Many people think that because they did not have the technical or business experience online and it seemed that it was impossible for them to have a successful business on the Internet. However, that is not the case at all. There are some internet business franchise opportunities available that don’t require a lot of technical expertise and are perfect for people who have that entrepreneurial spirit and like to start an internet business quickly.
When considering life as an entrepreneur, it is important to understand the definitions of an internet business franchise. Of course, it has its own advantages and disadvantages. In this article we will discuss the advantages and disadvantages of owning a business franchise on the Internet.
INTERNET BUSINESS FRANCHISE:
An Internet business franchise is a right granted to an individual or company to market the goods or services of a company on the Internet. The franchisor (the internet business franchise owner) sells the rights with the turnkey solution to the franchisee and then usually receives a franchise fee for ongoing online support and product update, so he has a vested interest in the success of each franchise.
Internet business franchising is a new concept in Internet business and is currently heavily promoted by Internet business franchising experts such as Kelvin Cho. Today, many of these Internet business franchise opportunities are available on the Web. Examples of Internet business franchises include lingerie products, wholesale-idea.com, and shopster.com.
Advantage:
* There is a greater chance of success as there is a proven business formula. Products, services and business operations have already been established. And the internet business franchise has the lowest cost compared to the offline franchise business.
* Rather than handling all product sourcing, website maintenance, shipping, payment, and customer support. The franchisee can focus solely on online marketing efforts to promote the internet business franchise rather than dealing with all the things.
* Internet business franchisors generally provide extensive online training and support to their franchisees in an effort to help them be successful.
* Many times branded products and services are advertised online by major franchise companies to establish brand awareness. This practice helps drive sales for all Internet business franchisees, but individual franchisees do not absorb the cost.
Disadvantages:
* Internet Business franchises charge ongoing royalties that reduce franchisees’ profits.
* Internet business franchisors generally require franchisees to follow their operations manual to the letter to ensure consistency. This limits any creativity on the part of the franchisee. Internet business franchisees may not allow you to sell your own products in their web store.
* Internet Business Franchisees should spend most of their time running their online marketing activities and recruiting their own agent (also known as Affiliates) independently.
Sometimes internet business franchisors can be lax in their commitment to providing good customer support. Also, they can make bad decisions that would have a negative effect on the internet business franchisee. So it may be a good idea to test the internet business franchise system and make sure it provides good customer service before buying one.
It is suggested that you contact an internet business franchise consultant to discuss which internet business franchise is right for you.