Thursday, April 19, 2007

Franchised Internet Business
Copyright © Rahimah Sultan

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Starting an Internet business can be a fulfilling experience, and it can also be time consuming and expensive. If you don’t have a lot of experience it can be disastrous. Many people, who are looking for an Internet business, find opportunities with online franchises.

While typical franchises offered protected territories, the Internet is too global. Most companies, even online companies, will charge for you to open one of their outlets on the Internet and they do deserve to get paid for the work they put into building the company.

Typically, a company has a product line or a line of services that has been expanded into a huge success with a lot of hard work. As with traditional business, once a certain sales figure has been reached, the company starts looking at ways to continue growth while at the same time, hopefully reducing actual involvement in that growth. Many of these companies start offering franchises to others.

The fee required covers part of the investment in time and possibly a lot of trial and error processes that went into perfecting the business. Also as with any franchise, if you want it to be successful, you must continue to use the same formula that made the business grow. Many times people sign up for a “free” Web site that is being offered by the owner of a business in hopes of getting rich on someone else’s effort. Often people who do this believe that they have a better way of doing things, better marketing skills or better advertising techniques than the original, and when their business fails they blame the company.

With a traditional franchise there are penalties built into contracts for operators who fail to follow specific procedures or attempt to change how things are done without consulting with the owner. Many of these same protections are built into Internet franchise contracts, but many people insist on doing things their way, which ultimately results in failure to duplicate the success the company. If you want your franchise to perform as well as the company from which you bought it, then you must operate under the same model.

If you choose to run the company using different procedures and different marketing methods, then it is advisable to start your own company. Unless you are willing to duplicate the methods offered in a successful franchise, you will not be able to duplicate that success.

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