August 26th, 2010 at 09:26am
Under Computers & Internet
Working the Internet Business is a fantastic new age method of making a living with your laptop while staying at home. A work from home business network marketing opportunity can help you earn good money without having to invest large caputal on inventory and stock. Before, investing time and money in a work from home business, there are a few things you may like to note about his business. First, you should know that work from home businesses require hard work and effort on your part. If you are hoping for a get rich solution, then this is not one of them. It requires at least a 3 month plan to make it work. Secondly, when in the MLM business, you should be a good team player, willing to accept suggestions and advice to improve yet discerning to learn what works for you. Third, you should be versed in your product as well as the marketing system you are using to market it. Fourth, helping others is helping yourself and you should make it a point to help others on your team succeed.
Promoting your product and recruiting new members.
In order to earn a great income from a home-based business opportunity network marketing, you’ll need to spend efforts promoting your product and building your team. You are expected to generate sales as well as to build a team by recruiting and training new members when you join a network marketing company or group. Study the structure of any network marketing and you will learn that this is where you’ll be spending the bulk of your time.
It is likely you will not earn much simply by purchasing the product from the company and selling it to friends and family. This is called direct selling and is not profitable in the long run and too time consuming. So long as you use the product, you will be eligible for commissions and this is a normal precondition. This is usually not a large amount that you need to consume to be eligible for the overriding commissions.
Regarding the recruitment of new members, you can earn more income if you have a large downline under you, so it is important that you recruit new members to work the business. You should also try to help your downline to duplicate your success. There are systems on the Internet that can be used for this purpose. System like these used Direct Response, Internet Marketing and Multi-tier structures to build MLM membership businesses.
By item
June 29th, 2010 at 09:16am
Under Business to Business
There are many different ways that you can create a home base business online opportunity. Within this article today we are going to look at creating a home base business online business opportunity.
You’ll discover three easy ways to create your own home base business online opportunity in this article. Also, you can start earning money from those three ways in a minute.
The first one that we will look at is to become a freelance writer. This is a great way for you to make extra money if you need some part-time income but it is not as something that you can do on a full-time basis. It is often hard because there are so many writers out there that the amount of money one can make off of freelancing might not be enough to pay the bills. This can be a great way to start and get your feet wet working online because you’ll have several different opportunities to learn about different areas of the Internet. Many authors have been given the base business home online opportunity to write and learn about different subjects such as writing for e-zines and other online opportunities. This can make you savvier about the Internet and how you could further create a home base online business opportunity through your talent and insights from your freelancing experience. If you are interested in learning more about freelance writing, you should look into elance.com, directfreelance.com or freelanceworkexchange.com.
However, I would highly recommend looking at freelanceworkexchange.com because if you join for a week, you can see a variety of jobs that they have to offer as well as be able to download an in-depth ebook on how to make good money freelancing. This e-book is very valuable and gives you some good ideas to make extra money freelancing or how to market yourself adequately as a freelancer.
Alternatively, another way you can work in creating a home base online business opportunity is to work on building a website built around a particular theme or niche. This does not take a great deal of money and if you work at this, it can build up into a very nice part-time or full-time income for you. You may not see instantaneous results but if you take time every day to work on developing your website you’ll be pleased with the end result. If you want to find some underserved niches that are in need of a good website to be built around this, take a look at the following website: www.findhotniches.com. This website will give you particular information on how to build a website and a niche as well as particular niches that need some development. You are given all the tools and you have to take your time and develop a website.
Hopefully this article today on creating a home base online business opportunity is giving you some food for thought. We only looked into a couple of possible suggestions but if you take the lessons learned here and search the Internet and keep an open mind, you can find anything that can possibly interest you. If you look the website www.clickbank.com and look around at the different products, you may find an affiliate program that you may want to market as well. What is great about this particular website is that everything is already set up as far as products are related and all you have to do is figure out how to sell the product. This will go back to you learning more about Internet marketing and about the different strategies that you can do for this.
Final thoughts, making money with writing, website and selling other people’s stuff are easy ways to start your own home based online business opportunity. You can make big money online from home through those three ways if you know properly how to use them. Of course, you won’t see the results or get rich overnight. All you have to do is put more effort and time and you will be delighted when your home based online business is successful.
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*Reprint Policy: Reprint in full with writer’s name, contact information, active links and brief bio.
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By item
June 21st, 2010 at 09:56pm
Under Business to Business
What’s the difference between franchising vs. licensing a business? The starting point in the franchising vs. licensing a business analysis is to consider the legal aspects, then the business aspects. In considering the legal aspects, begin with the following premise that applies to both options. If you put someone into business (or allow them to use your business name/mark) this transaction will normally be a regulated activity, subject to substantial penalties for noncompliance.
This guiding legal principle, coupled with the business aspects of selling a franchise vs. a license (discussed below) will answer most franchise vs. license questions. Advice from a competent franchise attorney is indispensable.
BACKGROUND OF FRANCHISE & BUSINESS OPPORTUNITY LAWS
Why does regulation exist? The government, due to documented past abuses where tens of thousands of individuals lost all of their net worth by investing in nonexistent or worthless business endeavors, has devised two principal consumer protection mechanisms:
(1) franchise disclosure-registration laws; and
(2) business opportunity laws.
The thrust of these laws is to require sellers to give potential buyers enough pre-sale information so informed investment decisions can be made before money changes hands, long-term contracts are signed and sizeable financial commitments are undertaken. Under federal regulations, a Franchise Disclosure Document (FDD) covering twenty-three individual chapters and a hundred or more pages in length must be prepared and given to every potential buyer at least 14 calendar days before any contract is signed or money paid.
It doesn’t matter what terms are used by the parties in contracts or other documents to describe their relationship. For example, the contract may call the relationship a license, a distributorship, a joint venture, independent contractors, etc., or the parties may form a limited partnership or a corporation. This is entirely irrelevant in the eyes of governmental regulators, in particular the Enforcement Division of the Federal Trade Commission (FTC). Their focus is not on semantics, but on whether a small number of defining elements are present or not. Today the industry is subject to a complex web of regulations that differ from the Federal level to the state level and differ widely from state to state.
Firms or individuals that say calling it a “license” dispenses with legal regulations are delusional and wrong for at least three reasons:
(1) Common Sense – if it was really that easy, everyone would would be doing it that way. The 3,000-plus companies that are franchising are not stupid. Many of them can afford the best legal talent available. It’s not a coincidence they’re all franchising and not licensing;
(2) Even if the relationship is not regulated under franchise law, business opportunity laws (discussed below) will apply, and complying with these will be a lot more expensive than going the franchise route; and
(3) Any analysis must include federal as well as applicable state laws.
This all reminds me of some financial planners who still advise clients filing U.S. income tax returns is not required under their interpretation of the U.S. Constitution. It just doesn’t work that way. Actually it only works until the IRS catches up. The “licensing avoids franchise regulation” spin (which, not surprisingly, is not accepted in the legal community) also only works until the company gets caught. The logic (not) goes something like this: licensing arises under contract law, not franchise law and therefore franchise law doesn’t apply. Sound’s just like the “you don’t have to file a tax return because tax laws don’t apply” argument.
Here’s a real life example. A “licensing attorney” prepared a dealer license agreement and ignored the FTC Franchise Rule disclosure requirements. The dealers became disgruntled and hired a litigation attorney who sued the company, not surprisingly, for selling illegal, disguised franchises. It cost the company $750,000 to go to trial in federal court to answer the question “Is this contract a franchise?” It’s always a very expensive question to answer. Trying an end run around the franchise disclosure laws by calling it a “license” may be a cheaper way to go initially. But it’s not a question of if you will be caught, the only question is when. Be prepared to spend mind-boggling amounts down the road when the disguised franchise is challenged for what it really is.
In a 2008 case, Otto Dental Supply, Inc. v. Kerr Corp., 2008 WL 410630 (E.D. Ark. 2/13/08) another disguised franchise vs. a license was at issue. The licensor claimed it sold just a license, not a franchise and the franchise laws didn’t apply. It made a motion for summary judgment to have the case thrown out of court. The federal Eastern District Court ruled against the licensor and ordered the case onward. It said whether or not the license was really a franchise was up to a jury to decide. Juries apply common sense to the simple defining elements of a franchise. They are not swayed by semantic arguments like “licensing arises under contract law, not franchise law and therefore franchise law doesn’t apply.” Another expensive franchise vs. license learning lesson.
This is not to say licensing a business isn’t a viable option in foreign (out of U.S.) transactions where U.S. laws don’t apply – but these are a very small minority. Most transactions and contracts cover U.S. activities and residents, so the franchise vs. license question is an easy one to answer. Even inside the U.S. there are some cases where calling the relationship a “license” makes sense. Years ago, a company selling education franchises to university professionals called their contract a license. To comply with applicable laws, a full franchise disclosure document was prepared and registered. For strictly marketing reasons, the “franchise agreement” was called a license agreement within the franchise disclosure document.
The list of required defining elements is quite short, and although certain franchise exemptions and exclusions are available, the franchise statutory framework was designed to pigeonhole these relationships into either a franchise or business opportunity box. Normal license agreements contain certain “control” provisions (right to audit, require reports, mandate suppliers, etc.) and the presence of ANY control or assistance provision (operations manual, training, site or other assistance) is enough to satisfy these elements of the Rule. In fact, the title of the FTC Rule says it all: “Disclosure Requirements & Prohibitions Concerning Franchising and Business Opportunity Ventures.” So, the focus must be on which box is better to use, not on how to avoid using either box.
THE FRANCHISE BOX – REGULATION BY THE FEDS
Let’s consider the franchise box. Under FTC regulations that became effective in 1979 a thick document (now called a Franchise Disclosure Document) must be prepared and given to prospective buyers for a minimum of 14 calendar days before any money is paid or contracts are signed. This document now contains 23 items or chapters of information, as well as current financial statements and a copy of the actual contracts used.
As mentioned, this document is designed to give prospective buyers enough pre-sale information about the company, its financial condition, the proposed contract, investment requirements, trademark rights, exclusive territories, etc.,so informed decisions can be made before long-term contracts are signed. For companies that attempt to disregard federal law, the FTC Act authorizes the Commission to recover civil penalties of up to $10,000 for each violation of its Rule, plus injunctive relief, consumer redress (obtaining complete refunds, canceling contracts), etc. Because each sale can involve multiple violations of various regulatory provisions, these fines can be substantial and far outweigh the cost of doing it right the first time.
Selling a disguised franchise (an illegal franchise) as a “license” can be the most expensive mistake a company ever makes. One need only consult the franchise registration filings of various states to see the significant number of companies that fall into this trap. They started out selling “licenses,” operating under misguided advice, in a vain attempt to save money. Then, they either get sued for selling an unregistered or illegal franchise. Or they finally get competent legal advice that what they’ve really sold are disguised franchises, even though they were called a “license.” The governmental agencies require them to offer full rescission rights (cancel the license, refund all money that’s changed hands) to all persons they’ve sold “licenses” to. Defenses like “we didn’t sell a franchise, we only sold a license” or “it’s a license and a license arises under contract law, not franchise law” just don’t work and never have. In the end, they pay a lot more to have it done the way it should have from the very beginning. And for those disguised franchise owners who usually exercise their “let’s get out of this license contract” rights given to them by the regulatory agencies, the sellers end up putting them into the business for free plus having to refund all the money they paid. Not a pretty picture.
STATE REGULATION OF FRANCHISING
Because regulation of franchising is at the federal and state level, the effect of state regulation must also be considered. The FTC Rule sets minimum standards and applies in all states, unless a particular state sets higher standards, and then that state’s law applies. In 1971, eight years before the FTC Rule went into effect, the State of California was the first to enact a franchise disclosure-registration law where a franchise registration process is required before franchises can be offered (i.e. advertised) or sold. The California Franchise Investment Law was in response to a wave of consumer franchise complaints. Other states soon followed California’s lead, leading to a situation where franchise companies had to follow different rules in each franchise registration state.
To alleviate these difficulties and achieve a uniform format, a group of Securities Commissioners from various states adopted a Uniform Franchise Regulation, effective in 1977, known as the Uniform Franchise Offering Circular (UFOC) format. All states requiring franchise registration followed the UFOC format, a thick document also containing 23 chapters of information. None of these states accepted what was then known as the FTC’s Basic Disclosure Document. To ease the obvious predicament created by UFOC vs. FTC format, the FTC allowed companies to use the UFOC format as an alternate to its Basic Disclosure Document. In 2007, the FTC adopted its own version of the UFOC format, known as the Franchise Disclosure Document or FDD. The FDD format is the required format in all states beginning July 1, 2008.
FRANCHISE BOX SUMMARY
Bottom line on the franchise box: By preparing a single franchise disclosure document (at a cost of about $30,000), a company satisfies the federal requirement and is positioned to offer and sell franchises throughout the United States. Although certain state-specific information and disclosures may be required in the minority of states having a franchise registration-review process, this can normally be accomplished in a couple of extra hours per state.
THE BUSINESS OPPORTUNITY BOX
Now, let’s consider the business opportunity box. At the state level, there are approximately 24 states that regulate and register business opportunities. Unlike the franchise box, there is no such thing as a uniform business opportunity disclosure format. Business opportunity rules and registration requirements differ in each business opportunity state. Many of these states also have a “cooling off” period, usually a couple days after the sale where buyers can change their mind for any reason and receive a full refund.
For a company that’s going the business opportunity route two different documents may need to be prepared and provided: the FTC’s Basic Disclosure Document (if the business opportunity fits the FTC’s definition of a business opportunity) and a state’s more abbreviated business opportunity disclosure document. Also, different timelines may need to be observed: the FTC’s 14 calendar days before, and a business opportunity state’s cooling off period after.
Bottom line on the business opportunity box – if you’re an attorney with a business opportunity or “licensing” client, get ready for hundreds of billable hours, you’ve just landed a big one. But, if you’re the business paying the legal bills, it’s going to be a lot less money to go the franchise route. Prepare a single, Franchise Disclosure Document, register in a state or two as expansion efforts begin, and you’re essentially done.
There are also other factors to consider in the franchise vs. business opportunity analysis, including liability issues (definitely a greater risk in the franchise arena) but these are beyond the scope of this article, which is not intended to offer legal advice. Companies should consult with competent, informed legal counsel about the specifics of their particular situation before making any decision.
THE BUSINESS ASPECTS OF FRANCHISING VS. LICENSING A BUSINESS
The business aspects of the franchise vs. license and business opportunity options are relatively straightforward. It all boils down to image from a marketing standpoint. From a credibility standpoint, does your company want to stand toe to toe with the likes of McDonalds, Radio Shack, H & R Block and other franchised household names? These are the mental images formed in the mind when an average consumer hears the word franchise, along with familiar, highly advertised slogans like “being in business for yourself, but not by yourself,” “complete training,” “support where and when you need it,” etc.
This, coupled with the complete package of training, start up and ongoing support services offered by franchise companies, makes a franchise a more attractive commodity in the eyes of the prospective buyer and an easier sale. The same applies to firms that first sold “licenses” then switched to selling “franchises.” These companies report they attracted considerable interest and far more inquiries when offering “franchises” compared to when they offered “licenses.” So, even from a business standpoint, the franchising vs. licensing a business question is easy to answer. In addition, and as discussed above, a “license” is almost always a franchise in disguise, a ticking bomb creating significant legal issues if the FTC Rule (and corresponding state franchise registration laws) are not followed.
THE BUSINESS ASPECTS OF FRANCHISING VS. BUSINESS OPPORTUNITIES
Business opportunity ventures, when compared to franchises, suffer from definite image problems that translate into difficult marketing issues. If you ever need proof of this, just attend any business opportunity show or expo. You’ll see a host of fly-by-night opportunities such as worm breeding in backyards, exotic plants raised in glass bowls, condom vending machines (not a bad idea these days) and the like all promoted by fast-talking, high pressure salespersons. Does your company really want to be associated with these companies and the reputation they project? Poor image, coupled with the fact that business opportunity ventures typically provide little training and no ongoing support, make them a much more difficult sale to prospective buyers. In a business opportunity, the buyer is just thrown a ball, and it’s entirely up to them how to run with it.
CONCLUDING REMARKS
From both a legal and business perspective, the franchise vs. license choice is an easy one to make. Doing it right the first time will save money and significant legal headaches down the road. The individuals prevalent on the internet who claim (via very unprofessional-looking websites) that merely calling the relationship a “license,” are only selling a future lawsuit. They are not looking through the lens of an expert with almost three decades of experience who has seen first-hand the havoc these “disguised” franchises cause. Instead, they are attempting to make easy money – at your expense. From the most basic, common sense perspective, if it looks like a Duck, talks like a Duck and walks like a Duck – . . . it’s a Duck.
© 1990-2009, Kevin B. Murphy, B.S., M.B.A., J.D. – all rights reserved.
Known in the industry as Mr. Franchise, Kevin B. Murphy is an internationally-known franchise expert, San Francisco-based franchise attorney, author, and instructor. He hold degrees in Business Administration (B.S.B.A.) and Law (J.D.) from the University of San Francisco and a Master’s degree in Business Administration (M.B.A.) from San Francisco State University. For over two decades he has specialized exclusively in the franchise industry and owned a very successful franchise in the home improvement field. He has written over 40 publications, including four books on franchising and one book on trade secrets. Mr. Franchise instructs franchise company personnel in best franchise practices. He also teaches franchise law, licensing and intellectual property courses to attorneys as an approved MCLE Provider by the State Bar of California. He has drafted, reviewed and negotiated over 500 Franchise Disclosure Documents. Mr. Franchise is Director of Operations for Franchise Foundations a San Francisco-based professional law corporation.
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By item
June 11th, 2010 at 03:02pm
Under Computers & Internet
Why would you want to involve a short attention span candidate in your Internet network marketing business? After all, are these not the folks that get lost stringing more complex thoughts together while at the same time not being able to sit still long enough to truly appreciate the depth of the information you are sharing with them? While it is true that a short attention span candidate may be a bit of a challenge to place into your down line, their value is indisputable: social butterflies, highly energetic, the toast of the town and the life of any party, this is the person who draws others like a magnet. For every batch of leads which you have to obtain with your hard earned money, this kind of down line candidate will be able to bring you a similar batch within a fraction of the time at no cost! Furthermore, since these leads were generated by someone with that kind of enigmatic personality, the odds are good that the majority of these leads will be qualified, whereas the majority of the leads you can purchase are more or less generic. Thus, wooing a short attention span candidate for your down line is a major success story – but it requires a bit of finesse!
Explaining your Internet network marketing business opportunity to a short attention span candidate will require you to showcase the product and the network from the angle of fun, excitement, usefulness but also wonder, opportunity, and advancement. It is vital that you do not overwhelm this candidate with too many facts but instead break down the information you are going to give and only provide the kind of facts that are the most vital at the moment given and which at the same time will provide the hook that will cause the short attention span candidate to listen for more facts.
It is hard for novices to persuade these kinds of candidates to buy into an Internet network marketing business opportunity simply because they will mistake the jubilant personality of the candidate for definite buying in signals, only to realize that they failed to amaze the short attention span individual sufficiently to cause them to sign up. The trick to dealing with this kind of down line candidate is to first let them try the product, then turn them into a customer, and only later on, when the candidate has become a repeat buyer, to broker the suggestion that she or he will want to buy into the Internet network marketing business opportunity. Knowing what makes this kind of customer buy your product time and again will tip you off to the course of action to take when involving this person in your down line. In addition to the foregoing, it will also help you to understand how to go about training them so that they will be able to train their down line in turn. Generally speaking, it is the experienced network marketer who will have the most success with this type of candidate while it is the newbie who will be wise to first hone their people skills and also sales skills prior to attempting a business partnership with this personality type.
By item
March 4th, 2010 at 09:21am
Under Home Business
The idea of running your own home business is more popular than ever before. There are hundreds of books and thousands of websites offering advice and ideas. It can be over whelming to choose which venue to pursue. When it comes to your home business choice it can be made much easier if the business does not require a large amount of capital and it is simple to start.
Searching numerous sites and scouring through home business books you will find that there are five simple to start business that will appear and reappear. These opportunities include a match making service, sewing and alteration service, cleaning service, pet sanitation service and a fitness consultant. With these services there is little money needed to begin and there are few supplies needed other that talent or experience.
Match Making Service
There are numerous sites offering to help you find your soul mate. There are quizzes and questionnaires to fill out. All of the information is calculated to find your true love. If you happen to be a good judge of character you could begin your own match making service. You can do interviews by phone or the Internet or meet with each person one on one. Then you could match the qualities of each individual for romantic connections. There have been several people who have made a successful income as well as found a great sense of purpose in this career.
Sewing and Alteration Service
Have you ever visited an alteration shop and received the bill and gasped aloud. Alterations can be pricey and you may have to travel a good distance to find a seamstress. There are several people who are taking advantage of this opportunity. They charge a much more reasonable price due to being able to run this business from home. You may not have even considered this opportunity before. After researching this job opportunity I myself became aware of a young woman who is only a block away from my own home running a home based alteration service. She is capitalizing on this golden opportunity.
Cleaning Service
This opportunity has been around for years and is becoming rapidly more popular as peoples lifes become busier and busier. With moms and dads working as well as running their children to and from school as well as activities practices, there is little room for house cleaning. This is also a great service for the elderly or those suffering from asthma. Many of these people are unable to vacuum or dust due to illness. You would not only be earning an income for yourself and your family but you would be helping others to fulfill a need.
Pet Sanitation Service
This is a professional manner of saying pet mess cleaner. Even the biggest pet lover does not enjoy cleaning up fecal matter out of their yard. For many apartment owners who allow pets, they find their apartment grounds swarming in waste. A pet sanitation service provides clean up of this product for a fee. This job may not be the most enjoyable but you have to admit it is not a complex position. Not only are you earning income and making the environment more sanitary, you will be getting plenty of exercise with all of the walking.
Fitness Consultant
Depending on what areas you provide services for, this may or may not require a degree or training. A person who has been a fitness trainer for a gym is not always required to have a degree. They do have to take training on muscle groups and nutrition. This training can be learned from books from your local library or research online. For those who are prior military men or women, they have had extensive fitness and nutrition training.
A job as a fitness trainer would be a key opportunity. You would however have to advise your clients that they see their physician for a check up prior to beginning a regimen. You want to understand if there are any illnesses or conditions that you should be aware of. Providing basic information and being a motivating force for people is generally what they are willing to pay for. Some one is needed to tell them to put down the chips and put on their walking shoes.
These five opportunities are available and truly are simple to get started. As long as you have the time and you put forth the effort you can begin your own home business in a short period of time.
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