There are essentially three ways for making money online.
- Affiliate Marketing (includes network marketing/MLM)
- Selling Your Own Products
- Licensing or Franchising
While the first two methods are the most popular
online, they are also the very reason many people
struggle to make money on the internet.
For the purpose of this article and to ensure we stick with what really works, we are going to be looking at the third model which is Licensing.[headline style=”1″ align=”center” headline_tag=”h1″]The Online Licensing Model Explained[/headline] [feature_box style=”14″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” alignment=”center”]
Licensing is by far the best online business model, or offline business model for that matter, because it completely eliminates all the barriers posed by the other 2 models i.e. affiliate marketing and creating your own products.
Licensing is when you buy a “license” from an established brand in order to establish your own business ownership while at the same time taking advantage of that brand’s position, authority, products, systems, proven marketing etc.[/feature_box]
Many of the problems and obstacles related to affiliate marketing and creating your own info products are solved with this business model.
It really is my favorite business model, whether online or offline.
Licensing is basically franchising[feature_box style=”19″ title=”HERE’S%20A%20FACT%3A” alignment=”center”]
Around 85% of franchises become successful, whereas over 80% of non-franchise businesses fail![/feature_box]
I was amazed when I learned of this statistics
Like I said above, licensing is when you buy a “license” from an established brand in order to establish your own business ownership while at the same time taking advantage of the brand’s position, authority, products, systems, proven marketing process etc.
Licensing (i.e. Franchising) combines the best parts of Affiliate Marketing and Creating Your Own Product into a model that removes all the negatives.[headline style=”2″ align=”center” headline_tag=”h2″] Now, let’s take a look at a practical example
of licensing in the offline world…[/headline]
Let’s say you wanted to open a sandwich shop in your town.[bullet_block large_icon=”0.png” width=”” alignment=”center”]
- You could get the money together to buy or lease a building, buy the equipment, insurance, stock, tables, chairs and 500 other things…
- Then once you’re in business you’ll have to build up a customer list and essentially making your presence in the neighborhood known and convincing people to come to your sandwich shop.
- You’d have to work out all the recipes, tweak them and test them and tweak them again until you get to the point where you’d have product quality that is good enough for people to keep coming back for over and over again. This includes user experience and the environment as well.
- See, it’s not just the food, it’s the location, the drinks, the style of the restaurant, the uniforms, the customer experience while in your restaurant etc.
- You would have to work out how you are going to advertise the business. You’d have to create the ads from scratch and test them and tweak them and find places to advertise and if they didn’t perform you’d have to redo them over and over and over until the ads are getting the results you want etc.
- You’d have to research employment laws and tax withholding and restaurant codes for health inspectors, etc., all on your own.
As you can see, it would be a lot of work and most of it would involve you “experimenting” to see what does work, because you don’t even know yet. Little wonder why most small businesses fail within the first 3 years. [/feature_box]
It’s a lot of work indeed. Isn’t it?
You could go through all of that…
Or, you could simply just buy a Subway franchise. (This is just an example)[feature_box style=”7″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” width=”550″ alignment=”center”]Buying a Sub-way franchise has already eliminated all the obstacles above because they have already done all the hard work for you.
- All the products are already done and organized.
- The uniforms, the tables, the chairs, the outlay of the store, the specifics of what locations are acceptable, the costs of all the food and labor and expected returns, the advertising is all done for you 24/7.
- Also, your suppliers are already figured out for the best prices and quality.
- All the forms and paper work are already made for your business operations and so forth.
Are you getting the point yet?
Subway franchises are not cheap, but by the time you factor in all the work, the time, the frustration and the experimenting, it saves you to just step into a proven franchise model, it’s way smarter and way cheaper to just go with the franchise.
All you have to do is buy the license and step into the boots that have already been designed for your ready-made profit-machine.[/feature_box]
Frankly, it would be foolish to start from scratch when you can just plug into an established, proven business model where most of the work is already done for you.
With a Licensing model your up-sells are built right in and they have already been proven to sell.
And you know what?
You might make 12% on the sandwich (foot in the door), but you’ll make 96% profit on the soda (the upsell/backend).[feature_box style=”7″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” width=”550″ alignment=”center”]
With a Licensing model, there is no guess-work and the best part is that…
- The company you bought the franchise from has a strong interest in your success.
- They don’t make money unless you make money. That is what your franchise fees go toward.
- That is why they sold you the franchise and that is why they provide you the exact “how-to” on everything they do so that you can just plug into their systems and start profiting right away.
- That is why they have coaches to help you get set up and to provide ongoing help and advice.
They want your store to be successful.[/feature_box][feature_box style=”14″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” alignment=”center”]
Now which do you think is the
smarter way to make money?
1. Send your friends and family to Subway so that you can earn $0.50 for the first ‘foot in the door’ sales and nothing on any subsequent purchases?
2. Plug in and get the license and sell to your customers over and over and over again for years to come, keeping all the profit to yourself?
Obviously #2 is the way to go![/feature_box]
Do you see how this saves you countless hours and years of experimenting, suffering and being broke?
Licensing is hands-down the best business model.[feature_box style=”15″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” alignment=”center”]
Again, to reiterate, around 85% of franchises succeed and over 80% of non-franchise businesses fail…[/feature_box]
Now, what about online businesses?
Well, this is no news anymore… over 97% of online businesses fail.[headline style=”1″ align=”center” headline_tag=”h1″]Now, How Does The Licensing Model
Works In The Online Environment?[/headline] [feature_box style=”18″ title=”As%20an%20Internet%20Marketer%20or%20a%20would-be%20internet%20marketer%2C%20it’s%20your%20choice%20to%20make%20-%20you%20can%20decide%20to%20do%20all%20that%20hard%20work%20yourself%20or%20you%20can%20just%20simply%20plug%20into%20an%20already-proven%20online%20License%20model.” alignment=”center”]
1. You can decide to make money as an affiliate – working for someone else why they keep the profits from your effort…
2. You can take months or years creating your own products – with all the hard work and uncertainties OR.
3. You can simply buy into a model that’s already proven to work – a model where everything has been completely done for you and guaranteed to make you money almost from day one.
The choice is yours.[/feature_box] [headline style=”1″ align=”center” headline_tag=”h1″]Starters Vs. Finishers[/headline] [feature_box style=”14″ only_advanced=”There%20are%20no%20title%20options%20for%20the%20choosen%20style” alignment=”center”]
A starter is a product creator or an inventor. Starters think out the idea and work on it until the idea comes to fruition and hopefully succeed. In most cases, they take years cooking up and refining their ideas and most of the time, they hardly enjoy the fruit of their labor as they grow old and weary in the process.
The people that enjoy the hard work of inventors or starters (in this case) are those they leave behind after they are gone. Only few starters enjoy their hard work while still alive.
A Finisher, on the other hand, is someone who is smart enough to tap into an already existing and successful (business) idea, make it their own and make a success of it in the shortest time possible.
I prefer to be a Finisher AND THAT’S WHAT THE LICENSING MODEL OFFERS YOU.
With licensing, you are tapping into a business model that’s already proven to work.[/feature_box]