“I would rather have one percent of 100 people’s efforts than 100 percent of my own.” — Andrew Carnegie
I’m going to be telling you about The People’s Franchise— How ordinary people can achieve extraordinary success. Now, it’s probably bad form to begin with a quiz— but just for fun, let’s do it anyway. Don’t worry. This is really easy— and it’s multiple choice, too. Listen to the following statement, then choose the correct answer from the list of choices at the end: NULL “In most Americans’ minds it’s a ‘scam’ and a ‘scheme’ – questionable or unethical at best, immoral and illegal at worst. “Many own-your-own entrepreneurial hopefuls have been hyped into turning over their life savings, only to see the company go out of business, taking their dreams down with them. “Politicians, regulators and the media (especially the media) cry ‘foul’ whenever its name comes up. Newspapers, magazines and television news and talk shows regularly expose it for the ‘flim-flam rip-off it really is.’ Major corporations who get involved go out of their way to avoid any appearance of doing so. There is even a move in Congress to outlaw it altogether!” Now, guess: which one is the right answer? a) TV ministry scams b) Off-shore Investment schemes c) Multi-Level/Network Marketing d) None of the above Did you pick a), b) or c)? Well, there’s probably some truth to all those choices— but none of them is the right answer. The truth is, it’s a trick question. The right answer, “d) None of the above,” WAS correct— more than 40 years ago! Back then, that’s exactly what people were thinking and saying about a radical, revolutionary new business concept called Franchising. In the 1960s— before Ray Kroc and McDonalds, before Dunkin’ Doughnuts, Midas Mufflers, Molly Maid, Pizza Hut… and all the other successful franchise companies established franchising as a legitimate industry— all of those negative things were being said and done about franchising. And yes, there was even a move in Congress to outlaw franchising. And today…? Today, experts say the franchising industry is responsible for more 40 percent of all retail goods and services we buy and sell in the United States alone— over One Trillion Dollars!
Not bad for what just a few years ago was labeled “a scam and a scheme.”
Let’s take a closer look at franchising. Franchising truly was a revolutionary business concept— and it still is. Take a look at your alternative: 80 percent of all small businesses fail in their first year. 80 percent of those that make it don’t survive to see year five— and of those that do, even fewer will last another five.
Think about it: how many companies do you do business with that have been around for 10 years or more?
Not very many…. Franchising is a way for the small business entrepreneur to boost the odds of success. A franchise takes the guesswork out of building a business from scratch. The franchise company creates a “turn-key opportunity”— a ready-made, off the rack business, complete with products or services, logos, uniforms, training, vendors, policies and procedures. Virtually anyone with the desire and start-up capital can climb into this vehicle, turn the key, and drive off down the highway of entrepreneurial success. It’s truly brilliant. You don’t need to know all there is to know about building a franchise to own one. The franchise company has done all that work for you. You simply pay your franchise fee, build or rent your location and furnish it with the equipment the company has already designed and successfully tested for you, hire your people, and then pay the company a percentage of your sales and profits. A Question: How well do franchisees do? According to its critics, the truth is about one third of all franchises fail. Another third break even, and only one third make a profit. In fact some franchise veterans say you can’t make money in franchising today unless you own at least five or more individual franchises units! Still, that’s a much better average than the 80/20 failure/success rate of conventional small businesses. Question: How much does it cost to own a franchise, today? Ahhh, there’s the rub.
Franchises fees range between a low/low/low of $1,000 to $500,000 and more. The average fee today comes in at around a about $50 grand.
You can get a Molly Maid or a Thrifty Car Rental franchise for a fee of $17,500. Sir Speedy is $25,000. And the big guys, like McDonalds…, well even if you could find one— Forget It! It’s in the millions…. The really bad news is that’s only the fee. You’ve still got to pay for the building, equipment, initial inventory, etc. – all of which can run into the millions or more. The average investment in a proven franchise opportunity is $250,000! Not quite what the average person can afford. PLUS, most franchise company’s take a percentage of your sales— not just profits, SALES— as their royalty commission! It’s tough to start a franchise today. It’s not like it was back when the industry was young and unknown. As in real estate, the stock market or most other opportunities, the real money is made by those who get in early.
There’s a higher risk, and a higher reward. Once anything is a sure thing, it seems everybody’s doing it.
Today franchises are proven profit centers. That’s one reason why they’re so expensive. You pay for having less risk than a conventional business start-up— and you pay for being a Johnny-come-lately, as well. But there is a way to have the low-to-no-risk benefits of a proven, duplicatable business system like franchising, and still enjoy the rich rewards of a ground floor opportunity. Frankly, most Americans don’t have the extra $25,000 to $250,000 or more that it usually takes to own their own franchise business. But almost every one of us can afford to have the next best thing. And that’s exactly what I’m telling you about here: The NEXT… BEST… THING…. The People’s Franchise… … Network marketing.
Network marketing has taken the concept of franchising— providing independent entrepreneurs with a ready-made, low-risk, proven, turn-key small-business opportunity— and made some genuinely remarkable improvements on it.
Low Capital Investment— Little or No Risk How much money do you need to become an independent network marketer? There is usually no fee required to start your Networking business. You’ll typically commit between a few hundred dollars to a few thousand dollars for your sales kit, training and sales and marketing materials, and your initial product inventory if you even need it. The Benefits and Tax Advantages of a Home-Based Business For most participants, network marketing is a home-based business, so you don’t have the high overhead of a retail or office location. The equipment you need to begin your Networking operation can be as simple as a telephone, desk and file cabinet. And the potential tax advantages of owning and operating a legitimate home-based business represent one of the last forms of tax relief available to the average American today. No Employees— You Are In Control As a network marketer, you are an independent contractor – the CEO of your own businesses. Think of it as “Me, Inc.”. You have no “employees.” The men and women with whom you’ll work are also CEOs, running their own independent networking businesses. In network marketing, you don’t simply “own your own job
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