Internet Franchises – What to Look for and What to Expect

By on January 21, 2018

Background

Internet  Franchises  have been around for quite a while, in the travel industry, in the web design industry and recently in the Internet marketing arena. This article will focus on the key criteria that are needed to develop a successful though affordable Internet marketing and web presence  franchise  for small to medium sized businesses.

What are the main criteria to look for

First and foremost, your  Franchise  must solve an existing problem in the market place. So, if you are considering looking at an Internet marketing and web presence  franchise , ask yourselves and ask a customer what issues he is phasing when he is considering a modern, third generation web presence or simply when he is considering putting his business online. The most likely answer you will get that he has no clue and that it all looks very complex, with hundreds of products and services out there, and that he needs help of somebody that can guide him through the process and make sure the deliverables are there, on time and on budget. You have detected the problem in the marketplace, and your Internet marketing and web presence  franchise  has a valid business reason of existence.

Second, your  Franchise  must have a big enough addressable marketplace. In the United States alone there are about 2.2M SMB’s that have 5 to 99 employees. As a group, these companies have a revenue base of 6.3 Trillion dollars, or about 3M dollars on average per company. The estimations are that, again as a group, these companies spend about 1.2% of their revenue on IT related matters. That means that your average company will have a yearly IT budget of 36,000 dollars. An average SMB in the United States will spend about 10% of its total IT expenditure on its web presence. So, we are looking at a yearly target market of 7.5 Billion dollars. The median Recommended Retail Price (RRP) for a web presence service is about 1,500 dollars. There are 159,858 SMB’s between 5 and 99 employees in the State of Florida. Their overall IT spending is 5.7 Billion dollars yearly and their spending on web presence and associated services is 575M dollars annually. With a 0.5% penetration over a 2 year period, would equal to a 2Y revenue stream of 2.9M dollars.

Third, your  Franchise  needs to be backed by state-of-the-art technology and a state-of-the-art delivery centers so that you can make your commitments towards your customers. In case of a Internet marketing and web presence  franchise , look for a third generation fully featured content management platform. That platform will ensure a timely delivery of your projects. And look for an experienced service delivery center for all the search engine optimization, search engine marketing and traffic generation projects.

Fourth, limit your upfront investments to a bear minimum and look for Internet  Franchises  that are essentially success based. Invest in your time, learn the business and its value proposal and spent quality time with customers instead. And invest in face to face meetings with business owners, understand their issues and take away all their worries about their online web presence.

Fifth, look for  Franchises  that have a proven service delivery mechanism all the way, and make sure that you can present enough references to your customers, so they can trust you as their Internet consultant or web presence guru. And build quickly on those references, so you have your own references to show new potential customers.

Sixth, look at  Franchises  where you can sell some real unique differentiators to the SMB community. One feature that comes to mind is an online shopping mall service. For most SMB’s an E-commerce web presence is already a real challenge. But how to promote their shop over the Internet is usually a bridge to far. What if you could combine an E-commerce web presence with a shopping mall functionality that takes care of promoting the company and the products it sells, and this on a PPC (Pay-per-click) basis.

And last, look for a  Franchise  where you can leverage your expertise and the expertise of the  Franchise  to your friends and family. You live in a community with many non-profit organizations having some sort of web presence, and they all looking for help. Would it not be nice to help them out with a professional, though very affordable web presence solution.

Conclusion

In the vast area of Internet  Franchises , it is crucial that you evaluate risk and return. Limit your financial risks, risk your time, your energy and your willingness to help business owners grow their business through an online web presence.



Source by Philippe Bodart

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