We Finance Your Expansion, Compare Us to Other Famous Business Opportunities.
I am financing your expansion. First consider you are
looking at a concept that has been proven. We have portal
directors making thousands of dollars all over the world. At
least one of our directors is on track to earn over $100,000
his first year, and as our network ages I predict many will be
earning $250K or more per year.
Lets consider the possibility of going to a McDonald's
franchise. You can see your start up costs and fees here:
Quote:
"Costs & Fees
Total investment: $506K-1.6M
Franchise fee: $45K
Ongoing royalty fee: 12.5%+
Term of agreement: 20 years, renewable
Renewal fee: $45K
Type of Financing Available: none
Qualifications:
Cash liquidity requirement: $100K
Business Experience:
Industry experience
General business experience
Marketing skills"
End quote.
What that report is saying, is you will have to come up
with as much as $1.6 million of your own money, hand
McDonald's a fee of $45K, 12.5% of your sales, agree to
20 year contract, and have good business experience
and personal worth of at least $100K.
Les Christie reports this information at cnn.com which you can
view here: money.cnn.com
quote:
"Fast-food titan McDonald's breaks down earnings claims based
on three categories of store volume: $1.3 million in sales,
$1.5 million, and $1.7 million. All produced gross margins of
70 percent or better and an operating income margin of at least
24.6 percent. Out of that franchisees still must pay rent,
income taxes, and other fees.
Franchise: McDonald's
Business: Hamburgers
Franchise fee: $45k, +12.5% & 4%
Annual sales: $1.3m
Profit after cost of goods: $916k "
End quote.
We don't have numbers to figure out what your profit would
be out of that $916K per year Les Christie is quoting McDonald's
as saying you can expect an income margin of 24.6%, which would
be $338,000 per year. Out of that you still must pay your rent
income taxes and other fees.
I have read the history of McDonalds, and I know that their
profits over the decades have come from the rent of the buildings
to their franchisees, not the hamburgers.
McDonalds can charge a pretty nice fee for rent and many times
links it to a percentage of the sales. You can see some more
information about McDonalds' history here: http://en.wikipedia.org/wiki/McDonald's
How much does McDonalds charge for rent out of $338,000 per year?
"For the use of the Real Estate as a McDonald's restaurant,
McDonald's charge a monthly rent. This is based on the level
of monthly net sales (Total sales less V.A.T.), and currently
ranges from 5-19% (of monthly net sales). In addition,
McDonald's charges a monthly royalty of 5% of monthly net
sales. All McDonald's restaurants make an agreed contribution
to a separately managed marketing fund. The contribution rate
is currently about 5% of monthly net sales."
So it appears that the franchisees are paying 15% to 29% of
monthly sales as rent. Out of $1.3 million dollars in sales
that would be $195,000 to $377,000 per year.
Remember that rent comes out of your income margin of
$338,000. I am guessing that means if you "own" a McDonald's
franchise that is grossing $1.3 million per year in sales,
you can expect to take home $143,000 to $0 before your personal
income taxes.
Here are some more information on other franchises as reported
by Les Christie:
Franchises by the gross Most franchisors don't provide net profit figures. Here's a sampler of gross revenues and profits after cost of goods. Remember, you'll still have to calculate your rent, labor costs, taxes, and other expenses to come up with a final answer to how much you'll bring home.
Remember, "profit after cost of goods" is BEFORE
rent, labor costs, taxes, and other expenses.
So how does our opportunity compare? I can tell you
right now that compared to the possibility of $0.00
annual profit we are at least on level ground to these
titans.
We do not have a lot of history yet to prove ourselves,
as do the businesses listed above. But here are some
assumptions I believe I can honestly make:
1. We are not a franchise. This is a fact not an assumption.
Franchisees are often treated as mere employees. I am not
creating a business environment for employees, it is for
entrepreneurs and people who want their independence and control
over their lives.
2. You do not pay P.E.E.L. Inc. any fees based on the percent
of your sales. You simply pay a monthly fee and share some
advertising space at no cost to you with P.E.E.L. Inc. Your
monthly fee does increase when you have more than 175 premium
listings and 25 power pages, but this is necessary to make sure
we can handle the cost of servers, maintenance, and bandwidth
as your portal gets more traffic from the results of your sales.
3. You are not locked into a 20 year contract. The fact is you
have all the rights, you can keep your portal as long as you want,
you can cancel anytime you like.
4. You do not need to dig up $1.6 million dollars of your own
money to start this business. You can expand as fast as you
like to other city portals with no fees paid to P.E.E.L. Inc.
The limit to how fast you expand is based on if a city portal is
available for the area you want to expand into, and your current
fees you are paying for previous city portals to P.E.E.L. Inc.
In other words, if you are currently paying for 1 portal, but
then put in a request for 100 portals, your request may be
delayed until P.E.E.L. Inc. has a better payment and sales
performance history from you.
However, anyone should be able to expand by 1 or 2 cities per
month until a better history is established with P.E.E.L. Inc.
as long as each previous portal has regular sales coming in.
There can always be allowances for expansion made outside these
guidelines.
5. Your personal or business credit or history is not a factor
with P.E.E.L. Inc. Everyone gets a chance with their first
3 portals no matter your history. P.E.E.L. Inc. does not check
credit or business history.
Your history starts with P.E.E.L. Inc. What you build with us
is all we care about. Entrepreneurs have made mistakes in the past
and I am not going to penalize you for those.
6. Our company is based on sales and salespeople are usually hired
on a straight commission. It will be fairly easy to figure out
your costs for expansion.
So to sum up your expenses to expand into another city:
A. Printed order forms using copier from Kinko's.
B. Small classified ad on Sunday only.
C. Toll free or local number for voice mail.
D. Buy your prospective salespeople coffee for initial
meeting. I suggest you hire at the meeting.
E. Print indpendent contractor forms using copier from Kinko's.
F. Meet with your new sales crew as often as possible,
possibly breakfast.
G. Installation of your portal, free.
H. Operation of your portal, free 3 months if qualfied DM,
or about free 45 days if you are still qualifying to be a DM.
Your cost is very nominal. You may be looking at just a
few hundred dollars to expand into a second city. And
how much can you earn?
We do know that the portal directors that
are contacting local businesses themselves, and/or have
salespeople contacting local businesses, are making
$1,000 to $7,500 sales in one afternoon.
Lets assume that in each city you hire 3 great salespeople
that each make an average of $7,500.00 per week in sales.
If you are paying them 30%, this creates a weekly income
of 70% of $22,500.00 for you, which is $15,750.00. That
translates to an annual income of $819,000.00
To me, that sounds a HECK of a lot better than a McDonald's
franchise. What do you think?
Most McDonald's franchisees, 82%, open multiple franchises.
I assume this is so they can make a good living, as it does
not seem reasonable they can do so on 1 store.
If you open 10 stores, or 10 portals, based on the example
above you are looking at $2.5 million dollars per year
profit.
A McDonald's franchisee with 10 stores, over 10 million
dollars in investment, is looking at a profit of
$1.4 million dollars per year to $0.00 per year.
Your choices:
1. YourHomeTownPortal.com business
Invest a few hundred dollars to expand into 10 portals and possibly earn $2.5 million dollars per year
No credit needed.
No business experience needed.
Manage 3 independent contractor (IE) sales people per portal, 30 IE total.
Month to month quit anytime you like.
2. McDonald's Franchise:
Invest 10 million dollars to expand into 10 franchises and possibly earn $1.4 million per year tops. Maybe much much less.
Credit and business history required.
Manage 20 employees per store, 200 employees total.
20 year commitment per store. Pay $45K to renew your commitment.
Your decision:
I think that is easy to decide, dont' you?
Call free
1 (800) 399-9251 to listen to Timothy L. Drobnick Sr. on a 24 hour recorded message about becoming a portal
director for your town.
Sales is a numbers game! Pick Your Numbers!
Please note that some of our portal directors with experience in sales get 25% of
the business owners they give a presentation to purchase a premium listing. If you
are new to sales the industry standard is normally 10%. This in no way guarantees
you will have these percentages, but some of our directors report 25% closing ratio
once a business owner has been given a full presentation.
Experienced Salespeople's Chart
# of Free Business Listings Created This Week
# of Businesses Visited in Person
# of Presentations to Owners
$ of Average Sale
% of owners that purchase
Your Income This Week
100
50
20
$600
25%
$3,000
200
100
40
$600
25%
$6,000
300
150
60
$600
25%
$9,000
600
300
120
$600
25%
$18,000
100
50
20
$1,200
25%
$6,000
200
100
40
$1,200
25%
$12,000
300
150
60
$1,200
25%
$18,000
600
300
120
$1,200
25%
$36,000
New Salespeople's Chart
# of Free Business Listings Created This Week
# of Businesses Visited in Person
# of Presentations to Owners
$ of Average Sale
% of owners that purchase
Your Income This Week
100
50
20
$600
10%
$1,200
200
100
40
$600
10%
$2,400
300
150
60
$600
10%
$3,600
600
300
120
$600
10%
$7,200
100
50
20
$1,200
10%
$2,400
200
100
40
$1,200
10%
$4,800
300
150
60
$1,200
10%
$7,200
600
300
120
$1,200
10%
$14,400
Rights for City Portal Director in regards to territory. Portal Director agrees that there is no protected territory for Portal Director. Portal Director may sell advertising for Portal Director's assigned portal to any person, business, or area in the world. Portal Director understands that no other entity can sell premium listings for Portal Director's assigned portal without the permission of Portal Director. Portal Director understands that other Portal Directors may sell advertising to any person or business in the town with the same name as Portal Directors portal. Only one portal will be built per town. Portal director has control of assigned portal.
