The smartest way to make money in Nigeria is to start a recession-proof business. That is, a business whose products or services are everyday necessities and are always in huge demand; regardless of the state of the economy. One of such businesses is recharge card printing and selling.
There are about 80 million active mobile phones lines in Nigeria—that’s about half of the country’s population. And the average phone user buys recharge cards every week. This, coupled with the fact that communication over the phone is now an everyday need, explains why printing and selling recharge cards is a very profitable business.
If you are looking to start your own small business and are completely at sea as to which option to go for, then you should consider starting a recharge card printing and selling business. The required startup capital is minimal, you don’t need any formal qualifications to get started, and you can start making profits as in a matter of days to weeks.
Does this business idea pique your interest? If YES, then read on to understand the basics of the business and the steps involved in getting started.
How to Make Money Selling GSM Recharge Card Voucher Online
What do you need to get started?
As with any other business, starting a recharge card printing and selling business requires putting something in place. These include:
- A PC (desktop or laptop computer)
- A laserjet printer
- A software package for printing recharge card
- A reliable internet connection
- Recharge voucher PINs (obtainable from dealers)
- The zeal to succeed
- N10,000 or more to start with
How much can you make from recharge card printing and selling?
The recharge card printing and selling business is volume-based. How much profit you will make weekly or monthly depends on how many cards you print and sell. On each card, you can make a profit of anywhere between N5 and N10. The more money you invest, the more cards you can print, and the more money you can make.
However, aside capital and rate of production, many other factors influence how much you can make from the business. These include the competition, your marketing skills, and selling margin.
What are the options for getting started?
There are three ways to break into the business of recharge card printing and selling—as a dealer, as a sub-dealer, or as a small-scale printing business. What do these options mean?
Being a dealer means setting up a dealership or agency arrangement with the service providers. As a dealer, you will be issued card product licenses by the service providers and maintain direct correspondence with them. This is the most lucrative of the three options, but you will need a huge amount of money—about N1m or more—to get started.
A sub-dealer is not licensed by service providers and does not have direct correspondence with them. Sub-dealers depend on licensed dealers for generation of recharge card PINs, but they print and distribute recharge cards in huge volumes—hundreds of thousands to millions. To start out as a sub-dealer you will need around N400,000.
Small-scale recharge card printing entails buying already generated PINs from dealers or sub-dealers, printing them out, and selling them either to recharge card sellers or directly to consumers. There are two ways to print recharge cards on a small-scale level: you can either print them out over the internet or use a voucher printing machine belonging to a franchise company.
What are the steps involved in printing recharge cards?
For small-scale recharge card printing, the process is quite straightforward and there’s nothing complex about it. Here are the steps involved:
- Connect your PC to the Internet (if you don’t have a PC, you can use a cybercafé—but having your own PC is highly recommended).
- Register with a company that has been licensed to generate recharge card PINs.
- Download the company’s custom card printing software package, and install it on your PC.
- Order for recharge card PINs through the company’s website and pay the required amount for the number of PINs you ordered. After making your payment, notify the company by sending the transaction details to them via text or email (you can also call them for quicker response).
- You will be sent encrypted PINs that can be read and interpreted only by the company’s custom software.
- Use the software on your computer to print out the PINs.
Recharge cards are fast-selling commodities, so you will hardly go wrong with this business. If you are armed with the relevant information and aggressive marketing skills, you can become a millionaire by printing and selling recharge cards.
Recharge card business in Nigeria is very lucrative, provided you have enough money to start and run it effectively. It is a business you can start anywhere in the country without fear of low patronage provided there is GSM Network services and people are living there.
Once you have the money to start, you are good to go in your own little way. This business is capable of making you good money if you do it well. I wrote a my first book on “GSM Business” in 2008 but have since retired it since most of the subject matters are no longer relevant in today’s market. The business changes day by day and you need to know about these changes to stay afloat.
No business has been hyped and over hyped as does Recharge Card Printing Business in Nigeria in recent time due to selfishness and desire for quick gain. Contrary to Seminars and eBooks claims, Recharge card (printing) business is not a business you can start with N10,000 and becomes profitable. No, it’s not possible to make reasonable gain with that amount except you are mixing it with another business as a fraction of your existing business.
E.g: You have a provision store and decides to sell recharge card as part of your provision items, or you have restaurant and decides to offer recharge card sells as compliment to your food business, mainly to satisfy your customers so that they can relax and load their phone after eating without having to move around to buy it. This way, the little gain you make from the recharge card will add up to the general gains in your business.
If you want to start recharge card business as “Independent Business” that is, selling only GSM recharge card voucher on a small scale, you must start with nothing less than N100,000 if you really wants to make reasonable profit. The reason is because the profit margin per recharge card voucher is so low that you have to sell plenty to make any appreciable gain.
That means you have to start as a wholesaler, selling in bulk to retailers who combines it with other businesses.
How to Profit In GSM Recharge Card Voucher Printing or Selling Business
The profit you make per N100 recharge card is not more than N5. Therefore, for N10,000 worth of cards, you will be making N5 x 100 = N500. So, how do you expect to become a millionaire with just N10,000 recharge card that yields about N500 profit? Hope you understand the picture.
However, if you start the wholesale with N150,000 and sell to retailers, you are sure to sell N100,000 worth of cards everyday as long as you have good customer base. Each customer buys more than N5,000 daily while some buys as much as N50,000. Therefore, N100,000 cards will earn you N5x1000 = N5,000 per day which is a good gain! Hence, the gain in recharge card business starts from wholesales of N100,000.
Use the Facebook like buttons below my profile to share this article with your friends on Facebook and Twitter who may be searching for eBooks on how to start recharge card business with N10,000 and make N200,000 daily so that they may discover exactly how the business works and be wise.
In this article, I will try and put you through on how to start recharge card business in Nigeria at any level and make your profit according to the level you are operating on and your start up capital.
How GSM Recharge Card Voucher Printing and Selling Business Works
There are three levels of recharge card business and each of these level or category offers profit that is proportional to the investment capacity.
1. Recharge Card Retailers
Retailers are recharge card business persons who buys from wholesalers at cheaper price and sell to end users at the cards surface price – the price written on the card. They make average of N5 per N100 denominated cards and earn total profit of N500 to N1,000 daily.
|Recharge Card Retailers in Nigeria|
This type of recharge card business is best when combined with other business or if the retailer is in a place with high traffic and huge demand for recharge cards. N10,000 is the perfect capital for this.
2. Recharge Card Wholesalers
These ones buys directly from the Dealers at reduced price and sell to the retailers who in turn sells to end users. Wholesalers make average of N5 per N100 cards and sell high quantity of cards daily. As a result, they make more profit base on much sells. Average profit they make per day is between N5,000 to N15,000.
Reasonable start up capital for wholesale is from N100,000. This way, your profit will be appreciable. If you are good in business and have N100,000 I’d recommend you start with wholesale level. Recharge card business at this level is very good and profitable with the potential to earn you N150,000 monthly.
3. Recharge Card Dealers
These are recharge card Franchisees or merchants who buys both the cards and PINS in large quantity directly from the mobile operators. Or from another company that has direct franchise with the mobile operators. This category comes in various forms, there are dealers and there are mega dealers.
Dealers sells directly to the wholesalers who then sells to the retailers. You will requires millions of naira to enter the dealership level, starting from N10 million.
Now that you know what GSM Recharge card business in Nigeria involves, let me know your preference among these categories. Make a comment below stating the level you wants to start from and possibly why.
Ask questions base on what you would like to be included in the next articles. The next article on recharge card will be according to your interest.
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