Recharge Card Business In Nigeria 2021 – How To Start?
Many people believe that recharge card printing business is one of the most lucrative business venture to start in Nigeria in 2021, but just like every other business, it has its own challenges.
This article contains complete details of what you need to know about recharge card printing business in Nigeria 2021.
No doubt, it is a highly profitable business for people who have a huge customer base with enough capital, but what about the average person with the sum of ₦10k or ₦100k. Will such a person venture into this type of business and make profit? Before we start, you need to know how to link NIN to MTN, Glo, Airtel and 9Mobile so as to avoid our line from being blocked by network providers.
Q1: What are the advantages of starting recharge card business in nigeria?
A: Recharge card business is quite profitable in nigeria as long as you have a very strong customer base, and also the availability of GSM networks at your business location or where you reside.
This business anchors on the fact that people must recharge their phones daily to make calls, buy data, and do many business transactions. We will explain further the advantages of recharge card printing business as we proceed.
Q2: Can I start recharge card printing business with N10,000 and become a millionaire?
A: In other to make money, reasonable profit, from recharge card printing business in Nigeria you must have up to ₦100,000 – ₦200,000. Take for example, the profit you will make from ₦100 recharge card is approximately ₦4 to ₦5.
What this means is that if you sell ₦10,000 worth of cards daily you will be making ₦5 x 100 = ₦500. At this rate, you will be on ₦15K monthly earning.
But if you start off with, let’s say, the sum of ₦100,000, you will comfortably be banking ₦150k monthly.
Q3: How do I start recharge card printing business in Nigeria? How does it work?
A: There are basically five categories of dealers when it comes to the printing of recharge cards in Nigeria. We will briefly explain them below:
1. Recharge Card Mega Dealers
These are recognized big recharge card merchants that buy the cards and pins in large quantity directly from the major mobile operators in Nigeria, like Glo, MTN, 9Mobile, Airtel, Ntel, etc. They are known as the mega dealers in the recharge card business.
The mega dealers sell directly to the wholesalers. Also, note that before you can be a mega dealer that has access to these network providers you should have at least between 10 -15 Million Naira.
2. Recharge Card Wholesalers
Recharge card wholesalers buy directly from Recharge Card Mega Dealers at a discounted price and they in turn sell to the suppliers and retailers.
It is estimated that recharge card wholesaler make between ₦5,000 to ₦15,000 daily.
3. Recharge Card Suppliers
These sets of dealers buys directly from the recharge card wholesalers and sells to the retailers. They are otherwise known as the middlemen in recharge card business in Nigeria. A recharge card supplier earns between ₦2,000 to ₦5,000 daily or even more. You need to have a reasonable retailers base to earn this much on a daily basis.
Mobility, like motorcycle or even bicycle, is also a necessity to lessen the cost of transportation for you. You will need a capital of at least ₦50,000 to ₦100,000 to fit into this smart business. Chances of becoming a recharge card wholesaler under one or two years of operating the business is high.
4. Recharge Card Retailers
Retailers are recharge card dealers that buy from suppliers or wholesalers at a cheap and reduced price and sell to the normal GSM users.
Those people that sell recharge card under umbrellas in the street are recharge card retailers, and they make between N500 – N3000 daily.
If you have the sum of N100k to N200k, and a shop, you can operate the business as retailer and wholesaler. With time coupled with a good customer base you can eventually earn more than ₦170,000 on a monthly basis. This is far better than doing a white collar job that constraint you to a monthly salary of about ₦40,000 to ₦70,000 and gives you no time for other personal financial growth.
You will agree with us that surviving in Nigeria with a monthly of salary of ₦50,000 is becoming practically impossible going by the high cost of living.
5. Online Recharge Card Dealers
These category of recharge card marketers use the power of internet and USSD services to reach out to customers no matter where they are without physically seeing them. The likes of “recharge and get paid” ventures falls in this level. They are not properly fit into the class of recharge card printing businesses as they only buy the pins and sell it directly to customer or recharge the customer’s number automatically.
This type of recharge card business is now the game changer in 2021. You can run the business from anywhere in the world and from the comfort of your home. All that is required is the cost of setting up the online recharge card platform or a USSD code system.
A well set up platform can recharge customer’s phones with airtime and data. Other services it can offer includes bills payment such as GoTV and DSTV subscription, PHCN, flight booking, hotel booking, etc.
Unfortunately, Nigerian Banks are the main operators of this type of business which is not supposed. A bank should be a business growth institution where entrepreneurs run to for business loans and other business advice. Banks are not supposed to go into business that competes with that of her customers.
Imagine loaning someone money to start a business and you in turn go and set up similar business. How will your debtor survive the competition with you and still pay you back your money? This type of national economy error needs to be corrected.
Q4: What are the tools required to start recharge card printing business?
A: You do not really need much, just make available these following items:
- Laptop/Desktop computer
- Email address
- Internet connection
Laptop: If you don’t have a laptop you can use a cyber cafe or a any business centre closest to you.
Printer: For convenience, it’s necessary that you buy your own printer, but if you can’t afford one now, you can as well use any business center nearest to you.
Paper: You will need an A4 or A3 paper to print your recharge card pins.
Software: You will need a software to decrypt the encrypted pin sent to you so that you can print it out.
Email: You should have a valid email address.
You need to decide what role you will perform in this business. You can serve as a mega dealer, wholesaler, or retailer.
Recharge card printing business as a mega dealer
If you choose this role, as explained earlier, you will be dealing with major GSM service providers.
You will be selling cards to wholesalers.
Here the competition is low but as we explained earlier, it’s capital intensive.
Printing of recharge cards as a Wholesaler
You will have to buy recharge cards from a mega dealer, and you should be ready to print and sell cards to suppliers or retailers.
Printing and selling recharge cards as a retailer
All you need to do as a retailer is to buy already printed cards or generated pins then print it out and sell.
You can print the recharge card through the following means:
- Software: As explained earlier.
- POS machine printing variant – Print the pins on demand via pos.
- Online printing option – Print your pins online.
- E-PIN manager option.
Remember you can also start this business with a lesser amount. But if you are still confused about how to start this recharge card business with N100k or N150k, follow the steps as summarized below.
Quick Steps To Start Recharge Card Printing Business In Nigeria As A Retailer
- Buy or borrow an internet enabled laptop or desktop computer or use a cyber café.
- Register with a mega dealer, they will send you link to their software.
- Download their software and install it in your computer.
- Order for recharge PINs through their website and pay the required amount you want.
- They will send you encrypted PINs. These pins can only be read or decrypted by the company’s software which was send to you.
- Use the software you downloaded and installed in your computer to decrypt those pins and print them out to sell.
Note: Nigerians spend over 400 billion naira on recharge cards and data subscription every year, so starting this business now will definitely create a steady income stream for you.
If you have any question or contribution, feel free to indicate it in the comment section below. And don’t forget to click the Subscribe button below to stay updated with PassMaga.com