3 Things Everyone Knows About Wrong Business Model That You Don’t
Wrong business model is a major contributor to the high casualty rate of Nigerian e-commerce start-ups. It’s quite noticed that lot of internet entrepreneurs (internet marketers) always seeking help from SEO experts on how they can increase their Adsense Revenue.
If you are one of those persons’, I’m sorry to say, you can’t get such help easily. This is because contrary to what some SEO consultants may say, it is virtually impossible to make real money from ads revenue.
With the notable exemption of high-traffic Nigerian sites like Nairaland forum, NBF Social Network, Naijaloaded, nnu.ng, etc, no Nigerian sites probably earn N50,000 a month from the ad.
Do you know why?
It is simply because, the more quality content you have on your site, the more visitors Google send to your site, the more visitors you have, the higher your prospect of making money from ads. So, if you have the resources, (material, time, persistence) to churn out regular great content, forget about making money from the ad.
Top 3 Bad Business Models You Should Avoid in E-commerce in 2019
As an internet entrepreneur, there are some basics steps to follow in order to get your product, website or blog to the top. Below is the list of some top bad business models examples to avoid in 2019.
1. Poor Logical Infrastructure
Online retail thrives on seamless logic support. This, unfortunately, is hard to come by in Nigeria. Private courier services are too expensive while no serious business will depend on government-owned ones.
And building distribution and other supply chain infrastructure from grounds up is an expensive undertaking. This cost naturally adds to the cost of goods sold on these Nigerian online stores. The result is either noncompetitive prices (compared to the brick and Mortal goods) or low profit making up margin.
2. Security and Trust Concerns
Security and trust are also one of the major causes of failure to the business model. Very few Nigerians would be willing to make a purchase online, especially from a Nigerian e-commerce site.
Nearly every Nigerian knows one person or the other that have lost money to automated machine (ATM) fraud. And ATM being the closest that most of Nigerians have come close to e-commerce naturally means Nigerians would be skeptical about making a transaction online.
There’s also the question of dependability and trustworthiness of our fellow countrymen. The truth is a lot of Nigerians will feet more secured making purchases from the foreign-owned site than from Nigerian one.
This generally can be attributed to the perceived believe that Nigerians are unscrupulous.
And then there’s the question of the security of these Nigerian e-commerce sites. From phishing to identify theft, these fears are real.
3. Poor Marketing
No business can thrive without effective marketing strategies. Poor marketing is also another good example of wrong business model. Most Nigerian online business display a high degree of ineptitude appalling. They all seem to think all it takes to succeed online is some flashy website (which is not even visible to search engines).
In building an internet business, you do not only build a website but also promote your site, and make sure it’s seen by everyone who is browsing the internet.
You also need to make sure that whenever someone searches for something relevant to your website, they will find you instead of your competitor.
There are many ways to marketing, and affiliate building is just a few of the available options.
Wrong Business Model: Final Thought
Avoiding the above Business models can help of some wrong practice and would help bring your online products to Google Search and earn money from ads.