Franchising Vs The Internet

When considering a path to your financial dreams, it's very rare that one can become financially independent working for anyone else. So, is franchising your answer?

It's a common misperception that owning a franchise is the answer to all our financial dreams. For a select few this may be the case, or may 'have been' the case. Today's franchise environment isn't what it used to be.

For starters, in the old days - at the beginning of the franchise boom, getting a McDonald's franchise was actually within reach for the small, hard working entrepreneur who had the drive and passion to run his own business, but simply need a proven path to follow. Many of those early McDonald's franchisees got wealthy due largely to the appreciation of their real estate assets (that dirt they purchase way back in the beginning turned out to be some of the most valuable in any market) - who knew!

Today, that environment has changed dramatically. Not only are the requirement significantly different, the harsh reality is that "the perception of rewards" is often very different than reality. The American Franchisee Association, a trade association that represents franchisees nationwide, reports that many members are unhappy with the franchises they purchased. Many say they would have made different choices if they'd known before what they learn after getting involved.

But a franchise is supposed to be a perfected business model almost ensuring your success - right? Wrong! Franchises now have a failure rate that exceeds 30%! Franchises also offer poor profitability when you factor what equals 6%-18% of gross sales for royalties and other fees going to the franchisor. Combine that with excessive up front costs (Avg. capital investment exceeds $500k) and a legal notebook full of rules and regulations that must be followed, I ask you seriously is a franchise really something you should even consider?

What about the Internet? How many entrepreneurial businesses, services and ways to earn money online have been created by Google, eBay, Yahoo and the hundreds of other online enterprises?

With the internet, you don't need a significant amount of start-up capital and can be "in business" within a matter of a few hours to a few days. Yes, making money online is more than just having a website. But, I dare you to compare the returns that are possible through a well run internet business as compared to that of a franchise!

More importantly, there are so many ways to earn money online that you don't even have to have your own unique idea, product or service. Simply learning how to market on the internet puts within your reach profits from Affiliate commissions or developing your own direct sales business.

Online marketing isn't for everyone - but neither is a franchise. Today, more than at any time in our history people are in need of earning more income, either part or full time. Today, more than any time in our history the internet is available to a larger percentage of the worlds population making each of them your potential customer.

Still considering a franchise? I encourage you consider online opportunities too. Who knows, you may find yourself in the same position financially as some of those original McDonald's franchisees - laughing all the way to the bank.