When making money online, we’re often advised to target tier one countries. This makes sense. Tier one countries are the richest countries in the world, and they spend the most money on ads and by extension E-Commerce goods. If you want to make money, it makes sense for you to focus your energy on where the most revenue is. Right? Well, kind of. We live in the era of globalization, and coming from someone who lives in a Tier 2 country in the Caribbean, there’s opportunity here. It’s all about knowing how to take the bull by the horns, and setting the right expectations.
What are Tier 1, 2, and 3 countries?
It’s not very politically correct to divide countries into Tiers, but we do it for digital marketing purposes. The different countries of the globe are tiered based on how much ad spend they bring in, in addition to how developed they are (kind of). Basically, to figure out which Tier a country is in, you have to ask yourself, “how much do its people spend on E-Commerce?” People in countries like Sweden and Canada are always going to spend more than those living in places like Angola or Eswatini. You can find out which countries are specifically in which Tier here. Keep in mind that different companies, industries, and people define Tier 1, 2, and 3 countries differently. If you search Google, you’re going to find lists which contradict this one.
Tier 2 and Tier 3 countries pay less, so there is both less and more competition
There is less competition because fewer people care about dominating the media landscape, but more because the scene is probably controlled by a few different companies. So, you’re going to need to work hard at the beginning, because you’re probably going to be competition with the only other guy in town, and he’s going to be a big guy. Your customers are going to prefer the trusted authorities over you most of the time. But once you’re one of the big guys nobody is coming to take your place.
Tier 2 and Tier 3 countries offer a growth opprotunity
This is particularly true in the realm of display ads. Poor countries are going to grow, and the people living on them are going to spend more and more money on staples and cheap fun. This means that if you own an online platform or YouTube channel targeted to poor countries, you can expect your ad revenue to increase dramatically. I predict that we’re going to see a few wealthy Indian YouTubers over the next decade. Their massive population will make it easy to succeed as CPMs increase. If you’re planning on both getting big and playing the long game, targeting Tier 2 and 3 countries in some of your blog posts could be a good move.
Applying American strategies to Tier 2 and 3 countries won’t necessarily work
People in Tier 2 and 3 countries have only just started shopping online. They aren’t able to buy much yet. From what I can tell, people from Tier 2 and 3 countries are buying things such as clothing, and they aren’t spending much on frivolous stuff. They can’t really afford toys and expensive beard kits. This means affiliate marketing won’t work as well. The conversion rates are going to be lower, and you’ll likely make fewer sales than you otherwise could have. If you’re going to be in a Tier 2 or 3 market, you should always aim to go big in terms of traffic, even if you’re attempting to sell a high-ticket offer.
Blogging might be obsolete by the time you start to make your mark
I think the pressure on bloggers will ease a bit soon. I think the reason there was so much pressure on bloggers in the first place was due to the COVID pandemic and the remote work revolution that followed. A lot of people blame ChatGPT but having a guy in India write articles for you is quite easy and cheap. I’m sure I could get an article for just a few dollars if I did my research and looked in the right places. A lot of blogs are going out of business right now, and it’s because the owners’ income goals aren’t being met. All that being said, the media landscape is changing faster than ever. You might want to diversify if targeting Tier 2 and 3 countries is your aim. YouTube and Livestreaming are your friends.
Starting a business and making fast money are two different endeavors. Businesses are started to create wealth. Fast money is generated in order to meet specific income goals and make purchases. A business can be in a lucrative field, and therefore feel like fast money, but the two are very different. You may have an idea for a lucrative, blogging-based business that can be targeted to Tier One countries. If you can execute, great. But if you have an idea for a blog that can be aimed at Tier Two and Three jurisdictions and bring in traffic in the long-term, go for it. Just make sure that you’re building a real business and diversifying properly. Not just trying to rank for some keywords and push up your RPM. This is all doable provided you take things day-by-day and stay consistent. I know this because it’s what I’m (kind of) doing, and I’m seeing results.
Thanks for paying attention.
