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Home Blog Page 6138

The Peril of a freemium business model in Africa

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A freemium business model works in markets where the anticipatory customers have capacities to upgrade and pay. If you run the model in places where purchasing power is LOW, gestation to profitability long, and funding sources limited, you will likely fail. Be careful as 99.99% of your users could just be comfortable with the free portion with no interest in the premium part. Yes, you may be better off focusing on just 10%, asking them to pay on day one, than trying to win all, and in the process losing many!

Freemium, from free + premium, is a pricing strategy where basic parts of products are given free, while additional features require payment.

Watch this video on pricing.

A startup must invest efforts to understand its customers towards having the optimal pricing strategy. You cannot afford to leave money on the table by pricing timidly. The ability to ascertain value created by your company is the foundation that will help you model how much customers will pay while considering many other factors like growth, product penetration and competition. As always, it is easier to reduce price than to raise it, in a digital product, especially when you do not have a highly differentiated product. This means you may begin high, and after checking the market dynamics, you will adjust accordingly. You must make pricing a science.

Sure, a freemium model can still work but you have to be precise on the inflection point between that free point and pay point on the curve. It is a balancing act which must stimulate a new demand nexus to push that user to pay for the extra features. If you have made most of the core values FREE, capturing value becomes harder via payment.

Mechanics Of Startup Product Pricing

Preservation of Base Transceiver Station: Our Collective Responsibility

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The advent of the 21st century technological advancement resulted to a leap from the analogue to digital means of communication which is evolving through 2G, 3G, 4G, cellular network and will continue to evolve to 5G, 6G even beyond 7G, until lapse in time in communication is fully redeemed through the use of data technology. 

It is no doubt that modern communication technology has reduced space, time and distance in communication, thus grossly impacting the educational, health, entertainment, religious, security and all sectors of the world’s economy. It is therefore of crucial importance to state that these celebrated digitalised platforms are made possible by an infrastructure called a Base Transceiver Station (Base Station) which is a piece of equipment that facilitates wireless communication between user equipment (UE) and a network.

The telecommunication Base Transceiver Station is a vital infrastructure to the development of a nation. It is the bedrock upon which the technological stability and advancement of any nation lies. The Base Station handles the transmission and reception of signals; sending and receiving signals to or from amongst network entities.  These Base Stations even though are erected by service providers to enable network and ensure continuous availability of reception to users, should be considered as a national heritage which must be preserved. Once the Base Station serving a particular community or neighbourhood is non-functional, there is a breach in the communication needs of such community, telephone calls will be hindered in spite of emergencies, ATMs shut down, insecurity is enhanced, computerized operations in offices are frustrated and so on.

Since every facet of human life is now dependent on access to information technology, Base Station which serves as the channel through which information is accessed must be collectively preserved. The understanding of the importance of Base Station makes us know that preservation of it cannot be left exclusively to the law enforcement agencies or service providers but should be a collective responsibility. Citizens both in the urban and rural area, businesses and government at every level must preserve Base Stations within the state as part of the essential state’s infrastructure which must not be tampered with.   

In MTN Nig. Comms Ltd v. Delta State Government, three justices of the court of appeal agreed that Telecommunications Masts are like Electricity Poles and Electricity Transformers. 

A Base transceiver station is not only the lifeline of all form of communication, they are critical to the development of a nation which means the same way trespassers are not allowed to tamper or damage electricity poles or transformer, hindrances by community or anyone to the operations of Base Stations must be refuted. The shutdown of a single base station is tantamount to gradual shutting down of the development of a nation as whole, international relations, foreign investment as well as other key economic activities. In fact, it’s hard to imagine any government, individual or business that has not benefited from the digital revolution. Even sectors as hands-on as agriculture use computers for production records, financial planning, research on technical issues and procurement.

Imagine all reception from Base Stations are shut down, no access to internet, television, or any form of communication, the world will definitely go into paranoia and chaos or seem as if it has come to an end. Communication is a vital element in a nation’s security. One of the first strategies to carry out a coup is to shut down all means of communication. For instance, during the Sudan crisis, the military government ordered a total shutdown of the internet. The internet was cut off after security forces violently dispersed protesters camping in central Khartoum. Also, on 7 January, 2019 at 04:30 GMT, soldiers took control of the national TV (Radiotélévision Gabonaise), announcing their coup attempt. A few hours later, around 07 :00 UTC, the number of Internet connection requests from Gabon dropped sharply, indicating the beginning of an Internet shut down. The Base Stations were shut down to achieve the completion of the coup d’etat.  Thus, when Base Stations are down, the world will be thrown into utter darkness and sent back into the stone age as communication is vital to the smooth running of a society.

To lend credence to the sustenance of governance through telecoms infrastructure, the Office of the National Security Adviser (ONSA) has published that telecommunication facilities are critical national infrastructure (CNI) which are central to national security and deserving of protection by the government. In line with the provisions of the Cybercrime Act of 2015, Telecommunications Infrastructures are designated CNI and therefore, any acts of vandalism or deliberate obstruction of service delivery is deemed unlawful and punishable by law.

It is against this backdrop that the preservation or the continued life of Base Stations is the responsibility of all and sundry i.e. governments, individuals and businesses, as a complete shutdown of access to information will adversely affect all areas of life including national economy and security. 

To reiterate, the lifeline of access to information is absolutely dependent on a functional and well-maintained Base Station. As a matter of fact, it would be needless to say that the importance of Base Station, especially, in the 21st century, cannot be overemphasized. Its importance and impact ranges from providing technological foundation for societal communications, to enable participation and development, providing vital infrastructure for national security and a host of others. 

Conclusively, Base Stations are critical national infrastructure and as such a national heritage which ought to be jealously protected; governments, host communities and private individuals are enjoined to make it a collective responsibility to ensure the protection and preservation of telecommunication infrastructures as it is very critical to the smooth running of all facets of human life.

U.S. To Review Its Migrant Visa Ban On Nigeria

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The United States said it will revise its ban on some categories of migrant visa on Nigeria. This was disclosed at the end of the inaugural meeting of the U.S./Nigeria Forum, by Amb. Mustapha Sulaiman, Permanent Secretary, Ministry of Foreign Affairs.

He said while addressing the press at the conclusion of the Forum on Wednesday, that there has been improvement in the bilateral relationship between the U.S. and Nigeria, thus highlighting the need to address some of their differences, including the visa restrictions.

Sulaiman said Nigeria has fulfilled almost 90 percent of what the United States government expects from her to reverse the visa ban. It could be recalled that the U.S. in January, announced visa ban on some countries, including Nigeria, on the excuse they fall short on many fronts of their ties.

But according to Sulaiman, Nigeria has responded to the concerns raised by the United States to the point that it is willing to re-evaluate the restrictions.

“We have accomplished so much within a very difficult year, but essentially we want to acknowledge and put on record Nigeria’s response to the concerns by the United States government in respect of the immigrant visa restriction that was imposed on Nigerians.

“From the assessment of the recipient of our response, I think we have accomplished almost 90 percent of the requirements that has been established in that regard. And I’m sure that if you follow the information that has been passed on the level of compliance, for instance sharing of information, we have done so much in that regard.

“That is why I believe the U.S. government is having the comfort to even re-evaluate otherwise, we wouldn’t have been candidates for re-evaluation.

“The consular forum was agreed on earlier in the year during the Bi-National Commission of the United States and Nigeria which was held in Washington January/February and that agreement is what is coming to push now. We have just had the maiden consular forum meeting today and I want to put on record that it has been a very successful meeting with various issues that were discussed,” Sulaiman said.

Acknowledging the progress made by Nigeria, the U.S. Ambassador to Nigeria, Mary Beth Leonard said there has been significant progress in many fronts, including the area of information sharing.

Leonard said she’s impressed by Nigeria’s efforts and that the Department of Homeland Security and the Department of State will make the report on the measures taken available to the White House for Reassessment.

“I have to congratulate Nigeria on its progress on greater information sharing with the United States, which is croak of a lot of issues dealt with in these presidential proclamations. We have reviewed the Federal Government’s report on information sharing and we are inspired by the strides that Nigeria has made to improve access to stolen and lost documents.

“And particularly, encouraged by the September 7 announcement that the U.S. provided Interpol router is successfully connected to Nigeria’s Immigration Service and National Center Bureau in Abuja. Washington is extremely pleased about that development in particular,” she said.

The US Government said in January that the visa ban has been carried out for security reasons, that Nigeria has failed to comply with the established identity-management and information-sharing criteria assessed by the performance metrics. It also said that the African giant failed to share public safety and terrorism-related information necessary for the protection of the US national security. These, they said resulted in the prevalence of identity theft in Nigeria.

Improvement in these areas of concern seems to have moved the United States to reconsider its earlier decision. It also means that thousands of Nigerians will have a shot at a migrant visa to the U.S. once again.

Build A Tribe of Believers in Your Business Mission

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I shared this during Tekedia Live this morning. It has to do with building teams. Last year, I visited Nigeria to run an innovation program in Lagos. A young man tracked me. He came with a book which I had not seen its physical version. Yes, he bought Africa’s Sankofa Innovation, all the way from Amazon USA with all the associated cost of shipping. I wrote the book!

Then, when we began Tekedia Mini-MBA and I was looking for somebody to help build the corporate side, I went back to him. No interview, No CV, nothing: he got the deal. He had auditioned for this many months ago, via his articles on Tekedia, when there was no role available.

Nnamdi Odumody has done pretty well. The one he did yesterday was unbelievable. I had to ask him, “how do you do them?” Amazing executors come in various packages. Nnamdi is bold – writing to American companies that Tekedia Mini-MBA is better than. And the firm trialed us to success. Honestly, I would not have done those letters, but he has so much confidence in our products that he penetrated a government house.

This is the summary: build a tribe of believers in your mission. Find where there are. Nnamdi will have a greater Christmas this year (lol), and we are very honoured to have him in the Institute.

How to Create Winning Products In The Market

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I will show you in two to three minutes all you need to know in order to create a product that sells and that will make investors seek you.

If you stay with me to the end, you shall learn what will change your business in a great positive dimension.

It was a very cool evening, I took a stroll to my friend’s office. So we can hang out in one of the eateries to chill and to discuss certain important topics.

So, I ran into a middle aged man in the eatery where we had dinner. We exchanged warm pleasantries like old friends that had not seen each other for long.

We began a discussion. I’m Progress Ibrahim, a Digital Entrepreneur , Business Analyst and a Copywriter. 

He also introduced himself as the owner of the eatery.

I said I love your branding and what you sell. I then added that in business, you don’t sell what people wish to buy or say they buy. You sell what they really buy. That way you can increase sales and scale in less time.

He was very grateful for the insight I shared with him. We exchanged contact and I left.

Yes, the question is how do you know what people actually buy? How do you create a product that sells massively in the market?

I shall be explaining that with the following points;

How To Create A Product That Sells.

It has become obvious that every business must sustain itself either in the short-run or in the long-run. Investments and external funds are just temporary financing means for your business. What determines a business’ sustainability is the cash flow and the secret of cash flow is sales. Here is what you need to do to unlock that.

  • What The Market Needs .

The market is far more important than the product. What do I mean ?

Yes, I mean that you need to have the market before creating the product. This is because your product is to solve a need. That need is the people’s need or the market target needs.

That means creating a product before knowing the market is like putting the cart before the horse. 

I know, you know what the result will be. It will be an excellent failure.

Who are your market targets ? What are their pain points? What will they be happy with if they have the solution?

Think of products like Uber. It saves the passenger’s time, by making getting a ride just a click away. 

  • What The Market Will Buy 

Another very key consideration to make is to know what the target markets buy. You can’t make mistakes when you sell what people buy. 

Better still, you will succeed in business when you sell an improvement of what people always buy.

It is your responsibility as an entrepreneur to look at what the market target spends  money on. They will continue to spend their money on that particular thing , they will not change their mind in a short time.

The copywriter called Gary Herbert developed a product with this concept and tagged it “How To Raised Your Child’s IQ While He Is Yet Delivered”

Do you know what the result was? It recorded massive sales and he made huge profit.

  • What The  Market  Target Can Buy.

When it comes to business, 3 can be more than 101 in terms of purchasing power. 

When it comes to Nigeria, it has been reported on Tekedia that we have an estimate of 200m population, only 30millon of this population has purchasing power.

What that means in business is that Nigeria has a market size of 30million people.

You have to consider if the target market can buy? They may be happy with your product but they may not be able to buy.

They should be happy and able to buy your product, else you will have zero sales.

  • Test The Product In The Market.

You wont know if your product is good until it is tested in the market. This is very true especially with new products. 

All new products are very good in the sight of the owners. But that is already a biased judgement. 

The right group of people to determine whether your product is good or not is the market target (those that will use it). Until then, you have a partial product.

So, try to test your product in the market and use the feedback to iterate your product until it becomes good.

That was the story of how Airbnb scaled, as explained in 3S Rules.

With these you will succeed in the most important thing in business.