How to Start a Successful Data Reselling Business in 2024

Data Reselling is a business of buying (by individuals or companies) data in large scales directly from telecommunication companies and then reselling such data to end-users in smaller quantities, thereby, earning some profits. 

This business entails that you buy data directly from telecommunications companies, such as; Airtel, 9Mobile, Glo and MTN at a relatively cheaper prices.  

The amount spent on airtime and data by Nigerian telecom subscribers rose to at least N2.59tn in the first nine months of 2023.

This is according to the financial statements of MTN Nigeria and Airtel Africa. This was a 32.57 per cent increase from the N1.95tn both telcos recorded from both income sources in the corresponding period of 2022.

The increase in voice and data venue was partially driven by rising data subscriptions and the devaluation of the naira on Airtel’s part. In the first nine months of 2022, Airtel made $1.41bn from airtime and data. When converted at the exchange rate of N461/$ which was obtained at the time, it amounted to N647.71bn.

In 2024, Data consumption reached 721,522 terabytes, the highest monthly consumption ever recorded, according to the Nigerian Communications Commission.

Data obtained on Tuesday from the regulator’s website showed that this record surpassed December 2023, which stood at 713,200 terabytes.

Active Internet subscriptions totaled 161,977,883, reflecting a substantial increase from the 156,244,368 subscriptions recorded in January of the preceding year.

There are different service providers that make up the number of Internet subscriptions; they include telcos (mobile), Internet Service Providers (ISPs), Voice over Internet Protocol (VoIP) and Fixed.

In today’s digital age, the demand for mobile data has skyrocketed, creating a lucrative business opportunity for entrepreneurs to venture into data reselling.

This article explores the ins and outs of starting a data reselling business in 2024, highlighting the initial investment required, key factors to consider, and tips for success.

First and foremost, the initial investment for starting a data reselling business varies depending on the scale and scope of operations. The estimated costs include registration and licenses (₦5,000 – ₦20,000), initial data purchase (₦10,000 – ₦50,000), and marketing and advertising (₦5,000 – ₦20,000), totaling ₦20,000 – ₦90,000.

Before diving into the business, it is crucial to consider several key factors. Firstly, choosing reliable data providers with competitive pricing and reliable service is essential. Identifying the target market, whether students, businesses, or individuals, is also vital. Setting competitive prices for data packages and developing a robust marketing strategy to reach the target audience is equally important.

Lastly, providing excellent customer service to build loyalty and retain customers is crucial. One must follow five key steps to establish a successful data reselling business. Firstly, research and register the company, obtaining necessary licenses. Secondly, purchase initial data stock from a chosen provider.

Thirdly, determine pricing strategies and create data packages. Fourthly, execute the marketing plan to attract customers. Finally, deliver data to customers and provide excellent customer service.

To thrive in this business, offering competitive pricing, ensuring reliable service, focusing on customer retention, and continuously improving the business strategy are essential tips to follow.

Starting a data reselling business in 2024 requires careful planning, research, and execution. With an initial investment of ₦20,000 – ₦90,000, entrepreneurs can establish a profitable business.

By providing reliable service, competitive pricing, and excellent customer service, data resellers can build a loyal customer base and succeed in this lucrative market.