EZ eCommerce Solutions.com

Article by WM Simpson

WHAT EXACTLY IS A TRANSCRIPTION JOB

Individuals who work from home as transcriptionists are often expected to produce typewritten copies of recorded material which they will then edit and tweak right on their home computers. Because of the very essence of this type of job, the skills of a transcriptionist can easily be used in many other work at home opportunities as well.

WHAT KIND OF EQUIPMENT IS NEEDED

This is probably a good place to inform you, however, that many transcription jobs may require specialized equipment depending on actual tasks to be performed. While is important to know so that you can see if you’re will in to invest in the specialized equipment, it might also be helpful because you may be able to invest in equipment that can be used for several types of jobs. This is one sure way to get an even quicker return on your investment should you go this route.

WHAT KIND OF TRAINING IS REQUIRED

Typically, transcriptionists do not need any formal training. However, it is not uncommon for them to be expected to understand standard legal terminology and have an above average handle on the English grammar.

HOW MUCH MONEY CAN BE MADE DOING THIS TYPE OF JOB

Regarding pay, depending on the actual assignment, we found that some transcriptionists can expect to make as low as K and as high as K according to a few resources. However, pay generally is based on your experience level.

Finally, and hopefully to no surprise, you will have to be a fast typist. The lowest required speed I found that hiring companies are looking for is 60-65/wpm (these were far and few between though). I mostly saw companies looking for people who could type at speeds of 80-95/wpm.

In any event, this work at home job type can be a worthwhile venture if you’re interested in the details mentioned above.

As always, good luck with your research and much success with whichever one of the top legitimate home businesses you decide to go with.

Thanks for your time and GOD Bless! WM Simpson (‘Walt’)

IMPORTANT NOTE TO READER: Take a look at how WM Simpson (the author) earns a living from home at www.webmarketing4wealth.com. For more top home biz reviews, visit homebizreviews.webmarketing4wealth.com

Are you looking for a legitimate Christian home based business to start? Then you can now make a significant income online with the help of a lucrative home based business opportunity. People are continuously hunting for ways to earn money quickly and generally search the Internet since it is a large and dependable source of information as well as income opportunities. Therefore, you may be able to earn a substantial income easily as there are many Christian home based business models to choose from. Before you select any online home based business, you should evaluate your choice as a legitimate Christian home based business has many business models to help you in earning money online. A legitimate Christian home based business is a great way to work from home and earn a substantial income as well. It is now entirely possible for you to sit relaxingly in your pajamas and enjoy the comfort of being with your family while making a significant income with your new home business. Here is what to look for in a legitimate Christian home based business, in order to enjoy the rest of your life by earning enough to live comfortably and experience all the luxuries you always dreamt of. – You will see many online companies offering home based businesses that are Christian, but you should not wholly trust all that you see. Do some research and find a genuine online company offering you what you are actually looking for. – Though, you must look into what many other online companies have to provide. Choose several companies to compare the home based solutions that are offered. The online home based business solutions are infinite, so you have a great selection to compare and then pick one that is legitimate. – Look for a home based business opportunity that a genuine Christian company has to offer. Choose the opportunity that is not only profitable but also quick to execute. – Choose a legitimate Christian home based business that is reliable and established. You can do this by reading feedback about what the company is providing to you in this business program. – Once you choose an online Christian home based business opportunity, go through the training carefully. Go along with the procedure as said. – Usually, you are required to fill an online form with basic details like name, email address and contact number. Your personal details is kept secret. In conclusion, a home based business is an easy way to make a significant income. Furthermore, you don’t have to invest much to start your own business and therefore there is a minimal risk that you face in this business. So, if you are looking for a legitimate Christian home based business to start, simply connect to the internet and choose one that is suitable for you.

To find out more about Christian home based businesses or how to start your own legitimate Christian home based business, please visit us at – http://integrity-home-based-business.com

Article Source:http://www.articlesbase.com/business-articles/6-signs-of-a-legitimate-christian-home-based-business-1352202.html

Finding a legitimate online business to be involved in these days has proven to be harder than it used to. With the increase in online business scams, you really need to put in extra effort to avoid falling into their traps. In this article I will touch on some of the ways you can apply to reveal and avoid business scams online.

One of the most obvious scams that I see online are businesses that claim to make you thousands in the first week or the first month, but surprisingly these offers attract the most responses. Look, the rule of thumb is well, for me at least. If they seem too good to be true, then they are too good to be true and the more reasons why you should be cautious about them.

Here are a few steps you can take to avoid being scammed. On that particular online business opportunity website, go to their “About Us” page, then look for their business address and check if they are valid. Call them if their contact number is listed. You are also checking if their contact number is real at the same time. Find out who their investors are. Where their references and testimonials come from. Ask questions like do they really exist? Are they reliable sources you can trust?

Good legitimate online businesses normally offer free training. Most include training manuals and online video tutorials to go with. Marketing tools such as banners, squeeze pages and high converting sales letters should be readily available to their members. There must also be a good support system or a support team standing by to answer queries and questions that members have.

You should be cautious if they ask for a deposit from you to start your online business. Legitimate home businesses online normally don’t ask for advance payments. If they do it would for upgrading your membership status to receive better benefits. For example to receive a higher commission, gain access to information normal members don’t and so on.

There’s another rule of thumb that I would like to share with you. That is if you find particular online businesses that are being promoted by most popular sites or internet marketers, those are most probably safe businesses to promote. If you want to be even more certain, post questions in online forums. Bad apples are revealed in forums most prominently.

After you have chosen a legitimate online business to promote, monitor for a few months if its commission payments are prompt. Check whether it delivers that have been promised and most importantly, listen to your heart, to your gut feeling. If you are comfortable with them and seem promising, go all out promoting it.

It can be tempting to choose any of the overwhelmingly enticing business opportunities online. The flashy sites that offer the chance to earn thousands of dollars per week while simply maintaining a website are jaw dropping. Are these legitimate or a scam? It can be difficult to know the difference between fraud sites and honest opportunities. There are some tips to follow in order to find which methods you should apply for and those you should turn your back on. There are basically ten areas of interest that you should review before allowing yourself to become involved in business with. These areas are listed as well as described below.

Ten Hints To A Legitimate Online Business

1. Proven business systems show proof of successful results. Businesses such as well- known franchises, successful online shopping sites, etc are proven business systems. These businesses run off of a proven model of business structure that shows you how to achieve business success.

2. Time in business for any successful company should be 5 years or more. If a business is offering opportunities and has less than five years successful business, look elsewhere.

3. Hype of earning thousands of dollars in a short amount of time is a key point that this is not for you. If they guarantee you will make X amount of money in a specific amount of time it’s a lie. No one can guarantee this as every business succeeds at its own rate.

4. Credibility and proof of legitimacy such as being registered with the BBB or better business bureau is key to an honest and legitimate opportunity.

5. Product or services that you offer, advertise or sell have to be something that people have a need for. It should be an item that is needed constantly like vitamins, hygiene, healthcare and so on.

6. Compensation plans are a necessity for anyone going into an affiliate program. This ensures that even if you are not selling for any period of time, the compensation plan due to tier members under you provides income.

7. Resources and training should be provided with a solid and trustworthy program. If not it’s a fraud or scam site.

8. Lead generation systems are a resource that is very helpful to new comers in the Internet business. The chance to buy high possibility leads for a fair price can help you to get a leg up.

9. Support has to be available through upline members, email, phone, live chat or forums. Without support how can any business expect you to succeed?

10. A free trial is a key component of a site to show that a business has nothing to lose and has faith in their business.

These are only ten of the basic tips that when followed will help you to pursue a legitimate Internet business or home business opportunity. You also want to get documents in print and you want to always have a full understanding of the business prior to giving any information such as your bank account, social security number and so on. Always feel your way through a site and take heart to your gut instincts. If it sounds too good to be true it often is. Never hesitate to call the BBB or local business chapters to check into Internet businesses legitimacy.

You may be interested in finding a legitimate online business opportunity or wanting to learn how to make money advertising online.

A legitimate online business opportunity would be defined as a real business that could be done on a part time or full time basis while over time providing extra income.

Not long ago, I was looking for some way to make extra money from home but I was unsure where to begin. I did not really know anyone successfully working from home and I knew no one who could show me what to do.

What I did know was I was not alone in looking for ways to make money working from home. I knew that millions of North Americans were also looking for some way to make money from home with their own legitimate online business opportunity. The problem for me was:

1. I only knew a few persons, people in my circle of family and friends who were concerned about rising expenses or approaching retirement years without enough money to pay the bills.

2. I did not know how to make money advertising online or how to use the internet to connect me to enough of the people searching for extra income to be able to create a legitimate online business opportunity.

3. I did not know what system to use that would do the work, nor did I know what company to be associated with that had products that people needed and wanted that I could recommend.

For me, I needed a legitimate online business opportunity system being used successfully by others, maybe work at home moms and dads like I was who did not possess high-level internet skills. Was there a system that could help find interested prospects for me, a system that weeded out people just looking for free stuff and not serious about having a real home business?

And there would need to be people to talk to about partnering up with and beginning my business, people who had already learned how to make money advertising online.

Then a friend handed me a movie to watch that explained how to start making money from home. Before watching the movie, I had questions that I wanted answers to:

1. What did I need to do to make money with the movie?

2. How much would I be paid?

What I found that needed to be done was to hand out or mail out the movie. The movie did the presentations for me, describing the legitimate online business opportunity.

For example, obesity is a national problem and there are negative health consequences from repeated exposure to numerous household chemicals and personal products that are typically used at home every day.

I wanted to find an organization that was concerned about health and the environment, a company that would pay me each month for the business I send them.

So is it possible to find a legitimate online business opportunity that is not too complicated that can also provide extra income when working from home?

Yes, I have learned that it is possible to make money working from home. You too may be someone or know someone who is interested in making extra money working from home and supplementing their regular income with a legitimate online business opportunity.

To make money advertising online, be sure you team up with a mentor, someone who can help you learn like they have to help you create the financial independence that you are looking for.

make-money-online-free.ws How to Make Money Online FREE to Join legitimate online jobs. A legitimate real work at home money making program! This is not a get rich quickscheme but youll earn $500 dollars EVERYDAY at your home. This is aneasy, fast money making internet job. All you need is your computerwith an internet connection. This is a totally FREE way to make moneyonline! NO Selling NO Buying NO Calling NO website to maintain! NOfees, Nothing to purchase! 100% FREE! Get paid by Paypal on-time! Thisis a great home based business for people who wants to build a solidincome from the web. Get a REAL internet job today! You can work athome to make easy money online fast in the next 5 minutes. To join,just visit the website, choose the companies you like to work with toget started! How to Make Money Online Earn $500 EVERYDAY Work at Home JobsFast Easy Cash for FREE Home Based Internet Job Opportunities Get PaidPaypal Working on the Web No Investment Money Making Affiliate ProgramGet Rich Quick Internet Marketing Income!Build Wealth Avoid Scams, Get Help Free You will receive information designed to help you to make money online.Great! Youve just found out the best money making opportunity onthe internet. This is you how to make money online through a REAL work from home internet job. This is a legit internet business. This is the best money making method that can be found on the web. If youre searching for the best way to make money online through working from home then …

Many have ventured into legitimate online business to make an extra income from the internet. This could be with the intention to pay off their credit card debts, buy a new car or even to quit their day job, which I think is good choice due to the low start up cost and the vast money making opportunities online. The question is, are you doing it the right way? This article covers the 2 core principles you must know if you intent to make money online.

The main key to making money online is to sell and pre-sell. There are many approaches to achieving this, but most never really mastered the art of selling online. Well, let’s take a look at affiliate marketing. A business model all internet marketers must get involved with in one way or the other.

Below I have highlighted the 2 crucial factors you must adhere to if you expect to make money with your legitimate online business as an affiliate marketer.

For one, never use the affiliate website to sell to your visitors. You will have a much better chance with creating a website of your own and promoting affiliate products from it. This is your opportunity to pre-sell the products you are affiliated to your potential customers.

One of the most important factors of making money online is pre-selling. Building a business online, or any business for that matter needs to have that human touch. Pre-selling is the ability to relate to your visitors and persuading them to buy from you. This has a huge impact on the money that you will make online and to the growth of your business.

The other important factor is, you need to promote your website if you expect anyone to find it. As obvious as it may seem, the number of online business owners who fail to do this is overwhelming. If getting website visitors was as easy as everyone makes it out to be then we would all be internet millionaires.

The fact is, there are certain skills you need to develop before you can make lots of money online. Copy writing and marketing skills are the two trades you must master. You don’t need to be an expert in them, but you have got to know enough to be dangerous. Even if you are doing paid advertising you need to monitor your ROI (Returns On Investment). For example, if you are spending $100 for an advertising that makes you $70 in sales, you are actually loosing $30. That would not be a wise investment.

There are so many marketing strategies to making money online that it is hard to summarize them down to two specific points. However, if you can stick to the tips above in creating your own website or websites to market affiliate products, and then becoming an expert at marketing it, there’s no stopping you from making a fortune with your legitimate online business.

Am I the only one in the universe not currently making a small fortune online with a home based internet business?

Have I been left behind and there is an internet business boom going on?

Everywhere I look at the moment, online, in the newspaper, in magazines and even signs hanging from telegraph poles at traffic lights. I am being bombarded with information about home based business opportunities that profess to being able to make me large amounts of money, in a small amount of time every week, which will allow me to live the retired lifestyle I have always wanted!

I don’t know about you, but I tend to get a little cynical about claims that suggest you can make a lot of money from nothing and it being accurate or even legal. So what is it all about? From what I can gather there are legitimate online marketing systems that if properly followed have the ability to create an income from several different sources, that the average Joe can access from their computer at home.

Most of these system focus on affiliate marketing and affiliate programs where you join a website that sells various products, whether its digital, such as e-books and software or other every day house hold products like vitamins and cleaning agents. Sounds like the “Avon” of the internet!

If you join the right site, firstly it will be free to join, you won’t have to buy anything, you just have to refer people to this site and when they make a purchase, you receive a commission. This seems to be the basic form of it, and it seems there are hundreds if not millions of these sites world wide that you can sell for. Amazon and Walmart have apparently been running these types of affiliate programs for years!

For the more technically minded entrepreneur, you can run your own website selling other peoples products, completely automatic, by directing traffic from your site via your specific code to these affiliate sites, they handle the financial transaction, deliver the product 24 hours a day seven days a week, from anywhere in the world, then deposit your cheque straight into your account while you sleep! How good is that?

The opportunities seem endless if you have the ability to set one of these sites up, source the right type of products and then get the word out in the world wide web, so enough traffic comes to your site and then decides to buy some or all of these products. Like a lot of home based businesses that have been tried over the years and most failed! I wonder if this one will be the same. As more and more people get on the band wagon and it becomes a much larger industry. Will the boom become a bust?

I suppose every good thing has a tendency to come to an end, but in this time of financial struggle for most of us, I for one am certainly going to try and get in on this boom and ride it for all it’s worth!

Millions of people dream about owning their own business. Having the independence that being your own boss brings, the security that no one can fire you, enjoying a good income – and for the most successful – the accumulation of wealth and prosperity. Unfortunately, the cards are stacked against a new small business making it big – or making it at all. An endless stream of problems makes competition from large, sophisticated chains too intense. Many new start-ups end as failures.

Buying a franchise represents a different approach to starting a business.  For an upfront franchise fee plus ongoing royalty payments, the parent company teaches its business model and methods to the franchised-operator who shoulders all operating and financial responsibilities of the outlet. Some statistics are impressive: it is said over 40% of all U.S. retail sales are through franchised establishments. While franchise giants like McDonalds, KFC, H&R Block and Radio Shack are familiar, household names, franchises are available in a wide range of industries. The list of 3,000-plus companies selling franchises span over 100 different industry categories.

American Dream … Or Nightmare?
But just as franchising represents a chance to get rich, it’s also a chance to get stung. An alarming number of franchised operators make less than the minimum wage, working seven days, sixty to eighty hours a week, pursuing an expensive and elusive American Dream that turns into a nightmare. Since the ongoing franchise royalty payment comes right off the top, as a percentage of gross sales or a fixed minimum amount, the franchise company gets an assured revenue stream, even if its franchised units are operating unprofitably and are sold over and over again to new, unsuspecting buyers. The internet is filled with comments of the many people who lost $250,000 and more on concepts like eBay Drop off stores (iSold It), 30 Minute Fitness concepts (Curves), The UPS Store, etc. Yet many of these companies continue to sell and resell franchises over and over again. How do they accomplish that? Because there are enough people who think they can “believe” their way to success, even with a concept or business that’s not working in the marketplace. As discussed below, in many cases franchise investment decisions are incredibly based on emotionalism, not on business logic or even common sense.

Ownership And Being Your Own Boss?
Pride of ownership and being your own boss are highly touted phrases in franchise recruitment ads. But these are more fantasy than reality. Although you get all the financial exposure, headaches and stress of business ownership, what do you really own? A franchise owner is merely licensing a trademark (or service mark) from a company that dictates every detail of business operations. So the real boss isn’t you, but the company that sells you their franchise rights . . . and sea of franchise obligations.

Equity Build up?
But at least you’re building up equity, the ownership value of the business as a going concern beyond your investment of money, to compensate for all those years of hard work and long hours – right? Wrong – at least in the world of franchising. The franchise company reserves rights to acquire your entire business at below wholesale prices if their contract is not followed precisely. The acquisition rights provide for predetermined asset-based valuations, like book or liquidation value. These valuation methods provide bare minimum compensation (the used value of some file cabinets, office furniture, equipment, etc.) and are not generally used to determine the selling price of any business.

Absolutely no compensation is paid for established goodwill, the value of a business that is generating $X in profit or cash flow every month after years of effort, investment and expense – thus eliminating the most valuable ownership asset. Of course, you may be able to sell your franchise to a third party for a sales price that includes an earnings-based valuation. But that’s possible only if:
(a) you can find a buyer who is willing to live within the complexities of a franchise relationship, and
(b) you happen to own a franchise that’s showing healthy profits.

What follows is a bottom-line franchise checklist and tips compiled by franchise attorney and franchise expert, Mr. Franchise, based on reviewing over 500 franchise offering circulars and twenty-eight plus years of experience in the franchise industry – including ownership of a very successful franchise. These factors to consider in making a franchise investment will help you eliminate 95% of the companies you are considering. Then, you can concentrate your efforts on the 5% “cream” of the crop” companies that may deserve consideration. This franchise checklist assumes you’re suitable for and willing to live within the confines of a franchise relationship. It also assumes the franchise company:

(1) has itself successfully operated the concept being franchised for at least five years at multiple locations;
(2) is not plagued by franchise litigation and franchise lawsuits from disgruntled franchise owners;
(3) does not have unusually high franchise attrition rates (owners who have “left the system”); and
(4) has a balanced, fair franchise contract.

SOLD It – An American Dream That Turned Into A Nightmare
An example of a franchise company in trouble that failed to meet basic threshold standards is iSOLD It, an eBay drop-off store franchise. The company started its one and only company-owned store in November of 2003. Just weeks later, on December 10, 2003 they filed an application to sell franchises. The California Department of Corporations didn’t say “What are you thinking? You’ve only been in business a couple weeks, how can you even consider selling franchises?” Nor did they require this be disclosed as a risk factor on the cover page of the Franchise Offering Circular, as it should have. Disclosure responsibilities ultimately rest with the company (and its attorneys), and this will become one of many issues in future franchise litigation.

Instead, the Department simply collected its $675 filing fee and issued an order declaring the franchise registration effective the next day – on December 11, 2003. Then the magic of franchise marketing  took over. By 2006 the company had nearly 200 franchised drop off stores in operation and was touted by Entrepreneur Magazine as #1 in their list of “Top New Franchises for 2007” and #17 on their “Hotter Than Hot” franchise list. Entrepreneur Magazine, which requires franchise companies to submit their FOC’s (Franchise Offering Circulars) for supposed review each year before they’re listed, didn’t consider the high attrition rate (franchise owners leaving the system) or the fact that the audited financials in their FOC showed the company hadn’t operated profitably since 2004 as serious negatives and awarded iSold It the #1 listing for Top New Franchises of 2007. How did all of this happen? It’s yet another bizarre reality in the world of franchising.

The franchise company’s audited financial statements for the year ended 12-31-05 showed an operating loss of $1.1 million. Nine months later, in September of 2006, the net operating loss mushroomed to over $4 million.

In its November 3, 2006 Franchise Offering Circular, the table in Item 20 disclosed a total of 10 franchise owners leaving the system, yet a hand count of Exhibit D-3’s “Former Franchisees” revealed a significantly different number – 44. A similar “discrepancy” exists about franchise transfers. Item 20 says 12 transfers whereas Exhibit D-3 discloses 27.

In a long overdue letter distributed to franchise owners on April 5, 2007, CEO Ken Sully painted a dire picture of an American Dream that had turned into a nightmare. Mr. Sully’s letter admitted the company has not been profitable since 2004 (according to the audited financials, the company showed its one and only operating profit of $356,286 in 2004 before the precipitous downward spiral of 2005 and 2006). Over 60 franchised stores have closed and many more are struggling for survival. Mr. Sully observed “Tragically, many individuals who believed passionately in the potential for the category have lost sizable investments, including homes and retirement savings.”

Lost homes and retirement savings? How could such a travesty happen? I counseled a number of persons considering an iSold It franchise and warned all of them against the investment. Fortunately, they followed my advice. The concept was never proven in the marketplace before franchise efforts began, violating the most basic Franchise 101 precept. I also felt the management team lacked strong franchise credentials and the five-day training program was woefully inadequate. Finally, the franchise company was operating increasingly in the red and had a high attrition rate (owners leaving the system). It didn’t take a lot of brain power to see this was an accident waiting to happen. I predicted the bubble would burst and, sadly, it did.

Common sense could and should have prevented so many people from losing so much. Unfortunately franchise sales persons appeal to emotions (passions and potential, to use Mr. Sully’s terms) and strive to keep common sense and business logic out of the buying equation. If a franchise company is able to obtain a ranking on a media list, the sale is even easier. Reprints of high rankings on lists, like Entrepreneur Magazine, are included in the package given to franchise buyers, who are lulled into a false sense of security and begin to stumble over each other in a rush to sign up before someone else takes their desired territory (another favorite closing technique used to sell franchises).

iSold It! amended its FOC at the end of May, 2007 to add some long overdue risk factor language to the cover page of its Franchise Offering Circular. Hmmmm… maybe they read my comments above and did a little research. The new FOC cover page risk factor language says their “franchise system is still new and unproven.” That’s very interesting. How can they say a franchise system, that’s approaching its fourth anniversary, is “still new?” Maybe they’re looking at things from a ‘how old is our universe’ perspective? The word “unproven” is another play on words. The system is most certainly proven in the sense that many people, to quote Mr. Sully, “have lost sizable investments, including homes and retirement savings.” So why not use this quote directly in their Franchise Offering Circular? Answer: can’t sell any franchises that way.

In an August 31, 2007 Business Week article, CEO Sully claimed it wasn’t necessary to disclose these risk factors in the FOC. His reasoning: “We told everybody that this is sort of like the wild, wild West” he says. “It’s a brand-new concept and nobody knew for sure where it was going.” Disclosure was added to the UFOC recently, he says, “because of the number of stores that weren’t understanding the complexity of the business.” Hello? You don’t tell your franchise investors after the fact what you were required to disclose in the FOC before they bought so they could make an informed investment decision. That’s the purpose of franchise disclosure laws. And claiming written disclosure of risk factors in the FOC is not necessary if a prospective buyer hears a salesman’s verbal wild, wild West story ignores franchise disclosure responsibilities and is really an admission the company failed in this regard. With its amended FOC, the company incredibly continues marching forward with franchise marketing efforts.

Now, let’s consider the franchise checklist and factors to consider before any leap into franchising.

INDUSTRY TREND
Is the franchise in a cutting-edge industry that is doing well currently and is projected to do well in the future despite any economic slowdown? Education and home-improvement services are stable categories. Food is over-saturated generally and, except in exceptional circumstances, is not worth the high investment, long hours, headaches and marginal income.

TOTAL INITIAL FRANCHISE INVESTMENT
In general, don’t expect a franchise that requires a five-figure initial franchise investment to produce a six-figure income. As with most things in life, you get what you pay for. On the other hand, don’t assume a six-figure investment will lead to a six-figure income level. Be realistic and conservative. Is the total initial franchise investment range (including working capital) $125,00 or less; and the maximum investment less than $200,000? You can find solid companies in this investment range if you’re willing to look around.

Don’t forget to consider long-term financial commitments, particularly the real property lease (see discussion below under “LEASING AND LOCATION”). Also, the working capital estimate (called “additional funds” in Item 7 of the company’s franchise offering circular) does NOT cover operations up to the break-even point. It only covers a short initial phase (usually only three-months) of operating costs As the break-even point (where revenues cover all operating costs) may not happen for one, two or more years, knowing only what it’s going to take to get you through the first 90 days is not helpful – in fact it may set you up for financial suicide. In many cases, reaching the break-even point can require more reserve funds than the total initial capital investment. Don’t ever forget the name of Item 7 in the Franchise Offering Circular: “Initial Investment.” If you don’t have enough reserve capital to reach the critical break-even point, your entire investment will go down the drain and franchise failure occurs.

One franchise owner in a relatively low investment and low operating cost window cleaning franchise said his biggest surprise was how long it actually took his franchise to be profitable. Going in, he thought it would take 12 to 15 months. It ended up taking twice that time. Fortunately, he had enough reserve capital to make it there, but declined to say what his actual franchise profits or income level were once he reached “franchise profitability.” If you’re operating just above the break even point and making less than minimum wage, is that anyone’s definition of success?

REAL BUSINESS
Is this a legitimate retail business, as opposed to a “work out of your home” operation? The vast majority of work out of your home concepts produce marginal income at best.

FRANCHISE MANAGEMENT EXPERTISE
Does the management team of the franchisor (the company selling you the franchise) have executives with demonstrated past achievement and experience in operating a franchise company (not just persons who have sold franchises)? If not, this is a big RED FLAG. Many companies enter franchising and fail to realize they are in a brand new business – one requiring entirely different management skills and abilities to navigate franchise relationships. A seasoned franchise management infrastructure must be in place. If the franchise management team lacks strong franchise credentials, or does not receive ongoing advice from qualified individuals, you might as well take a trip to Las Vegas with the money you’re intending to invest. Your chances of making vs. loosing money are roughly equal.

NORMAL WORKING HOURS AND DAYS; SUFFICIENT FRANCHISE INCOME LEVEL
Will the nature of the business allow you to work a normal five-day, forty-hour workweek? Life is too short for the seven-day, sixty to eighty hours a week, workaholic lifestyle that destroys health, family and pocketbook. Financially, we’ve calculated the true hourly rate for franchise owners who work these workaholic hours and discovered many are making far less than the minimum wage. One couple who operated a $200,000 fancy pizza franchise in an upscale mall were shocked to discover they were making fifty cents an hour each. Hardly an income level to recoup or justify the franchise investment. Many more fast-food franchise operators make even less, or operate at a loss until their funds, retirement savings, homes, etc. are exhausted. Buying a franchise in a non-food industry doesn’t necessarily improve the franchise profit picture. In a 2006 article “Mail Boxes Etc. Owners Fighting UPS Conversion,” a Mail Boxes, Etc. franchise owner who operated his franchise since 1993 reported profits for a typical MBE store like his were $16,000 per year after paying royalty and advertising fees to the franchise company. That calculates out to about $8.33 per hour for a forty-hour work week, approximately the wage of an entry fast-food worker.

Another major shortcoming of disclosures in the Franchise Offering Circular is not telling you how much money the franchises in the network are making. Instead of answering what is the most important question in a franchise investment decision, the franchise disclosure laws make this “optional” for the franchise company to answer or not. If they do answer this critical question, it will be found in Item 19. But don’t hold your breath – more than 90% of franchise companies “decide” not to answer this question. It’s another bizarre reality in the world of franchising. Although they collect complete monthly (and in many cases, weekly) financial profit and loss statements from their franchise owners, and know exactly how much their franchises are making (or losing), more than 90% decide not to share this information before you buy one of their franchises. A number of franchise salespersons have told persons asking this question: “the franchise laws don’t allow us to answer that question.” Nothing could be further from the truth.

And just because you’re a business executive making a 6-figure income now, don’t assume this income level will be duplicated in a franchise investment just because the company “approves” your application. One such executive, despite a plethora of negative feedback from current and past franchise owners who’d lost everything, marched forward with her franchise investment in a 30-minute fitness concept. Despite her 6-figure income, she didn’t invest a dime in professional franchise evaluation advice and stated she was taking a leap of faith, hoping to build her wings on the way down. Build her wings on the way down? Sound’s (and is) crazy, but this happens all the time. Due to the ploys of the franchise salesperson, too many franchise investment decisions are based on emotionalism. Prior business skills, business sense (and even common sense) are short-circuited. Needless to say, if this business executive made a similar investment decision for her corporate employer paying the 6-figure salary, she would be promptly fired.

MINIMUM NUMBER OF EMPLOYEES
Can you operate the franchise business with 6 or fewer employees? Managing dozens (or in the case of some fast-food operations – hundreds) of minimum-wage teenagers who are constantly quitting or simply not showing up for work is a royal pain in the ….. Well, you know what we mean.

LEASING AND LOCATION
For most retail franchises, the triple net lease of the location is the biggest financial commitment, larger than the total franchise investment. Yet, the typical real estate lease and its ramifications are not required disclosure in any Franchise Offering Circular (FOC). For example, an estimate that you’ll need 2,000 sq. feet of space with expected rental of $5 to $10 a foot per month is normally disclosed in the Franchise Offering Circular’s initial investment table as Leased Real Estate $10,000 to $20,000. A footnote to the investment table may say “assumes 2,000 sq. ft. at $5 to $10 a foot.”

But, that’s only the beginning of a much longer story. The lease is normally a 5 to 10 year triple-net lease. So, the financial commitment made when the lease is signed is at least $600,000 (at $5/foot for 5 years) to $2,400,000 (at $10/foot for 10 years). And this doesn’t include substantial, additional obligations to pay all of the landlord’s yearly property taxes, insurance, common area operating expenses, etc. With hundreds of thousands (or even millions) of dollars in financial obligations at stake, personal guarantees and other risks, more than just a warm, fuzzy feeling that everything will work out is necessary.

Key questions to ask here:

(a) is the franchise you’re considering one that can be operated in a low rent commercial business zone? Avoid franchises requiring the costly expenses and triple-net leases of a visible retail storefront and the extravagant rent associated with areas of high foot traffic, like shopping malls. You’ll sleep much better at night.

(b) What’s your total financial commitment under the lease?

(c) Do you have sufficient liquid assets (or a willing, sufficiently liquid third party guarantor) to meet the landlord’s lease qualification standards?

If you don’t, you might as well forget about investing in the franchise. Or even worse, getting involved in a questionable franchise and business model, then realizing you’ve made a big mistake – and discovering you’re on the hook personally for a $500,000+ lease obligation.

A related real estate variant is securing a lease with a sufficient term (with renewal options) to recoup your investment and make a profit. In July, 2005, an attorney in her mid-forties purchased an existing ice cream store franchise for $375,000 believing it to be a “once-in-a-lifetime opportunity.” Trading her briefcase for an ice cream scoop, she attended the company’s 11-day Ice Cream University and assumed operations of the ice cream store. Turned out it was an opportunity – but only to inherit a store with numerous problems. These problems included (but were not limited to) a lease that would expire the following summer and a landlord who’d previously announced the lease would not be renewed. Rather than pay the $100,000-plus in relocation costs, the attorney returned to the practice of law, but is still paying off $350,000 remaining on the loan taken out to buy the once-in-a-lifetime franchise opportunity. Although there’s a franchise lawsuit pending, it’s yet another case of “franchise fever” – this time attacking a professional no less. Who would ever commit to paying $375,000 for an existing retail franchise without checking out the l-e-a-s-e? Sound’s like another bad attorney joke, but I can guarantee she’s not laughing. Business fundamentals were ignored or forgotten in the rush to acquire the opportunity of a lifetime. And I’m willing to bet not a dollar was spent on competent, pre-investment franchise advice.

IMAGE AND LIFESTYLE
How does flipping burgers, scooping ice cream and cleaning restrooms fit the image of what you want to do for a living? Investing in a franchise will be the most important financial and psychological decision you ever make. Many prospective franchise owners fail to realize they’ll be wearing virtually every hat at some point, from salesperson to bad-debt collector, from firing employees to bathroom janitor. The franchise owner is usually the first one to arrive in the morning – and the last one to turn out the lights late at night. And you’ll need to forget about corporate perks like paid vacations, paid holidays and sick pay. In their place, substitute financial pressures, unexpected events and money draining out of your savings and retirement accounts. Does the typical working day and responsibilities of the franchise you are considering fit your personal image and desired lifestyle? You can experience some of this BEFORE you invest by working for a couple weeks in an outlet owned by one of the existing franchise owners.

TRUE FRANCHISE VALUE
Buying a franchise from a “blue chip” franchise company that has spent decades and hundreds of millions on advertising to develop their brand can make a lot of sense. These companies have “true franchise value” that compensates for the long-term disadvantages of ongoing royalty and advertising fund payments. Often these additional payments literally mean the difference between earning a profit and operating at a loss. In unknown franchise chains with little or no brand recognition, you the franchise buyer are building their brand from scratch, and are saddled with severe, long-term competitive disadvantages.

In these unknown franchise chains, you have to ask yourself a simple, common sense question. What value is the company giving you that you couldn’t learn on your own by working at one of their locations as an employee for a couple months? Franchise truth be told, what most unknown franchise companies are selling is just a business opportunity – teaching you how to get into a new business venture. But unlike a business opportunity seller that charges a one-time fee to help get you into business, they call it a “franchise” and charge ongoing royalty and advertising fees like they’re a McDonalds or other blue chip franchise company.

The reality is they’re not a McDonalds type franchise – not even close to one. In the majority of these lesser-known franchise chains, you’d be much better off starting an independent business on your own. You can learn most or all of their so-called “secrets” in the franchise interviewing process and by talking to (and possibly working a short time for) existing franchise owners.

FRANCHISE PROFITABILITY & “SUCCESS”
Dr. Timothy Bates’ study released in 1993 by the Entrepreneurial Growth and Investment Institute in Washington, DC (and another study published in 1996) was the first to compare start-up costs, franchise profitability and franchise failure rates for franchised vs. nonfranchised firms. In his analysis of some 7,270 firms over the test period, Dr. Bates found that startup capital for a franchised business averaged $85,293 compared with average startup capital for nonfranchised firms of $30,156. In 1987 nonfranchised firms reported average pre-tax net income of $19,744 as compared to a loss of (-$1,548) for franchised firms. Dr. Bates concluded “Despite their larger revenues, much better capitalization, and their supposed advantages of affiliation with a franchisor parent firm, the franchisees lag behind cohort young firms in profitability and rates of survival.”

The franchise companies ignore both studies by Dr. Bates, pretending they never happened. Instead, other techniques are employed. For example, some franchise companies use misleading success statistics to sell their franchises. Their promotional materials say franchises generally enjoy a 90% success rate, compared to less than 20% for independent firms. These figures are based on unverified information supplied thirty years ago by a select, non-representative group of franchise companies. A full third of the companies receiving “questionnaires “ elected not to participate. There was no verification of any of the information supplied by the franchise companies, not even random, spot checking. Nor was any effort made to identify franchise companies who, along with the franchise owners in their chain, had gone out of business.

Even more recent “studies” saying nine out of ten franchise owners (90%) consider their franchise to be somewhat or very successful also suffer from serious methodological flaws. These were simply telephone surveys of franchise owners who were still in business and asked to say (with absolutely no definition of the term “successful”) whether they felt their business was “very unsuccessful,” “somewhat unsuccessful,” somewhat successful” or “very successful.” Franchise owners who had gone out of business or bankrupt were not included in the survey.

Even if terms are defined and a representative sample obtained, franchise owners can be a quirky group. Hence the need, as in Dr. Bates’ studies, for review of financial data. I remember evaluating an existing franchise for a client. I asked the current owner of the franchise if his business was successful. He said it was very successful. But his financial statements revealed a different picture. He’d never taken a dollar out of the business for himself, never made a profit in two years of operation, and was on the verge of bankruptcy. Another owner of a bakery franchise, interviewed by Business Week, says being successful in franchising means “adjusting your definition of success.” He says he makes a profit, but declined to say what it is, or if he’s ever recouped his $250,000-plus initial franchise investment. Incredibly, he insists he’s in business “for lifestyle reasons, not profit reasons.” Huh? Probably a quote from the company’s franchise recruitment materials. In the world of franchising “success” and “profitability” are very subjective terms.

FRANCHISE BROKERS WHO FIND YOUR PERFECT MATCH?
Does the franchise you are considering have its own in-house marketing department, or does it utilize outside franchise brokers? The use of franchise brokers is a definite red flag. First, it indicates the franchise company is not very serious about who it lets into the franchise network, or even worse, they’re desperate to sell franchises. Second, franchise brokers receive a substantial commission up to 50% or more of the franchise fee you’re paying the franchise company. Franchise Broker Realities: (1) Their service is definitely not “free” despite these and other similar misrepresentations. It’s really common sense – how could anyone offer a “free” service and survive in business? Unfortunately, the common sense part of the brain tends to short circuit when the franchise brainwashing process begins. The simple truth is if you buy one of the franchises they’re hawking, your money goes to the franchise company, then into the broker’s pocket. If anyone ever calculated how much time they spend to collect their $15,000 or $20,000 commission, it’s probably a lot more than a brain surgeon earns. (2) Franchise brokers definitely do NOT have your best interests in mind. They will do or say whatever they have to in order to close a deal and earn their commission.

Many franchise brokers claim they will help you find a franchise company that is the perfect match for you. In the beginning it sounds good. There’s some personality testing and review of your personal finances. At the end of the day, it turns out they only represent (and steer you towards) a handful of small franchise companies you’ve never heard of before. A detailed analysis often reveals these highly touted franchises produce mediocre or even below minimum wage financial performance. Yet franchise brokers don’t mention this, and individuals continue to rely on their recommendations, believing the broker represents them. Nothing could be further from the truth.

Also, many franchise brokers call themselves franchise consultants. A franchise consultant is usually an independent adviser who offers advice to others (usually franchise companies or firms that want to franchise their business) for a fee. This makes their advice more impartial in theory as long as they are not compensated by third parties. Because they are not legally required to disclose actual or potential conflicts of interest, it’s important ask questions. For example, if you’re using a franchise consultant who is recommending the “best franchises,” are they paid anything by the companies on their list? This could be a commission, kick-back or consulting fee. As mentioned, many franchise brokers call themselves “franchise consultants” to hide their true identity. So, make sure if you’re dealing with a franchise consultant, he or she is not really just a franchise broker in disguise.

FRANCHISE DISCLOSURE LAWS
The franchise disclosure laws, while requiring franchise companies to give you certain, limited information, don’t come close to protecting your interests. For example, as discussed above, Item 7 of the Franchise Offering Circular only requires an estimate of additional funds for 90 days as part of the investment information. But economic reality is you need to know the additional funds you’ll need to reach the break-even point, which can be years away, or your entire “initial” investment will go down the drain. You’d think this type of information would be required by franchise disclosure laws, but it’s not.

FRANCHISE REGISTRATION LAWS
Don’t ever assume that because a company has registered its Franchise Offering Circular in your state, someone at the state has approved or reviewed the document in your favor. Franchise registration is obtained by simply forwarding documents and paying a filing fee – period. In most cases, franchise offering circulars are given an extremely limited review to ensure state-specific disclaimers are present.

I remember filing a registration application for a new franchise company in a state with a reputation for being one of the “toughest” franchise registration law states in the country. After the three-week review period set forth in the statute had gone by, and not hearing anything, I called the examiner assigned to the application. After looking through his files, he finally found my client’s offering circular and application. He apologized for entirely misplacing the file and promised to immediately review the application and call me back. Ten minutes later, he called to say he’d finished and was making the registration effective that day. Ten minutes of review and the franchise company was given the state’s green light. This is not an isolated case – it happens all the time.

WHAT STANDARDS MUST A FRANCHISE COMPANY MEET TO SELL FRANCHISES; ARE THERE ANY REQUIREMENTS TO FRANCHISE A BUSINESS?
Incredibly, the answer is – none. There are no minimum standards or requirements to franchise a business except preparing a Franchise Offering Circular. It’s yet another bizarre reality in the world of franchising.

You and I could have no background in any business, form a new corporation or LLC, capitalize it with only $1, put together a Franchise Disclosure Document and file it with any franchise registration state. While the offering may be subject to an impound or escrow requirement because of the low capitalization ($1), we’d still get “registered” and be able to sell as many franchisees as we want.

In these 14 franchise registration states, we may not be able to receive any money until each franchise actually opened, but simply posting a bond would alleviate this difficulty in the franchise registration states. And in the vast majority of states there are no franchise registration laws, so we’d be able to sell franchises and collect fees with impunity once we compiled our Franchise Offering Circular. The federal FTC Franchise Rule doesn’t protect against this risk either – it only requires disclosure (i.e. provide a Franchise Disclosure Document) and has no registration component or minimum standards for franchise companies.

Basic investor protections and requirements found in both federal and state securities laws for over 50 years were never carried over to franchise investments. While most non-blue chip franchise companies could never even qualify to sell you a single share of stock in their company, they are entirely free to collect unlimited franchise fees, ongoing royalties, equipment and other purchases, as well as cause you to incur financial obligations totaling hundreds of thousands of dollars, or even millions in some cases. This isn’t information you’re likely to find in the glowing articles about franchising and franchise companies prevalent in the media.

CLOSING REMARKS
Remember, you are the only guardian when it comes to your franchise investment. It’s definitely an environment where the phrase “Buyer Beware” applies. So, before you sign on the line and make what will undoubtedly be the most serious financial and emotional commitment of your life, get all the facts and figures.

One couple I counseled after-the-fact, invested $2 million in a new franchise company. The contract they signed gave them no right to terminate, no matter what the franchise company did or didn’t do. Of course, the contract gave the franchise company unlimited termination ability, a right it had exercised. The franchise company’s management team had no one with experience in running a franchise company. Incredibly, the couple had not spent a dime on legal or business advice before investing $2 million. The once friendly franchise company had transformed into a formidable foe and was poised to take over their franchise. Sadly, this happens too frequently in franchise investments. Decisions are made on fuzzy feelings and emotionalism. In an effort to save a couple thousand dollars, franchise investors risk homes, retirement savings, everything they have. Then they scratch their heads in amazement later on after inevitable and often horrific problems develop, wondering how they could have been so nearsighted.

Another indispensable level of inquiry is whether you’re getting true franchise value and whether you’d be better off doing the business on your own. In the overwhelming majority of franchises touted by unknown companies, franchise value isn’t there and doing the same thing independently makes better economic sense and actually decreases the risk of failure.

Finally, and this applies to franchise investments as well as investing in any business venture, develop a plan to succeed but also plan a franchise exit strategy that minimizes financial risk in case things don’t work out. Both plans need to be thought through before the investment is made. Don’t wait until problems develop to start thinking about a franchise exit strategy – by then it’s usually too little, too late.

For more information, visit the Franchise Foundations Website.

© 1990-2008, Kevin B. Murphy, B.S., M.B.A., J.D. – all rights reserved

Work From Home Mothers Who Want To Learn About Affiliate Marketing.

Whether you’re Mom with new born looking for extra income or a empty nest mom who doesn’t want to go back to a 9-to-5 job or just someone who’s stuck in a low paying job, Affiliate marketing is for you. I know they’re are millions of women looking for a door out of their boring routine and yet so many fail to take that first step in even trying a small business online. Unless you’re on the Internet promoting a product or service that has the potenial of reaching millions of people, then you’re just not “getting it.” That’s why I know that you will love with the idea of Affiliate marketing, once you see how it really works. Here is a list of just some of the benefits.

* You don’t have to have your own product or service to market.

* You don’t have to invest a dime to join a legitimate company’s affiliate program.

* You will have full accountablitiy on traffic stats, conversion rates, click throughs, and purchases made by visitors.

* You don’t have to deal with shipping orders or customer service.

* You can do this part time.

Ever since Amazon.com first started it’s Affiliate program in 1997, million of people have been making money as Affiliates. Forrester Research reports show that this business model will grow exponentially over the next few years. All you have to do is to direct surfing visitors on the internet to one of your offers. The best companies already have “landing pages” already designed for you with a sales page
and merchant account to take the order. You don’t need to know how to “Sell” any product or service. In fact you should not even try to sell.
Your job as an Affiliate is just to “warm up” or “Pre-sell” visitors with an article or blog so they will click through to your Affiliate page to your company’s Sales page to complete the order. You are given a”URL CODE” as an affiliate that is unique to you that is hidden or “embedded” in your website or landing page. This is your “Cookie” that is tracked by your company so you get credit every time a visitor clicks through your offer to the sales page. I know the aspect of not knowing how to sell stops a lot of people in their tracks from ever trying an online business. Don’t be afraid to start today. You don’t have to sell anything. All you have to do is write content about your niche product or service, especially if you already use that product or service yourself and feel passionately about recommending it to others.
There are various ways to get the message out as long as you are determined to succeed. 

How To Tell The Difference Between A Good Affiliate Program And A Bad One, Part Two

If you want to start a small business online but have no product or service of your own, then Affiliate marketing is your answer. Find out what the “Affiliate Model” is all about.
Remember the Affiliate model is a high reward/low risk plan where you do not have to invest a dime to join. That’s the first test. Some companies want you to purchase their vitamins, dish soap, etc first so you can “really recommend the products.” Don’t go for any of that because you’ll wind up with cartons of products in your garage and someone in your “Upline” telling you that all you need to do is “get out there and tell your friends.” You must understand that you need to promote your product or service on the Internet where you have the potential of reaching millions of people. I have been involved with one of the top Internet companies on the Web, we are 100% affiliate driven. It is widely regarded as the most rewarding and original program online. Look for a company that has been in business for at least 10 years with a proven track record.

You should be able to read testimonials from real people who have a profitable website today that you can contact with questions on how they did it. But it all starts when you overcome your insecurities and at least start as a Net marketing novice. You can start with ariticles on E-zine.com, blogs, forums and various other platforms to promote your affiliate offer. You must ultimately get your own website in order to get any good number of visitors. But take it step by step and as you do, you will see if Affiliate marketing is for you.
Please download your Free e-Book on Affiliate Marketing, the right way. Read the testimonials from successful people online today and click on to their websites that are live today so you can see the potential that is waiting for you.