Beyond Web Traffic, Map Your African Revenue Strategy [SN]

This is a Short Note from my LinkedIn update.

Few weeks ago, I wrote about how abundance of internet traffic does not guarantee more value https://www.tekedia.com/65289/the-law-of-diminishing-abundance-of-internet-higher-user-growth-uncorrelated-with-revenue/ . You can see more visitors using your content and yet nothing positive happens in the bank.

My suggestion to African entrepreneurs, do not build you business with ad-supported strategy. It is challenging. Rather, find a way to create value and have subscribers no matter how small. Do not be caught with traffic, focus on what happens in the bank.

It is very hard to make money from Google Adsense because Google discounts up to a factor of 4 African traffic compared to U.S. and Western Europe. So you need to quadruple African traffic to make up with similar US sites. In short, some Western advertises will not compensate for African traffic (excluding South Africa).

A US user generates $18.81 for Facebook (ARPU) while an African user is $1.41. I like Jobberman which asks people to pay now. I like iROKOtv which charges. It is better you have 100 people paying $10 per month than 10,000 people-traffic that gives you $10 at month end. But to do that, you need to invest in quality and differentiate. Traffic is a number, be focused on the real one – revenue traffic.

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