Moving My Offline Business To New Countries

6 replies
Hello All,

I wanted to post this here as I think people at this forum have the experience and willigness to give me a hand, advice or even join me in my offline venture.

About me:

I am in Finland, and I have been an entrepreneur for 8 years. My business has been building websites for local businesses, doing SEO for them, etc... and I have made a very good living out of it as there is no competition here, and it is impossible for non-natives to enter the market.

But 2 months ago, I was introduced to a new loyalty program that is destined to help smaller businesses to start and to run a loyalty program for local customers. The good thing is, that the loaylty card works in every business that has accepted to be part of it. For example, I buy a lot of electronics from a french online retailer and get 5-25% off on list prices (that are already 20% cheaper than here at home). And also, on my recent trip to Dubai, I used the card at a restaurant, and a jewellery store to get an extra 5% off a present for my wife.

Business owners like the program because it gives them savings in B2B sector. My neighbour owns a small cosmetics store, and by entering the program she was able to save on buy-in costs, and increase her cut by 5% without raising prices. It might seem small, but when competing against the big brands, its a big win for a small retailer.

The loyalty program works very well in Europe, but there are not enough people yet to make it a huge player, and basicly the show so far is run by franchisees that believe money runs in by itself.

I've doubled my yearly income in a month so this was a huge win for me, but I'm now looking into expanding to other European countries, USA, Canada and India. I have some contacts in USA but none of them are business-mind oriented.

Basicly, I bought the franchise ID (just like opening a Mcdonalds), and went off to present the idea to potential customers. Nothing new to what I was doing before. The thing is that if I sell the program, I don't make money immediatly. I make money when when the business/private person uses the card, 1% of the price they paid, and 0.5% on every transaction their client makes.

But on every sale I get points that add up to a bonus, and my current bonus is € 5k per month + about € 10 K per month from card uses. I have only 22 customers who are using their card, and they have sold the program to their partners (78 in total), and I make 0.5% from those transactions.

Some people here have accused the program of being a pyramid, but it isn't because the guy who sold the program to me, doesn't make any money from my clients. It is like a fast-food franchise: You buy the franchisee ID, and then build your business, get bonuses, etc... BUT you don't pay hefty sums on your revenues to the mother company.
The program need to be understood first to understand the huge potential. And like any business, this is not for those after a quick buck or who think business+work don't walk side by side. I want to own the markets now, when there is no competition yet.

So here in Finland, with only 100 people as my clients directly or undirectly, I am able to hit € 15K per month, and increasing. So it is probably very clear why I would want to move to bigger markets.

So, any help, advice or questions on how to expand will be mostly welcome. And also, if there are interested people in USA, Canada, Germany, Austria, Belgium, Holland, France, Sweden, Turkey and India to get more information on how to join, the legal stuff and other specs, just PM me or lets talk about it publicly in this thread.

- Miksu
#business #countries #huge opportunity #moving #offline
  • Profile picture of the author SEOMasters
    Always interested in expanding.
    Can you send me the details by PM?
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    • Thanks for the reply. Lets keep this discussion public, ok?

      First of all, where you from?

      Well, my dilemma is that I don't know how to effectively enter foreign countries markets from here. So, what I can do is offer the franchisee package to someone in that country and they can take it from there.

      Money wise, its bit stupid as I wont make anything on the sale, nor from the persons/companys clients. But I will get something in return when people start using the loyalty card.

      That's the beauty of this. Passive income that never stops as people will spend money and buy things everyday.

      A very recent example of what I do is, I got a friend of mine to buy-in the program. He manages a large retail chain here in Finland. He sold the program to their suppliers, and made them loyal as the suppliers save money only when dealing with his stores. And on the other hand he saves and makes money when buying from these suppliers.

      What did I get? I got 400 bonus points and 1% cut off every transaction my friend and his suppliers make.

      Or put it this way, you could sell the program to your friends and family, and your business clients. You get 40 bonus points per sale, but the biggest is that when they start using the card, you get 1% from every transaction they make, and 0.5% from transactions their 'clients' make. And as a plus you can shop yourself in (mainly) european online retailers and save with them.

      The issue here, is that the show is currently run by people who have never run a business, nor have any idea on selling and marketing. And US is a huge market. it's a speed game where the fast rule.

      The consumer cards are not available yet in other countries than Germany, Austria and Switzerland and Dubai. Because for the consumers to be able to use the card, there has to be businesses where to use it.

      That's where I want in, and what I keep telling people to get in this. Rule the B2B market first and when the cards can be distributed to consumers, you can sell thousands of cards easily, as they have places where to use them, worldwide. The card cost 2€, but you should do like me and sell it to consumers for 3-5€. It's a one off payment.

      The Franchisee cost is 2000€ here in Finland, and you can get the deal from me. I dont make anything from that transaction.

      However I dont accept just anyone as I dont wanna ruin my reputation and my business, and also the person/business must understand the benefits, pro's and con's of aceppting the system.

      The thing here is that this is a longterm business that is build over time. I was lucky and got 3 big deals right at the beginning, and money is coming in now.

      The bonus points are good if you get around 400 - 1500 points (u get 40 points from each sale) because then you get a money bonus of around 2k - 45k per month.

      Basicly my target is 2500 points and 2000 - 5000 cards, so I can relax with a passive income of around 50k+ per month, but it will take time.
      The US market is my target now because there it is possible to achieve these numbers within weeks/months. India is also huge, but it is so big that I would need a team to enter it.

      I know you got questions, so please ask. And if you wanna know more please PM me back. If you want more info I'll go into the deeper details, and please note that I am not selling anything to you. It is entirely up to you if you think you can run this business.

      The numbers above are not just hype, when there is no competition to achieve those numbers shouldn't take long.

      My german friend has started with only munich region 10 months ago, and he is now pulling in over 100k per month, and that is my target too.

      I have made plans for certain countries already and would be happy to share them if you get interested more.

      Looking to hear back from you,

      - Miksu
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  • Profile picture of the author Colm Whelan
    If you're looking to generate interest from people like yourself, i.e. entrepreneurs, then I think you'll need to explain this a little better. To me, the way you've described it makes it sound like a cross between a pyramid and a Ponzi scheme. (Similar but not the same)

    It all sounds great when you throw around figures like €5K-€45K per month but where is that money coming from?
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    • Originally Posted by Colm Whelan View Post

      If you're looking to generate interest from people like yourself, i.e. entrepreneurs, then I think you'll need to explain this a little better. To me, the way you've described it makes it sound like a cross between a pyramid and a Ponzi scheme. (Similar but not the same)

      It all sounds great when you throw around figures like €5K-€45K per month but where is that money coming from?
      Hey!

      Well, I'm looking for people that would/could be interested and enter the untouched markets, and I am not asking for money from anyone.

      I don't wanna explain all the details in public discussion as I am not permitted to do so by contract, but I'll answer all questions to the limit that I can.

      My first thought was that this was a pyramid or a ponzi, but I got in knowing that I can get my money back. When I got the idea how is this profitable for businesses and common people, it was very straight forward.

      The income numbers come from this:

      - For each new client I refer to the company, I get 40 bonus points.
      Points accumulate, and when reached high enough the mother company pays me a monthly bonus.

      I dont know how many points you have to get to before the bonuses start coming in as I landed 3 big clients right from the start and jumped up there straight off.

      - The people/businesses who got in to the system and were reffered by me, were issued a loyalty card that enables them to save/get cashback on their purchases at partner businesses. So when they use the card I get 1% of the transaction, and 0.5% of the transactions their clients make.
      You can do the math by estimating how much products does a retailer buy-in per month, and taking a 1% cut off that sum.

      However, common customer cards are not being issued yet. Only B2B cards. This is because there is no point giving a normal user a card that they can't use yet locally.

      The sums I mentioned can be calculated from there, just as you would calculate your adsense earnings from CTR.

      The point here why I opened this thread is to get some perspective from users in other countries, especially the US which has just opened.

      The american market is the biggest opportunity here until it gets too crowded, and especially before common user cards are being distributed. And I have met skceptics (I was one) and some of them understand the potential, others don't. And it is not my loss. I have never purchased an online marketing software as the sales letters are full of *** and the 'products' would never work anyways.

      What I am proposing here is a normal business opportunity, not a get rich quick thing, a pyramid or a ponzi.

      This is like setting up your own McDo:

      - You buy the franchise license (200k or something)
      - You get your space and make it in to a fastfood restaurant
      - You buy equipment, etc...
      - You hire staff
      - You pay fees, franchise fees, salaries, etc...
      - If you are good enough you get a yearly bonus from McD.
      - You work daily to get the income streams open.
      - Saturated market: how many fast food chains are in your town?
      - You will have to get a 1mil dollar loan to get properly started
      - Even if you don't make any profits, the mother company still takes a cut off your money.

      ...Or starting your offline website building business:

      - You buy the software and hardware you need.
      - You rent office space, server space, etc...
      - You build a potenial client list
      - You cold call and set-up meetings
      - You sell your skills to them
      - You market your work
      - You learn new skills, and pay for learning seminars, guides, etc...
      - You work daily to keep the income streams open.
      - Extremely saturated market in most parts of the world with alot of competition.
      - 1 yr, 2 yr contracts. A constant need for new customers.
      - Even if you dont get clients, your costs keep running.

      ...What this is:

      - You buy the franchise ID and get Your card
      - You learn the program, its pro's and con's.
      - You make the potential purchaser list
      - You set-up meetings, face-to-face or online
      - You sell the card to your clients
      - Income streams stay open even if you take time off, as people use the card.
      - If you are good enough you get the monthly bonus.
      - No competition worldwide.
      - Cheap to start ( 2000€)
      - The mother company doesn't take anything from your work.
      - Easily scalable. No recurring costs.
      - Constant income as long as people use the card.
      - Easy to aquire new card users.
      - Cons: Skeptics, as too many scammers around.
      - You must have 4 reffered franchisees before you can personally issue cards.

      I have made 2 deals that when the common customer cards can be distributed, these 2 entities will buy the cards for their people from ME. This means that in April 2012, 85 000 people will use the card for everyday shopping like gas, groceries, clothes, etc... and I will make 1% off each transaction. And 1% off each B2B transaction. And they pay me 3.5€ per card, from which 2€ is issuing costs, so 1.5€ profit per card.

      So the estimate would be probably 100k per month, depending of course on how people shop, etc... And this is a number for a country with only 5 million habitants.

      Can you now understand why I am interested in The US market and refferring good people to this???

      I hope to hear back your thoughts.

      - Miksu
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  • Profile picture of the author micalmartyin
    I agree to whatever has been highlighted in the article. Individual efforts are quite essential for the success of small business venture. Attitude also plays a significant role. I liked the article very much.


    For more information related to this business opportunity, starting small business, small business startup and entrepreneur indiaplease visits: entrepreneurindia.com
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  • Profile picture of the author everge
    Hi...is this program Lyoness?
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