The Herne Group Business Resource is indispensable for any small to
medium sized business and comprises the following:
-
Practical Business Skills Training Resource
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Business Technical Knowledge Bank
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Business Administration Support Package
-
Discount Business Suppliers Forum
-
Monthly Newsletter full of useful information
and the latest updates
As a franchisee there are several ways of selling the business resource.
You can either:
-
Sell it direct to the small business
-
Sell it via professionals such as a lawyer or accountant
-
Sell it through third party business organisations
The type of method used will determine the price structure that you
charge.
Let's look at a few examples.
Example
1
Sell via professionals
If you sell a licence for this resource to accountants, bookkeepers,
etc then a fee of £795 + VAT will be charged with an annual renewal
of the same amount.
The accountant can then provide this resource for all of his/her clients
at whatever price they choose. If they want to, they can supply it to
their clients for free as an incentive for the client to stay with the
business or to provide an added value to the service that they currently
provide for their clients.
Some accountants may decide to charge their clients a monthly fee of,
for example, £5 per month. Others may charge an annual fee of
£99 + VAT. The decision is up to the accountant, but for an annual
license fee of just £795 the accountant can supply the material
to literally hundreds of clients and either make money from this, or
use it as an added value resource to give them a market advantage.
Given that most accountants have between 100 and 500 clients per partner,
this means that for every client that has access to The Herne Group
Business Resource, the accountant is paying a maximum of £7.95
per annum per client for 100 clients, or as little as £1.59 per
annum per client if they have 500 clients.
Each year the accountant pays the renewal fee to continue to supply
this resource to their clients.
As a Herne Group Franchisee you are paid 70% of every initial fee -
£556.50 from every sale, and 50% of every renewal fee, every year
– £397.50. The renewal rates are typically very high, because
once the accountant has taken this resource on board and seen the benefits
he or she is very unlikely to take this facility away from their clients.
This franchise business model offers a win for everyone:
-
The accountant wins because he gains access to
a product that is highly beneficial to his clients and will provide
him either with an additional income stream, an added value for his
clients, or a combination of both.
Example
2
Sell Direct to the Business
You can also sell the resource directly to small business owner/managers
at a cost of just £99 +VAT enrolment fee, and then £25 +VAT
per month ongoing. Again, as in example 1 above, you earn 70% of the
first year fees and then 50% of the fees from year two onwards.
So in the first 12 months of any new business joining, you as the Franchisee
will receive a total of £279.30 (£69.30 + £25 x 70%
x 12 months) from that new client.
Plus
An annual renewal income of £150 (£25 x 50% x 12 months).
Provided that the client continues to subscribe to the business resource
for the next five years the Franchisee will have earned £879.30
from that single client. As you can see, provided that you continually
sell to new businesses, your renewal income can grow substantially in
the years ahead.
Once again the advantages to the business are obvious:
-
The business gains access to quality skills training
resources that would previously be well outside their financial resources.
-
The business can access the free technical knowledge
bank on matters such as Health and Safety, Employment Law, Environmental
Issues, and IT information.
-
The company can save money on a regular basis by
accessing our special discount arrangements with various companies.
-
The company can use the full business resource
for its existing staff members and for any new individuals that may
join the company. The material will be continually renewed and updated
for as long as the company subscribes to the business resource.
It is highly likely that the business savings element of the resource
alone will pay for the monthly and annual subscriptions many times over.
Individual businesses will in most cases receive more offers, discounts
and additional benefits than the standard group clients of professionals
and organisations for reasons explained on the training course.
Example
3
Sell via
various Business Organisations
You can sell the resource via various business associations and organisations
and negotiate a price to supply either the total business resource or
to only provide parts of the resource depending on the organisation's
requirements. For example, some organisations may prefer to offer their
own business discount service.
There are many different types of organisations that may be interested
in or that can be approached to sell our business resource.
For Example:
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Small business clubs
-
Chambers of commerce
-
Business franchisors
-
Business websites
-
National Associations
When selling to organisations the price to supply the resource is
negotiable and depends on various factors such as:
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Size of the organisation
-
Type of resource supplied
-
Length of the proposed contract to supply the resource
-
Geographic spread of the organisation
-
Potential initial and future income
When negotiating with larger organisations Head Office will assist
the Franchisee in putting together a suitable business proposal and
in major potential contracts may provide personal assistance in the
presentation and negotiations of such proposals.
So these are just a few of the examples of the different target markets
that can be approached by Franchisees to sell The Herne Group Business
Resource.
Your sole role is to sell the resource. The Herne Group head office
handle everything else. Once your client has signed the licence agreement,
and paid their money, your job is done and you can move on to the next
sale. With many franchises you have to sell the product and then complete
the work, e.g. car air conditioning, gardening, locksmiths, cleaning,
etc. With The Herne Group franchise, once you have sold the product,
your work is finished, head office handle everything else.
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