of this business is that you can do business with each mobile telecommunications company independently. Thereby reaping the benefits of doing business with multiple reliable partners.
Today, almost every Nigerian has multiple SIMs. Many have more than 2! You will likely hear people say SIM A is strictly for browsing, while SIM B is dedicated for receiving calls. This has become even more pronounced with the availability of double SIM phones. The opportunity inherent in this trend is huge! People get to maintain 2 or more lines which serves their various purposes. The recharge card dealer’s service is very important here. By meeting the needs of people, you will be making tremendous profits at he same time.
Recharge card dealerships are of different kinds. There are those known as the recharge card sellers who own small kiosks or sit under umbrellas to sell, there are the sub-dealers as well as the major dealers. The latter are those who do business directly with the telecom companies. To operate at this level, you will require substantial capital. Typically, this runs into the millions. The telecom company gives you the right to generate recharge pins for it. This reduces tremendous pressure on the part of the company to meet up with demand, while offering the dealer the opportunity to invest in a thriving business which is big enough to accommodate as many as are interested.
How to Start
Whichever telecom service provider you choose to do business with, there has to be a contract agreement which is legally binding. All parties are expected to abide and respect these agreements. This contract is usually in the form of a trade partnership agreement which gives you the privileges accruable to a distributor. However, there are varying degree of requirements which depends on the type of agreement entered into. That is, there are separate requirements and arrangements for major distributors as well as sub-distributors as the case may be.
If you don’t have the financial muscle to begin as a major distributor, never mind as there are other categories you will fit into. The company will provide you with all the information you need regarding this.