Posts Tagged ‘Business Model’

Online Business Done Right [Interview]

February 4th, 2010

For the readers that don’t know, Wainaina is the brains behind Corporate Staffing Services, an innovative recruitment agency that delivers! He is also one of the partners behind the massively popular Career Point Kenya. The really interesting bit, though, is the fact that Wainaina uses the power of the internet extensively in his work. A good number of his clients are as a result of his savvy internet marketing efforts.

Q. You’re quite an achiever, tell us about you
My background is in finance and HR. I am a certified public accountant and hold a higher diploma in HR. I attended my undergraduate studies at University of Nairobi six years ago. I began my career at a local bank rising from a teller to a finance officer but all along I knew finance was not my thing. While working at the bank I realized how much potential was out there. I interacted with young folk who were making it despite not have a graduate education. That’s when it hit me that college education in Kenya can sometimes be a hindrance to achieving your life goals, especially when you look upon yourself as privileged simply because you are a Bcom,CPA,CFA or whatever. I remember a friend from high school who was a client of the bank and I could see how profitable his computer business was. And here I was earning less than 35K a month with little or no chances of career progression. There and then I decided to learn all I could about self employment as I look for capital. While still at the bank I started consulting on HR on part time basis. Later I partnered with a colleague and the firm has two directors.

Q. How did you start?
I started with one client at a time. I would say my contacts at the bank came in handy. Actually I would advise anyone wishing to go into business to try this route. Obviously without antagonizing your current employer you can use the contacts you have gotten at your workplace as a launching pad. These are the chaps who know you and as long as you have a solid reputation it is very easy to make inroads. I also chose an industry which I understood – I didn’t need much training in HR, I knew the do and don’ts and, most importantly, I had a workable business model in mind.

Q. What challenges did you face and how did you overcome them?
Money was and has always been an issue. To establish yourself as a credible brand you have to splash a few thousands by way of advertisements or engage a PR firm to put a good word out there. To achieve recognition we have endeavored to provide exceptional service and this way word of mouth and referral is the main source of business. There is also the issue of ethics. Recruitment firms in Kenya have been known to charge candidates for services even when they don’t deliver. We did away with some charges i.e. CV placement and this way we have established ourselves a credible firm that keeps it word. We have also utilized ICT a lot and as earlier stated most of our clients find us through this method. We noticed having a website and a functional one at that matter would greatly reduce our cost. Most jobseekers are online on facebook or using google search engine to look for latest jobs in Kenya. By having a website where we post vacancies we didn’t need to pay exorbitant cost to advertise in the mainstream media.

Q. What are the challenges of being an entrepreneur in Kenya?
There is little support from the public. A lot of people will look down upon what you are doing preferring to deal with recognized brands. Big does not necessary mean better results. Remember Nakumatt started as a small supermarket somewhere in Nakuru and two decades later they have expanded to the whole of East Africa. It is high time we started rooting for the underdogs so long as there are delivering. Funds are also an issue. I may have this computer idea but if I don’t have sufficient capital my idea will remain grounded. That’s why I advice one to start small and choose an area which is not capital intensive.

Q. What was critical to your success?
Not giving up. I left the secure world of employment to chart a new course. On several occasions I have come to the verge of going back to employment but then when I look back and see how far we have come I encourage myself that the future is bright. I have a strong network of friends who all happen to be in biashara and this way I get support and ideas on how to make it. It has also been a trial and error thing. We have lost money on ideas that didn’t take off. Some ideas have been successful beyond expectation. We have also utilized the power of internet and consulted with experts like Nickel Pro who have been instrumental in our internet marketing efforts. All in one we have allowed ourselves to grow a step at a time and looking for creative ways to solve most problems that afflict start ups.

Q. What about the competition and marketing, do you need to advertise, print flyers participate to conferences or is it mostly word of mouth?
We tried putting adverts in the main stream media and this was a cropper. Those things don’t work! We haven’t tried print flyers but with our earlier experience with newspapers, I wouldn’t put much hope here. Conferences do work especially if you target the right market and also inform the attendees in ample time. The best marketing method so far is a satisfied client. You don’t need to pay someone to put a good word out there. Just perform the task or duty procured to the best of your ability exceeding expectations where you can and the clients will go spreading the great news about your service. For an SME this is the only tool you have in dealing with competition from the big boys who as we know in Kenya offer awful service.

Q. Do you think that in order to “make it big” online you have to live in a Western country? Or does Kenya offer more or less the same opportunities?
Kenya does offer more. I am extremely lucky to be in this moment. Many business owners large and small in Kenya haven’t realized the power of internet as a competitive advantage. Anyone who has recognized this is already doing good business. The internet world doesn’t recognize how large you are on the ground. Provided you are able to articulate your message well online and your services are impeccable customers will troop to your door. Many Kenyans are now researching for opinions on anything over internet and if you have positioned yourself well the future is bright.

Q. Where do you see yourself and your business (es) in the next 5 years?
We will be one of the most recognized brands in HR consulting offering a wide range of services. We still want to concentrate on the mid sized firms and SME’s. With the success of our online HR campaign I am also looking out for another business model that can utilize the presence of the improved internet services now that the fibre cable is here.

Q. If you had to do it all over again, what would you do differently?
Much of what I know in internet marketing is self taught. The disadvantage of this is that you might take years cracking it up. Myself I took a cool three years from the time I took it seriously and I am still learning! However if we had outsourced this service earlier maybe we could be far. I am a firm believer in engaging experts and Nickel Pro have been instrumental in our internet marketing efforts. Always consult the experts and you will save yourself money and valuable time.

Q. What advice do you have for internet business entrepreneurs in Kenya?
Learn continuously and be patient. Internet marketing and SEO is not a magic pill that will work instantly upon implementation. We have done a lot of work, toiling daily and engaging experts. Lastly, internet business is it’s infancy stage and the market is waiting for any bold entrepreneur.

That’s all for today readers. If you’d like to hear more from Wainaina, please visit their website: www.staff-kenya.com or www.careerpointkenya.com

Corporate Staffing Services offers HR consultancy services to medium sized firms in the areas of recruitment and training. They also offer soft skills training for job candidates in the area of CV writing, Interview preparation and career coaching. They know their candidates personally and vet who they are, ensuring there are no surprises. Talk to them and let them run your HR docket freeing you important time to concentrate on your business. Email them at jobs[at]staff-kenya.com

Smart Ways To Make Money Online With Nil Investment

December 14th, 2009

The fiber optic Internet is here with us, the Internet charges have dropped dramatically and the prices of computers too have plummeted to due to zero rating. With opportunities beckoning on our doors I don’t see why you should continue complaining that there are no jobs. With almost nil investment you can now make some money online. If you love freedom, that personal freedom to do what you love and enjoy, that comes with working without a fixed schedule or geographic location, then you are welcome to join the lucrative world of making money online with minimal investment. Even if you’re not looking to work full-time at home, the Internet offers a viable source of money which can help to supplement your regular income and improve your life style.

Today I will explore several ways in which you can make some money online. My ideas involve making real cash not points or credits or some funny rewards, they don’t require you to have your own Web domain or ask you money or have your own products or any hard-selling. Hapana. So let’s start.

Be an Online Freelancer
The easiest way to make some real bucks comes through online freelancing or contracted work. Take advantage of your skills and expertise .What do you love? Are you good in web design? Are you a good writer? Whatever your skill is put it to good use as an online freelancer. Perhaps the best place to start is getafreelancer or Elance or Guru or demand studios. No money is needed to subscribe and the registration is fairly simple. Take your time in each website and read the processes involved and make some bucks while you can. You gotta start somewhere.

Be an Affiliate
If this is the first time you are hearing this word then you have been sleeping. Affiliate marketing is one of the most lucrative ways to make passive income while you sleep and do the things you love .Young people all over the world have become millionaires and rich overnight without products of their own or any investment. Talk of Joel Comm., Russell Branson, Michael Sweeney, the king of the online marketing Rich Schfren and the John Reese-famed for making a million bucks online in 24 hours!

Anyway, affiliate marketing works like this: You sign up as an affiliate with a merchant and then promote a specific product or service and whenever a referred user makes a purchase based on your recommendations you earn some commission. If you’ve got an interest in weight loss as an example, you can make money promoting weight loss products. In terms of fashion wear, you can earn commissions by recommending friends to clothing websites with affiliate programs. Sounds fun?

The amount of money you make depends on what you are selling. Done correctly, affiliate marketing is one of the most powerful ways to make money from the web.

The best place to start is Clickbank which has over 200,000 affiliates and over 2 million affiliates’ products. Clickbank is one of the most popular affiliate networks 1)because it deals with digital or downloadable products and 2)because of its platform which makes it easier to select. Commisionjunction or cj as its commonly known is the largest network but deals with physical inventory.

Other popular affiliate networks include Amazon, Paydotcom.com similar to click bank and owned by PayPal, moreniche of which I am member (it’s so cool) and linkshare.com. There are thousands of affiliate networks and probably the best place to find the best affiliate programs is at www.associateprograms.com. Did I mention that www.africapoint.com (based in Kenya) has an affiliate program worth checking out?

Sell Your Stuff Online
Do you have pictures or do you have old stuff that you no longer need, do you love artworks or have some crafts? The Internet provides the best platform to sell your stuff. We all know eBay which provides an avenue to sell your used (new) products to people all over the world. In fact you don’t need to own any product to make money on eBay. (See drop shopping, below).

Those pictures you have may be worth some bucks. Check out citizen journalism websites like www.spymedia.com and www.citizenimage.com which will pay for your images. You can also try using www.shutterstock.com, the most established and lucrative micro-stock photography website.

Are you good in web design, content writing or graphics? , If you are, then you can sell your work at places like www.sitepoint.com or even Clickbank, warriorforum, or digitalpoint.com.

For craftworks, the best place to sell your works is www.etsy.com

Be a Dropper Shopper
This almost like affiliate marketing although it involves arbitrage (here you act as a broker).

It’s a method whereby you deal with offline retailers or exporters in other countries, or buy from one seller and sell to another.

Simply put let’s take the case of eBay. Using eBay’s pulse (sort of market research platform) you find that the most popular fashion item is skinny jeans. Next we research who are the sellers of skinny jeans – we assume our seller (the cheapest) is located in china. You contact the seller who gives you a deal of a certain % of sales (you can also get an affiliate code).Then you head straight back to eBay and find who is selling skinny jeans (in this case he is the buyer).

Armed with your information, you propose the deal to him that you can supply cheap quality skinny jeans and that you can handle shipping charges as a way to sweeten the deal. Deal done. Your supplier in china dropships (ships it directly to the eBay seller that you found) the product and remits your cut in good faith.

Otherwise with affiliate code you can simply open an eBay store and start selling skinny jeans. The seller (our guy in china) handles the shipping (drop ships-takes the product to the buyer’s doorsteps) and handles customer care issues.

Hope you get the idea .It is rather simple. Perhaps I should send you to salehoo, the world’s biggest drop shipping platform where there are thousands of cheap wholesalers located everywhere. Some of the prices offered by the drop shoppers seem outrageous but the commissions are quite handsome. Plus I find this idea of dropshipping so much applicable right here in Kenya. What do you think? Is this not what brokers do at wakulima market?

Some more hot money making ideas coming up in the next post. Keep reading.

To your success,
Kihato Mwangi

About me
I am simple young man who earns and spend most of my time online making some bucks and hunting for opportunities. I am also an entrepreneur (my firm handles life coaching, Internet marketing and how to be financially independent) and a small business consultant who is always eager to help Kenyans to be financially independent by making smart choices.

The Strawberry Store

October 27th, 2009

A whole lot of people dismiss Kenyan online business as being ahead of their time. Some people even go as far as claiming online entrepreneurs in Kenya as being misguided, or even plain silly. The usual explanation is that Kenya is still very new and untested as far as the internet goes…etc etc. But who will do the ‘testing’ if no one dares to try? The good news is that more and more Kenyan online businesses are being launched. When are you launching yours?

Today, we’re going to take a look at the Strawberry Store, a Kenyan online business that specialises in importing and selling home, office and institutional furnishings and accessories. One of the co-founders, Naomi Konditi-Kivuvani, has been interviewed over at Tujuane – click here to go and read the interview which talks about the Strawberry store at length.

What I found interesting was that the store exists purely online. There is no physical showroom or shop. While I have doubts on how well this approach works in Kenya, it is a commendable and brave move. For one thing, the expenses of the store are very much reduced and the only overheads are those of hosting and maintaing the website – which are usually very minimal.

When you buy items from the Strawberry store, you either collect them at their pick-up center near Adam’s Arcade, or you can have them delivered to you starting at Kshs 200/-. Again, this is a commendable approach. However, I’d think that several strategically located pick-up centers would work better.

So, how does the Strawberry store get it’s clients? Naomi mentions that they rely on email marketing and facebook advertising. Both of these are powerful ways of getting people to notice you, especially here in Kenya. However, I wonder how well the facebook campaign is doing. To me, facebook – at least in Kenya – wouldn’t be a suitable advertising medium for most products/services. Why? Well, the majority of people who use facebook in Kenya are teenagers and other youth. Unless you’re selling something that this group can afford and would want to buy, getting their attention is not worth much.

One thing that I would wholeheartedly recommend for the Strawberry straw is a blog. The absence of a blog was something that struck me within a few minutes of browsing the site. As far as internet marketing goes, a blog is almost always something like your mothership.

All in all, I love the work that Naomi and her team are doing. I recommend that you check out the site (and make a purchase).

Parting shot:

“Running a web-store may look easy, but it’s really harder than running an ordinary physical store. This is because there’s nobody just ‘passing by’ to come into the store, you have to make people be aware of the store using creative methods. ” – Naomi Konditi-Kivuvani.

Photo by Muffet.

How To Make Money With A Simple Blog Business

September 10th, 2009

Well, after all the boring stuff – thinking of a topic, researching, setting up a simple blog and promoting it – it is now time to start earning some money out of your new simple blog business!

As said previously, the strategy is to set up a blog and optimise it so that when people search for your topic, they find you. You think make money from Google Adsense when they visit your blog. But what is Adsense? Basically, Adsense is a tool that allows you to place advertisements on your blog. Google uses fancy software to make sure that the advertisements are relevant to your blog. For example, if your blog is about golf, your readers will see golf related adverts. How do you earn? Whenever someone clicks on any adsense advertisement, you get paid. Therefore, the more people who click on your adsense ads, the more you get paid. Nice, eh? Thousands of people earn their money this way.

Integrating adsense into your blogger blog is very very easy. Here’s some excellent reading for beginners:

For best results, I recommend that you set up your adsense “ad blocks” in these three places:

  • The top of your blog, just below the title
  • The sidebar
  • The footer. This works best if you have set your homepage to show only one blog post

By doing the above, you’ll maximise the chances of people clicking on one of your adsense adverts.

How do you get your money?
You are able to check your earnings at any time in your Google Adsense Account. Google will only pay you when you reach a certain minimum limit ($100). It may certainly take you over a month to reach that limit but if you follow the steps I have outlined here and in the other posts of this series, you are guaranteed to get more and more visitors and see your earnings rise and rise. Google will then send you a cheque or transfer the funds electronically.

How much can you earn?
Depending on the topic you are writing about, you’ll make anything from a few (US) pennies to one or two dollars every time someone clicks on your Adsense ads. This can quickly build up if your site has a good number of visitors. The more you blog, the better it gets!

So that’s it – a simple step by step guide to starting a simple blog business. Any questions? You have no excuse – get your own simple blog business.

PS
You can use KeyWordSpy to estimate how much each click pays for the topic you are writing about. The amount that you will earn is approximately half the amount that Keywordspy estimates the click to be worth.

Kenya’s N-Soko Vs Craigslist

September 5th, 2009

N-SokoSo this week saw the arrival of Craiglist to Kenya. I’ve waited for Craiglist to come home for years and now it’s finally here. For those who aren’t familiar with Craigslist, it is one of my all time favorite websites. Craigslist is basically an online classifieds site. Its claim to fame is that its (mostly) free model has largely destroyed the paid classifieds market in the US and elsewhere. It is also run very admirably. Can you imagine one of the biggest web brands with a total employee count of <20 (last time I checked)?

Paul Graham, in How to Start a Startup, mentions Craigslist in an interesting way, “I advised startups never to let anyone fly under them, meaning never to let any other company offer a cheaper, easier solution. Another way to fly low is to give users more power. Let users do what they want. If you don’t and a competitor does, you’re in trouble…. The ultimate way to be nice to users is to give them something for free that competitors charge for. During the 90s a lot of people probably thought we’d have some working system for micropayments by now. In fact things have gone in the other direction. The most successful sites are the ones that figure out new ways to give stuff away for free. Craigslist has largely destroyed the classified ad sites of the 90s…

So, the mighty Craigslist landed in town…just when the local giant, the mighty Nation Media Group, was launching its own online classifieds service, N-Soko. Now, I did not get a chance to have a look at N-Soko (because it was pulled down – shame!!) but Moses Kemibaro had a look and writes, “N-Soko, …even though it has the backing of East Africa’s largest media business, is on the backfoot. Whilst N-Soko is a great initiative in terms of creating a local online classifieds brand, the whole execution of the web site is lacking. It feels disjointed from the homepage as you open up separate browser windows for each category of classifieds. It quite simply does not feel as simple, user-friendly or as well put together as the spartan looking Kenya CraigsList.”

Now, currently, the N-Soko site shows “Site Under construction”. From Moses Kemibaro’s post, it is fair to assume that the N-Soko site had been up when he had a look at it. So, what happened that it was suddenly pulled down and slapped an “under construction” sign? And, Moses mentioned that some ads were already live on the N-Soko site. Pray, what happened to those? I don’t know, readers, this is just not good. I’m all for local creativity and enterprise but you got to do it right.

In my mind, NMG just put something together and launched it in the tried and tested Kenyan style of “good enough”, ugh. And it would have worked too – N-Soko would be heavily pushed by the NMG and would be successful, no doubt. But Craiglist came along. I’d bet that part (or all) of the reason that the NMG site is now “under construction” is the entry of Craigslist into the equation. This marks the first contact in what I hope will be a hot battle of two great sites. The wars for online Kenya are just getting started. :D

We’re living in interesting internet times.

Build An Online Shop You Can Be Proud Of

July 28th, 2009

Indeed there are many many stories of people who have made millions on the Internet and become fabulously wealthy by establishing online businesses. With billions of people surfing the Internet daily, surely one particularly attractive ‘type’ of Internet business is an online shop, right? Just look at the likes of etsy, Amazon and eBay.

Setting up an online shop is easy, with very little bars to entry. However, many online retailers are surprised at the dismal performance of their shops. This article shall attempt to address this.

Selling On The Internet
There are dramatic differences between selling online and in a physical shop. In an online shop, the shopper’s experience is limited to a computer screen. How can selling best be done through a computer screen?

Do you remember the old rule of business? The customer always comes first; she is always right. This is important even more in an online shop. It is so very easy for the shopper to click away at any time so you as the seller have to work hard to keep shoppers happy and interested – make it very easy to get any information that the shopper may need. And make the buying process as easy as possible – there’s no need (and little sense) to make people fill endless forms and register for anything.

Building an attractive physical shop is hard work. Similarly, building a good online shop takes careful planning and masterful execution. You have to make sure that the products and all information is displayed correctly as well as ensure all the back end operations work perfectly. No one wants to buy from a broken shop.

Remember that the shoppers are probably new to your website – they must learn to use your navigation and ordering system as they decide on whether to make a purchase. Sadly, these systems are often designed by tech. people who, quite honestly, don’t often put too much thought into the user experience. This is the number one reason why an online shop has low sales.

Finally, no one will purchase from your shop unless they completely trust you. Establishing trust and confidence in your site’s visitors is a complex affair but shops that function without glitches and with no typos or poor grammar are definitely ahead of the rest.

Search Engine Optimisation For Online Shops
So, you have an elegant shop. How do you attract shoppers? There are very, very, very many ways to do this. One of the most effective, however, is making it possible for people to find you when they search on Google or another search engine. The process of improving the chances of people finding your website through a search engine is called search engine optimisation (SEO).

How do search engines work? At a very basic level, search engines access your website and, in some way,decide on whether your website’s pages are more important than those of other websites. They then rank all web pages so that when people search for something, they see more useful/important pages ranking higher than others. SEO is about making your pages rank higher than others’ pages.

SEO is complex and can get very technical. However, in my experience, there are two major, Major things that you need to worry about. These are:

a. Content
Search engines do not in fact see websites as a whole and thus do not see the whole online store. A search engine indexes individual web pages and each web page in a sense stands alone. If your online store web page includes only the information provided by the manufacturer, then your product page looks no different from similar web pages put up by other online stores for that product. The trick is to have unique content for each of your website’s pages.

For example, if you are selling Kiondos online, you will want to list each kiondo on its own page. You want people who search on Google for “Kiondo” to find you so you will put unique and descriptive content on your site that mentions the term “Kiondo” and describes your content.

It is important to realize that the search engine uses only the information content and picks up nothing from any images or Flash content on the web page. However, do not forget that the people who will buy from your store are not search engines but real people – do not SEO your page so much that it puts off human visitors.

b. Links
One of the methods that search engines use to determine the importance of your website is the number and quality of websites which link to yours. It works a little like voting. If yahoo.com links to your website, search engines take it to mean that yahoo.com is saying “I vote for this site, it is useful”. So the more sites that link to you, the higher your site’s “importance”. Also, it maters if the sites that link to yours are virtually unknown or already popular/important. Links are very important in SEO and should strive to get as many as you can.

c. Things that can hurt you
Search engines try to index as many web pages of websites as they can. This is done by search engine spiders or robots that are continuously surfing the Internet to find whatever web pages they can. Unfortunately there are many ways an online store can create technical barriers that block or confuse these search engine spiders. Here are some of the more common ones: frames, session IDs, Dynamic URLs, Redirects, etc. Google publishes webmaster guidelines which will help you to avoid these.

Online Shop Internet Strategy
I know, I know, this article is not very encouraging. As I said earlier, the problem is that setting up an online shop is relatively easy and so you are bound to have strong competition. When competition is fierce, SEO often proves to be very difficult and running your business sometimes resembles trench-like warfare where you tussle and struggle with competing websites.

Many companies who believe they are selling good products spend a lot of their time and resources trumpeting the strong points and features of their products. Other companies, however, try to get into the mind of their potential customers and understand what they want. Often, such companies are more successful than those which are product-centric.

If the online shop believes it is only selling products, then the purchaser will choose based solely on the company’s product web page versus the competitors’ comparable product web pages. But what if you made your shop stand out? What if you provided more than just product pages and descriptions?

Once a potential customer is in the online shop, he or she can be encouraged to do a little exploration. If the online shop has something special about it, then the purchaser may in a sense ‘buy the shop’ before in turn buying a product from the shop. Equally a repeat buyer who has had a good first experience may well use their bookmark to return to the online store. Customers with good experiences are also more likely to refer their friends to come shop at your place.

SEO’s place is important in that it draws in potential customers to your shop. However, it is more important to make your shop stand out from the crowd.

Branding
A useful approach is to establish a brand for your shop. Your brand is something that your customers remember you with. The best brand is something that implies a promise to your customers of what benefits and experience the should expect. Another way of looking at it is establishing a unique selling proposition (USP). That is something that customers want but which is only available from your shop.

Once it is clear why customers should buy from you and not any other shop, then additional web pages can be created to demonstrate this USP further. Since the benefits of your USP is something that potential purchasers are looking for, the additional pages created should rank well in search engines and draw visitors to you. The Internet marketing strategy should thus be ensuring that more and more people are aware of the online shop and the associated USP.

The beauty of Internet marketing is that you can measure everything in great detail and decide what works and what doesn’t and your strategy can be adjusted to improve performance.

Hire Us
At Like Chapaa, we have been on the internet scene for years and we understand Internet marketing and how it works. If you want help with setting up or marketing your internet shop, we are available for hire.

Contact Us.

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How To Make 3,000,000+ a Month

July 3rd, 2009

Here’s a video that details how internet mogul John Chow makes $40,000 per month from his blog. He really exposes his business model in an inspiring talk.

“ John did a great job itemizing his method; detailing his steps. He broke down the process into easy to understand reasons and answered all questions; in short , he shared his secret to success. He made online success seem like a real possibility. Get a product, do the work, get results. My take: like anything else….Once one is willing to administer the effort, treat it like a business, own it like a business and be business like about it, a real business will ensue. Thank you John Chow, very well done! ” – Jos

http://www.vimeo.com/5298554