Nigerian Internet Market Structure

Let’s explain each circle and bar in detail here;

1. Internet Service Providers: When you hear some people talk about internet (especially those in the mainstream) they talk mostly about the ISPs and telecoms, and sometimes talk about web designers. Never have I heard them talk about building a business like Google, Yahoo and other internet companies. Most even thinks its all there is about internet business. ISP as you may already know is just a service provider and only constitutes part of the possible revenue to be made on the internet. Looking at the bar, awareness of this segment is widespread and the industry is currently competitive. The bar stipulates that the potential is just little of the possible earning of the internet market.
2. Internet Marketers: If you ever heard about people doing internet business (individuals most times) they tell you buy this and you will make money, or join my network and you will soon become a millionaire, you could have heard people calling themselves “Infopreneurs”, Internet Marketer or Network Marketers, they are basically marketers! Promoting products and services via the internet. We have quite a number of people who have made fortunes in this segment, some of them millionaires. This only represents little derivative of the internet as shown above. The awareness in this segment is also widespread.
3. Web Designers & Developers: These are the group of people who builds websites and web application! They basically make things work! There are successful companies in this area and also we have world class designers & developers in the country. When some people hear about internet business, what they first think is website design. Awareness is also widespread in the country, but the earning potential is low.
4. Domain Registration and Hosting: This business is also doing fine in Nigeria but I must say, the participant are eating small chunk of the internet market. This requires high level of investment, some of which comes generally from ISP companies. Looking at the capital outlay and the demand in the country, entrepreneurs resulted to buying a reseller account from US companies and then sell to their Nigerian customers. This helps them start with little capital and be able to host site for people at affordable rates. This section of the industry has helped in making web site ownership available to many people. This is also a small segment in terms of earning potential.
5. Full Internet Services Company: This Company doesn’t offer tangible web services but their impact can be felt in every part of the economy. Talk about Google, Yahoo, Microsoft, Facebook, Amazon, EBay, MySpace and thousands of others. This section has the biggest potential of profitability given the return posted by established web service companies. Awareness of this is also very low in the country.

Which area of the market are you? Where do you want to move next?

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