OK, have to chime in on franchises and biz ops here.
The average Subway franchisee is a Semi-Absentee manager. He will earn in the neighborhood of 80k net profit per store while spending a few hours a week in the store.
I know many franchise owners, almost all are hands off, they basically manage the manager. Very few, a small % actually, go under and lose everything. Less than 2%.
Yet 9 of 10, or 99 of 100 (including Internet and MLM start-ups) fail, and the investment in MLM inventory could be into the thousands. Ask the people with a garage full of candles, vitamins and soap about their "safe" low cost investment.
A franchise provides a tested and proven marketing and ACCOUNTING system. Keep in mind a person bringing in 1500 bux a week in cash could have a 40% TAX obligation. So they need good bookkeeping either bought or time spent.
TIME. How much time is spent to get the income? A franchisee may be buying a job, but often at a significant $ per hour, that comes in with regularity, even if the franchisee is sick or injured (in most absentee cases).
The guy selling real estate videos doesn't get paid until someone buys the video, it is a constant need for productivity.
So, I'm not arguing against any way someone has to make a buck, but, a comparison to established biz model, franchises, isn't a fair comparison especially when dealing with online wannabee marketers.
We don't have enough information, too much goes unspoken and there are pros and cons on both sides of HOW a person makes money.
Just saying.
Gordon
Quote:
Originally Posted by Dien Rice
Hi Don,
Thanks for sharing this... This really does sound like a fantastic business!
Why? I'll lay it out...
Let's first compare it to a franchise, as an alternative business.
Many people who want to be in business buy franchises every day.
They fork out on average from $50,000 to $200,000 to "buy in" to the franchise.
On top of that, they have to spend tens to hundreds of thousands on property fit-outs, and so on, plus rental on top of that...
What's the risk of it? How much could they lose?
The franchisee, if things don't go well, could easily lose hundreds of thousands of bucks!
Now... Let's take Don Alm's idea above...
What's the risk?
Virtually zero!
Why? He's using FREE software (Photostory 3)... a free resource to host videos (YouTube)...
So, if it doesn't work, what could you lose?
Maybe you have to spend $10 maximum on phone calls...
The financial cost is virtually nothing!
Yet... his student was able to get around $1,500 a week... about $75k a year!
So, let's compare the two... I googled what franchisees make, and I found that...
<b> "According to a report on food franchising by Franchise Business Review, 51.5 percent of food franchises earn profits of less than $50,000 a year" </b>
So, you have virtually NO financial risk, and you can make more money than a franchisee makes... Someone who paid $50,000 to $200,000 for the opportunity to make that money!
If the franchise biz doesn't work out, they could lose $50,00 to $200,000 or more...
If Don's idea doesn't work out, you could lose... maybe $10 spent on phone calls.
So which is the better business?
The reality is... Don's sharing real gold here!
Best wishes,
Dien |