Friday, September 6, 2013

Why a Franchise Business Model Trumps Starting Your Business from Scratch

Over 97% of people fail at creating a successful internet income. That’s a whooping figure because that means that a majority of people that are going to go online to make a living or even earn some additional income just to get by will fail. A sad reality to say the least, because in this present time of economic hardships most people will turn to online marketing to supplement their finances. The following article will suggest an alternative to combat this massive failure rate.

I think the biggest challenge for most people that try and supplement their income by going online is not knowing what to do. Worst part is so called “Gurus” are misleading these internet newbies. They try and portray an image of fast cars and sexy beaches with hot girls in swim suits but this is not even close to the reality for most online marketers. Heck, most of the gurus themselves only pretend to live this lifestyle. Now don’t get me wrong, there are people in internet marketing that are crushing it online but I find the ones that are actually making big things happen online don’t brag about it. As I mentioned most people just don’t know what to do when it comes to making money online. I see this same people day in and day out on the forums that I visit buying product after product trying to find that golden nugget that will open the doors to online riches. Sadly, like the carrot in front of the donkey with every product they purchase they are farther away from the carrot. Moreover, after buying and trying so many different methods that yield no results they often end up more in debt than when they started out and eventually quit. So what’s the solution?

Well, the first solution I would suggest is getting an online coach but most online coaches are pretty pricey. So the next best thing is looking into purchasing an online franchise. According to the FactSet Research Systems (FDS) 91.8% of franchises succeed. That’s a staggering success rate compared to the 97% failure rate of new businesses. Looking at this figure it makes perfect sense to go for the franchise business model rather than starting from scratch. If you can take a proven business model, with proven products, and proven systems to sell those products then you are way more likely to see success. So licensing a proven business model, with proven products and proven systems to sell those products for you is a winning plan.

If you wanted to franchise a Mc Donalds’ in the UK it would cost you between 125,000 to 325,000 Gold pounds and then they would want 10-15% of your annual sales. You are paying for a massive success rate because they know their brand will work for you. However, buying an online franchise is a more cost effective solution. Online business franchises don’t cost that much and most of them don’t charge you a monthly fee either. So whereas in brick and mortar businesses the franchise cost will leave you broke with online business franchises you are able to still have money left over to feed the family and with a proven business model it wouldn’t be long until you see profits. Usually with these models the sales funnel is already setup for you with the products all in place and all you have to do is drive traffic to the offer. I would say that when you are doing your research on available franchises to buy you should ask the owner what traffic training they have because what use is having the best product if no one sees it.

Why a Franchise Business Model Trumps Starting Your Business from Scratch

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