Low Cost Business Ideas

6. Totally Different Quality of Life: Time Freedom And Location Freedom

Because of the immense profitability, almost zero overhead costs, the global customer base, the 24-hour 7-day a week opening hours, and the portability of the business – meaning that it really can be run from a single laptop if necessary, from anywhere you like – you have tremendous time and location freedom. You can really have a 4 hour work week by selling high-ticket, top-tier digital products.

This is what is referred to as the “Internet Lifestyle”: earning money from home (or wherever you like, like on vacation, in a coffee shop, etc.), passively, “while you sleep”, while also having the time to pursue the finer things in life, such as travel, luxury cars, amazing houses, time with family or pursuing your passions. If that is a lifestyle that you would like, then selling high-ticket digital products via a licensing arrangement may be better for you than getting a franchise, even a cheap one less than $10,000.

In fact, in the type of license arrangement that we recommend, an essential part of your full participation (but not mandatory) is to travel to exclusive masterminds with some of the top entrepreneurs in the online and offline business world, in the most exotic locations and luxurious resorts, to meet and share ideas with other internet and business millionaires, and to forge business partnerships. If life has become dull and monotonous, this type of activity can help you embrace and love life again.

Franchise owners selling physical products and services are often stuck to the physical location of their business. They usually have to oversee every aspect of their businesses and spend whole days and nights managing people, processes and accounts.

The irony is that many small business owners want to be entrepreneurs because they don’t want to be slaves to their jobs or bosses.  However, they end up becoming slaves to their business. In the end, they merely trading one master for another.

So even if you do become wealthy, you don’t have the time to enjoy it. You don’t have the time to participate in the life of you kids growing up. You miss out on spending quality time with your wife (or husband).  It becomes almost indistinguishable from having a J-O-B.

This is an important reason why we recommend purchasing a license agreement as opposed to a franchise.

7. Branding: Licensing vs. Franchising

The franchising model Top brand names franchises v. licensingdoes have a clear advantage over licensing model in terms of branding. That is, depending on your point of view. What I mean is that from day one, a franchise holder will be selling a well-established and well-recognized product, with a tried and tested sales and production process, under a well-established and well-recognized brand (in most cases).

The problem, however, comes if you do not have the budget to pay for the more well-known brands. For example, the best franchises under $10K as currently listed includes My Nutrition Source, Coverall Health-Based Cleaning System, IncomeShops, Motiply, iDealFurniture, Get Moving Supplies. While these businesses may be good ones, you don’t get the benefit of having a widely recognized brand name. In fact, you will probably be playing a crucial role in establishing these businesses in the market place.

A licensee, in contrast, needs to develop his or her own brand under which they will sell their licensed products.  In some cases, however, it may not be necessary to develop your own brand if the licensing company also has retailing facilities that they allow you licensees use. Even so, it is in your best long-term interest to develop your own brand under which you can sell the licensed products, as well as other products, and even your own products in future.

At the level of a $10,000, there is not much difference from a franchise in terms of branding because the franchises at that price point are not generally well known.

Furthermore, there is a certain pride that one gets from creating and owning one’s own brand. If being in business for you also means being independent, then being a franchise owner robs you of some of that independence since you are bound by a strict set of branding rules. If you are someone who takes great pride in your independence and freedom, in addition to the income, then the licensing model may make more sense than the franchise model.

In fact, once you develop your own brand, you can start to franchise or license out your products as well! Many digital product creators eventually develop into that level.

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