Coronavirus – Conserve Cash Now!

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March 11, 2020

Ladies and gentlemen, there is a big problem in the world right now: coronavirus is now officially a pandemic. Simply, this means widespread human infection. It is so bad that politicians undergoing corruption trials who sought reprieves for medical treatments in Europe had withdrawn the requests. Yes, they are feeling much better, magically! Also, no Nigerian politician had gone for annual medical check-up abroad, making these few weeks atypical. Because no one is creating this covid-19 future, it is nearly impossible for anyone to predict the future. Do one thing: conserve cash – just in case this paralysis stays longer.

China’s Industrialization Policy is Now Outdated for Africa [Video]

By

Ndubuisi Ekekwe

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March 11, 2020

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When it was published in the Harvard Business Review, many China-Africa experts and professors reached out to me. A top U.S. MBA program made it a required reading in a class. I had postulated that Africa’s developmental strategy which is largely structured to mirror China will possibly fail. Why? What China did about 40 years ago to rise cannot work today because those comparative advantages it had over U.S. and Western Europe had been disintermediated.

As robots and AI advance, cheap factory jobs will be “eaten” right in Europe and U.S. meaning that none would have to be outsourced. And if that is the case, these domains will not be looking for new sites in Africa (as wages rise in China, our main expectation to displace China) to build factories. Sure, companies will always spread factories to stay closer to customers but that is a different incentive altogether.

Coronavirus has added a new factor: Africa must endogenously invent a new developmental model.

In this video, I explain that Harvard piece and what we must do.

An Insight On Network Marketing

By

Uchechukwu Ajuzieogu

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March 10, 2020

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In a county ravished with corruption, unemployment and poverty, multi level marketing is not a new thing. While it’s a 50-50 franchise, learn how the youths in Nigeria are using this method to survive. Edited by Ebuka Raphel, we teamed up to explain this phenomena.

Network marketing, also known as Multi-Level Marketing (MLM), is a business model where independent contractors buy into a company and earn a commission on the products they sell. The profession appeals to many people because they can be their own boss, set their own hours, and work towards their own success. In Nigeria, the youths are leading this drive. I decided to collaborate with Ebuka Raphael to tell this story.

You get approached by a man or a woman or friend or family member. You get handed a form to fill and the form basically asks you what business you need funding with, then the invitee tells you that you will be called and if selected be invited to know how the funding will pull through.

You arrive expecting investors. But it’s false. Your friend, family member or co-worker wants to get you to join a direct sales company that uses the practice of Multi Level Marketing (MLM or Network Marketing) or a company that wants you to invest money in Forex but still encourages multi level marketing.

Does this sound familiar?

Though many are skeptical of claims that the multilevel-marketing business odel can make people piles of money. I used to feel the same until an opinion changed my perspective. True, it can (only to a few), but it has also provided may people with a basic steady flow of income per month.

I’ll relate Ebuka Raphel’s experience:

“Speaking to someone trying to invite me, in a bid to convince me, he showed me his back end earnings. This man is your regular Nigerian guy, mid 30’s, has a family and a side business. So he told me network marketing provided him with his business funding and still provides monthly income. I decided to attend and also dug into this industry to understand what opportunities it provides the Nigerian youth.

From my discovery, this marketing strategy provides three (3) benefits and they include:

Sales Job Opportunity: When a person is registered they are made a marketer or sales representative of the organisation, given a back end online office to manage their recruits and keep track of their earnings.
Business Opportunity: Well most Networking companies have products to sell (some are health and wellness, while some are equipment or services), this article will focus on the product or equipment based network marketing. On registration you get products worth your registration money, which you can then sell and make money (usually the case) or you can consume. So, it provides a business in selling products which is another means of earning.
Passive Income: In the industry, there’s an opportunity to earn money via your recruits, which is where my invitee made most of his money from; this is the best thing really about network marketing.

Then there’s the ‘Bonus’ opportunity, that provides them with the chances to meet, network and interact with different people.

What’s the Future?

In stark reality, many youths have turned to the network marketing industry to fend for themselves, and Ebuka Raphel spoke to a few and they have told him that it’s been their best decision they ever made.

Note: This article is not financial advice or an endorsement of the industry or of any network marketing company/company that engages in network marketing operations. The author or any associates have not been paid to write this piece. This article is as a result of personal study and hence personal opinion.

Lagos’ Displaced Motorbike Companies Finding Succor in Ibadan

By

Samuel Nwite

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March 10, 2020

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Upon the ban of okada in Lagos, displaced motorbike ride-hailing companies have been seeking ways to survive the ordeal and stay in business, and Ibadan, the Oyo State capital city in Southwest Nigeria appears to be providing the needed succor.

Ibadan is well known for its use of motorcycles as means of transportation, a culture it has in common with Lagos and Ogun States. The number of people who hop on motorbikes on the daily in Ibadan, gives the city a lucrative demographic for ride-sharing business.

Apart from Ogun State, Oyo happened to be one other state that share economic proximity with Lagos. Though Ibadan has low level of vibrancy and bubble when compared with Lagos, it offers alternate economic environment to Lagos and Ogun States. For that reason, OPay’s ORide, Max and the newly introduced Safeboda, are all trooping to Ibadan as alternative to Lagos.

However, the invasion of these companies is causing disruption of the already existing motorcycle transport system. Ibadan residents are used to waving commercial motorbikes down, a practice common in most cities in Nigeria where there is no ride-sharing innovation. The people appear to be used to it and may find it hard to adapt to App-based booking.

But recently, things have started changing. Innovative transport systems have their way into the hearts of the people. Moreover, the Oyo State Government has overhauled the existing transport structure in the state, abolishing the National Union of Road Transport Workers (NURTW), a non-governmental organization responsible for the transport management in many states in Nigeria, but has been heavily tainted with violence, extortion and touting to the displeasure of many, including the Oyo State Government. It was disbanded on the account of insecurity and the state government launched a new transport management for safer transport services.

The newly instituted Oyo State Road Transport Management Authority (OYRTMA) is designed to proffer solutions to transport concerns in the state: which are mainly insecurity and reckless driving that is resulting in increasing cases of passengers falling victims of armed robbery and road accidents in the state.

So far, some measures have been taken by the transport management authority to ensure safer transport practices in the State. They include taking personal information of every driver in the state and issuing them ID cards thereafter.

Prof. Raphael Afonja, the Oyo State’s Commissioner for Public works, Infrastructure and Transport said it is a way to checkmate crime in the state.

“In order to control crimes being associated with motorcyclists and the influx of commercial motorcyclists into Oyo State, the Government will, in due course, issue Rider’s Card to all registered commercial motorcyclists in the state,” he said.

There was also road safety training for both corporate and commercial drivers in the state. The training aimed to educate motorists on road signs, rules, defensive driving, and other dos and don’ts of road usage.

The Chairman of OYRTMA, Mogaji Akin Fagbemi said that the training, conducted in November 2019, was aimed at reducing prevalence occurrences of road traffic accidents in the state.

“We are working to put the incidents of traffic accidents to the lowest degree and make the State a good example in the area of traffic regulation compliance and discipline,” he said.

Oyo state’s new approach to its transport management gives the ride-sharing companies opportunity in the state. The companies already have safety measures in place that put riders at peace. This and the ability to book a ride from the comfort of the rider’s home put the newcomers in a favorable situation.

But the competition is rife between the companies, mainly because there are not enough riders to go round. But OPay’s ORide has been leading because it arrived earlier than others and has won a lot of riders, but it has a big challenge that may enable others to usurp it.

In July 2019, OPay introduced ORide in Ibadan, offering riders enticing discount in fairs. The company also gave riders the opportunity to pay using its payment platform, and that drew so many people to it. Subsequently, there were reports of drivers’ misconduct that company has done nothing to address and it has dampened the trust the people had on ORide.

In March 2020, Safeboda and Max joined the race to win commuters in Ibadan. They seem to be capitalizing on existing challenges to win passengers for themselves. Max has landed in the city with a fine reputation from Lagos and has a brand to protect. On the other hand, Safeboda is trying to make a name for itself and will likely give it the best shot by treating riders to pleasure and ensuring that drivers corporate with laid down rules of the state’s transport management.

ORide is currently having a demand bump due to perceived lack of checks and balances in its operation. With Max and Safeboda in contest, riders will have options to choose from, and winning will depend on three things: Safety, affordability and driver-rider relationship.

Why Dropshipping Is A Horrible Business

By

Uchechukwu Ajuzieogu

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March 10, 2020

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You’ve been told that DropShipping is the ultimate way to make big money! Probably, those ‘Fake Gurus’ are offering to sell a course to you on how to Drop Ship—they’re showing you fake numbers in sales and ROI. Don’t be Scammed, here’s why Drop-shipping is a Horrible Business.

Generally, dropshipping is geared towards individual marketplaces, e-commerces, and entrepreneurs. The process consists of receiving sales orders online and forwarding them to the supplier, that is, the dropship partner, which in turn sends the product to your customer on behalf of your company.

As a result, you do not have to manipulate or have access to the product, you only do the intermediate for sale. The profit from this process comes from the price difference between the amount you disclose in your online store and what your dropshipping partner charges.

Dropshipping was one of the latest—we’ll call it “business out of a box” schemes that has been around for a few years now. This is where internet marketers claim that if you buy their course, they’ll teach you how with very little effort.

You can make money, quit your job, buy a Lambo, without much effort. There are many forms of it: eBay dropshipping, amazon dropshipping, print on demand, etc. The funny part is that the forms varies from location to location, and there’s nothing you can do about it.

Source: nestify.io

The whole premise is that you can find these so-called “winning products” from wholesale distributors, usually from China with Ali-express. You find the winning product. You get traffic to your website via paid ads on Facebook and Instagram.

People buy, you pocket the difference—aka retail arbitrage!

So Why won’t Dropshipping Last?

When you get paid at a job, you made money because you provided value to your employer in the form of your labor. Isn’t that right? You know the answer. Value—it is!

And in every other business it’s the exact same—you make money from customers when you provide enough value to them. The more value, the more money you make. So money is really just a storehouse of value. You can’t argue that—I’ve always advised that the more value = more cash!

In JeffBezos own words, “customers that buy products online only care about these three things: low prices, big selection, fast delivery.” And since that’s literally all Amazon focuses on, that’s probably why Jeff is the richest man in the world!

Yet, these are the only things people and online gurus focus with dropshipping:

— How I can do the least amount of work?

— How can I make enough money to quit my job and fire my boss?

These and more are just a tip of the iceberg—you’d be surprised as to their passion.

And there lies the problem—the entire idea and business model of dropshipping completely neglects what every customer wants. You provide next to ZERO value to customers! Which is not a good sign of a business or business leader for goodness sake, yet they’ll not listen.

How are People Making Money from Dropshipping Then?

First -movers.
Low margins.
Fake numbers; and fake gurus.

Even if you can make a profitable dropshipping business, is that the best long term business model to get into? I mean really? That question defies most of them!

The Big Questions

Q: So why so many dropshipping gurus?
A: Selling online courses!
Q: Is there any case where dropshipping is viable?
A: There are other ways to provide value. Provide luxury. Find an under-served niche. Have a personal brand. That’s how you can turn up!

Conclusion

In dropshipping customers are often neglected for profit. Dropshippers tend to sell a product to a customer only once. This can lead to a poor customer experience. This has led to a lack of trust in this business model.

Coronavirus – Conserve Cash Now!

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