That is a great question, the best way to answer this would be to point you in the direction of companies like Mcdonalds, Buger King and Wendy’s. The founders of these companies created successful business models and obviously have the capital to expand, yet actively recruit new franchisees every year.
So why do the franchises charge a fee to have access to their proven model? Leverage.
Let’s break the numbers down why we can’t possibly keep building new stores. For Amazon, the product sale/ commission return is two weeks. On the low side we expect to profit 10% of bi-weekly sales revenue.
So what does that mean in numbers? If you have an account profiting 1k/month you need to have 10k on a business line of credit in order to collect the cash flow. Now think about these numbers for over 100 accounts that are generating 100k/month in revenue? That would mean our partners would need to have 10 Million available in a reserve account at all times to profit 1 million.
But the truth is, we aren’t liquid for 10MM at the moment. So a more effective way of growing our model is taking on franchisees like yourself and charging a percentage for performance for the lifetime of the account. That way our capital can be used to grow our business, you get a passive income and everyone wins.
With Amazon and Ebay businesses there is a risk that your account can be suspended temporarily. With Shopify and subscription brands there is a risk that your ads do not convert on the first campaign. We do offer buy back guarantees for certain programs to miditage this risk for our clients however.
With Amazon you are paid bi-weekly. With Ebay you are paid every 3 days. With Shopify and subscription brands you are paid monthly.
Your rate of return will vary pending upon the package that you select. We have packages ranging from $7,500 to $50,000. A 7.5K store would net you a profit of about 2-4k/month in 12 months. A 50K store would net you somewhere between 20-30K if not more.
Yes. There is more leverage to grow a Shopify and Subscription Brand over Amazon and Ebay accounts however. The reason for this is because profits can be injected into paid advertising which immediately will compound into more profit.
We have many different programs but our lowest profit margins are 10%. Our highest margins are 35-40%
Other than providing us with your account details or helping us decide which audience you would like to target. Nothing. We created this business to be a service to you. We know how difficult it is to set up a profitable online business which is why we’re offering you the opportunity to hire our team. Some of our programs do provide training and coaching so you have the ability to scale the business on your own but the majority of our clients make money without using any of their time.