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Unread 28th Dec 2011, 04:50 PM   #1
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Feedback on Franchising Concept
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While I am relatively new on this Forum I am an experienced Marketer and Business person with over 20 yrs of experience.

My company has Account Managers in markets all over the US and quite frankly the Hiring, Training, and Management of the Team has become tiresome and taken my focus from what it is that I love to do...and that is sell.

Myself and my National Sales Manager, who is also a close personal friend, have been toying with an idea that we have not yet seen done.

Since there seem to be many people on this forum who have an interest in Mobile Marketing I figured I would throw the idea out and see what the feedback is.

We have the whole sales process down to a science. We have the platform, we have our own proprietory CRM, Training Materials, Sales Collateral etc in Place.

I am considering going from a Sales Organization to a Franchisor.

Essentially provide everything a Mobile Marketer Might need to run a Mobile Marketing Business for a Monthly Fee and percentage of Sales.

We would handle monthly billing and Customer Support. Let the Franchisees handle their own hiring and training, and turn our support focus to the Franchisee Base all while bolstering our own Brand Identity.

Pricing for start up would be less than what the Reseller Platforms are charging.

Too many of the SMS platforms have tried the MLM approach which has accomplished only damaging the industry due to the lack of actual training and support.

I am not going to go into specifics or give too much away, but I would just like to gauge what the interest is from people looking to start their own Mobile Marketing Business.

I would appreciate constructive feedback.

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Unread 28th Dec 2011, 09:27 PM   #2
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I may be interested if the numbers work, need some info though.
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Unread 28th Dec 2011, 09:52 PM   #3
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I think you are on to something here.

To some extent, franchising has been done, whether it be a reseller or white label option.

However, I think that there are people, like myself, who are looking for a complete turnkey mobile marketing business. For me, that would mean all of the technical stuff taken care of. I am a sales rep, and I, like you, would just want to sell the products. Please feel free to PM me on this.

Thanks.

John

mobile mobile mobile mobile etc....
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Unread 28th Dec 2011, 10:18 PM   #4
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I would be concerned with this part "Essentially provide everything a Mobile Marketer Might need to run a Mobile Marketing Business for a Monthly Fee and percentage of Sales."

Why not just become a reseller of some other mobile marketing company? Then I would not have to pay a monthly fee to the franchise or a percentage of sales. Only thing I would probably be required to pay is whatever the package contained that I got into.

Not really sure the learning curve is that high on selling mobile marketing that I would need a franchise concept to do it.

Plus, to me a franchise is only as good as it's name. If it is not a nationally known name then what purpose does it really serve? McDonalds is a franchise and people all over the world know the name. SeekingSitters is a babysitting referral service franchise. Who exactly has heard of them? What weight does that name carry with it? To me none.

To me a franchise concept only works on a name basis and that is coming from someone who is part of a franchise (not in the mobile realm).

Just my two cents.
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Unread 28th Dec 2011, 10:28 PM   #5
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I think when McDonald started franchising no one new them and they certainly were not a common household name along with everyone else that does any start up.

I am not seeing much difference between this and a resellers white label as there is a monthly fee and so much per client a month
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Unread 29th Dec 2011, 12:42 AM   #6
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Originally Posted by hand View Post

I would be concerned with this part "Essentially provide everything a Mobile Marketer Might need to run a Mobile Marketing Business for a Monthly Fee and percentage of Sales."

Why not just become a reseller of some other mobile marketing company? Then I would not have to pay a monthly fee to the franchise or a percentage of sales. Only thing I would probably be required to pay is whatever the package contained that I got into.

Not really sure the learning curve is that high on selling mobile marketing that I would need a franchise concept to do it.

Plus, to me a franchise is only as good as it's name. If it is not a nationally known name then what purpose does it really serve? McDonalds is a franchise and people all over the world know the name. SeekingSitters is a babysitting referral service franchise. Who exactly has heard of them? What weight does that name carry with it? To me none.

To me a franchise concept only works on a name basis and that is coming from someone who is part of a franchise (not in the mobile realm).

Just my two cents.
I appreciate your point and respect your opinion...

First, it seems you havent researched what is costs to become a Mobile Reseller. Platforms are charging hundreds to thousands of dollars upfront and requiring hundreds in monthly minimums just for access to their platform.

The difference would be not only providing the Platform, but the training and tools. Additionally, starting a small business is tough when it's just you and you don't know what you are doing.

There is a learning curve, whether or not you realize it.

Additionally, the concept provides a support net.

If a "Franchisee" or as I am leaning towards calling "Authorized Agency", finds themselves in a scenario where they don't know an answer to a question or the potential client wants to feel they are dealing with a "Company" and not a 1 man operation, the AA can pick up the phone and call Corporate. Image is everything in many cases and can create the impression of stability.

A Business Owner can Google "HypeText Mobile Media" and find literally Thousands of References to us...it doesnt make the little guy look so little anymore.

We would also have the availability of handing Technical support/Customer Support as well in cases where the local AA isnt available. Reseller Platforms don't do that.

I am even considering providing geographic lead data so that AA's have a jumping off point.

And Lastly, it will cost dramatically less than purchasing a reseller platform.

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Unread 29th Dec 2011, 12:50 AM   #7
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Originally Posted by javarog View Post

I think when McDonald started franchising no one new them and they certainly were not a common household name along with everyone else that does any start up.

I am not seeing much difference between this and a resellers white label as there is a monthly fee and so much per client a month
Pls see my response to "hand"

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Unread 29th Dec 2011, 06:18 AM   #8
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What services would be offered? and how would the front end approach for the "Authorized Agency" be handled?

Thanks,

John
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Unread 29th Dec 2011, 07:02 AM   #9
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Actually I have researched what it cost to be a mobile reseller. Not really too sure on the "thousands" part but maybe a few hundred yes.

Your correct there is a learning curve and that is the only reason a franchise concept works if it is active. Otherwise there are forums
and many others out there that are willing to teach others and share vice going a franchise route.

Understand a business owner can search "hypetext mobile media" and find references. Can that same owner type "mobile website" or "Sms advertising"
and get the same results? That is what a typical owner would type and look for not the exact word "hypetext".

And the reference to you would deal with billing and support. With customers I have now I am the support and do the billing. Does it take time
away from other sales I could be doing yes it probably does. But, does it keep "me" in the customers eyes and mind dealing with me yes it does.
So to me it's a trade off and one I would not want to do without.

As far as price goes I guess that would be the bottom line. Is anyone aware what it cost to get legal UFOC's done up? How much it actually cost
to start a franchise? How much it cost to sell a franchise in "each" state (yearly)? These are all cost that someone is going to pony up and
I really don't think any Franchise is going to absorb the cost on themselves without passing it on.

Now as far as "McDonald started franchising no one new them and they certainly were not a common household name along with everyone else that does any start up." Your correct but in this day and age any startup better have a big chunk of change out there to do advertising etc to get their name out there otherwise it won't happen.

Again, I have no issues with franchises but I don't think they are the greatest route for everyone.
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Unread 29th Dec 2011, 02:03 PM   #10
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Originally Posted by hand View Post

Actually I have researched what it cost to be a mobile reseller. Not really too sure on the "thousands" part but maybe a few hundred yes.

Your correct there is a learning curve and that is the only reason a franchise concept works if it is active. Otherwise there are forums
and many others out there that are willing to teach others and share vice going a franchise route.

Understand a business owner can search "hypetext mobile media" and find references. Can that same owner type "mobile website" or "Sms advertising"
and get the same results? That is what a typical owner would type and look for not the exact word "hypetext".

And the reference to you would deal with billing and support. With customers I have now I am the support and do the billing. Does it take time
away from other sales I could be doing yes it probably does. But, does it keep "me" in the customers eyes and mind dealing with me yes it does.
So to me it's a trade off and one I would not want to do without.

As far as price goes I guess that would be the bottom line. Is anyone aware what it cost to get legal UFOC's done up? How much it actually cost
to start a franchise? How much it cost to sell a franchise in "each" state (yearly)? These are all cost that someone is going to pony up and
I really don't think any Franchise is going to absorb the cost on themselves without passing it on.

Now as far as "McDonald started franchising no one new them and they certainly were not a common household name along with everyone else that does any start up." Your correct but in this day and age any startup better have a big chunk of change out there to do advertising etc to get their name out there otherwise it won't happen.

Again, I have no issues with franchises but I don't think they are the greatest route for everyone.
While most are several hundred, several are in the Thousands, such a TextCoMedia, and Avids White Label on a resellers own domain.

First, Billing for management and set up would be performed by the Local agency, the only billing I was referring to was the monthly platform account for packages.

I should clarify that while the concept would be similar to franchising, it would not be an actual "Franchise" as there would be too many regulatory hurdles and legal filings to deal with.

It would be more of a concept akin to what the Insurance Industry does or the Real Estate Industry does where Local Agency Owners operate under a Flag and avail themselves of the training, tools, and brand of the main company yet the local office is independently owned and operated.

That way monthly fees and startup costs could be partially spent on marketing via TV and the Web to build Brand Awareness.

Before you comment on the huge cost of TV...I have contacts in the industry and can buy leftover spots as low as $1/1000 viewers so the expense wouldnt be as daunting as it might seem.

While starting a B2C type business requires a huge advertising expense to get in front of consumers, there are many easier ways to build brand awareness for a B2B Organization that are far less expensive.

I havent hashed out all the details so the idea is still formulating, thats why I asked for feedback.

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Unread 29th Dec 2011, 02:22 PM   #11
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Sent a PM to whom? I havent received anything...

UPDATE

I see you have 3 posts...and probably can't PM yet...that would explain it! lol

My Office number is in my signature and I am at Ext 313 if you want to call

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Unread 29th Dec 2011, 02:24 PM   #12
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Dean ,, don't think you have enough posts to pm
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Unread 29th Dec 2011, 02:28 PM   #13
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Originally Posted by javarog View Post

Dean ,, don't think you have enough posts to pm
Chances are he has figured that out by now! lol

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Unread 29th Dec 2011, 09:12 PM   #14
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Well I was going by your original post saying "I am considering going from a Sales Organization to a Franchisor."

But now you say "I should clarify that while the concept would be similar to franchising, it would not be an actual "Franchise" as there would be too many regulatory hurdles and legal filings to deal with."

So that pretty much changes everything. By the same token wording as we see is very important when someone says something along those same lines it's a fine line in what is or is not a "franchise" and what states consider one.
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Unread 30th Dec 2011, 12:24 AM   #15
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Originally Posted by hand View Post

Well I was going by your original post saying "I am considering going from a Sales Organization to a Franchisor."

But now you say "I should clarify that while the concept would be similar to franchising, it would not be an actual "Franchise" as there would be too many regulatory hurdles and legal filings to deal with."

So that pretty much changes everything. By the same token wording as we see is very important when someone says something along those same lines it's a fine line in what is or is not a "franchise" and what states consider one.
It was an attempt in putting the concept into words that would make sense to the majority of marketers on here as many don't have industry specific knowledge for certain verticals.

If they havent had exposure to the Real Estate, Hotel, Insurance, or Bankcard Industries using the term "Flag" or "ISO" wouldnt have made much sense to them.

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Unread 30th Dec 2011, 11:05 AM   #16
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Originally Posted by hand View Post

Well I was going by your original post saying "I am considering going from a Sales Organization to a Franchisor."

But now you say "I should clarify that while the concept would be similar to franchising, it would not be an actual "Franchise" as there would be too many regulatory hurdles and legal filings to deal with."

So that pretty much changes everything. By the same token wording as we see is very important when someone says something along those same lines it's a fine line in what is or is not a "franchise" and what states consider one.

Instead of splitting hairs on the language used and if you are interested why not just pick up the phone and call them to find out what they have to offer,,, it may not be for you but at least you will know.
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