Would buying a franchise be worth it if you could earn $100/hr doing the work?

Marketing
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[QUOTE=Paul McQuillan;92971]
Business can’t be guaranteed, money can’t be guaranteed and to be honest
I tire of all this ‘make $$$$$$$ per hour’ crap.

Money makes life simple but not easy… it certainly does not equal happiness.

QUOTE]

So true on the guarantee part - too many factors in play, the franchise process is restricted by law to make any claims of compensation guarantees, nor can demand you attain a certain revenue level - so it’s either implied indirectly or part of their interview process to make sure they are NOT hiring a dud that will soak up some profitable zip codes

$per hour it how the conversation started by Kevin, it could be per year or whatever.

actually $ per hour is too vague in some respects as i noted earlier

“$ for x hours of your time” would be the most accurate (since that would technicaly include all the non field time too)

Life is only as simple as we make it and in many cases can be more simple with less money than more - it’s up to us

I think what a huge increase in “$ per hour” triggers for most people is the thought: “Full time income for part time hours”

Which can be a pretty appealing thought - although most will just double their income rather than take the reward in time, it’s a personal choice though.

122

I definitely think there’s a ton of ways that you could structure this and do really well for both parties. Looking forward to see what you come up with.

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[quote="“Bruce,post:121,topic:9576”]

Agreed. Nothing is guaranteed sadly, with business.

And earning more absolutely opens up more free time for things that actually matter. Thus the imagined attraction of this concept and scenario, from my point of view, and my curiosity with this whole thing.

And I think we have to focus on hourly rate. Too many of us place way too much emphasis on gross revenue. If we can’t increase hourly rate, were not becoming more profitable, and empowering ourselves to buy back more of our lives.

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Cool.

Any suggestions, Don? What would you consider to be the ultimate deal for both in a scenario like this?

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What if it could provide all the back office assistance, advice, consulting? - admin, marketing and finance?

Perhaps Fish already provides extensive consulting?

what if each person involved had a “timeshare” of sorts of staff for all these departments?

There’s an ongoing need for it and a fear of disconnection (massive hours to do it yourself) for the project for sure

Most window cleaners are solo or one or two helpers - what if they could just generate revenue for themselves and “sub out”, “timeshare”, “franchise” however it’s set up, all the above duties? (what a wife with office skills would be doing for her husband - for free)

All the inbetween is taken out for them

  1. the owner works ON his business

  2. the owner works in field, himslef or with helpers or a couple trucks

  3. the other stuff is eliminated for him so he works on his business more effectively

in principle, for illustration, the way a PEO or employee leasing company is your payroll and HR dept for those businesses that aren’t large enough to afford the staff or even have need for a FT employee or dept.

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What about If someone could show you one “trick,system,strategy” and double your money instantly forever. 3 years later that trick is no longer a trick seeing you use it everyday and you would get sick of paying 10%,5% whatever…

No matter who they are, they would see after a certain amount of time that they are doing all of the work. Feeling that they are getting the short end of the stick and paying a guy for doing nothing(when I say doing nothing I’m looking at it from the guy that’s paying him perspective).

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I agree that’s crazy the short sighted thinking for animals will get them killed and with humans will make their kids skinny.

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Okay, thx for the specific suggestions.

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Good point. I think that’s why a constant flow of such tricks, systems, and tools would be needed.

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It would need to be a automated system that is always working to bring in high quality jobs. Then after you get the jobs, put systems in place to have people buy more often and more quantity(upsells,cross sells). Then automated system to get referrals. So a funnel that you can keep full and show people how to do everything to keep the job flow high with jobs that are very profitable using automated systems that’s all plug and play and automated.

Part of the product that I mentioned to you on Facebook that’s under works has the above or I’m trying it to have the above(Don’t worry it’s not for window cleaners so I’m not trying to plug myself)

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Cool. So where is the “ongoing” advantage?

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Sorry, double post.

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Ongoing by putting new great leads into their funnel. Take away you and take away the new leads plus automated systems.

Curt from 5 star is working on a system that sounds pretty sweet.

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Wouldn’t leads be cost prohibitive?

If mail or print advertising wouldn’t the one providing them would be marketing to each area in a one to one type situation versus a one to many economy of scale situation?

the costs would have to be passed on to the receiver in some way

unless it’s just going to be a Service Magic or some other type of referral service?

the quality of the leads and the customers would be absolutely key

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On the leads being cost prohibitive. There are lots of small businesses that can market on a 1 to 1 basis and make money. If they couldn’t then marketing for small businesses would be pointless.

For a sustainable system to work the numbers have to make sense figure out the life time value(LTV) of a customer with his funnel in place. Kevin would then make a slot machine that when you put in one dollar it kicked out 3 or whatever multiple of x(gross profit, GP). If you had to put in 4 dollars to get back 3 you might as well not do it. So the whole key to the system would be putting in x and getting more than x back(GP). If the system couldn’t do that, then the system wouldn’t be worth anything. If it could get back 10x it would be worth a lot more then if it could get back 2x.

The receiver would pay to have this system setup with the belief that if I put in x I will get a multiple of x back.

I don’t think a service magic type would be the key or the whole economy of scale thing. After time I think economy of scale would come into play. But mainly at first it would be that he can create a system that can go into most towns and have a slot machine that pays back a nice multiple of x on a consistent basis.

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I see, so handle all the marketing for them, then.

Yeah that would be immensely valuable.

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Yup, very true.

At the risk of sounding repetitive, though, not just ROI would have to be focused on. High hourly rate must also be the focus of the new work generated.

Spending x and earning 5x is easy. Building a maximally-profitable (is maximally a word?) client base while earning 5x is 10 times harder. At least 10 times.

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Okay, so how about this:

You pay $X for exclusive licensing of ABC Window Cleaning for your area. It’s a onetime payment for an unlimited time license, contingent on the following terms:

  1. You split your local marketing costs 50/50 with the head office, and all the marketing is plug and play. The “head office” creates and deploys all the marketing for you.

  2. You pay $Y/mth as an ongoing monthly licensing fee for access to cool, important stuff that will help you succeed in running ABC Window Cleaning locally. This will include how to provide a particular, unique, exceptional service experience for your clients.

  3. You keep all profits above and beyond the fee

  4. You can quit anytime, but when you do, your license expires and another local licensee can apply for a license.

  5. Y$=20% of gross revenue that you generate.

  6. All parties expect and hope for (but cant promise or guarantee) industry-leading profitability.

Does this sound right?

What am I missing?

I love the idea of an almost risk-free scenario. Am I close with the above description?

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hmm, it may be just the way I’m reading it, but you sound like you’re contradicting yourself. see bolded text…

I think the overall idea is interesting- but it’s gonna take a lot of convincing, especially among this crowd.

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and how are we supposed to keep all profits above the fee, if the fee is a percentage? that’s a little confusing, too…

edit: I’m an idiot… of course you get to keep those profits- cuz its a percentage, as well. #3 just put the notion in my mind that it would be a fixed fee, and #5 contradicted that notion.

edit 2: Let me repeat this back to you and see if I got the idea right…

first, we pay a onetime fee for the company name, logo, etc. I imagine this would come with a fancy website, as well.

second, we pay a monthly fee, based 20% of gross income, for access to this super-duper marketing/managing machine

we pay for 50% of our own marketing costs, which i imagine would only be printing and distribution- as I hope design and consultation would be included in the fee above.

if we choose to opt out of the “machine”, we still keep the name, logo, etc- Correct?

In order for this all to work, I’m thinking that a little more than just the name and logo would have to be included as part of the buy-in, or it would have to be a relatively low fee.

and as has been said before, 20% of gross revenue would have to buy us something that we couldn’t get anywhere else. Not WCR, not even your WCMM site or private consultation.